Uzbekistan: Second Small and Microfinance Development Project

Sovereign Project | 42007-013 Status: Closed

Summary

ADB is helping Uzbekistan meet a growing demand for credit from micro and small enterprises. The project will provide a credit line to three commercial banks - Ipak Yuli Bank, Hamkorbank, and Agrobank, which will lend funds to these businesses. It will also help build the banks’ capacity for microfinance operations and provide entrepreneurial skills training to end-borrowers.

Latest Project Documents


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Project Name Second Small and Microfinance Development Project
Project Number 42007-013
Country Uzbekistan
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2634-UZB: Second Small and Microfinance Development Project
Ordinary capital resources US$ 50.00 million
TA 7523-UZB: Capacity Building for Microfinance Development
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Inclusive finance - Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Gender equity
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

As of December 2013:

Access to capital eased and job creation stimulated in both rural and urban areas across Uzbekistan; to date, 20,700 jobs created, with women accounting for 38%.

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

As of December 2013:

(i) 14,312 microfinance loan accounts have been opened under the project by low-income households, and micro and small businesses in urban and rural areas, with women accounted for 36%.

(ii) 10,372 sub-borrowers, with women accounting for 38%, trained for enhanced entrepreneurial capacity.

(iii) 590 loan officers at participating commercial banks trained for improved microfinance loan appraisal skills, safeguards awareness, and gender equality.

Geographical Location Uzbekistan

Safeguard Categories

Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI

Summary of Environmental and Social Aspects

Environmental Aspects This project is FI category with respect to environment safeguards. By nature of PCBs' anticipated subloans, it is anticipated that these will have minimal or no adverse environmental effect and thus the project is treated as category C and need not apply any other specific requirements. In any case subprojects shall comply with Uzbekistan's enviromental, health and safety, and social laws and regulations, and will conform to ADB's safeguards policies (Safeguards RRP Chapter D, para. 29). PCBs will finance only those subprojects which have minimal or no adverse environmental risks.
Involuntary Resettlement This project is FI-C category with respect to social safeguards (Involuntary Settlements). By nature of PCBs' anticipated subloans, it is anticipated that these will have minimal or no adverse social risks, and thus the project is treated as category C and need not apply any other specific requirements. In any case subprojects shall comply with Uzbekistan's enviromental, health and sefety, and social laws and regulations, and will conform to ADB's safeguards policies (Safeguards RRP Chapter D, para. 29). PCBs will finance only those subprojects which have minimal or no adverse social risks.
Indigenous Peoples This project is FI category with respect to social safeguards (Indigenous Peoples). By nature of PCBs' anticipated subloans, it is anticipated that these will have minimal or no adverse social risks, and thus the project is treated as category C and need not apply any other specific requirements. In any case subprojects shall comply with Uzbekistan's enviromental, health and sefety, and social laws and regulations, and will conform to ADB's safeguards policies (Safeguards RRP Chapter D, para. 29). PCBs will finance only those subprojects which have minimal or no adverse social risks.
Stakeholder Communication, Participation, and Consultation
During Project Design During project design, the ADB mission consulted stakeholders comprising workers, NGOs, womens' organizations, microcredit organizations, credit unions, commercial banks, Central Bank of Uzbekistan and other development partners. Their feedback and lessons learned by them were incorporated into the project's design.
During Project Implementation

Loan Review Missions will continue to consult with stakeholders to determine the loan's intended outcome's efficacy

Project design parameters will be monitored closely during implementation. Particulary, information will be sought regarding:

a) Amount lent to MSEs (it is envisaged that subloans up to $10,000 will be 50% of the total loan amounts disbursed)

b) Projects financed and assets created in the MSE sector

c) Total incremental employment created

d) Number of bank staff trained on enhancement of their appraisal skills of MSEs

e) Number of women provided with subloans

f) Regional distribution of subloans in Uzbekistan's 13 regions

g) Overall social and economic benefit that will accrue to Uzbekistan

h) Future areas and issues of development specially related to microfinance and MSEs

Information obtained will be placed on the 3 PCBs' websites and shall be included in the PCBs' reports to ADB.

