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 Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|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|
|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.|
|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|
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.|
|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|
Ministry of Economy
Uzbekistan Avenue, 45A Tashkent, 100060, Republic of Uzbekistan Ministry of Finance
5 Mustaqiliik Square
Republic of Uzbekistan
|MRM||25 Feb 2011|
|Approval||09 Sep 2011|
|Last Review Mission||-|
|Last PDS Update||21 Sep 2015|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|Cofinancing||0.00||09 Sep 2011||20.55||0.00||100%|
|Status of Covenants|
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.
|Title||Document Type||Document Date|
|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 - 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||Procurement Plans||Oct 2013|
|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|
|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|
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.
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.
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