The Asian Development Bank (ADB) will support the Government of Uzbekistan to reform public finance management through its US$20.7 million loan.
The bank will help Uzbekistan to improve preparation and execution of state budget and increase economic growth in the most populated Central Asian state.
ADB Board of Directors approved on 28 June 2007 a project "Public Finance Management Reform", which will be implemented by the Uzbek Finance Ministry within four years. The bank also issued US$600,000 additional grant.
Mr. Hong Wei, ADB Country Director for Uzbekistan and head of project, said the [project will improve planning and use of public finance resources and it will help increase efficiency and transparency of budget execution.
The project will comprise of three components: (i) establishment of a nation-wide institutional network of Treasury offices and support for budget reform and training; (ii) modernization of treasury operations; and (iii) project management, monitoring and evaluation.
The ADB loan will cover main cost of the project with total cost of US$37.4 million. The loan issued for 25 years with four-year grace period. The ADB grant will cover part of US$720,000, which is needed to strengthen capacity of state structures on realization of public finance management reform.
Uzbekistan joined ADB in 1995. Cumulative lending to the country stands at US$974.9 million for 23 projects, including projects in the educational sector (27%), agriculture and natural resources (25%), transportation and communication (19%). ADB has also provided 67 technical assistance grants to Uzbekistan totaling US$34 million.
ADB is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 67 members - 48 from the region. In 2006, it approved loans and technical assistance totaling $8.5 billion and $242 million, respectively.