AIIB will allocate $670 million to Uzbekistan for reforms and transition to a market economy

The Asian Infrastructure Investment Bank (AIIB) will allocate $670 million to the government of Uzbekistan to support reforms and the transition to a market economy, Spot reports, citing the AIIB press service.

The borrower in this project will be the Ministry of Economy and Finance, which will finance reforms in three areas: developing markets, improving fiscal risk management, supporting social inclusion and environmental sustainability.

“The project provides for a number of sectoral reforms in the energy, agriculture, railway and chemical sectors. The reforms are aimed at creating markets that provide a positive impact on the environment, improving Uzbekistan’s fiscal management and procurement system, and promoting social inclusion and environmental sustainability by improving social programs for those most vulnerable to economic shocks”, – the international financial organization noted.

Vice President for Investment Operations of the AIIB Konstantin Limitovsky emphasized that supporting the consolidation of social protection systems and promoting efforts to reduce climate risks will increase the effectiveness of social assistance and contribute to Uzbekistan’s transition to a “green” economy.

The project is supported by a special fund for recovery from the COVID-19 crisis and is jointly financed by the World Bank.