Uzbekistan to Transform 33 Cities and Districts into Model Urban Areas

Uzbekistan will transform 33 cities and districts into model urban areas as part of its «New Uzbekistan» initiative. According to a presidential decree signed by Shavkat Mirziyoyev, the government will allocate 7 trln soums ($576.5 mln) from the state budget to support the large-scale modernisation programme.

Of this funding, 2.3 trln soums ($189.4 mln) will go to towns and settlements that will receive the official status of New Uzbekistan. Each designated area will be granted 100 bn soums ($8.2 mln) for infrastructure and social improvements. In addition, they will receive $100 mln in financing from the Islamic Development Bank and the World Bank to support projects aimed at developing rural and mid-sized urban areas.

Funding for Mahallas and Regional Projects

The plan also includes 1.7 trln soums ($140 mln) for mahallas (local communities), which will be redesigned to reflect the modern aesthetic and standards of the New Uzbekistan concept. A further 2 trln soums ($238.8 mln) will be directed to regional driver projects to stimulate economic and social growth.

The government intends to attract a $250 mln concessional loan from the World Bank in 2025 under its Sustainable and Livable Cities programme. Another $250 mln in external financing is expected from international financial institutions in the following year to sustain the ongoing urban renewal efforts.

These initiatives form part of Uzbekistan’s broader vision to enhance living conditions, modernise infrastructure and create a unified model for sustainable regional development across the country.

Kursiv also reports that Uzbekistan will launch an Artificial Intelligence Development Alliance to coordinate efforts across ministries and government agencies.