Microfinance Focus, September 7, 2011: The Asian Development Bank (ADB) is providing up to $500 million loans to help Uzbekistan improve rural housing. ADB’s loans supports the government’s five-year ‘Housing for Integrated Rural Development Investment Program.’
ADB approved the multitranche financing facility for the ‘Housing for Integrated Rural Development Investment Program’, with a first tranche payment of $200 million. ADB projects that the over $3 billion investment will help finance more than 40,000 new houses in rural areas across Uzbekistan. The program will increase the capacity of local government staff to prepare and carry out effective rural development and investment promotion plans, and support policy reforms that will accelerate private sector development and the establishment of micro and small rural businesses.
“The goal is to achieve greater inclusive economic growth, and improved rural living standards nationwide. Transparent targeting of rural homebuyers will be implemented to reach critical skilled professionals – teachers, doctors and nurses, and entrepreneurs – much needed to advance social welfare in rural areas and stimulate growth,” said Elaine Glennie, Principal Public Management Specialist in ADB’s Central and West Asia Department.
The loans will be released in up to four tranches. The first will be an 18-year term, a 3-year grace period, and an interest rate set in accordance with ADB’s LIBOR-based lending facility. Counterpart financing for the program will total over $2.5 billion, including down payments from rural homebuyers, and contributions from the Government of Uzbekistan, participating commercial banks, and the private sector. The Ministry of Economy will carry out the program, which is due for completion in December 2016.