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
    Rahemtulla, Hanif A.
    Sectors Group
    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
Source Amount
Ordinary capital resources US$ 500.00 million
TA 6967-UZB: Supporting the Building Resilience with Active Countercyclical Expenditures Program
Source Amount
Technical Assistance Special Fund US$ 400,000.00
TA 6967-UZB: Building Resilience with Active Countercyclical Expenditures Program
Source Amount
Technical Assistance Special Fund US$ 125,000.00
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • 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.

Contact

Responsible ADB Officer
Rahemtulla, Hanif A.
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Ministry of Economy and 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

Funding

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
  Total (Amount in US$ million)
Project Cost 500.00
ADB 500.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 500.00 0.00 100%
Cumulative Disbursements 06 Jun 2024 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 31 Dec 2024 -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
525,000.00 0.00 0.00 0.00 0.00 0.00 525,000.00
Cumulative Disbursements
Date Amount
06 Jun 2024 312,943.36

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.


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 - 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.