World Bank allocates $40 million loan for Uzbekistan to develop agriculture
2012-09-12 16:32:44
The World Bank’s Board of Directors yesterday approved a US$40 million IDA Credit as an Additional Financing to the Uzbekistan Second Rural Enterprise Support Project (RESP 2). The Project will assist farmers to increase the productivity, financial and environmental sustainability, and the profitability of agricultural business, reports WB press office.
The Additional Credit will provide funds through participating financial institutions to finance farmers’ investment and working capital needs.
“Agriculture is an important component of the Uzbek economy,” said Takuya Kamata, the World Bank’s Country Manager for Uzbekistan. “The additional credit will support diversification in the agricultural sector such as horticulture development”.
The original Rural Finance Component under RESP 2 has been successful and has disbursed US$ 25.7 million to 317 agribusinesses to finance agricultural machinery, processing equipment, packaging equipment and materials, investments in tree-crops, poultry, fishery and livestock production. In addition to project resources, farmers have co-invested US$ 4.2 million equivalent of their own funds.
By the time the Project is completed the farmers of 90 districts in seven regions of Uzbekistan will have increased overall productivity and income; farmers and agribusiness access to financial services will also improve.
Uzbekistan joined the World Bank in 1992. The World Bank’s mission in the country is to improve people’s livelihoods through being a partner in economic reforms, supporting the modernization of the country’s social sectors and infrastructure, and sharing its knowledge and experience with the government and the people of Uzbekistan.
Current World Bank commitments to Uzbekistan amount to US$773 million.