Uzbekistan : Enhancing Efficiency in Rural Infrastructure

Project Name

Enhancing Efficiency in Rural Infrastructure

Project Number

48039-001

Country / Economy

• Uzbekistan

Project Status

Closed

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 8894-UZB: Enhancing Efficiency in Rural Infrastructure

Source	Amount
Technical Assistance Special Fund	US$ 600,000.00

Strategic Agendas

• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development

Sector / Subsector

• Industry and trade / Small and medium enterprise development

• Public sector management / Public administration

• Water and other urban infrastructure and services / Urban housing

Gender

Some gender elements

Description

This TA will enhance rural outcomes in three ways. First, the TA will assess a random sample of the houses constructed, infrastructure, community facilities, home-based businesses and oversight mechanisms in the field, and recommend ways to improve them. Second, the technical capacity of relevant government agencies will be enhanced, to improve HIRD physical implementation and enable any necessary changes to policies, procedures, and practives for construction and completion of rural houses and related infrastructure. Third, responsiveness to client needs from Government agencies will be improved by better interactions with HIRD beneficiaries.

Project Rationale and Linkage to Country/Regional Strategy

Under the Government's Welfare Improvement Strategy of Uzbekistan 2012 - 2015, key objectives for regional economic growth include ensuring higher rates of economic development in regions that have lower per capita income and industrial production and services. Further, a government objective is to ensure that living conditions for the rural population are brought as close as possible to the level enjoyed in cities through the development of transport and public utilities infrastructure, educational institutions, healthcare units, and sporting facilities. One specific program launched in support of these objectoves is the Housing for Integrated Rural Development (HIRD) Investment Program. As originally envisaged, from 2011 to 2015, 40,800 houses will be built nationwide. In 2011, ADB approved a $500m multitranche financing facility to support HIRD through intermediary financing to the participating commercial banks who provide mortgages to homebuyers.

As housing construction grows in rural areas, homebuyers are becoming more discerning in their housing needs, demand more robust construction standards and want swift action taken against construction firms who do not meet satisfactory regulatory and construction standards. With the Government an active participant in the rural housing construction market, there has been little opportunity or incentive to review the regulatory standards and their application to assess if they are fit for purpose' for rural housing. Further, capacity to provide active oversight during construction has been stretched, and there has been little training for those officials who provide oversight of construction.

The key development issues to be addressed under this TA include:

-Government being more responsive to the needs of rural homebuyers in terms of consistent and high quality house construction standards and construction oversight.

-Government capacity to adjust rural construction regulatory standards and provide effective construction oversight.

-Government understanding of its role and responsibilities with regard to inspection and timely action on poor construction work, taking measured and proportionate responses to these construction firms.

-Government having an increased understanding of how technology can be used to improve construction oversight outcomes, and complement existing construction oversight techniques.

Impact

Improved housing construction, associated infrastructure and individual work opportunities

Project Outcome

Description of Outcome

Improved government technical capacity to deliver rural housing and associated infrastructure, and to support home-based enterprises

Progress Toward Outcome

Ongoing

Implementation Progress

Description of Project Outputs

1. Improved field technical assessment tools and procurement of HIRD program construction

2. Improved field technical assessment tools of HIRD program infrastructure and community facilities

3. Improved field technical assessment tools of HIRD program housing in support of home-based enterprises

Status of Implementation Progress (Outputs, Activities, and Issues)

Ongoing

Geographical Location

Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

During the Loan Review mission for UZB: HIRD Program from 29 April to 13 May, this TA was discussed with the Ministry of Economy, the State Committee for Architecture and Construction (now the Ministry of Construction), Qishloq Qurilish Invest Engineering Company, Qishloq Qurilish Loyiha Design and Research Institute, and the State Cadastre Committee.

During Project Implementation

The TA is being discussed regularly with the government and TA implementation is on track. The TA is assisting implementation of UZB: Affordable Rural Housing Program, which is a results-based loan (Loan 3535).

ADB hired an international construction firm (INACON PERTIWI), who commenced its work on 21 June 2018 and fielded its team of consultant under Inception mission from 9-20 July 2018. Findings and observations together with recommendations were presented to counterparts (EA/MOE, Ministry of Construction (MOC), State Technical Inspectorate under MOC, QQI, and QQL) on 20 July 2018.

Business Opportunities

Consulting Services

A national procurement specialist was engaged for 11 person-months, intermittently, from 17 March 2016 to 31 Jan 2017. Two civil engineers (international and national) have been hired and have provided their inputs under the TA.

TA Minor change in implementation arrangements was approved in October 2017.

CSRN for International Civil Engineering firm recruitment was posted late Q4 2017. RFPs were sent to shortlisted consultants in Q1 2018. Selection process is ongoing.

Procurement

Not applicable

Contact

Responsible ADB Officer

Sood, Priyanka

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Uzbekistan Resident Mission (URM)

Executing Agencies

Ministry of Economic Development and Poverty Reduction

Timetable

Concept Clearance

19 Nov 2014

Fact Finding

09 Mar 2015 to 18 Mar 2015

MRM

-

Approval

08 May 2015

Last Review Mission

-

Last PDS Update

02 Oct 2018

Funding

TA 8894-UZB