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 Proposed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan: Building Resilience with Active Countercyclical Expenditures (BRACE)
Ordinary capital resources US$ 500.00 million
TA: Supporting the Building Resilience with Active Countercyclical Expenditures Program
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Public sector management / Public expenditure and fiscal management - Social protection initiatives

Gender Equity and Mainstreaming 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.
Outcome Adverse socio-economic effects of the crisis mitigated, and resilience of poor and vulnerable groups enhanced.
Outputs

Food security, price stability and business support measures implemented

Direct social assistance measures implemented.

Entrepreneur-ship and employment support measures implemented.

Geographical Location
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
5 Mustaqiliik Square
Tashkent 100008
Republic of Uzbekistan
Timetable
Concept Clearance -
Fact Finding 17 May 2022 to 21 May 2022
MRM 28 Jul 2022
Approval -
Last Review Mission -
Last PDS Update 09 Aug 2022

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

None currently available.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Building Resilience with Active Countercyclical Expenditures Program - Public Financial Management Team Firm - Consulting Active 16 Sep 2022 07 Oct 2022
Building Resilience with Active Countercyclical Expenditures Program - Program Management Unit Firm - Consulting Active 16 Sep 2022 07 Oct 2022

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.