Uzbekistan : Economic Management Improvement Facility

Sovereign Project | 51350-001

The proposed economic management improvement program aims to strengthen economic management in Uzbekistan and thus support macroeconomic stability and sustained high growth. Macroeconomic stability, in turn, implies stronger resilience to adverse economic shocks. This is of critical importance in Uzbekistan as the country is pursuing regional integration and economic diversification. The program will introduce important fiscal reforms to ensure fiscal sustainability; improve governance in state-owned enterprises (SOEs) to make their operations financially viable; improve access to bank finance by strengthening bank supervision so as to facilitate competitive financing of private sector operations (especially small and medium enterprises); and strengthen economic data collection, analysis, management, and dissemination systems to bolster economic decision making. The programmatic approach and policy-based loan will finance two subprograms to be implemented during 2018-2019.

Project Details

  • Project Officer
    Akin, Cigdem
    Sectors Group
    Request for information
  • Country/Economy
    Uzbekistan
  • Sector
    • Public sector management
Project Name
Economic Management Improvement Facility
Project Number
51350-001
Country / Economy
  • Uzbekistan
Project Status
Active
Project Type / Modality of Assistance
  • Loan
  • Technical Assistance
Source of Funding / Amount
Loan 3675-UZB: Economic Management Improvement Program (Subprogram 1)
Source Amount
Ordinary capital resources US$ 300.00 million
Loan: Economic Management Improvement Program (Subprogram 1)
Source Amount
World Bank US$ 500.00 million
TA 9538-UZB: Economic Management Improvement Program (Subprogram 1)
Source Amount
Technical Assistance Special Fund US$ 1.00 million
TA 9538-UZB: Economic Management Improvement Program (Subprogram 1) (Supplementary)
Source Amount
Technical Assistance Special Fund US$ 300,000.00
TA 9538-UZB: Economic Management Improvement Program (Subprogram 1)
Source Amount
Technical Assistance Special Fund US$ 500,000.00
TA 9538-UZB: Economic Management Improvement Program (Subprogram 1)
Source Amount
Technical Assistance Special Fund US$ 150,000.00
TA 9538-UZB: Economic Management Improvement Program (Subprogram 1)
Source Amount
Technical Assistance Special Fund US$ 300,000.00
TA 9538-UZB: Economic Management Improvement Facility
Source Amount
Technical Assistance Special Fund US$ 150,000.00
Technical Assistance Special Fund US$ 175,000.00
TA 9538-UZB: Economic Management Improvement Facility
Source Amount
Technical Assistance Special Fund US$ 500,000.00
Loan: Economic Management Improvement Facility
Source Amount
Agence Francaise de Developpement US$ 170.57 million
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Governance and capacity development
  • Partnerships
  • Private sector development
Sector / Subsector
  • Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises

Gender
No gender elements
Description
The proposed economic management improvement program aims to strengthen economic management in Uzbekistan and thus support macroeconomic stability and sustained high growth. Macroeconomic stability, in turn, implies stronger resilience to adverse economic shocks. This is of critical importance in Uzbekistan as the country is pursuing regional integration and economic diversification. The program will introduce important fiscal reforms to ensure fiscal sustainability; improve governance in state-owned enterprises (SOEs) to make their operations financially viable; improve access to bank finance by strengthening bank supervision so as to facilitate competitive financing of private sector operations (especially small and medium enterprises); and strengthen economic data collection, analysis, management, and dissemination systems to bolster economic decision making. The programmatic approach and policy-based loan will finance two subprograms to be implemented during 2018-2019. Attached transaction technical assistance will assist in implementing the program.
Project Rationale and Linkage to Country/Regional Strategy
In September 2017, the government initiated a comprehensive exchange rate reform to solve long-standing difficulties associated with limited access to foreign exchange and requirements to surrender foreign exchange, which brought parallel exchange markets and economic distortions. The reform aimed to promote foreign investment, private sector development, and exports. It allowed free access to foreign currency for private firms. However, liberalizing the foreign exchange market created many macroeconomic challenges because of weak governance structure in some areas. The proposed program addresses those issues and challenges by facilitating critical reforms in three areas: SOE governance, fiscal and financial sectors management, and data collection and dissemination.
Impact

Macroeconomic stability and sustainable high growth facilitated (Strategy of Actions on Further Development of Uzbekistan).

Project Outcome

Description of Outcome

Environment conducive to private investment improved

Progress Toward Outcome
Critical reforms in the following areas are ongoing: SOE governance, fiscal and financial sectors management, and data collection and dissemination.

