ADB's Work in Uzbekistan

ADB is one of Uzbekistan’s largest development partners. ADB’s support in 2022 focused on reforms for the country’s transition toward an inclusive and market-driven economy. It is closely aligned with Uzbekistan’s national development strategy and its priority areas: (i) governance and public administration reforms; (ii) economic development, including structural reforms, strengthening private ownership and entrepreneurship, and improving transport and trade connectivity; and (iii) social development. The Government of Uzbekistan aims to reduce the state’s footprint through a robust private sector. ADB assists in this transition by providing policy advice, capacity building, and projects that support private sector development, reduce economic and social disparities, and promote regional cooperation and integration.

In 2022, ADB committed 5 new public sector projects and programs for just over $1 billion to Uzbekistan. This included a $500-million loan to help promote food security, provide social protection for vulnerable groups, and support employment in Uzbekistan amid the coronavirus disease (COVID-19) pandemic and the economic impacts of the Russian invasion of Ukraine, among other external shocks.

To date, ADB has committed 240 public sector loans, grants, and technical assistance totaling $11.5 billion to Uzbekistan. Cumulative loan disbursements to Uzbekistan amount to $7.69 billion. These were financed by regular and concessional ordinary capital resources, and other special funds. ADB’s current sovereign portfolio in Uzbekistan includes 32 loans, 1 grant, and 1 sovereign guarantee worth $5.06 billion.

To improve the quality of life for people who live in Uzbekistan’s secondary cities, ADB approved a $59-million loan and $500,000 grant within the Integrated Urban Development Project. It will support strategic investments in municipal infrastructure and services in the cities of Djizzak, Havast, Khiva, and Yangiyer that have experienced lagging growth due to the COVID-19 pandemic and impacts of climate change.

ADB approved a $150-million loan that will help expand green renovation loans. It will boost the funding available to commercial lenders in the country so they can continue providing affordable home loans. In Uzbekistan, borrowers can use green renovation loans to refurbish or install heating and cooling systems, install solar panels, or improve insulation water in their homes and thereby improving energy efficiency.

To help improve food and water security, ADB approved a $150-million loan and a $3-million grant that will deliver climate-adaptive solutions to water resources management in Uzbekistan. This support will modernize irrigation and drainage in selected subprojects within the Amu Darya and selected areas of the Zarafshan River Basins.

The Marakand-Karshi railway electrification project supported by ADB begins in this area in Uzbekistan. Photo: Relisa Granovskaya/ADB

ADB also continues to prioritize transport and energy connectivity, and trade in supporting Uzbekistan. ADB provided a $273.85-million loan to reconstruct and upgrade national roads in the country that are vital to regional connectivity. The project upgrades the link to the A380 highway, part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 2 connecting Afghanistan, Kazakhstan, the Russian Federation, Tajikistan, Turkmenistan, and Uzbekistan. It will also widen the roads using low-maintenance concrete pavement and improve their condition to substantially reduce travel time and vehicle operating costs. The project will also upgrade alignments and junctions, provide bus stop shelters and better pedestrian facilities, and add clearer signage and other safety features.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Uzbekistan as of 31 December 2022 was $327.18 million representing 2.6% of ADB’s total private sector portfolio.

Operational challenges. ADB and the Government of Uzbekistan are working closely to ensure compliance with good international practices in procurement, financial management, and integrity and anticorruption; and to incorporate climate change adaptation and mitigation, and gender equality measures into development projects. The bank will continue taking steps to strengthen policy and sector coordination while improving the implementation of its projects. It will help line ministries with sector strategic planning and project preparation, build capacity in new project design and implementation, streamline project-readiness processes, and improve procurement and consultant recruitment protocols. While the lingering effects of the COVID-19 pandemic still cause some delays in logistic supply chains and custom clearances needed for ADB-supported projects, the bank will continue to closely monitor efforts to deliver project benefits in a timely manner.

Knowledge Work

ADB remains Uzbekistan’s trusted adviser and provider of knowledge solutions especially in reforming critical sectors of the economy including urban services, energy, and skills development. In 2022, ADB provided analytical support and capacity building to the Ministry of Investments and Foreign Trade in assessing Uzbekistan’s regional integration initiatives and improving project management. Institutional strengthening in pursuing economic reforms and the transition to a green economy were critical topics in ADB’s policy dialogue with the Ministry of Economic Development and Poverty Reduction and Ministry of Finance.

  ADB Projects in Uzbekistan Project data sheets for loans, grants, TAs

Future Directions

ADB’s support in education and healthcare will be critical in developing Uzbekistan’s human capital. In response to the government’s request, about $200 million is expected to be allocated for projects in these two sectors. In 2023, ADB plans to commit to a new project involving science, technology, engineering, and math in secondary schools to equip students with relevant skills to succeed in an evolving and diverse labor market. The bank is also working on a new health project to improve perinatal care by upgrading more than 230 perinatal centers throughout Uzbekistan. ADB will continue to work on improving smart water management, energy efficiency, and public sector management in the country. It will also continue helping with public–private partnership advisory and private sector investments.

Last updated: 24 July 2023