The loan deal was a key part of discussions between visiting South Korean Finance Minister Bahk Jae-wan and his Uzbekistan counterpart, Rustam Azimov, who also serves as first-deputy prime minister, in Tashkent on Friday, said one ministry official in a phone call.

The money will come from the Economic Development Cooperation Fund (EDCF), a state-run fund aimed at helping less-developed countries with loans that carry low interest rates and a maturity of 10 to 30 years.

In April, South Korea promised to build a hospital for children and an electronic library in Uzbekistan as part of programs marking the 20th anniversary of the establishment of diplomatic ties between the two countries in 1992.

"After conducting feasibility studies on the projects proposed by Uzbekistan, we plan to provide the loan to the country starting in the second half of 2013," said one finance ministry official accompanying Bahk.

South Korea has provided a total of US$132 million in loans to the Central Asian country for six projects since 2000, including a computerized education system and medical equipment.

In Tashkent, the two finance ministers also inked a preliminary deal that calls for South Korea to offer a separate EDCF loan for other 10 projects to be carried out by Uzbekistan, including improvement of a water supply system, the officials said.

In addition, bilateral cooperation on financial, energy and IT sectors was also discussed during the meeting, they said.