Beijing-based Asian Infrastructure Investment Bank (AIIB) has sanctioned $670mn in funding to bolster continuous reform efforts in Uzbekistan and help pave the way for the nation's shift to an inclusive and sustainable market economy, Trend reported the development bank as saying on March 18.

Finance will reportedly be targeted at implementing reforms across three key areas: market development, enhancing fiscal risk management and fostering social inclusion and environmental sustainability.

Reforms in energy, agriculture, railroads and chemicals are to be shaped with the goal of establishing markets that generate positive environmental outcomes, enhance fiscal management and procurement systems and advance social inclusion and environmental sustainability through improved social programmes for vulnerable populations impacted by economic shocks, AIIB was further reported as saying.

Enhancing the efficiency of healthcare and public services in the post-pandemic era is another project objetive.

"We are delighted to persist in our support for Uzbekistan's journey towards a sustainable market economy. By bolstering social safety nets and aiding in mitigating climate risks, we aim to augment the efficacy of social assistance initiatives and facilitate Uzbekistan's shift towards a green economy. This aligns with AIIB's mission to finance forward-looking infrastructure that fosters enduring sustainable development," Konstantin Limitovskiy, a vice president for investment operations at AIIB, was cited as saying.

The project will source backing from the COVID-19 Crisis Recovery Facility. It is co-financed by the World Bank through development policy financing (DPF).

The borrower is Uzbekistan's Ministry of Economy and Finance.

The project is supported under the Special Fund for COVID-19 Crisis Recovery Facility and is jointly financed by the World Bank.