Tashkent, Uzbekistan (UzDaily uz) -- The Asian Infrastructure Investment Bank (AIIB) has approved US$670 million in financing to support ongoing reforms in Uzbekistan and contribute to the country’s transition to an inclusive and sustainable market economy.

The Ministry of Economy and Finance of the Republic of Uzbekistan will act as a borrower in this project.

The project aims to support the government of Uzbekistan in implementing reforms in several areas, including shaping markets, improving fiscal risk management, and supporting social inclusion and environmental sustainability.

The project includes sectoral reforms in the energy, agriculture, railway and chemical sectors. The goal of these reforms is to create markets that have a positive impact on the environment, as well as improve the country's fiscal management and procurement system.

The project also aims to promote social inclusion and environmental sustainability by improving social programs for those most vulnerable to economic shocks. These measures also help improve the efficiency of the health care system and public services in the post-pandemic period.

Konstantin Limitovskiy, Vice President for Investment Operations at the AIIB, noted that supporting Uzbekistan in its transition to a sustainable market economy is consistent with the bank's mission to finance infrastructure for long-term sustainable development.

“The reforms supported by this financing are a timely response to the significant development challenges the country faces,” said Emil Zalinyan, project team leader and infrastructure economist at the AIIB. “They are aimed at keeping the country on the path to post-pandemic recovery while strengthening its resilience in the face of existing negative risks.”

The project is being financed under the Special COVID-19 Recovery Fund in collaboration with the World Bank in accordance with its development financing policy.

The project will be implemented in partnership with the Ministry of Economy and Finance of Uzbekistan, which will take responsibility for coordinating and implementing the program together with government agencies.