Why is this important
Accelerated urbanization in Uzbekistan is increasing the burden on urban infrastructure and municipal services, directly affecting the quality of life of the population and business conditions. The lack of access to water, sewage, transport, and public spaces reduces the stability of cities and their economic productivity. Attracting World Bank financing allows for a comprehensive solution to these problems and building a long-term urban development model, taking into account climate and social risks.
What happened
- The World Bank’s Board of Executive Directors approved a $250 million financing package for Uzbekistan.
- The funds will be allocated for the development of municipal infrastructure and services for residents and businesses in 16 districts and cities of the country within the framework of the LPCP program.
- The World Bank program will support the implementation of the state program for the accelerated comprehensive development of regions launched by the government in 2025.
Numbers and facts
- More than half of Uzbekistan’s 37 million residents live in cities, and by 2050, the share of urban population is expected to exceed 60%.
- The state program covers 16 strategically important districts and cities with a combined population of 3.6 million people.
- The LPCP program will be implemented in 13 regions of the country, including the cities of Yangiyul and Margilan, as well as 14 districts throughout the republic.
- By 2030, the LPCP program will directly improve the living conditions of about 1 million people, with women making up half of the beneficiaries.
- Within the framework of the program, it is planned to improve access to transport services for 300 thousand people and develop public spaces and parks for 400 thousand residents.
- The implementation of infrastructure projects will create about 10 thousand temporary jobs in the construction sector.
Context
- The LPCP program forms a new model of regional support, where the volume of funding for local authorities directly depends on the achieved results and management effectiveness.
- Strengthening the role of local authorities in territorial planning and the development of investment plans should improve the quality of the urban environment and the cities’ resilience to climate risks.
- The direct participation of citizens and businesses in the formation of investment plans creates conditions for more accurate accounting of the needs of the population and stimulation of the local economy.
