Tashkent, Uzbekistan (UzDaily.com) -- The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a US$385-million loan to provide access to safely managed water and sanitation services and strengthen the operational performance of water utility in Uzbekistan’s Bukhara Region.

The Bukhara Region has been identified by the Government of Uzbekistan as a priority area in terms of developing water and sanitation infrastructure as well as tourism. Uzbekistan has committed to increasing regional access to water supply (currently at 54 percent) and sewage services (currently at 34 percent) to 100 percent.

Expected to benefit 1.15 million residents, the Bukhara Region Water Supply and Sewerage Project will support priority investments in water supply infrastructure and sewage infrastructure. The investments will help reduce water-related diseases, lower coping costs (expenses and time savings), increase operational efficiency and enhance water service quality and quantity.

“These investments will improve regional access to safe drinking water and sanitation as well as support the Government of Uzbekistan in addressing its critical financing gap in water supply and sanitation services,” said AIIB Vice President, Investment Operations, Konstantin Limitovskiy. “The project is AIIB’s first loan in the water sector in Uzbekistan and in the Central Asia Region. It is also aligned with AIIB’s key priority of promoting sustainable infrastructure.”

In addition to physical investments, the loan will finance project management and support to assist the implementation agency in ensuring seamless coordination, efficiency and compliance with AIIB’s relevant safeguards policies. AIIB’s participation focuses on high-quality implementation of the project.