ADB will also communicate with MOF and PCBs through written documents. MSE subborrowers would provide monthly information at the time of repayment through personal interactions. PCBs will communicate to ADB through quarterly and annual written reports. PCBs will communicate to their staff through training programs, sensitization programs and workshops and to borrowers through awareness programs.

The information related to this project would be provided by ADB, PCBs, MOF, microfinance and small enterprise borrowers, and public at large comprising researchers, evaluators, commentators and representatives of media.

The frequency, at which communication on this project will be quarterly from MSE borrowers to PCBs, from PCBs to ADB. ADB will thereafter disclose such information on its website. There will be periodic review by ADB and communication to the public by experts.

Business Opportunities

Consulting Services All consultants were recruited according to ADB's Guidelines on the Use of Consultants. The terms of reference for all consulting services were detailed in in Section D of the Project's Facility Administration Manual. ADB's Quality and Cost Based Selection (QCBS) procedure using the bio-data technical proposal was used in consultants' recruitment.
Procurement Procurement to be financed under the loan will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). The procurement of goods and services will, as provided in para. 3.12 of ADB's procurement guidelines, (i) be from member countries of ADB; (ii) be of reasonable price, given time of delivery, quality, and efficiency; and (iii) in accordance with established private sector commercial practices which are acceptable to ADB.

Responsible Staff

Responsible ADB Officer Aliya Mukhamedyarova
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
Nilafur Nurkuzieva
5 Mustaqiliik Square
Tashkent 100008
Republic of Uzbekistan

Timetable

Concept Clearance 04 Mar 2010
Fact Finding 26 Jan 2010 to 12 Feb 2010
MRM 08 Mar 2010
Approval -
Last Review Mission -
PDS Creation Date 04 Mar 2010
Last PDS Update 18 Sep 2014

Loan 2634-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Apr 2010 01 May 2010 03 Aug 2010 31 Dec 2013 - 28 Apr 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 142.87 Cumulative Contract Awards
ADB 50.00 21 Apr 2010 50.00 0.00 100%
Counterpart 92.87 Cumulative Disbursements
Cofinancing 0.00 21 Apr 2010 50.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory Satisfactory -

TA 7523-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Apr 2010 17 May 2010 17 May 2010 30 Jun 2011 30 Jun 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 0.00 0.00 0.00 0.00 600,000.00 21 Apr 2010 456,602.69
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory Satisfactory -
Title Document Type Document Date
Second Small and Microfinance Development Project: Project Completion Report Project/Program Completion Reports Sep 2015
Capacity Building for Microfinance Development TA Completion Reports Apr 2013
Amendment to the Loan Agreement for Loan 2634-UZB: Second Small and Microfinance Development Project Loan Agreement (Ordinary Resources) Jan 2013
Amendment to the Project Agreement with Hamkorbank for Loan 2634-UZB: Second Small and Microfinance Development Project Project/Program Agreement Jan 2013
Amendment to the Project Agreement with Ipak Yuli Bank for Loan 2634-UZB: Second Small and Microfinance Development Project Project/Program Agreement Jan 2013
Loan Agreement for Second Small and Microfinance Development Project between the Republic of Uzbekistan and Asian Development Bank dated 01 May 2010 Loan Agreement (Ordinary Resources) May 2010
Project Agreement for Second Small and Microfinance Development Project between Asian Development Bank and Agrobank dated 01 May 2010 Project/Program Agreement May 2010
Project Agreement for Second Small and Microfinance Development Project between Asian Development Bank and Hamkorbank dated 01 May 2010 Project/Program Agreement May 2010
Project Agreement for Second Small and Microfinance Development Project between Asian Development Bank and Ipak Yuli Bank dated 01 May 2010 Project/Program Agreement May 2010
Second Small and Microfinance Development Project Project/Program Administration Manual Mar 2010
Second Small and Microfinance Development Project Reports and Recommendations of the President Mar 2010
Second Small and Microfinance Development Project: Gender Action Plan Gender Action Plans Mar 2010
Second Small and Microfinance Development Project Summary Poverty Reduction and Social Strategies Mar 2010

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Uzbekistan: Second Small and Microfinance Development Project Validations of Project Completion Reports Jul 2016

Related Publications

None currently available.


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