Uzbekistan : Preparing Urban Development and Improvement Projects

Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development - Urban sanitation - Urban sewerage - Urban solid waste management - Urban water supply

The Asian Development Bank (ADB) has had a fruitful partnership with Uzbekistan on urban development for two decades, particularly in the water supply and sanitation (WSS) sector, a relationship which is deepening and expanding in scope, both on project finance and sector reform. Achievements have been accomplished in utility management, water quality management, and financial sustainability. Extensive experience has been gained in effective project design and implementation. ADB's assistance has been closely aligned with the government's evolving development priorities, to improve living conditions, create a sustainable environment, and strengthen economic competitiveness. To date, more than 5 million residents (more than 15% of the population) are benefitting from the assistance. Since 1997, ADB has provided loan financing of more than $700.0 million for eleven investment projects in the sector, and grant funding of $2.5 million for sector enhancement (Appendix 4).

Significant development challenges remain. Despite strong economic growth, which is particularly attributable to urban areas, the country suffers from persistent WSS service limitations in both urban and rural areas. The nation's Soviet-era centralized wastewater systems are dilapidated and as a result, vast quantities of untreated wastewater are discharged into rivers, surface impoundments, and groundwater resources. Surface water pollutants often far exceeds maximum allowable concentrations. Networks and treatment facilities need immediate rehabilitation. These deficiencies have resulted in WSS service inequalities, environmental deterioration, and public health threats, in turn causing constrained economic growth. Traditional separation of gender roles where women are primarily responsible for domestic chores results in women's poverty, and the lack of reliable WSS service increases this burden. Urban areas already face the challenges of having aging public infrastructure, unreliable public services, and limited financial resources now face additional stress due to rapid population growth.

Programmatic approach for urban development. Following ADB's earlier support in the WSS sector, the government has emphasized the need for ADB support through a strategic and coordinated sequence of projects, that would create synergy between investments and technical assistance, strengthening the impact of the proposed assistance. The approach will focus on priority interventions that will target the key WSS and urban development issues. It will contain innovative features, including high technology applications, and advancing the readiness for public-private partnership arrangements. This approach will ensure that ADB's investments will play a catalytic role in the government's broader urban development program.

Ensuing Projects. The support is broadly based. It includes project loans and TA to (i) improve the urban services and environment; (ii) to make cities in Uzbekistan more liveable with better public service; and (iii) to stimulate inclusive and sustainable economic growth through integrated approach and strengthened urban rural linkages, rehabilitated and upgraded infrastructure and strengthened institutional and management capacity.

The transaction TA facility will help to prepare these interrelated projects and TA. It will ensure a consistent approach to urban development, address cross-sectoral themes, develop local capacity for improved project implementation, enhance project readiness, and strengthen overall coordination and cooperation for the country's sustainable urban development. The design of the transaction TA facility follows ADB's sector and thematic operational plans, namely the Water Operational Plan 20112020, Urban Operational Plan 20122020, and the Environmental Operational Directions 20132020 and will contribute to key operation priorities such as liveable cities, governance and institutional capacity improvement, and environmental sustainability enhancement under Strategy 2030.

International and national consultants will be engaged to complete all TA projects. The indicative consultants' input allocation is shown in Appendix 2. These estimates will be finalized in consultation with the government.

The consulting firm and individual consultants will be recruited based on the requirements of each TA project. The consulting firm will be engaged in accordance with the quality- and cost-based selection method, with a quality-cost ratio of 90:10 using full, simplified, or bio-data technical proposal. Individual consultants, will be selected using the individual consultant's selection method to provide specialized technical and administrative inputs to fulfil ADB due diligence requirements and enhance project readiness. The recruitment of all consultants will be carried out in accordance with ADB's Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. Lump-sum or output-based contracts will be considered for consulting services, consistent with ADB's Strategy 2030, to reduce administrative burden and improve the economy, efficiency, and value for money. The consultants will procure any goods and equipment purchased under the TA and will turn them over to the executing agency at or before the completion of the TA.