44318-023: Housing for Integrated Rural Development Investment Program - Tranche 1 | Asian Development Bank

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

Sovereign (Public) Project | 44318-023 Status: Closed

ADB is helping Uzbekistan improve living standards and livelihoods in rural areas. The investment program will finance more than 40,000 new houses nationwide, channeling household savings into investment in rural construction to create jobs. It will also strengthen local government capacity and the business environment to promote the growth of micro, small, and medium-sized enterprises.

Project Name Housing for Integrated Rural Development Investment Program - Tranche 1
Project Number 44318-023
Country 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
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 Equity and Mainstreaming

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.
Responsible ADB Officer Sumbal, Asadullah Khan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Uzbekistan Resident Mission
Executing Agencies
Ministry of Economy
Raushan Gulyamov
[email protected]
Uzbekistan Avenue, 45A Tashkent, 100060, Republic of Uzbekistan
Ministry of Finance
5 Mustaqiliik Square
Tashkent 100008
Republic of Uzbekistan
Concept Clearance -
Fact Finding -
MRM 25 Feb 2011
Approval 09 Sep 2011
Last Review Mission -
Last PDS Update 21 Sep 2015

Loan 2775-UZB

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 Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 200.00 Cumulative Contract Awards
ADB 200.00 09 Sep 2011 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 09 Sep 2011 178.83 0.00 100%
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 Public Communications Policy (PCP) 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.

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

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) 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.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan