ACG to Grant Uzbekistan $480 mln
Friday 7 December 2012
KUWAIT CITY – Arab Coordination Group (ACG) is to grant the Uzbekistan government $480.9 mln in loans between 2013 and 2017, the country’s economic development and trade ministry said on Friday. The Uzbekistan government has approved a list of 15 investment projects worth a total of $582.5 mln to be funded via the ACG .
These include public healthcare and university development programs, the use of alternative sources of energy in secondary schools, reconstruction of sewage systems and improvement of water supply, and road-building programs. The credit agreement was reached in early November at an ACG meeting in Tashkent.
The ACG comprises the Islamic Bank for Development and a number of Arab financial institutions including the Saudi Development Fund, the Abu-Dhabi Development Fund, the OPEC International Development Fund, and the Kuwait Fund for Arab Economic Development.
The Arab Fund is similar in functions to the major regional multilateral development-finance institutions. Its principal purpose is to contribute to the financing of economic and social development projects in Arab States. To attain its purpose, the Arab Fund provides financing for economic development projects by extending loans and providing grants to support the implementation of development projects in the member states.
The main activity of the Fund involves providing loans, on concessionary terms, to governments and public corporations and enterprises of member states, giving preference to projects which are vital to the Arab World and joint Arab projects.
In 2011, a total of 12 loan agreements were signed during the year, for a total amount of about KWD 340.0 mln (1 KWD ≈ US $3.56). These loans contributed to the financing of 12 public sector projects in 6 Arab countries. The total cost of these projects was estimated at about KWD 1.8 bln, with the loans provided by the Arab Fund covering about 19.4% of that amount. In the same year, a total of 9 loan agreements with 6 Arab countries, amounting to about KWD 292.0 mln, became effective. These loans were provided for the implementation of strategic development projects in areas that included electric energy and gas, ports and airports, in addition to drinking water facilities and dams.