President of Uzbekistan approved the main parameters of the reconstruction of pump station Karakul in Bukhoro region. The total project cost is $13.9 million, including $6.6 million invested by the Uzbek side and $7.3 million aided by the Government of China.

Earlier, the governments of Uzbekistan and China signed an agreement on economic and technological cooperation, envisaging the provision of grant aid amounting to 60 million yuan. Of these, 50 million yuan are planned to go toward the project. In addition, the National Bank for Foreign Economic Activity of Uzbekistan and China Development Bank signed an agreement on the settlement services.

After the reconstruction the total capacity of the water pumping station will grow to 37.5 cu.m. per second, thus supplying water to 28.6 thousand hectares of irrigated land.

Executive agency responsible for the proper use of grant aid and the effective implementation of the project is the Ministry of Agriculture and Water Resources of Uzbekistan. The document exempted pumping and electrical equipment, materials and spare parts imported within the project from customs duties until December 31, 2012.

Goods, works and services purchased in the territory of Uzbekistan at the expense of the government grant aid of China also exempt from value added tax and compulsory contributions to state trust funds and extra-budgetary funds of reconstruction and equipping of educational facilities.