EU financing in Uzbekistan

EU financing in Uzbekistan

 

These days European Union calls up a program in Uzbekistan concerning the support of regions at a total value of 168 mln euro. The program will be realized on a phased basis until 2020 with separate annual blocks. The first block is directed towards improvement of the supervision system of water industry. It is valuated for 20 mln euro. The next block is focused on support of small and medium enterprises. The next blocks will be dedicated to professional education development and ecological forms of agriculture. It will be remembered that European Union has already allocated 70.6 mln euro to Uzbekistan on a gratis basis.

 

At the international conference in Tashkent “Transportation corridor Uzbekistan - Lithuania - EU countries: new opportunities and perspectives” many issues concerning transport connection and transit from Central Asia through Lithuania to EU countries, estimation of functioning of railway, automobile transport and logistics, determination of perspective traffic stream were discussed. Uzbekistan is interested in development of transport corridors and plans to increase its volume of exports via the ports in Lithuania in five times. In consequence of diversification of the international route plans for export and import of goods in 2000-2013 the Uzbek value of external trade has increased from $6.2 bln to $29.5 bln. At the present time the contribution of transport sector in gross domestic product of the Republic is more than 9%. In order to promote the economic growth by 8% it is necessary to enhance the volume of cargo carriage on the average by 9.2% per annum.

 

As per calculation of the experts –the cargo carriage will be 4.4 times more frequent by 2030 whereas the equity contribution in reference to gross domestic product must grow from 3.35% to 4.6% and make up $46.7 bln. Because of the remoteness of Uzbekistan from transportation lines and absence of the direct access to sea ports the export commodities go in transit through another countries, which affects adversely their bottom-line price and their competitive capability accordingly.

 

It is well known that a number of leading European companies participate in realization of investing projects and EU financing in Uzbekistan as well as in tenders for construction, reconstruction, and modernization of electric power system objects. This is quite a new impulse of cooperation in this direction between the partners and additional reason for EU funding in Uzbekistan.