EU funding in Uzbekistan
EU funding in Uzbekistan
European Union is an important trade-economic partner of Uzbekistan and occupies the second position in external trade of the Republic. Given the fact that Uzbekistan is characterized by the advantageous geographical setting, geopolitical meaning, stability and high rates of economic growth over the last decades European Union regards it as a reliable and long-term partner in the region. Tashkent takes advantage of the EU General system of preferences, i.e. it has customs privileges while entering the European market (decrease of customs duties by 10%). 821 enterprises altogether with partners from the EU states function in Uzbekistan, among which 612 companies are conjoint and 209 enterprises have a hundred percent European capital.
For the period of 2011-2013 European Union has given support to the Republic and the region in development of agriculture and rural zones, bilateral trade, small and medium enterprises, energy industry, environment, education and science, perfection of the public administration system, restructuring of the legal and institutional framework, providing of cross-border security and customs issues.
Over the period of 2014-2020 the countries are going to emphasize their collaboration in the field of financial and technical support in rural regions, including such directions as processing of agricultural foodstuffs, development of water management system and small irrigation projects, farm enterprises and assistance in development of affordable energy. The budget for program of EU funding in Uzbekistan in 2014-2020 makes approximately 168 mln euro.
The projects in oil and gas industry of Uzbekistan with participation of the European companies and financial institutions included modernization of Fergana petroleum processing plant, construction of Bokharan petroleum processing plant, development of two hydrocarbon deposits in Kashkadarya region. In the aforementioned projects European countries participated actively and promoted further development of Uzbek economics.
More or less big projects in power industry of the Republic with contribution of European banks contain a modernization of Uzbek district in the Central Asian electricity network, reconstruction of energy units Syrdarya combined heat and power plant and financing of the company “Andijan Cable”.
All in all, the presence of European Union and European Bank in the energy power of Uzbekistan is represented by activity of several banks and companies, taking part in more or less large projects in oil and gas and power sectors. But nowadays the interest towards the financing of Uzbekistan’s economical sectors grows rapidly.