50022-002: Affordable Rural Housing Program | Asian Development Bank

Uzbekistan: Affordable Rural Housing Program

Sovereign (Public) Project | 50022-002 Status: Active

The Asian Development Bank is providing loan finance for the construction of up to 29,000 affordable housing units in nine regions across the country. The funds will support part of the Government of Uzbekistan's ongoing affordable rural housing program. The program aims to improve peoples' quality of life, with housing investments expected to generate thousands of new jobs.

Project Details

Project Officer
Sumbal, Asadullah Khan Central and West Asia Department Request for information
  • Uzbekistan
  • Loan
  • Technical Assistance
  • Finance
Project Name Affordable Rural Housing Program
Project Number 50022-002
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3535-UZB: Affordable Rural Housing Program
Ordinary capital resources US$ 500.00 million
TA 9322-UZB: Affordable Rural Housing Program
Technical Assistance Special Fund US$ 750,000.00
TA 9322-UZB: Affordable Rural Housing Program (Supplementary)
Technical Assistance Special Fund US$ 750,000.00
Loan: Affordable Rural Housing Program
Islamic Development Bank US$ 300.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Finance / Housing finance

Gender Equity and Mainstreaming Effective gender mainstreaming

The proposed ARHP will support a portion of the Government of Uzbekistan's State Affordable Rural Housing Program (SARHP), which aims to improve the quality of life in rural

areas of Uzbekistan through rural housing construction, employment generation, and private sector development. The ARHP will focus on rural housing financing and on leveraging

institutional improvements in the associated sectors. 3 Under the ARHP, three state-owned banks will provide loans to construct at least 29,000 dwelling units in nine regions of the country. The construction will be undertaken by private contractors and supervised by (i) a state-owned engineering company, Qishloq Qurilish Invest (QQI), (ii) the State Design Institute, Qishloq Qurilish Loyiha, and (iii) the State Committee for Architecture and Construction.

Project Rationale and Linkage to Country/Regional Strategy

Despite high economic growth in recent years and reduced aggregate poverty levels, the disparity between rural and urban poverty continues to widen. The agricultural sector's

share of gross domestic product continues to decline, which is reflected in the share of the workforce employed in the sector. The situation is exacerbated by an increasing rural labor

force from new entrants and returning labor migrants from the Russian Federation. Rural housing conditions are generally of a lower quality compared to urban accommodation. Rural

housing is on average smaller, older, and has more occupants due to multi-family arrangements in a single location. In 2014, only 50% of rural housing had direct access to potable water, 9% had sanitary human waste disposal, 26% had modern heating, and 72% had access to natural gas. SARHP addresses these development problems in three broad ways:

(i) Inclusive growth and rural job creation centered on agglomeration economies. The earlier rural housing clusters, built with Asian Development Bank support, have grown into thriving communities with local industries and small and medium-sized enterprises. Expanding mortgage lending and other financial products into rural areas has benefitted financial sector growth and small entrepreneurs, including women. Other benefits include significant employment generation and a strengthened construction industry.

(ii) Affordability. This is addressed by: (a) introducing smaller and lower-cost designs for dwelling units, including duplexes and apartments; (b) applying the

ARHP beneficiary selection criteria; (c) allowing co-borrowers, based on the Uzbek tradition of financial burden sharing by extended families; and (d) benefit transfers, whereby the government provides land at no cost, bears the cost of associated infrastructure, and provides income tax exemption for loan repayment. These measures make the dwelling units affordable for vulnerable low-income and single-parent families. (iii) Improved rural well-being. The SARHP improves access to improved water and sanitation, provides modern cooking and heating facilities, lowers the health risks faced by rural households, and brings other social benefits, helping to retain social sector professionals in rural areas.

Impact Quality of life in rural areas of Uzbekistan is improved by providing affordable housing
Project Outcome
Description of Outcome Increased number of rural families meeting the social equity criteria benefit from affordable housing constructed in accordance with national quality standards.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Beneficiary selection, site selection, and housing construction are in accordance with social equity criteria and national quality standards.

Improved policies and systems for the rural housing sector.

Strengthened program management and performance monitoring

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

Total disbursement is $100 million as of 30 June 2018 ($20 million as advance; $80 million for achieving two prior action DLIs and 2017 DLIs 4, 6 and 8; DLI 2 specific for 2017).

In Q2 several operational level meetings with held with EA and IAs and other agencies related to (i) procurement related issues (centralized procurement by QQI, etc.), (ii) climate change risk assessments (DLI 4) and (iii) overall implementation issues.

During the Inception Mission from 25 September to 11 October 2017 training for beneficiary selection, procurement, and climate change risk assessments was conducted all over the country through regional workshops.

In Q1 2018, a national safeguards specialist (consultant) was hired under TRTA 9322 to assist IAs in preparation of safeguards reports and conduction of capacity building training sessions, which conducted in Q2 and also scheduled for Q3 2018.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The proposed ARHP is the first results based loan in Uzbekistan. It has been discussed extensively with the government agencies, with the participating banks, and with potential beneficiaries.
During Project Implementation

From July 2017 to February 2018, a number of monitoring meetings were held with Ministry of Finance, Ministry of Economy (EA), and representatives of IAs to discuss program progress. The program progress was also discussed during the 2018 CPRM, which undertaken from 26 January 2018 to 2 March 2018. Timely submission of required documents was reiterated to avoid delays in disbursement against achievements. Achievement of non-disbursement linked indicators was also emphasized. A special focus was on reforms and improvements in QQI (DLI 6). Capacity building needs were also discussed.

