Uzbekistan: Enhancing Private Sector Participation in Agriculture

Sovereign Project | 55241-001

The proposed knowledge and support technical assistance (TA) will be focused on the problems identification and designing relevant support measures to increase private sector participation (PSP) in Uzbekistan agricultural sector, including supporting infrastructure (i.e. irrigation). The TA will support (i) preparation of a sector diagnostic study to evaluate the potential for PSP in the agricultural sector with specific focus on supporting infrastructure, including irrigation, (ii) capacity building interventions for selected government agencies, including development of an awareness toolkit for identification, appraisal, implementation, and management of PSP and public-private partnership (PPP) projects, preparation of the concept notes for 2-3 potential PSP and/or PPP projects, and other possible government support measures needed to boost PSP in the country's agricultural sector.

Project Details

  • Project Officer
    Nasirov, Tal'at Ubaydullaevich
    Central and West Asia Department
    Request for information
  • Approval Date
    23 November 2021
  • Country
    Uzbekistan
  • Sector
    • Agriculture, natural resources and rural development
Project Name Enhancing Private Sector Participation in Agriculture
Project Number 55241-001
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6839-UZB: Enhancing Private Sector Participation in Agriculture
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Gender Equity and Mainstreaming No gender elements
Description

The proposed knowledge and support technical assistance (TA) will be focused on the problems identification and designing relevant support measures to increase private sector participation (PSP) in Uzbekistan agricultural sector, including supporting infrastructure (i.e. irrigation). The TA will support (i) preparation of a sector diagnostic study to evaluate the potential for PSP in the agricultural sector with specific focus on supporting infrastructure, including irrigation, (ii) capacity building interventions for selected government agencies, including development of an awareness toolkit for identification, appraisal, implementation, and management of PSP and public-private partnership (PPP) projects, preparation of the concept notes for 2-3 potential PSP and/or PPP projects, and other possible government support measures needed to boost PSP in the country's agricultural sector.

Supporting private sector development is also a key priority area of ADB's country partnership strategy for Uzbekistan, 2019-2023. The TA is included in the Country Operation Business Plan, 2021-2023

Project Rationale and Linkage to Country/Regional Strategy

The importance of agricultural sector production to Uzbekistan's food security, livelihoods and economic growth cannot be overstated. In 2020, agriculture generated 28% of the country's GDP, provided employment to 27% of the labor force, and constituted 25% of the country's merchandized export. Out of 20.4 million hectares of agricultural land, 20.7% is irrigated. About 85% of the irrigated land is cultivated by around 75,000 large farms, while the remaining 15% of land is cultivated by around 4.9 million small farms and household plots. However, it is considered that gross output of the agricultural sector is below its full potential due to: (i) inadequate irrigation, market, logistic, and road (farm to market) infrastructure; (ii) inefficient and fragmented value chain; and (iii) lack of support to farmers.

The agricultural value chain is characterized by weak linkages between value chain actors, as well as limited and technologically poor storage and processing capacity. Public investment in agricultural research and development, extension services, and agribusiness development, has been negligible, and private sector efforts limited. Farmers has limited access to advanced agricultural technologies, productive seeds, effective fertilizers and pesticides, appropriate financial resources and insurance products.

High levels of investments are required to address these sector issues to unleash the full potential of agriculture for sustainable development in Uzbekistan, but low public budgetary allocations to the sector are slowing the growth.

PSP initiatives are expected to contribute to sustainable agricultural development. However, there are many unanswered questions about the types of project that may suitably be governed by PSP and about the partnerships' effectiveness in delivering on these objectives. The comprehensive diagnostic study is needed to improve understanding of the potential benefits and challenges of PSP in agricultural sector.

Impact Private sector development in the agriculture sector supported.
Project Outcome
Description of Outcome Enabling environment for PSP and PPP in the agriculture sector strengthened.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Conditions for enabling PSP and PPP in the agriculture sector identified.

Public sector specialists' knowledge in PSP and PPP enhanced.

Potential PSP and PPP projects identified.

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 Nasirov, Tal'at Ubaydullaevich
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Uzbekistan Resident Mission
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Agriculture of the Republic of Uzbekistan
2, Universitet Street
Tashkent region, Republic of Uzbekistan
Timetable
Concept Clearance 01 Sep 2021
Fact Finding 20 Sep 2021 to 24 Sep 2021
MRM -
Approval 23 Nov 2021
Last Review Mission -
Last PDS Update 26 Nov 2021

TA 6839-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2021 - - 31 Dec 2023 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 17 Dec 2021 0.00

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.

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