Uzbekistan : Housing for Integrated Rural Development Investment Program - Tranche 1

Sovereign Project | 44318-023

The Program will help to strengthen the impact of the government's Rural Development Program (RDP) and Rural Housing Scheme (RHS) to improve rural livelihoods and living standards, including better coordination with the government's financial sector strategy and new Micro, Small and Medium Enterprise (MSME) Program. In the medium term, the MFF supports (i) access to affordable housing finance and housing (ii) improved local government capacity to implement integrated rural development strategies that focus on creating rural jobs; and (iii) strengthening the enabling environment for rural MSMEs.

Under the government's roadmap, inclusive rural economic growth will be supported through creation of direct and indirect jobs and other livelihood opportunities, expanded access to affordable housing finance, new improved housing and associated infrastructure and social services, and MSME development.

Project Details

  • Project Officer
    Sumbal, Asadullah Khan
    Central and West Asia Department
    Request for information
  • Country/Economy
    Uzbekistan
  • Modality
  • Sector
    • Finance
Project Name
Housing for Integrated Rural Development Investment Program - Tranche 1
Project Number
44318-023
Country / Economy
  • Uzbekistan
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 2775-UZB: Housing for Integrated Rural Development Investment Program - Tranche 1
Source Amount
Ordinary capital resources US$ 200.00 million
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Governance and capacity development
  • Private sector development
Sector / Subsector
  • Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

  • Finance / Housing finance

Gender
Description

The Program will help to strengthen the impact of the government's Rural Development Program (RDP) and Rural Housing Scheme (RHS) to improve rural livelihoods and living standards, including better coordination with the government's financial sector strategy and new Micro, Small and Medium Enterprise (MSME) Program. In the medium term, the MFF supports (i) access to affordable housing finance and housing (ii) improved local government capacity to implement integrated rural development strategies that focus on creating rural jobs; and (iii) strengthening the enabling environment for rural MSMEs.

Under the government's roadmap, inclusive rural economic growth will be supported through creation of direct and indirect jobs and other livelihood opportunities, expanded access to affordable housing finance, new improved housing and associated infrastructure and social services, and MSME development.

Project Rationale and Linkage to Country/Regional Strategy

While Uzbekistan has achieved substantive gains in gross domestic product (GDP) growth (8.5% in 2010), led by services (11.2%), industry (8.4%), and agriculture (7.1%), living standards in rural areas continue to lag those in urban areas. Around 75% of the poor live in rural areas and rural poverty (22.2% in 2009) is decreasing at a slower pace than in urban areas (15.2% in 2009). The proposed project will support the government's strategy for more inclusive economic growth, improving rural job and livelihood opportunities, improving rural living standards, and addressing urban migration.

Impact

Improved rural housing for targeted beneficiaries

Project Outcome

Description of Outcome

Downstreaming of rural housing scheme for moderate and lower income beneficiaries, with a focus on women

Progress Toward Outcome
In 2011 and 2012, a defined beneficiary selection process was adopted, the government put more resources into an expanded public awareness campaign for the program and more people were recruited to improve monitoring of the program. Further, demand for houses increased in 2011 and 2012, to an average of 3 applicants per house for 8510 houses constructed.

Implementation Progress

Description of Project Outputs

Housing loans provided by PCBs to targeted creditworthy subborrowers in rural areas

Improved capacity of local governments to prepare and implement integrated rural development plans and investment promotion strategies

Improved enabling environment for entrepreneurs and MSEs to expand or establish new businesses in rural areas

Status of Implementation Progress (Outputs, Activities, and Issues)
During the implementation of tranches 1 and 2 (2012-2014), 115,010 mortgage loan applications were evaluated. Procurement documents conforming to ADB standards were developed and used by 8,757 bidders, and 2,533 NCBs were conducted and the same number of contracts were awarded for the construction of 29,510 houses. Mortgage loans were issued by QQB and NBU to 27,890 homebuyers. 22,834 people nationwide received training on safeguards, beneficiary selection processes, and procurement. Under component 2, 2,206 local government officials received training in integrated rural development planning and investment promotion strategies in 2013 and 2014. Under component 3, the government implemented more than twenty-four additional reform actions and, using its own funds and funds attracted from international financial institutions including ADB, provided credit lines to banks to increase lending to micro and small enterprises, with an emphasis on loans to rural and women-owned businesses. To reduce small business barriers, a pilot program for online business registration was launched in 2014
Geographical Location
Andijan, Bukhara, Fergana, Jizzakh Province, Karakalpakstan, Namangan, Navoiy Province, Qashqadaryo, Samarqand Viloyati, Sirdaryo, Surxondaryo Viloyati, Toshkent Viloyati, Xorazm Viloyati

Safeguard Categories

Environment
C
Involuntary Resettlement
FI-C
Indigenous Peoples
FI

Summary of Environmental and Social Aspects

Environmental Aspects

Environmental impacts are anticipated to be insignificant. QQB (the sole participating commercial bank) adopted an environmental and social management system (ESMS) with screening criteria and monitoring procedures to ensure that the subprojects have minimal or no adverse environmental or social risks.

