Ministry of Agriculture and Water Resources to raise $990 million for 27 investment projects.

Over the past 20 years, Uzbekistan attracted about $700 million of loans and grants from international financial institutions to the agricultural sector for the implementation of infrastructure and institutional projects.

The works worth $255 million under 21 projects were carried out in the water resources sector at the expense of foreign governments and international financial institutions.  Thus, the country has built irrigation networks and inter-farm collectors of more than 500 km length, carried out the laser-leveling of 1,174 hectares of land, purchased about 300 items of agricultural equipment, 14 large pumps, 8 dredge ships and 4 hydroturbines that meet all international standards.

As a part of the Uzbek drainage project, the country reconstructed the main 300-km collector in in southern Karakalpakstan, improved the reclamation of 100 hectares of irrigated land, which allows the republic to save 1.5 billion soums of budget funds annually. The launch of hydraulic turbines at Andijon and Ohangaron water power plants made it possible to produce 237 million kWh of electricity per year, and the launch of Tupalang plant – to produce 63 million kWh per year.

The specialists of the Ministry of Agriculture and Water Resources determined the sources of funding of 27 promising projects worth $990 million in 2011-2015. Potential foreign investors are the governments of China and France, World, Asian and Islamic Development Banks. These activities will ensure the water supply to more than 500,000 hectares of irrigated area and improve the reclamation of over 100,000 hectares of land in the country.

Currently the Ministry continues to implement the projects worth $15 million at the expense of grant funds of the international financial institutions and foreign governments. The funds are used for projects aimed at land improvement, strengthening the national system of protected areas, the development of sericulture in Karakalpakstan, research, education and training of employees in agricultural and water resources sector.

To enhance the attraction of foreign investments in the agricultural sector, last year Uzbekistan joined the agreement establishing the International Fund for Agricultural Development. The fund specializes in providing of financial resources to developing countries on concessional terms for agricultural development. Thus, the Fund provides interest-free soft loans of up to 50 years, including a 10-year grace period.

Context: agricultural production