ICIEC Supports Uzbekistan Telecommunication Sector in Expansion and Upgrades of Telecommunication Equipment

ICIEC is insuring a total of USD 50 million in Specific Transaction Policy for transactions between two of China’s largest telecommunications equipment manufacturers and Uzbekistan’s state-owned telecommunication operator. Combined, the two projects are set to expand the telecommunication network in Uzbekistan.

The first of the two projects involve the USD 70 million modernization of the mobile broadband access network in Tashkent, the Eastern Region of Uzbekistan. The project includes expanding the data storage and processing centre and developing new technology that will increase bandwidth over existing fibre networks. ICIEC insured USD 40 million for the first program out of the USD 70 million total contract value.

The second project enables telecommunication equipment to expand the broadband network in Uzbekistan’s Western region. The state telco operator is expanding its current networks and building new networks simultaneously. The project totals USD 85 million, divided into three parts. ICIEC is covering USD10 million out of USD13 million project value for the initial project stage.

ICIEC’s involvement marks one of the Corporation’s most significant transactions in Uzbekistan, enabling the member state to facilitate growth in its telecom sector and aligning with the Government’s National Development Strategy for 2017-21. By stimulating investment in the telecommunication sector, ICIEC contributes to foreign direct investment and improves Uzbekistan’s telecommunications infrastructure. ICIEC support of the Uzbekistan government, which has formulated a telecom sector policy through to 2030, will be critical in developing the country’s needed infrastructure.

ICIEC Reinsurance supports the manufacturing sector in Uzbekistan

ICIEC has provided EUR 30 million in reinsurance cover to Russian ECA, EXIAR, for their policy with Russia Exim Bank (Roseximbank) for a loan facility to the Joint Stock Commercial Bank, Sanoat Qurilish Bank (SQB), a state-owned bank in Uzbekistan. The proceeds are used for funding the construction of a Metallurgical Plant in Tashkent to produce cold rolled metal for use in the automotive industry. Therefore, these products will replace the flat steel imports, thus improving the country’s Balance of Payments (BoP). The plant will have an annual production capacity of 500 thousand tons and create 672 new jobs. The transaction was executed under the framework of the Reciprocal Reinsurance Agreement signed between ICIEC and EXIAR.