EIB and Uzbekistan take first steps towards a EUR 100m investment program for the recovery of the Aral Sea
24 September 2019
EIB and Uzbekistan`s Ministry of Investment and Foreign Trade sign Memoranda of Understanding to save Aral Sea from extinction;
MoU paves way for EUR 100m investment program in irrigation systems and land remediation in Karakalpakstan region home to 1.8 m people;
EIB`s investment program aims to increase inflow of water from the Amu Darya River in to the Aral
The European Investment Bank and the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan signed today in Tashkent a Memorandum of Understanding paving the way for a EUR 100m investment program designed to join in international efforts to recover the Aral Sea.
As the EU Climate Bank, EIB will support the Uzbek Government achieve one of its national priorities and protect the environment in the Aral Sea region, home to around 1.8 million people, and facilitate transition to a greener economy.
The EIB plans a two-tier investment program for the Aral Sea – which was in 1970 the fourth largest body of water on Earth. The first tier will see the rehabilitation and modernisation of the obsolete irrigation systems in the Amu Darya river valley, a major water contributor to the Aral Sea. The second will allow for restoration of agricultural land in the area, degraded over decades by saline intrusion, and now covered in salt because of decades of inadequate, Soviet-style irrigation system usage.
The two measures will reduce the amounts of water currently drawn from the Amu Darya River for irrigation and allow the river to contribute more water to the Aral Sea. The EIB-backing will also allow Uzbekistan to stop further environmental damage in the Aral Sea Region, mitigate and alleviate the negative climate, environmental, economic and social effect of extensive and inadequate irrigation in the Uzbekistani part of the Aral Sea basin. The partnership will contribute towards a more sustainable, environment-friendly economy in Uzbekistan.
The environmental situation around the Aral Sea has been deteriorating since 1960`s, affecting living and economic conditions for communities in the Amu Darya river valley, the Uzbek region of Karakalpakstan, with negative climate and environmental effects extending globally, well beyond the borders of Uzbekistan
Following the MoU, the next step towards the investment program will be the approval of the loan by the EIB. Once approved and signed, the program will be implemented in partnership with the Government of Uzbekistan and the European Union, within the framework of the United Nations Multi-Partner Human Security Trust Fund for the Aral Sea Region (MPHSTF), set up jointly by the UN and Uzbekistan to coordinate the aid flow in the region
Vazil Hudak, Vice-President of the EIB said, “Today, the EIB – the EU`s Climate Bank - and the Government of Uzbekistan partner to contribute to the international effort to save the Aral Sea for the future generations. Together, we will work to alleviate one of the worst man-made environmental disasters in the world today and create greener economy for the people of Uzbekistan to benefit from. EIB is proud for the opportunity to work alongside our Uzbek partners, the EU and the international community towards a long-term sustainable solution for the Aral Sea. This signature is good news for the Uzbeks, Central Asia, Europe and the World and I am proud to represent the EIB on this historic occasion.”
Ambassador Peter Burian, EU Special Representative for Central Asia, welcomed the agreement, "I welcome this significant contribution of EIB to addressing the consequences of one of the greatest human-made global environmental disaster and supporting the efforts of the Government of the Republic of Uzbekistan, initiated by President Mirziyoyev, to mitigate the severe impact of the Aral Sea disappearance and improve environmental and socio-economic conditions of the people living in the area. This important step fully corresponds with one of the key priorities of the newly adopted EU Strategy on Central Asia focusing on strengthening the partnership for resilience with countries of the region.
Note to editors:
EIB in Uzbekistan
To date EIB invested EUR 200 m in Uzbekistan supporting projects in two water and sewage, and energy efficiency projects.
The Uzbekistan Water Framework Loan (EUR 100m) supported the improvements in water supply as well as wastewater collection and treatment in the country in line with the UN Sustainable Development Goals DG6 (water and sanitation for all) and DG13 (climate action). The loan was signed within the framework of the EU‑sponsored Climate Action and Environment Facility.
The second EIB loan, Uzbekistan Energy Efficiency Loan (EUR 100m), was designed to help implement the energy-efficiency investments of small and medium-sized enterprises, mid-cap companies and private sector entities in Uzbekistan. Both loans were signed in October 2018.
The EIB and the Republic of Uzbekistan signed today in Washington a framework agreement establishing the legal basis for the EIB's activities in Uzbekistan, including the provision of finance and technical assistance. The EU bank can now support public and private sector projects in the areas of infrastructure, energy and energy efficiency and assist SMEs in the country. The Republic of Uzbekistan is the fourth state in Central Asia to establish a partnership with the EIB. Similar agreements have been signed with Kazakhstan, the Kyrgyz Republic and Tajikistan, which have already resulted in more than EUR 700 million of financing.