AFD Concessional Loans and Grants Presented to Farmers in Navoi Region

On October 7, a practical seminar was held at the Youth Center in Navoi as part of the “Financing Sustainable Development of the Livestock Sector” project. The main purpose of the event was to provide detailed information to representatives of dehkan and farming enterprises, organizations involved in the sector, and commercial banks in the region about the terms for receiving concessional loans provided by the French Development Agency (AFD) and non-repayable grant funding from the European Union.

The project, implemented pursuant to Resolution No. PR-84 of the President of the Republic of Uzbekistan dated January 13, 2022, enables representatives of the sector to receive both concessional loans and non-repayable grant funding. Under the second credit line, entrepreneurs who receive loans of up to 100,000 euros can have up to 40% of their project costs covered through a European Union grant. These funds are intended for the introduction of modern foreign technologies in the production and processing of livestock and fishery products.

Significant Support for Farmers

Polat Duysenov, Acting Head of the Navoi Regional Department for the Development of Livestock and Pasture Management, described the experience in this area as follows:

“The project being implemented in cooperation with the French Development Agency based on the decision of the President is currently providing important financial support to farmers in the region. Funding under the project is being allocated regularly based on demand. In particular, the provision of additional grant funding under the second credit line has created good opportunities for entrepreneurs. During the past period, a number of projects in our region, particularly in the fishery sector and the purchase of modern equipment, have been successfully financed through these grants,” he said.

40% of Project Costs Covered by Grants

The practical results of the project can also be seen in the experience of the “Mahliyo Karmana Guzali” farming enterprise in Karmana district. The head of the farm, Sayyora Shomurodova, whose enterprise produces up to 100 tons of fish annually, shared her experience:

“Previously, we operated using high-interest loans from commercial banks. Under the French Development Agency’s credit line, we obtained a concessional loan of 1.38 billion soums. Importantly, 40% of the project costs, or nearly 550 million soums, is being covered as a grant. With this financial support, we quickly built new fish ponds on a three-hectare area along the river and expanded our operations,” the farmer emphasized.

Successful Projects in Practice

During visits to the regions, representatives of the French Development Agency familiarized themselves with the activities of several farms launched using funds allocated under the project.

In particular, they reviewed a sub-project implemented at the “Agro Gold Spring” breeding farm in Samarkand Region. The large-scale complex, covering a total area of more than 425 hectares, is home to more than 750 breeding cattle. As a result of the introduction of modern equipment and automated systems, the farm produces more than 2,260 tons of milk and 38 tons of meat annually and obtains up to 500 breeding calves per year.

The specialists also visited a number of other enterprises operating in Navoi Region. In particular, they familiarized themselves with the practical effectiveness of the loan funds at the “Dul-Dul” farming enterprise, which has launched the production of complete feed for fish; the “Turon Shorkul” family enterprise, which has expanded fish fry production and its pond facilities; and “Yangi Asr” LLC, which processes milk using modern methods.