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Uzbekistan and ADB

ADB has partnered with Uzbekistan since 1995, with its operations assisting in three strategic areas: private sector development, reduction of economic and social disparities, and regional cooperation and integration.

ADB's Work in Uzbekistan

ADB Membership

Joined 1995

Shareholding and Voting Power

Number of shares held:
71,502 (0.672% of total shares)

Votes:
110,616 (0.832% of total membership, 1.277% of total regional membership)

Overall capital subscription:
$988.75 million

Paid-in capital subscription:
$49.45 million

Uzbekistan joined ADB in 1995. Today, emboldened by a new development strategy and a comprehensive reform agenda, the country is striving for a vibrant economy led by the private sector.

In June 2019, ADB approved a new country partnership strategy for Uzbekistan covering 2019–2023. This partnership strategy is aligned with the country’s national development strategy and supports the Government of Uzbekistan’s ongoing reforms to transition toward a more inclusive and market-driven economy. The government’s objectives can only be achieved by developing a robust private sector and reducing the state’s pervasive footprint. ADB will assist this transition by providing policy advice, investments, and capacity-building projects that support private sector development, reduce economic and social disparities, and promote regional cooperation and integration.

Since 1995, ADB has committed loans, grants, and technical assistance amounting to $8.67 billion for Uzbekistan.

Bibi-Khanym Mosque is a famous historical site in Samarkand, Uzbekistan.

Cumulative loan disbursements to Uzbekistan amount to $4.83 billion. These were financed by regular and concessional ordinary capital resources.


ADB-Supported Projects and Programs

In 2019, ADB committed loans for seven projects and programs totaling $1.1 billion for Uzbekistan, and is supporting ongoing economic reforms through two policybased loans valued at $600 million.

In energy, the bank has supported construction of two combined cycle gas turbine units at the Talimarjan power plant and will help construct two additional gas turbine units at each of the Talimarjan and Takhiatash plants. In the northwest of the country, ADB is supporting the construction of a high-voltage transmission line to strengthen the electricity grid. It is also helping the national electricity company improve its financial sustainability by installing advanced metering systems.

ADB is financing road and railway projects along the Central Asian Regional Economic Cooperation (CAREC) Corridors 2 and 6, and helped reconstruct a highway between Guzar and Daut-ata on the border of CAREC Corridor 2. The bank also helped rehabilitate the Tashkent–Samarkand and Samarkand–Bukhara–Khodjadavlet rail lines, electrify the Marakand–Karshi railway and 145.1 kilometers of the Pap–Namangan–Andijan track, and modernize the Karshi depot. In 2019, ADB improved Uzbekistan’s rail fleet with 24 additional electric locomotives that provide cleaner and more reliable passenger and freight services.

Under the Water Supply and Sanitation Services Investment Program, over 4,800 households were connected to reliable water supply and 170,000 people received access to quality sewerage services. ADB is currently working to provide safe water to 388,000 inhabitants in 116 rural settlements across Karakalpakstan, expand the sewerage system in Djizzak city, and construct a new potable water treatment plant in Tashkent province. Under a new loan approved in 2019, the bank will help expand water supply for over 220,000 people in the Yangiyul and Chinaz districts of Tashkent province.

Over 3.2 million people across five regions have benefited from irrigation infrastructure that delivers water to farmlands. ADB also supports crop diversification and enhanced private sector participation in Uzbekistan’s horticulture value chains and infrastructure, as well as livestock value chains.

Construction site on the Talimarjan Power Plant, Sunday, July 3, 2016. ADB is helping Uzbekistan boost the efficiency of its electricity supply by building an 800-megawatt combined cycle gas turbine power plant in Talimarjan, Uzbekistan.

ADB has helped establish and equip 793 family health clinics in rural areas, while over 37,900 small and medium-sized enterprises (32% managed by women) have received commercial loans from participating financial institutions.

During 2012–2015, ADB contributed to the construction of 41,510 homes for rural families earning low to moderate incomes, while an ongoing program is building 29,000 affordable dwellings across nine regions. Under the Mortgage Market Sector Development Program, approved in 2019, the bank will help the government further improve its housing finance programs and ensure that longterm funding for market-based residential mortgage credit can be provided through the banking sector.

Ongoing public–private partnerships supported by ADB include a solar power project in the Surkhandarya region; district heating modernization and rehabilitation of public schools in Tashkent; and improved municipal water and sanitation infrastructure in Bukhara, Karshi, Namangan, and Samarkand.

To support regional cooperation under the CAREC Program, ADB helped finance power lines to supply electricity to Afghanistan and extend the Afghan railroad to the Uzbekistan border.

Greenhouse owner and worker benefits from the CAREC Regional Road Project funded by ADB.

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments from ADB’s own funds (in equity and direct loans) in 2019 amounted to $3.00 billion for 38 transactions in economic and social infrastructure, the finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2019, ADB mobilized $3.28 billion of long-term cofinancing and $3.69 billion of cofinancing in trade finance, microfinance, and supply chain finance programs. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $13.78 billion as of 31 December 2019.

Financing Partnerships

Financing partnerships enable ADB’s development partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of loans and grants, technical assistance, and other nonsovereign cofinancing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade Finance Program and Supply Chain Finance Program.

ADB began cofinancing operations in Uzbekistan in 2000. Since then, sovereign cofinancing commitments for Uzbekistan have amounted to $2.52 billion for 15 investment projects and $16.28 million for 20 technical assistance projects. Nonsovereign cofinancing for Uzbekistan has amounted to $3.24 billion for 3 investment projects.

In 2019, Uzbekistan received $240 million in loan cofinancing from the European Bank for Reconstruction and Development for the Power Generation Efficiency Improvement Project.

Projects Cofinanced, 1 January 2014–31 December 2018

Operational Challenges

ADB and the government are working closely to strengthen Uzbekistan’s environmental and social safeguards systems; ensure compliance with standard ADB practices in procurement, financial management, and integrity and anticorruption initiatives; and incorporate gender equality measures into relevant development projects. Regular portfolio reviews have enabled quick decisions and actions to address implementation issues. Project performance is being improved by strengthening the capacity of executing and implementing agencies.

ADB will continue taking steps to strengthen policy and sector coordination. It will provide assistance to line ministries on 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.

Future Directions

Under its new country partnership strategy for Uzbekistan, ADB will support the government’s long-term objectives to create rewarding, well-paid jobs and improve the quality of people’s lives.

The bank will promote rural development and improve access to finance for small and medium-sized enterprises, particularly those owned or led by women. It will also support the livestock, horticulture, and irrigation sectors, while promoting regional power trade within the Central Asian Power System and regional connectivity with other CAREC countries.

Through public–private partnerships, ADB will help create a more conducive environment for private enterprise in Uzbekistan. The bank will also assist key state-owned companies to improve their financial management and governance.

This article was originally published in the ADB and Uzbekistan: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

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