The Asian Development Bank is working with Uzbekistan to help low-income families obtain financing to buy homes. The project is supporting financing plans so that families can obtain modern houses built in planned rural community sites in areas serviced with electricity, gas, water and roads.
|Project Name||Housing for Integrated Rural Development Investment Program - Tranche 3|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Finance / Housing finance
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The Housing for Integrated Rural Development (HIRD) Investment Program is a five-year, $500 million multitranche financing facility (MFF) approved in 2011. Under component 1, new modern houses are built in planned rural community sites, on land plots serviced with electricity, gas, water supply, and roads provided by local governments. ADB loans to the government are onlent to participating commercial banks (PCBs) that provide subloans to rural residents who enter into contracts with Qishloq Qurilish Invest (QQI) to build new houses. Under the MFF, ADB has financed 19,606 subloans. Under component 2, the capacity of local governments to prepare and implement integrated rural development plans and investment promotion strategies is being improved. Component 2 is financed entirely by the government. Under component 3, the government is implementing measures to improve the enabling environment for entrepreneurs and micro and small enterprises to expand or establish new businesses in rural areas. Component 3 is also financed entirely by the government. A third tranche of $100 million to fund mortgages for houses was approved in 2015. ADB procurement procedures was followed for the main civil works contracts for houses and implemented nationwide involving local governments and using other institutional arrangements and structures practiced in public procurement.|
|Project Rationale and Linkage to Country/Regional Strategy||HIRD is a key component of the government's Welfare Improvement Strategy 2012-2015, which centers on rural housing as an engine for economic transformation and rural development. The MFF is consistent with the ADB country partnership strategy 2012-2016 (CPS). The CPS identified finance for SMEs, microfinance, and rural housing as priorities and included access to long-term housing finance for the construction of 40,000 new houses by 2016.|
|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||Not applicable. Progress will be reviewed during the next mission.|
|Description of Project Outputs||
Improved enabling environment for entrepreneurs and MSEs to expand or establish new businesses in rural areas
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
|Status of Implementation Progress (Outputs, Activities, and Issues)||
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Under the project the participating banks that will lend money to approximately 7,851 borrowers for buying/building new houses constructed in rural areas. The location of the rural houses is across 13 provinces. The houses will be located on land that is reserved for residential purposes, and will not involve any environmentally sensitive areas. The participating banks have prepared an environmental and social management system, which will ensure the management of any potential environmental impacts.|
|Involuntary Resettlement||The Project will provide funds to participating banks that will lend the money to borrowers for buying new houses constructed in rural areas across 13 provinces. All potential sites to be included in the project are limited to state held reserve land and precludes land that is owned or leased or for which land use rights are held by a third party. Appropriate due diligence has been conducted for all potential sites to ensure no land rights issues are associated with the project site. Each participating bank has an environmental and social management system set up to carry out the screening procedure for site selection. No involuntary resettlement impact is expected during and after project construction.|
|Indigenous Peoples||The Project will provide funds to participating banks that will lend money to borrowers for buying new houses constructed in rural areas. The location of the rural houses is across 13 provinces. In the potential project areas, none of the communities maintain a separate cultural and social identity from mainstream Uzbek society. No impact to indigenous people, as defined under ADB's safeguard policy statement, is expected from the project.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Extensive consultations were held with relevant government bodies and agencies (including the Ministry of Economy, the State Committee on Architecture and Construction, the Academy for Public Administration, regional, district, and local governments, Qishloq Qurilish Invest [the construction supervisor]), contractors, men and women homebuyers, and participating commercial banks Qishloq Qurilish Bank and the National Bank of Uzbekistan. A nation-wide training on procurement was conducted through five regional workshops in which hundreds of officials from various agencies were trained and contractors were explained the system of procurement.|
|During Project Implementation||A total of $98.7 million have been disbursed to the two (2) participating commercial banks last August and December 2015 to finance 7,851subloans. QQB and NBU have received $63.1 million and $35.5 million, respectively. Of the total amount advanced to QQB, $48,956,380.26 have been liquidated and confirmed by ADB while NBU submitted $35,517,000 in September 2016. This amount is being reviewed by ADB.|
|Responsible ADB Officer||Sumbal, Asadullah Khan|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Uzbekistan Resident Mission|
Ministry of Economy
Uzbekistan Avenue, 45A Tashkent, 100060, Republic of Uzbekistan
|MRM||23 Jul 2015|
|Approval||20 Aug 2015|
|Last Review Mission||-|
|Last PDS Update||29 Sep 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|20 Aug 2015||21 Aug 2015||27 Aug 2015||30 Jun 2017||-||08 Feb 2017|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||842.45||Cumulative Contract Awards|
|ADB||100.00||20 Aug 2015||0.00||0.00||0%|
|Cofinancing||0.00||20 Aug 2015||98.42||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.
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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
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|Tender Title||Type||Status||Posting Date||Deadline|
|UZB: Housing for Integrated Rural Development Investment Program (Tranche 3)||Advance Notice||Archived||21 Jan 2015|
No contracts awarded for this project were found
None currently available.