On 19 Sept. 2017, a review meeting chaired by Mr. Batir Khodjaev, Minister of Finance, where progress towards achieving DLIs in 2017 was discussed. The minister updated ADB on rapid progress in procurement reforms and the likely enactment of the national procurement law. It was also indicated that reforms in the QQI were progressing as planned. ADB team informed the minister on the latest status of program implementation and the emphasized the need to keep the achievement targets on track.

Loan Inception Mission was fielded from 25 Sep to 11 Oct 2017 and held detailed discussions with the government and reviewed all DLIs and non-DLIs under the program.

A meeting with Ministry of construction was held in May 2018 to discuss the recent abolition of contractor registrations and to understand what is going to be proposed as alternative, since this particular aspect is related to DLI 7 for 2019. It was agreed that a further discussion with EA, MOC and other related government agencies to find a possible solution for this matter.

Business Opportunities
Consulting Services A total of 16 experts, 5 international and 11 national, were hired under the PPTA. Majority of the consultants assignment are closed and only 3 remain active to help in finalizing the revised expanded scope of the TA.
Procurement Not applicable
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
[email protected]
Uzbekistan Avenue, 45A Tashkent, 100060, Republic of Uzbekistan
Ministry of Finance
5 Mustaqiliik Square
Tashkent 100008
Republic of Uzbekistan
Concept Clearance 29 Apr 2016
Fact Finding 01 Aug 2016 to 12 Aug 2016
MRM 16 Sep 2016
Approval 01 Jun 2017
Last Review Mission -
Last PDS Update 25 Jul 2018

Loan 3535-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Jun 2017 06 Jul 2017 18 Jul 2017 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,063.60 Cumulative Contract Awards
ADB 500.00 01 Jun 2017 100.00 0.00 20%
Counterpart 563.60 Cumulative Disbursements
Cofinancing 0.00 01 Jun 2017 100.00 0.00 20%

TA 9322-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Jun 2017 23 Jun 2017 23 Jun 2017 31 Mar 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 50,000.00 0.00 0.00 0.00 1,550,000.00 01 Jun 2017 92,621.31

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.

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.


Tender Title Type Status Posting Date Deadline
Audit of MMU Project Accounts for FY 2017 Firm - Consulting Closed 19 Apr 2018 19 May 2018
Consulting firm for DLI verification Firm - Consulting Closed 23 Jan 2018 01 Mar 2018
Environment Specialist Individual - Consulting Closed 16 Nov 2017 22 Nov 2017
National Procurement Specialist Individual - Consulting Closed 29 Sep 2017 05 Oct 2017
International Procurement Specialist-Capacity Building Individual - Consulting Closed 30 Aug 2017 05 Sep 2017
International Financial Management Specialist Individual - Consulting Closed 26 Aug 2017 01 Sep 2017
International Procurement Specialist Individual - Consulting Closed 25 Aug 2017 31 Aug 2017
National Social Development Specialist Individual - Consulting Closed 25 Aug 2017 31 Aug 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
ACHIEVEMENT OF DLI2 FOR 2017 Loan 3535 24 May 2018 MINISTRY OF FINANCE TASHKENT, UZB UZBEKISTAN, REP. OF Ministry of Economy OTHERS 10,000,000.00 10,000,000.00
ACHIEVEMENT OF DLI 6 Loan 3535 12 Dec 2017 MINISTRY OF FINANCE TASHKENT, UZBEKISTAN UZBEKISTAN, REP. OF Ministry of Economy OTHERS 20,000,000.00 20,000,000.00
ACHIEVEMENT OF DLI 7 Loan 3535 12 Dec 2017 MINISTRY OF FINANCE TASHKENT, UZBEKISTAN UZBEKISTAN, REP. OF Ministry of Economy OTHERS 10,000,000.00 10,000,000.00
ACHIEVEMENT OF DLI4 Loan 3535 12 Dec 2017 MINISTRY OF FINANCE TASHKENT, UZBEKISTAN UZBEKISTAN, REP. OF Ministry of Economy OTHERS 5,000,000.00 5,000,000.00
FULFILLMENT OF 2017 FPR UNDER DLI 8 FOR $15 MILLION Loan 3535 29 Aug 2017 MAS CHEMICALS COLOMBO SRI LANKA Ministry of Provincial Councils & Local Government OTHERS 15,000,000.00 15,000,000.00
REIMBURSEMENT FOR FULFILLMENT OF 2017 FPR UNDER DLI7 FOR $20 MILLION Loan 3535 29 Aug 2017 R.T.C. 48/1 MOTIJHEEL, DHAKA BANGLADESH Khulna Water Supply and Sewerage Authority OTHERS 20,000,000.00 20,000,000.00

Procurement Plan

None currently available.