The World Bank is to allocate a concessional loan of $800mn to help accelerate Uzbekistan’s transition to a market economy, ensure equal opportunities for citizens and lay foundations for sustainable growth.
The loan will be partly used in reforming the Central Asian country’s energy market. Aspects of the reform include tariff liberalisation and the creation of an independent regulator. Improved operational performance, higher energy efficiency and the attraction of investment for infrastructure modernisation are goals.
Other areas where funds from the international financial institution (IFI) will be applied are transportation, chemicals production agriculture and developing the green economy.
In transportation, Uzbekistan is aiming to reform the railways and improve pricing.
In the chemical industry, officials are preparing the basis for institutional reforms and the privatisation of Ferganaazot.
In agriculture, there are plans to liberalise mechanisms in crop placement to diversify and increase yields. Farmers are also to be provided with assistance in mitigating climate change impacts.
Uzbekistan, meanwhile, is working on developing a national green taxonomy, providing the classification of environmentally friendly activities and investments. This will contribute to the fight against greenhouse gas (GHG) emissions and the attracting of green economy investment.
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