The President of the Asian Infrastructure Investment Bank, Jin Liqun, was received by the President of Uzbekistan in Tashkent. During his visit, Jin Liqun met with the Director General of the Agency for Strategic Reforms, Shukhrat Vafaev, to discuss the multifaceted bilateral partnership between Uzbekistan and the Bank. They noted the high level of interaction achieved in recent years, reviewed current investment projects, and discussed practical aspects of further expanding their cooperation.
Currently, Uzbekistan and the AIIB are working together on seven projects worth $1.14 billion in sectors such as water supply, sewerage, support for small and medium-sized businesses, road reconstruction, railway electrification, healthcare, energy, and rural infrastructure improvement.
It is worth mentioning that the country’s favorable economic situation and investment climate offer opportunities for international financial institutions to provide non-sovereign financing without a state guarantee. The AIIB has provided a $100 million loan without a guarantee from the government of Uzbekistan for the construction of a 1,500 MW CCGT unit at the Syrdarya TPP. This is the first non-sovereign operation of the Bank in Uzbekistan.
The AIIB’s long-term and concessional financing aims to improve the quality of life of the population, create new jobs, improve access to high-quality drinking water, modernize water supply and sanitation systems, and increase energy efficiency by introducing renewable energy sources. Therefore, the AIIB, in collaboration with Uzbekistan, is working on ten additional infrastructure projects with the Bank’s financial assistance totaling $1.9 billion.
The dynamic pace of economic growth and the outstripping development of GDP in Uzbekistan make it possible to attract long-term financing from foreign institutions, including the AIIB, for large infrastructure projects with an implementation period of over 20 years without creating a large burden on the country’s total external debt.
Jin Liqun expressed his strong commitment to continue supporting Uzbekistan by providing financing for energy projects in collaboration with Aqua Power, Masdar, and Stone City Energy to decarbonize the country’s economy and achieve carbon neutrality in the energy sector by 2050. He also proposed introducing mixed financing mechanisms that combine AIIB loans with direct investments and loans without state guarantees and implementing public-private partnership projects in medicine, education, water supply, transport, and energy infrastructure.
Following the talks, the parties agreed to prepare and adopt the “Partnership Program for 2023-2025,” which includes strategically important investment projects aligned with the goals and priorities for the development of New Uzbekistan until 2026.
Press Office of the Agency for Strategic Reforms