Implementation Progress

Description of Project Outputs

Macroeconomic Data Collection, Analysis, and Dissemination Systems

Fiscal and financial management

SOE governance and private sector operations

Status of Implementation Progress (Outputs, Activities, and Issues)
Implementation of policy actions are ongoing. The consulting firm has been selected and will commence services in October 2018. The policy-based loan subprogram 1 of $300 million was fully disbursed in September 2018.
Geographical Location
Nation-wide

Safeguard Categories

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Given the nature of the program, all safeguard categories are categorized as "C" under the PBL.
Involuntary Resettlement
Given the nature of the program, all safeguard categories are categorized as "C" under the PBL.
Indigenous Peoples
Given the nature of the program, all safeguard categories are categorized as "C" under the PBL.

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

Consulting Services
A total of 65 person-months of consultancy services (23 international and 42 national) will be required intermittently. Individual consultants and a consulting firm will be engaged. The firm will be selected using the quality- and cost-based selection method with a standard qualitycost ratio of 90:10, to be selected and engaged by ADB in accordance with the ADB Procurement Policy (2017, as amended from time to time) and the associated project administration instructions and/or TA staff instructions. Output-based, lump-sum consulting contracts will be preferred. All disbursements under the TA will be made in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).

Contact

Responsible ADB Officer
Akin, Cigdem
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Ministry of Economy and Finance

Timetable

Concept Clearance
03 Jan 2018
Fact Finding
20 Feb 2018 to 28 Feb 2018
MRM
19 Apr 2018
Approval
26 Jun 2018
Last Review Mission
-
Last PDS Update
27 Sep 2018

Funding

Loan 3675-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2018 27 Jul 2018 16 Aug 2018 31 Dec 2018 - 31 Dec 2018
Financing Plan
  Total (Amount in US$ million)
Project Cost 300.00
ADB 300.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 300.00 0.00 100%
Cumulative Disbursements 06 Jun 2024 300.00 0.00 100%

TA 9538-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2018 17 Jul 2018 17 Jul 2018 30 Jun 2020 31 Dec 2024 -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
3,075,000.00 0.00 0.00 0.00 0.00 0.00 3,075,000.00
Cumulative Disbursements
Date Amount
06 Jun 2024 2,324,521.94

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 Access to Information Policy (AIP) 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 Access to Information Policy (AIP) 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.

Tenders

Tender Title Type Status Posting Date Deadline
Economic Management Improvement Facility - Banking Specialist (Intl) Individual - Consulting Closed
Economic Management Improvement Facility - Urban Transport State-owned Enterprise (SOE) Reform Specialist (Natl) Individual - Consulting Closed
Economic Management Improvement Facility - Urban Transport State-owned Enterprise (SOE) Reform Specialist (Intl) Individual - Consulting Closed
Economic Management Improvement Facility - State-Owned Bank (SOB) Reform Specialist (Natl) Individual - Consulting Closed
Economic Management Improvement Facility - State-Owned Bank (SOB) Reform Specialist (Intl) Individual - Consulting Closed
Natl State-Owned Enterprise (SOE) Policy Specialist Individual - Consulting Closed
State-owned Enterprise & State-owned Bank (SOE & SOB) Transformation Specialist (Intl) Individual - Consulting Closed
Intl State-Owned Enterprise (SOE) Policy Specialist Individual - Consulting Closed
Natl State-Owned Enterprise (SOE) Policy Specialist Individual - Consulting Closed
Public Management, Accounting and Budgeting Firm Firm - Consulting Closed
TA Coordinator (National) Individual - Consulting Closed
Corporate Governance Expert (Natl) Individual - Consulting Closed
Public Finance Management Specialist (Natl) Individual - Consulting Closed
Economic Management Improvement Program - Subprogram 1 - Consulting Team Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9538 15 Jul 2020 AARC Ltd.(Irish Republic) | 41 Hughes Road East, Walkinstown Walkins Leinster Dublin 12 / 31 Mespil Road, Bal Dublin 4, Ireland Ministry of Finance 352,320.00
Capacity Development Technical Assistance 9538 07 Sep 2018 AARC Ltd.(Irish Republic) in association with Grant Thornton LLC(UZBEKISTAN) | 41 Hughes Road East, Walkinstown Walkins Leinster Dublin 12 Ireland Ministry of Finance 554,007.00
Capacity Development Technical Assistance 9538 07 Sep 2018 AARC Ltd.(Irish Republic) in association with Grant Thornton LLC(UZBEKISTAN) | 41 Hughes Road East, Walkinstown Walkins Leinster Dublin 12 Ireland Ministry of Finance 554,007.00

Procurement Plan

None currently available.