VEB.RF to finance projects on modernization of 95 pumping stations in Uzbekistan
Tashkent, Uzbekistan (UzDaily.com) -- The State Development Corporation of the Russian Federation VEB.RF will finance projects to modernize 95 pumping stations in Uzbekistan worth 213.5 million euros.
President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to implement projects to modernize 95 pumping stations in Bukhara, Navoi, Kashkadarya, Samarkand and Surkhandarya regions with the participation of the State Development Corporation of the Russian Federation VEB.RF”.
VEB.RF has developed a feasibility study (FS) for three projects to modernize pumping stations in the regions of Uzbekistan.
The total cost of the project is 213.5 million euros. VEB.RF will allocate 146 million euros for the implementation of projects. The contribution of Uzbekistan will amount to 67.5 million euros, including 33.7 million euros - in the form of VAT coverage from the republican budget and exemption from customs duties.
The interest rate for refinancing a VEB.RF loan is 2% per annum, the loan is issued for two years, and the loan is repaid for 10 years.
The Ministry of Water Resources is the executive body responsible for the implementation of projects and the targeted use of the loan. The Ministry of Finance is a borrower for a loan (loan) from VEB.RF on behalf of the Republic of Uzbekistan.
The Ministry of Water Resources of Uzbekistan will determine the general contractors for the implementation of projects on the basis of a tender. General contractors, within the framework of the implementation of projects, purchase pumps, electric motors, equipment, electrical devices, other types of products and services: manufacturers of the Russian Federation - 70 percent, domestic manufacturers of the Republic of Uzbekistan - 30 percent.