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Bank for Foreign Economic Activity of the Republic of amount. Repayment of the principal debt is made every 6
Uzbekistan. Sub-borrowers can be private, small and months.
medium enterprises. To obtain a loan, a project must The role of the funds allocated by the Asian Development
produce a product that can replace exports and imports and
Bank in the rapid development of our economy, as well as in
be self-sufficient in foreign currency.
improving the quality of life of the population in our country
To receive a loan from the Asian Development Bank, the is very important. During Uzbekistan's membership in the
borrower must have at least 25% of the value of the project. Asian Development Bank, many fruitful projects have been
The borrower must have collateral for the building, implemented. As a result of cooperation, the economic
structure, machinery and working capital from the development of our country has further increased. As of
production process, as well as other funds to cover financial December 31, 2019, the Asian Development Bank has
costs. The collateral must be at least 120% of the loan provided a total of $ 8,671.36 million in loans to Uzbekistan.
amount. These funds were invested in a total of 221 projects. Projects
The interest rate for the loan is as follows: on agriculture, natural resources and rural development;
Asian Development Bank interest rate + margin of the education; energy; financial health; industry and trade;
National Bank for Foreign Economic Activity of the transport; water and other urban infrastructure and services
are focused on the development of important sectors and
Republic of Uzbekistan.
industries. The most funded sectors are: energy - $ 2,004.91
The margin of the National Bank is from 0.5% to 3% of the million for 32 projects, finance - $ 1,935.42 million for 38
loan amount, depending on the value of subprojects. The projects, transport - $ 1,777.87 million for 34 projects (Table
loan management fee is 0.15% per annum (UZS) of the loan 1).
Table 1 Distribution of funds allocated by the Asian Development Bank to the Republic of Uzbekistan as of
December 31, 2019 (million dollars)
Networks Projects Funds provided (million USD) * Interest rate
Agriculture, natural resources and rural development 33 784.68 9.05
Education 23 298.03 3.44
Energy 32 2004.91 23.12
Finance 38 1935.42 22.32
Healthcare 7 88.60 1.02
Industry and trade 4 175.90 2.03
Public sector management 21 632.21 7.29
Transport 34 1777.87 20.50
Water and other urban infrastructure and services 29 973.74 11.23
Overall: 221 8671.36 100
*the numbers may not be accurately summed due to rounding.
Source: Prepared by the author based on the report of the official website of the Asian Development Bank.
The Asian Development Bank and the Republic of Uzbekistan signed a loan agreement about lending in the amount of 15,0
million US dollars for the implementation of the project "Financing the preparation of urban development projects in the
Republic of Uzbekistan" with a repayment period of 25 years, including a grace period of 5 years on November 13, 2019. The
total cost of the project was $ 16.76 million, including:
Debt of the Asian Development Bank - 15.0 million US dollars;
The share of the Republic of Uzbekistan in the project was 1.76 million US dollars due to tax benefits, including exemption from
value added tax, contributions to state trust funds, as well as corporate and personal income tax from legal entities and
individuals who are not residents of the Republic of Uzbekistan;
The project implementation period is 4 years (2020 - 2023) (Table 2).
Table 2 The main indicators of the project "Financing the preparation of urban development projects in the
Republic of Uzbekistan"
Sources of funding, including:
Nameofexpenses Unitofmeasure Overall* Share of the Republic
ADB debt
of Uzbekistan
The total cost of the project thousand USD eq. 16 760,00 15 000,00 1 760,00
including:
1. Consulting services thousand USD eq. 13 600,00 13 600,00
Financial expenses during the
2. thousand USD eq. 710,00 710,00
investment period
3. Retained earnings thousand USD eq. 690,00 690,00
4. Tax and customs priviliges thousand USD eq. 1 760,00 1 760,00
* The final cost of the project will be determined after the development of detailed design estimates and the results of
tenders for the supply of goods (works and services).
Source: Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 426. 07.07.2020
The Asian Development Bank has set an estimate for repayment of debt and interest payments from 2020 to November 15,
2024. The loan amount was $ 15 million, the loan term was 25 years, the grace period was 5 years, and the interest rate was

ID: IJTSRD40074 | Special Issue on Innovative Development of Modern Research Page 113