ADB, Uzbekistan Sign Four Loans to Improve Livelihoods

TASHKENT, UZBEKISTAN (3 November 2004) - ADB President Tadao Chino and Uzbekistan Deputy Prime Minister Rustan Azimov have signed four loan agreements for projects totaling US$164.2 million in sectors that are key to improving livelihoods in Uzbekistan.

The four loans, signed yesterday,are designed to improve woman and child health, boost access to affordable textbooks for Uzbek students, rehabilitate a key irrigation system, and expand grain production.

"These projects are a strong demonstration of ADB's partnership with the Government towards improving the livelihoods of the poorest people of Uzbekistan," Mr. Chino said after the signing.

"Investments in health and education are essential to providing adequate social services while managing Uzbekistan's transition towards a market economy. Support for agriculture development will play an important role in realizing Uzbekistan's potential for economic growth."

ADB's Board of Directors approved two of the loans in 2003, and two were approved earlier this year. The signing of the loan agreements completes formalities to allow ADB to commence implementation of the projects.

"This important step clears the way to move forward quickly to implement projects in key sectors in Uzbekistan," says Mr. Sean O'Sullivan, ADB Country Director for Uzbekistan.

The four loans are:

Second Textbook Development: This loan of $25 million was approved on 29 September 2004. The project will help improve the quality of basic education through the efficient and sustainable provision of affordable textbooks and other instructional materials nationwide. These efforts will be supported by necessary institutional and policy reforms.

Woman and Child Health Development: This loan of $40 million was approved on 28 September 2004. The project is designed to help the Government achieve the health-related Millennium Development Goals by reducing maternal and child mortality and morbidity, reducing infectious diseases, and focusing on the rural poor and vulnerable populations. The project will cover 36% of the country's population, 43% of the country's poor, and 53% of the extreme poor.

Amu Zang Irrigation Rehabilitation: This loan of $73.2 million was approved on 19 December 2003. The project will help rehabilitate the nearly 30-year-old Amu Zang irrigation system, which serves about 400,000 people in five districts in Surkandarya Province, at the southern most tip of the country, where poverty levels are higher than the national average at more than 30%. The project includes support to improve irrigation management of the system and the development of a private farm system in the districts.

Grain Productivity Improvement: This loan of $26 million was approved on 17 November 2003. The project will provide assistance to five wheat-producing provinces, covering wheat breeding, introduction of new wheat varieties, disseminating improved farming technologies, and strengthening the pest-monitoring program. The project area stretches from north to south in the central part of the country, in Tashkent, Syrdarya, Djizak, Samarkand, and Kashkadarya provinces (oblasts). The project is expected to improve the standard of living for more than 200,000 rural people by reducing vulnerability to food shortages, creating jobs, and boosting incomes.

Uzbekistan joined ADB in 1995 and hosts a Resident Mission in Tashkent. As of 30 September 2004, cumulative ADB lending to the country totaled $859.7 million for 19 projects. ADB's work in Uzbekistan focuses on supporting basic reforms, minimizing the social costs of transition, enhancing the potential for growth through regional cooperation, supporting investment in the rural sector, and private sector development.

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