Description

Background

The Asian Development Bank (ADB) has been supporting the development of Uzbekistan since 1998, following the country’s independence in the early 1990s. From 1998 through the end of 2009, ADB approved 30 loans totaling $1.3 billion for projects and programs in Uzbekistan, averaging about $108 million annually. In 2010, when ADB held its annual general meeting in Uzbekistan’s capital – Tashkent- ADB approved financing for four projects totaling $656 million. ADB’s support covered eight sectors from 1998 to 2009, but focused mostly on agriculture (27%), education (23%), transport (21%), and water supply (15%). At the end of 2009, ADB’s portfolio of active loans totaled $792.4 million, financing 19 projects and programs over seven sectors.

This country assistance program evaluation for Uzbekistan assesses ADB’s assistance, identifies factors affecting ADB’s performance, and draws lessons and recommendations for improving ADB’s future performance. This is the second country assistance program evaluation for Uzbekistan covering ADB’s support from 2002 to the end of 2009.

Overall assessment

ADB’s strategic positioning is rated satisfactory. ADB’s choice of sectors to support was relevant to the country’s needs, the government’s priorities, and ADB’s comparative advantages. ADB’s program is rated relevant, efficient, less effective and less likely sustainable. ADB’s development impact is rated partly satisfactory.

Overall, ADB’s country assistance program is rated successful. Three of the five sectors evaluated are rated successful: education, transport, and water supply and sanitation. Agriculture and natural resources, and finance–public policy are rated partly successful. The constrained reform environment limited the success of projects in agriculture and natural resources and finance–public policy. The successful sectors comprise the majority of ADB’s program, and have scores well above the cutoff for the successful rating.

Key findings

• ADB has been an important development partner in Uzbekistan.
• ADB’s high level of responsiveness is a key factor driving the performance rating of its program.
• An outstanding feature of ADB’s program in Uzbekistan is ADB’s close relationship with the government.
• Financial governance at the project and sector level needs improvement.
• ADB has helped improve infrastructure, but has been less successful in promoting reforms.
• Start-up delays have fundamental causes and as such may be unavoidable.
• ADB’s aid coordination has been satisfactory, but it could have done more to help the government strengthen overall coordination in Uzbekistan.

Lessons

• The first railway project is a good model for ADB to follow when starting a new country program.
• Demonstration projects can be more effective by focusing on economically feasible innovations.
• Effective and consistent support for reforms needs updated sector analyses based on the government’s priorities and commitments.
• The added cost of following ADB’s guidelines in restricting procurement to its member countries needs to be considered during project preparation.

Recommendations

The study puts forward the following recommendations for the consideration of ADB Management in formulating the next country partnership strategy and in ongoing assistance.

• Maintain focus on infrastructure and strengthen responsiveness by focusing on the government’s ultimate goals.
• Support reforms through demand-driven advisory technical assistance.
• Revive support for private sector development.
• Develop a strategy for choosing financial instruments and lending modality.
• Develop a strategy and program of knowledge products and services.
• Work with the government and other development partners to raise the efficiency and effectiveness of Uzbekistan’s procurement procedures.
• Develop a results framework in the next country strategy with which ADB can be held accountable for delivering results.

Contents

• Executive Summary
• Introduction
• Country Context
• ADB's Country Strategies and Program
• Assessment of ADB's Country Strategy and Assistance Program
• ADB's Performance
• Findings, Lessons, and Recommendations
• Appendixes