Uzbekistan receives $10 Million Loan for PPP Project Development Fund
Uzbekistan has received a $10 million loan from the European Bank for Reconstruction and Development (EBRD) to establish a Fund for Development of Public-Private Partnership (PPP) Projects. The fund will be used to finance the preparation of concept notes, financial models, assessments, and tender documentation for PPP projects, Turanews.kz report citing Kun.kz.
The fund will be managed by the EBRD and will be open to contributions from other donors. The loan for organizing the fund’s activities is allocated at the Euribor rate plus 1% and is planned to be returned in 12 years, with a four-year grace period.
The Ministry of Economy and Finance and other departments will annually prepare a list of PPP projects for which the fund will provide funding for consultancy services. The Cabinet of Ministers will approve the list by December 1st each year.
The establishment of the PPP project development fund is expected to help Uzbekistan attract more private investment in infrastructure and other important sectors of the economy. PPPs can help to improve the efficiency and quality of public services, and can also contribute to economic growth and job creation.
What are the benefits of PPP projects?
PPPs can offer a number of benefits for both the public and private sectors. For the public sector, PPPs can help to:
- Improve the efficiency and quality of public services
- Attract private investment in infrastructure and other important sectors of the economy
- Reduce the burden on public budgets
- Share risks with the private sector
For the private sector, PPPs can offer the opportunity to:
- Invest in long-term, infrastructure projects
- Generate revenue from the provision of public services
- Gain access to new markets and technologies
- Partner with the government to deliver public services
How can the PPP project development fund help Uzbekistan?
The PPP project development fund can help Uzbekistan to attract more private investment in infrastructure and other important sectors of the economy. This can be done by providing financial support for the preparation of PPP projects, and by helping to build the capacity of the public sector to manage PPPs.
