Uzbekistan : Building Resilience with Active Countercyclical Expenditures Program

Sovereign Project | 56149-001

The BRACE Program will provide critical financing support to enable the Government of Uzbekistan to undertake its $1.2 billion countercyclical development expenditure program for providing (i) food security, price stability, and business support, (ii) direct social assistance, and (iii) entrepreneurship and employment support. The program is aligned with the government's objective to promote social inclusion by strengthening the support provided to poor and vulnerable groups and improving economic resilience. The program is also aligned with ADB's Strategy 2030, particularly the operational priorities on (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) making cities more livable; (iv) strengthening governance and institutional capacity; and (v) fostering regional cooperation and integration.

Project Details

  • Project Officer
    Karan, Navendu
    Central and West Asia Department
    Request for information
  • Country/Economy
    Uzbekistan
  • Sector
    • Public sector management
Project Name Building Resilience with Active Countercyclical Expenditures Program
Project Number 56149-001
Country / Economy Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4225-UZB: Building Resilience with Active Countercyclical Expenditures Program
Ordinary capital resources US$ 500.00 million
TA 6967-UZB: Supporting the Building Resilience with Active Countercyclical Expenditures Program
Technical Assistance Special Fund US$ 400,000.00
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP4: Making cities more livable
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Public sector management / Public expenditure and fiscal management - Social protection initiatives
Gender Effective gender mainstreaming
Description The BRACE Program will provide critical financing support to enable the Government of Uzbekistan to undertake its $1.2 billion countercyclical development expenditure program for providing (i) food security, price stability, and business support, (ii) direct social assistance, and (iii) entrepreneurship and employment support. The program is aligned with the government's objective to promote social inclusion by strengthening the support provided to poor and vulnerable groups and improving economic resilience. The program is also aligned with ADB's Strategy 2030, particularly the operational priorities on (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) making cities more livable; (iv) strengthening governance and institutional capacity; and (v) fostering regional cooperation and integration.
Project Rationale and Linkage to Country/Regional Strategy While Uzbekistan is still struggling with the adverse socio-economic effect of the coronavirus disease (COVID-19) pandemic, another economic shock has been triggered by the Russian invasion of Ukraine on 24 February 2022. The crisis has severe negative spillover effects on Uzbekistan, which is among the seven economies most vulnerable to its impact. These include higher trade costs, rising inflation, rise in unemployment and sluggish remittance inflows that will curb low-income households' purchasing power and weaken private consumption. The reduction in foreign direct investment, and weakened private consumption will adversely impact the economy - the GDP growth in 2022 is expected to drop by about half of the growth in 2021. The government's fiscal deficit for 2022 is estimated at $3.9 billion (or 5.3% of GDP) and the gross development financing needs, inclusive of debt servicing, amount to $4.7 billion. The projected financing from external sources ($2.3 billion) and domestic sources ($0.5 billion) will still leave a gap of $1.9 billion. The government has requested a regular loan of $500 million from ADB's ordinary capital resources to help finance the program.
Impact

Social inclusion promoted by strengthening the support provided to poor and vulnerable groups, and economic resilience improved.
Project Outcome
Description of Outcome

Adverse socio-economic effects of the crisis mitigated, and resilience of poor and vulnerable groups enhanced.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Food security, price stability and business support measures implemented

Direct social assistance measures implemented.

Entrepreneur-ship and employment support measures implemented.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No environmental impact is expected.
Involuntary Resettlement No involuntary land acquisition and resettlement is expected.
Indigenous Peoples No adverse impacts on indigenous peoples is expected.
Stakeholder Communication, Participation, and Consultation
During Project Design The wide range of stakeholders, including (i) Ministry of Finance and Ministry of Economic Development and Poverty Reduction; (ii) Ministry of Employment and Labor Relations, and the Pension Fund; (iii) selected state agencies; and (iv) development partners were consulted to identify the impacts of the pandemic and align ADB's assistance with government's needs and the support by development partners
During Project Implementation The civil society will be consulted through the TA during program implementation.
Business Opportunities
Consulting Services ADB will engage the consultants under the technical assistance following the ADB Procurement Policy (2017, as amended from time to time) and its associated staff instructions.
Procurement None.
Responsible ADB Officer Karan, Navendu
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance -
Fact Finding 17 May 2022 to 21 May 2022
MRM 28 Jul 2022
Approval 05 Oct 2022
Last Review Mission -
Last PDS Update 05 Oct 2022

Loan 4225-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Oct 2022 03 Nov 2022 14 Dec 2022 31 Jan 2023 - 31 Jan 2023
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 500.00 Cumulative Contract Awards
ADB 500.00 21 Feb 2023 500.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 21 Feb 2023 500.00 0.00 100%

TA 6967-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Oct 2022 28 Oct 2022 28 Oct 2022 31 Dec 2023 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 21 Feb 2023 12,022.00

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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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Building Resilience with Active Countercyclical Expenditures Program - Program Management Unit Firm - Consulting Closed
Building Resilience with Active Countercyclical Expenditures Program - Public Financial Management Team Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.