EBRD signed projects in Uzbekistan

By the end of December 1998, the EBRD had made 17 investments in Uzbekistan (11 in the private sector and six in the public sector) totalling ECU 432 million. Nine of the investments are in the financial sector, including credit lines for small and medium-sized enterprises (SMEs), a leasing company, a trade facilitation programme, and two equity investments in commercial banks, reflecting the EBRD’s aim to broaden financing possibilities for Uzbek private enterprises. Four of the private sector operations are in construction, textiles and natural resources (gold mining). Public sector projects concern the upgrading of an airport, an oil refinery, a municipal solid waste system and a power plant.

Overview of activities and key objectives

The EBRD is focusing its activities on the areas outlined below.

Financial sector / banking / SME development

The EBRD aims to support market reforms and the development of private sector SME activity. Through various institution-building undertakings, it intends to upgrade, expand and diversify financial services in the country, in combination with investment operations in or through new and existing local financial institutions. In February 1994 the Regional Bank Training Centre (RBTC) was founded in Tashkent by 30 banks and training institutions from Kyrgyzstan, Tajikistan, Turkey, Uzbekistan and the EBRD. This regional project has been financed jointly by the EBRD, the European Union, Japan and Turkey. each provided technical assistance of ECU 1.5 million over the first two years of the Centre’s activities, which began in April 1994. The Bank is continuing its support for RBTC by providing further training for local management of the Centre and trainers.

Physical infrastructure

The first Following oil refinery and power generation projects, the first transportation project approved by the EBRD in that area concerned the modernisation of Tashkent airport (with Kreditanstalt für Wiederaufbau). The EBRD has started to implement a solid waste management project in Tashkent (together with the World Bank). The EBRD has also identified several other priority projects in physical infrastructure, including a modernisation project for Uzbekistan Railways (in cooperation with the Asian Development Bank). and another for Tashkent airport (with the Kreditanstalt fuer Wiederaufbau). Efforts will beare being made to promote private sector participation in infrastructure projects.

Natural resources

The EBRD supports projects with a major impact on the country’s balance of payments, including public sector hydrocarbon projects with high economic and financial returns and export-oriented joint-venture projects in mining with experienced foreign partners. Environmental issues receive particular attention. The EBRD is looking at possibilities of financing two joint-venture projects in gold mining. The Bank will continue discussions with Uzbekneftegas regarding a gas field development project as well as the possibilities of other hydrocarbon projects. The outcome of these discussions will largely depend on the operational environment.

Cotton processing and other light industries

The EBRD's aim is to help Uzbekistan’s cotton processing and other light manufacturing become a leading industrial sector, providing the country with employment opportunities and hard currency revenues. The Bank aims to identify, develop and finance private sector projects primarily with foreign partners that would bring capital, technology and marketing know-how.

Contacts

Kazuya Murakami Director Central Asia Team Banking Department EBRD One Exchange Square London EC2A 2JN United Kingdom Tel: +44 171 338 6617 Fax: +44 171 338 7590

Kenji Nakazawa Head of Resident International Financial Centre 4th Floor 1 Turab Tula Street 700003 Tashkent Uzbekistan Tel: +998 71 245 5793 or 120 6279 Fax: +998 71 120 6121

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