The World Bank has approved $150 million in concessional financing from the International Development Association (IDA) for Uzbekistan. The funds will support the second phase of the Rural Infrastructure Development Program.
According to the bank's press service, the program aims to improve public infrastructure and services in rural areas of six regions. Nearly half of Uzbekistan's 38 million population lives in rural areas, but many villages still lack reliable access to quality roads, schools, medical facilities, water supply, and electricity.
These shortcomings constrain the local business environment, entrepreneurship, and job creation. To address these issues, the Uzbek government launched the program in 2019 with financial support from the World Bank and the Asian Infrastructure Investment Bank (AIIB).
The first phase, set to conclude in June 2026, has financed over 900 subprojects in 306 mahallas across Andijan, Fergana, Namangan, Jizzakh, and Syrdarya regions. This includes construction or modernization of over 340 roads, 220 electricity supply systems, 160 water supply systems, nearly 100 schools, 40 preschools, and 10 bridges.
The bank notes that these improvements have directly benefited nearly 1 million rural residents, half of whom are women. Subproject selection and monitoring are carried out by local communities through mahalla development groups, with at least 50% female participation.
The total budget for the second phase is $340 million, financed by the World Bank ($150 million), AIIB ($120 million), and the Uzbek government ($70 million). The program, implemented by the Ministry of Economy and Finance, will cover 296 mahallas in Andijan, Fergana, Namangan, Jizzakh, Syrdarya, and Tashkent regions.
Funds will be disbursed in tranches based on achievement of specific results and milestones. By 2031, the program is expected to improve public infrastructure and services in mahallas of six regions through investments in transport, drinking water, electricity, and other facilities. About 1.2 million rural residents, including 600,000 women and 300,000 youth, are expected to benefit.
Additionally, 15 pilot mahallas will host business development centers to help local entrepreneurs in agro-processing and small manufacturing access financial services, develop business skills, and diversify sales markets.
These measures are expected to create about 1,500 direct jobs. Along with other World Bank projects in agriculture and micro, small, and medium enterprises, this program is expected to spur creation of nearly 25,000 new high-paying jobs in the project areas.
Source: www.gazeta.uz