EMBASSY OF UZBEKISTAN TO THE UNITED STATES
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NEWS AND EVENTS
July 8, 2013
Banks to allocate concessional loans for water-saving technologies
The Uzbek government approved a Resolution \'On measures for effective introduction and financing of drip irrigation system and other water-saving irrigation technologies\'.



The document defines the priority lands for introduction of drip irrigation systems. The list includes the irrigated lands with mean annual water shortage in the growing season, as well as pump irrigated lands which require much lift water for irrigation. Besides, the system will cover the lands designated for gardens, vineyards, melon, and other highly profitable crops, as well as lands with large slopes, the lands prone to irrigation erosion, flat land areas with light non-saline soil and soils not subject to salinity.

The turnkey construction of the systems will be provided by state unitary enterprises that specialize in reclamation and other water works, according to the approved construction documents. Land Reclamation Fund under the Ministry of Finance will finance these projects.

To enhance the efficiency of work the government granted farmers and equipment manufacturers with certain benefits. For instance, the agricultural producers who have introduced the system are provided with the right to use the saved water to grow crops on the lands released from cereal crop growing.

In turn, the specialized organizations that manufacture components for drip irrigation and other water-saving irrigation technologies are envisaged an annual quota for purchasing polyethylene pellets at declared prices.

It is noteworthy that the document settles a mechanism on concessional loaning to empower farmers for introduction of water-saving technologies. In 2013-2014, the commercial banks of Uzbekistan will provide the farmers with the funds they need through a credit line of the Land Reclamation Fund. Typically, the loan will be issued at a rate not exceeding 1,000 fold the minimum wage, and not less than for three years. The availability of one or several sources of funding in a borrower is a prerequisite for obtaining a loan. (Source: “Uzbekistan Today” newspaper)


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