President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to implement the project “Modernization of the water supply system and road network of the city of Samarkand” with the participation of the Abu Dhabi Development Fund”.
The document notes that the Abu Dhabi Development Fund will finance the project “Modernization of the water supply system and the road network of the city of Samarkand.”
The project was provided for by an investment agreement signed during the President’s visit to the UAE in 2019.
Within the framework of the project, the Abu Dhabi Development Fund will allocate a loan in the amount of $300 million. The funds are issued at 2.5% per annum, for 17 years with a 4-year grace period. The project with a total cost of $358.31 million will be implemented in 2022-2026.
The repayment of the principal debt of the Abu Dhabi Development Fund, the coverage of interest, loan servicing fees and other expenses under the Project are carried out in terms of modernizing the water supply system – at the expense of LLC “Samarkand suv ta’minoti” and the local budget of the Samarkand region and in terms of modernizing the road network – at the expense of the republican budget.
Goods and equipment imported under the project to Uzbekistan are exempt from customs duties. The state also compensates participating companies for the amount of VAT paid by them. It is expected that this amount will be $42.76 million.