Uzbekistan: Urban Services Projects

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

A. Rationale

1. Country and sector context. Uzbekistan has one of the fastest-growing economies in Central Asia gross domestic product growth was 5.1% in 2018, and is projected to be 5.0% in 2019 2020. Agriculture plays a significant role, and Uzbekistan is currently the world's fifth largest producer of cotton and a major regional producer of fruits and vegetables. However, with a young and growing population and increasing rural urban migration, urban growth is an important contributor to the country's recent economic achievements.

2. Key urban sector challenges. Rapid urbanization and uncoordinated and financially constrained expansion of cities have placed a heavy burden on the country's aging urban infrastructure, affecting the quality of life, overall attractiveness to investors, and the potential for job creation. Cities are at risk of service delivery failure because of unmanageable growth and limited urban infrastructure, while demand for urban services and infrastructure is increasingly unmet. The issue is further aggravated by (i) the absence of an urbanization policy, strategy, and plans; (ii) rapid urban sprawl with fragmented investments and inefficient service delivery; (iii) weak property laws and regulations; and (iv) low capacity at the city level for urban planning and strategic capital investment. The country needs a national urbanization policy and strategy as well as strategic investments to balance regional development, sustain economic growth, and improve livability for its citizens.

3. Government's approach. As a result of presidential decrees on urbanization, the government established an urbanization agency under the Ministry of Economy and Industry to analyze demographic and economic trends in cities and adjoining areas to (i) identify growth areas, (ii) prepare and implement a national urbanization strategy, (iii) develop a comprehensive program for integrated urban development, (iv) provide a holistic solution to urban sector challenges, (v) improve urban rural linkages, and (vi) promote coordinated urban planning and management in public services. The Asian Development Bank (ADB), in coordination with other development partners, is supporting the agency through advisory and capacity development services provided under a transaction technical assistance (TA) facility to prepare the national urbanization strategy, road map, and master plans and to identify innovative solutions for making cities livable. The transaction TA facility (footnote 7) is also financing feasibility studies and safeguard due diligence for the ensuing projects. Four urban projects are currently identified in ADB's country operations business plan for Uzbekistan, 2019 2021: the Tashkent Province Sewerage Improvement Project, Water Supply and Sanitation Development Program, Integrated Urban Development Project, and Sustainable Solid Waste Management Project.