EBRD ready to allocate up to $158M for project supported by Azerbaijan Uzbek Investment Company

The European Bank for Reconstruction and Development (EBRD) is exploring the possibility of providing loan financing of up to $158 million for the construction of a large-scale medical complex in the Fergana region of Uzbekistan, Report informs referring to the EBRD.

The bank's financial package is expected to consist of two tranches: a senior secured loan of up to $120 million and an equity bridge loan of up to $38 million.

The allocated resources will be used for the design, construction, equipping, maintenance, and subsequent transfer of a multidisciplinary hospital with a capacity of 800 beds. The project is being implemented under a 23-year public-private partnership (PPP) contract signed with the Ministry of Health of Uzbekistan.

The borrowers are special-purpose companies whose beneficiaries, on a parity or equity basis, are members of an international consortium: Vision International Investment Company (Vision Invest) from Saudi Arabia, KOC Construction Mekanik Elektrik LLC FE (KOC Construction) from Türkiye, and the joint venture Azerbaijan Uzbek Investment Company LLC (AUIC), established by the governments of Azerbaijan and Uzbekistan to promote bilateral economic cooperation.

The total cost of the project is estimated at up to $340 million. Along with EBRD resources, financing is attracted from sponsors in the form of shareholder loans, as well as with the participation of other international development institutions. The established medical center aims to expand public access to high-tech medical care, including cardiac surgery, neurosurgery, and transplantology. This project will be the first large-scale PPP transaction in the social infrastructure sector of Uzbekistan and is predicted to set a precedent for launching similar initiatives in the region.