Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev, by his resolution, approved measures for the implementation of the project "Development of creating a value chain in the horticulture industry (2nd stage)" with the participation of the Japan International Cooperation Agency (JICA).

On 29 August 2022, a loan agreement was signed between Uzbekistan and the Japan International Cooperation Agency (JICA) to allocate a loan in the amount of US$200.0 million to finance the project “Development of the value chain in the horticulture industry (2nd stage)” in the Republic of Uzbekistan.

The credit line is US$194.240 million. The loan is allocated for a period of 15 years, including a five-year grace period, with an interest rate of SOFR + 1.25 percent per annum.

The volume of consulting services is US$5.760 million. These funds are allocated for a period of 15 years, including a five-year grace period, with an interest rate of SOFR + 1.25 percent per annum.

The total cost of the project is US$323.019 million, of which the JICA loan is US$200 million, and the contribution of Uzbekistan in the form of covering the value added tax and providing benefits on customs payments is US$58.272 million. The contribution of the project participants will be US$64.747 million.

The project will be implemented in 2023-2028. Credits are provided to financial institutions participating in the Project in Uzbek soums.

The document notes that expenses arising from fluctuations in the exchange rate of the Uzbek soums against the US dollar (currency risks) are reimbursed from the republican budget of the Republic of Uzbekistan.

Within the framework of the Project, loans allocated to the Project initiators in national currency are provided to the Project initiators at the basic rate of the Central Bank.

Loan funds are allocated to the Project initiators for projects on production, storage, processing, packaging, shock freezing of products, logistics (including the purchase of cargo transportation equipment) and the creation of other capacities, projects in the food industry, as well as working capital.

The project is being implemented in the Republic of Karakalpakstan and in all regions of the Republic of Uzbekistan.

The International Center for Strategic Development and Research in Food and Agriculture under the Ministry of Agriculture is the executive body responsible for the timely and complete implementation, coordination and management of the Project, as well as monitoring and reporting during the implementation of the Project.

The National Bank for Foreign Economic Affairs of the Republic of Uzbekistan is a financial agent (bank) servicing a loan from the Japan International Cooperation Agency (JICA).

Under the Project, an initial one-time payment in the amount of 0.2 percent (400 thousand US dollars) of the total loan amount is paid from the republican budget of the Republic of Uzbekistan, of which 388.48 thousand US dollars is covered by financial institutions participating in the Project, after signing with them agreements on on-lending.