ADB provides financial support for Uzbekistan's natural gas project

TASHKENT. April 3. KAZINFORM  The Asian Development Bank (ADB) has granted a loan of 100 million U.S. dollars and a political risk guarantee of 200 million U.S. dollars for a project to build a natural gas field in Uzbekistan, local media reported Monday.

This deal marks the first commercial lending to Uzbekistan's crucial natural gas industry and will pave the way for further private sector participation in this key exporting sector, Xinhua reports.

The project, located in the Bukhara-Hiva region, will also boost local employment and economic growth by providing thousands of jobs, said the reports.

Lukoil Overseas Uzbekistan, a subsidiary of the international oil and gas operator the Lukoil Group, will use the 100 million U.S. dollars loan to develop the Kandym gas field under a 35-year production sharing agreement with the state-owned company Uzbekneftegaz. The field is expected to start production in 2015.

Natural gas exports are a vital driver of Uzbekistan's economy, accounting for a significant share of gross domestic product.


Currently reading