Uzbekistan: Republic of Uzbekistan: Business Plan Development for the Infrastructure Finance Intermediary Vehicle

Sovereign (Public) Project | 54440-001

The TA will be used to support the Government of Uzbekistan in its efforts to address increasing infrastructure financing gaps through development of a business plan for the establishment of an infrastructure finance intermediary vehicle (IFIV) to attract additional investments in the Uzbekistan infrastructure sector from both internal and external sources.

Project Details

  • Project Officer
    Kabrelyan, Dmitry
    Central and West Asia Department
    Request for information
  • Country
    Uzbekistan
  • Sector
    • Finance
Project Name Republic of Uzbekistan: Business Plan Development for the Infrastructure Finance Intermediary Vehicle
Project Number 54440-001
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6698-UZB: Republic of Uzbekistan: Business Plan Development for the Infrastructure Finance Intermediary Vehicle
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender Equity and Mainstreaming No gender elements
Description The TA will be used to support the Government of Uzbekistan in its efforts to address increasing infrastructure financing gaps through development of a business plan for the establishment of an infrastructure finance intermediary vehicle (IFIV) to attract additional investments in the Uzbekistan infrastructure sector from both internal and external sources.
Project Rationale and Linkage to Country/Regional Strategy

1. Uzbekistan is facing increasing pressure to finance new infrastructure projects and to modernize and replace outdated and inefficient infrastructure assets across the country that are needed to support economic growth and to improve human well-being. In its effort to urgently address this problem, the government sought ADB assistance to conduct a high-level feasibility study for establishing an IFIV in Uzbekistan. The results of this feasibility study, including proposed recommendations on the IFIV's focus sectors, potential clients, ownership, institutional structure, governance framework, management team and other aspects were presented at a virtual roundtable attended by key stakeholders, including government agencies, international financial institutions and domestic banks, and outlined in the final feasibility study report issued on 15 November 2020.

2. The government agreed with the recommendations outlined in the feasibility study report and decided to move ahead with the process of establishing the proposed IFIV by preparing a comprehensive five-year business plan for the IFIV. ADB welcomed this decision and agreed to offer its support by providing the TA for this undertaking. The small-scale was chosen for the TA given that it will be sufficient for the proposed scope of work. Additional support might be required contingent on a successful completion of the TA and obtaining confirmation from the government to start the operationalization of the IFIV.

3. The objective of the TA is to prepare a realistic, comprehensive and actionable detailed business plan for the establishment and operationalization of the IFIV with the main goal of attracting additional investments in Uzbekistan's infrastructure sector from both internal and external sources. It is envisaged that upon completion of the business plan, the government and all relevant stakeholders, including ADB, the World Bank and other international financial institutions, will be ready to:

(i) take necessary decisions and approvals required for the establishment of the IFIV in Uzbekistan;

(ii) initiate the next steps required for the establishment of the IFIV, including development of the operationalization plan and commencement of dialogue with all

necessary regulatory authorities for approvals and registrations required for incorporation of the IFIV;

(iii) invite potential equity partners to the IFIV; and

(iv) enable commencement of substantive dialogue with all of the potential IFIV's financiers.

4. The economic downturn caused by the coronavirus disease 2019 (COVID-19) pandemic and the additional fiscal costs attached to mitigating its impact have made it even more difficult for the government to allocate resources to infrastructure projects. The need for the TA was accelerated as prompt establishment of the IFIV becomes even more relevant in post-COVID-19 environment. The IFIV will assist the government in the preparation and financing of bankable and revenue-yielding infrastructure projects that will help revive economic growth in Uzbekistan. The TA will also help provide capacity building support given close work during business plan development with all key government agencies involved in this initiative, including but not limited to the: Public-Private Partnership Development Agency, the Ministry of Finance, and the Ministry of Investments and Foreign Trade.

Impact Availability of long-term financing products and modalities for infrastructure projects in Uzbekistan improved.
Project Outcome
Description of Outcome IFIV operationalization process initiated.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs IFIV Business plan prepared
Status of Implementation Progress (Outputs, Activities, and Issues)
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 Project Implementation
Responsible ADB Officer Kabrelyan, Dmitry
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Office of the Director General, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Finance
5 Mustaqiliik Square
Tashkent 100008
Republic of Uzbekistan
Timetable
Concept Clearance -
Fact Finding 06 Nov 2020 to 06 Nov 2020
MRM -
Approval 22 Dec 2020
Last Review Mission -
Last PDS Update 22 Dec 2020

TA 6698-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2020 - 22 Dec 2020 31 Dec 2021 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 22 Dec 2020 15,780.36

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Financial Modeling Expert Individual - Consulting Closed 26 Jan 2021 08 Feb 2021
Coordinator and Financial Expert Individual - Consulting Closed 26 Jan 2021 08 Feb 2021
Business Plan Developer and Team Leader Individual - Consulting Closed 26 Jan 2021 08 Feb 2021
PPP (Public-Private Partnership) Expert Individual - Consulting Closed 26 Jan 2021 08 Feb 2021

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.