Tashkent, Uzbekistan (UzDaily.com) -- European Bank Reconstruction and Development (EBRD) will finance the modernization of the water supply and sewage systems of Namangan region of Uzbekistan.

The government of Uzbekistan issued a resolution “On measures to implement the project“ Modernization of the water supply and sewage system in Namangan region ”with the participation of the European Bank for Reconstruction and Development.”

On 8 October 2018, a loan agreement was signed between the European Bank for Reconstruction and Development (EBRD) and the Republic of Uzbekistan to provide a loan in the amount of US$60.0 million for the implementation of the project “Modernization of the water supply and sewerage system of Namangan region” (with a maturity of 15 years, including a 4-year grace period.

The total cost of the project is US$74.61 million, including an EBRD loan of US$60.0 million and the contribution of the Republic of Uzbekistan to the project - US$14.61 million in equivalent in the form of tax and customs benefits, interest payments on the EBRD loan and commission on commitment in the investment period.

The resolution stated that this project will be implemented in 2019-2022.

The executive body responsible for the implementation of the project, the targeted and efficient use of EBRD loan funds, is the Kommunkhizmat Agency under the Ministry of Housing and Communal Services of the Republic of Uzbekistan.

The payment of a one-time commission on an EBRD loan in the amount of 1% of the total loan amount is at the expense of an EBRD loan.

The government authorized the Minister of Finance of the Republic of Uzbekistan to sign an agreement on the re-lending of the EBRD loan between the Republic of Uzbekistan, the Kommunkhizmat Agency, the Office for the Operation of the Tuyamuyun-Urgench interregional water supply system and the Khorezm region administration.