Involuntary Resettlement
Only land sites with no involuntary resettlement impacts will be considered. The ESMS has monitored this to be sure of this outcome.
Indigenous Peoples
Only land sites with no indigenous peoples' impacts will be selected. The ESMS has monitored this to be sure of this outcome.

Stakeholder Communication, Participation, and Consultation

During Project Design
Consultation with various stakeholders were undertaken during project design including community groups.
During Project Implementation
Tranche 1 closed on 30 June 2015, but was extended twice (original closing date 30 June 2013) to allow financing and completion of key risk monitoring reports, namely the technical and financial performance review. The government is generally in compliance with the undertakings in the Framework Financing Agreement (FFA), though three minor changes in the FFA were required to align the FFA with government decisions and to allow the government more time to fulfill the undertakings due to slow implementation.

Business Opportunities

Consulting Services
The procurement review for effective project implementation (PREI) of the Project was completed and an action plan to streamline and improve procurement procedures has been shared with the government, which is under implementation. The PIU Audit for 2012 and 2013 has been completed and that for 2014 is being contracted. A firm has been shorlisted to carry out the Technical and the Financial Performance Review (2009-2011) and after finalization of the contract work is expected to commence from November 2014.
Procurement
Procurement for 851 bid packages for construction works of houses have been completed and construction in 272 sites across the country is now complete.

Contact

Responsible ADB Officer
Sumbal, Asadullah Khan
Responsible ADB Department
Central and West Asia Department
Responsible ADB Division
Uzbekistan Resident Mission (URM)
Executing Agencies
Ministry of Economic Development and Poverty Reduction
Ministry of Economy and Finance

Timetable

Concept Clearance
-
Fact Finding
-
MRM
25 Feb 2011
Approval
09 Sep 2011
Last Review Mission
-
Last PDS Update
21 Sep 2015

Funding

Loan 2775-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Sep 2011 16 Feb 2012 20 Apr 2012 31 Dec 2013 30 Jun 2015 10 Dec 2015
Financing Plan
  Total (Amount in US$ million)
Project Cost 200.00
ADB 200.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 0.00 0.00 0%
Cumulative Disbursements 17 Jun 2022 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Unsatisfactory Satisfactory Satisfactory - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Housing for Integrated Rural Development Investment Program - Tranche 1: Qishloq Qurilish Bank Audited Project Financial Statements (January-December 2015) Audited Project Financial Statements Oct 2016
Housing for Integrated Rural Development Investment Program - Tranche 1: Project Completion Report Project/Program Completion Reports Sep 2016
Housing for Integrated Rural Development Investment Program - Tranche 1: Ministry of Economy PIU Audited Project Financial Statements (January-June 2015) Audited Project Financial Statements Aug 2015
Housing for Integrated Rural Development Investment Program - Tranche 1: Qishloq Qurilish Bank Audited Project Financial Statements (January-June 2015) Audited Project Financial Statements Aug 2015
Housing for Integrated Rural Development Investment Program – Tranche 1: Ministry of Economy PIU Audited Project Financial Statements (January-December 2014) Audited Project Financial Statements Aug 2015
Housing for Integrated Rural Development Investment Program - Qishloq Qurilish Bank: Audited Project Financial Statements for Projects 1 (20 April 2012-31 December 2014) and 2 (24 October 2013-31 December 2014) Audited Project Financial Statements Jul 2015
Housing for Integrated Rural Development Investment Program – Tranche 1: Ministry of Economy PIU Audited Project Financial Statements (January-December 2012) Audited Project Financial Statements May 2014
Housing for Integrated Rural Development Investment Program – Tranche 1: Ministry of Economy PIU Audited Project Financial Statements (January-December 2013) Audited Project Financial Statements May 2014
Housing for Integrated Rural Development Investment Program - Tranche 1 Procurement Plans Oct 2013
Loan Agreement for Housing for Integrated Rural Development Investment Program - Project 1 between Republic of Uzbekistan and Asian Development Bank dated 16 February 2012 Loan Agreement (Ordinary Resources) Feb 2012
Project Agreement for Housing for Integrated Rural Development Investment Program - Project 1 between Asian Development Bank and Open Joint Stock Commercial Bank "Qishloq Qurilish Bank" dated 16 February 2012 Project/Program Agreements Feb 2012

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.


Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Uzbekistan: Housing for Integrated Rural Development Investment Program—Tranches 1, 2, and 3 Project Performance Evaluation Reports Oct 2018

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Housing for Integrated Rural Development Investment Program - Tranche 1 Procurement Plans Oct 2013