FDA to provide a loan of €100 million for development of animal husbandry in Uzbekistan

On January 13, the President signed a resolution PQ-84 “On measures to implement the project financing the sustainable development of the livestock sector” with the participation of the French Development Agency, Norma reports.

According to the agreement signed between Uzbekistan and the French Development Agency (FDA) on June 28, 2021, a loan of €100 million will be allocated for the project “Financing the sustainable development of the livestock sector”. The project implementation period is 5 years – 2022-2026.

The total cost of the project is €147.07 million, including:

€100 million – FDA debt;
€29.96 million – the share of project participants (beneficiaries);
€17.1 million (including funds in the form of taxes and customs duties) – the share of Uzbekistan.

According to the Customs Code, goods imported into the customs territory by legal entities at the expense of loans (credits) issued by international financial institutions and foreign government financial institutions under international agreements of Uzbekistan are exempted from customs duties.

When importing (purchasing) goods (works, services) and special vehicles purchased at the expense of the FDA debt under the project, VAT is paid by importers (importers, buyers of services) of goods (works, services).

The share of the Republic of Uzbekistan in the implementation of the Project is the amount of funds released as a result of these customs benefits and the amount of VAT paid by importers of goods.

The project will initially be implemented in Karakalpakstan, Tashkent, Jizzakh, Syrdarya, Kashkadarya, Samarkand and Bukhara regions. The measures envisaged under the project will be implemented in all regions of the country after more than 50% funding.

The State Committee for Veterinary and Livestock Development is the executive body responsible for the timely and complete implementation of the Project, its coordination and management, as well as monitoring and reporting during the Project.

The management of the credit line, ensuring the timely disbursement and targeted use of FTA debt, as well as monitoring and reporting on the implementation of subprojects will be entrusted to the commercial banks participating in the Project.

All payments under the loan agreement will be reimbursed from the State Budget before signing of refinancing agreements with the banks participating in the project, and after signing refinancing agreements will be returned to the national budget of Uzbekistan in proportion to the amount allocated to them by commercial banks.

The document was published in the National Database of Legislation and came into force on January 14.