The resources will be used for implementation of the Water Supply and Sanitation Services Investment Program - Tranche 4, which will cover Ferghana region. The cost of the project is US$52.5 million and the Government of Uzbekistan will issue US$10.5 million to this project.

The loan was issued within the multitranche financing facility on improving water supply for 2009-2018. This is the fourth tranche within the multitranche financing facility for US$300 million, approved in 2009.

The resources of the fourth tranche will be used to modernize water supply system of Ferghana and Margilan.

The ADB adopted decision to issue US$300 million to implement a programme on improving water supply in rural areas of Uzbekistan in September 2009. Total cost of the project is US$375 million, of which US$75 million issued by the Government of Uzbekistan.

The ADB allocated the first tranche at the size of US$60 million in October 2009. The funds were issued to project on modernization of Damkhodja water source and water supply system with the cost of US$75 million.

The first tranche was directed to improve water supply and distribution systems in Damkhodja and 11 district centres in Bukhara and Navoi provinces, as well as upgrading a wastewater treatment plant and sewerage systems in Surkhandarya province.

The second tranche for US$140 million was issued in 2010. The resources were used to modernize water supply systems in four cities of Ferghana region – Andijan, Margilan, Kokand and Ferghana, as well as reconstruction of Rishtan water channel.

The size of the third tranche is US$58 million and it was issued in the end of 2011. The resources were issued to improve water supply and sewerage systems of Khorem region, Jizzakh region and Karakalpakstan.