World Bank Approves $150 Mln to Boost Rural Infrastructure in Uzbekistan
The World Bank’s board of directors has approved a $150 mln allocation to develop rural infrastructure across Uzbekistan. According to the financial institution’s press service the funds will be directed towards launching the second phase of the ongoing «Rural Infrastructure Development» programme.
Initiated by the Uzbek government in 2019 the comprehensive project aims to support residents living in remote rural areas across six regions of the republic. The second phase commands a total budget of $340 mln. Alongside the $150 mln from the World Bank the Asian Infrastructure Investment Bank will provide $120 mln while the Uzbek government will contribute a further $50 mln.
Building on phase one success
The initial phase of the programme proved highly successful, attracting $182 mln from foreign financial institutions to back more than 900 distinct subprojects. These community-driven initiatives were implemented across 306 mahallas in five different regions.
According to the bank the completed phase one subprojects delivered massive regional upgrades, including the construction or modernisation of 340 local roads, 220 electricity supply systems, 160 water supply networks, 100 schools, 40 preschool facilities, 10 regional bridges.
Addressing rural deficits by 2031
World Bank officials noted that many remote villages still lack access to high-quality roads, educational facilities, healthcare centres and basic communal utilities. This ongoing deficit severely hampers local business development and restricts job creation.
The second phase of the programme is scheduled to run until 2031 with the primary goal of significantly improving both physical infrastructure and the quality of local services. Investment will be heavily funnelled into building and upgrading essential infrastructure to stimulate regional economic growth.
The upcoming enhancements are expected to benefit approximately 1.2 mln rural residents. This demographic includes an estimated 600,000 women and 300,000 young people. In addition to the core infrastructure improvements the project will also fund the opening of dedicated business development centres in 15 selected mahallas to further encourage local entrepreneurship.
