Within the project, the Government of Uzbekistan is planning to purchase 30 dredgers worth US$28.5 million from China, Prime agency reported.

Uzbekistan and China are planning to sign a loan agreement in July or August 2012.

Loan will be issued for 20 years with five-year grace period within the credit line of the Chinese government to member-states of the SCO.

The project is implemented to ensure water supply Republic of Karakalpakstan and Khorezm region of Uzbekistan.

Currently, Ministry of Agriculture and Water Management is preparing feasibility study of the project and it is planned that the government will review it in the fourth quarter of 2012.