Uzbekistan and ADB

ADB’s partnership with Uzbekistan supports reforms that are helping the country transition into a green, inclusive, and market-driven economy.

ADB's Work in Uzbekistan

The Asian Development Bank (ADB) is one of Uzbekistan’s largest development partners. The bank’s support in 2023 focused on reforms for the country’s transition into a low-carbon, inclusive, and market-driven economy. It is closely aligned with Uzbekistan’s national development strategy and its priority areas: (i) governance and public administration reforms; (ii) economic development, including structural reforms, strengthening private ownership and entrepreneurship, and improving transport and trade connectivity; and (iii) social development. The Government of Uzbekistan aims to reduce the state’s footprint through a robust private sector. ADB assists in this transition by providing policy advice; capacity building; and projects that support green transition, private sector development, reduction of economic and social disparities, and promotion of regional cooperation and integration.

As of 31 December 2023, ADB has committed 254 public sector loans, grants, guarantees, and technical assistance totaling $12.4 billion to Uzbekistan. ADB’s current sovereign portfolio in Uzbekistan includes 30 loans, 1 grant, and 2 sovereign guarantees worth $4.19 billion.

Cumulative sovereign and nonsovereign loan and grant disbursements to Uzbekistan amount to $8.55 billion. These were financed by regular and concessional ordinary capital resources, and other special funds.

In 2023, ADB committed over $880 million to 7 new public sector projects and programs in Uzbekistan. These include 2 loans totaling over $325 million to support the energy sector; a $240-million loan for rural development; a $59.5-million project for urban development; a $10-million loan for the sovereign partial guarantee of a solar public-private partnership (PPP) investment program; and 2 policy-based loans totaling $250 million for improving economic management and supporting small and medium-sized enterprises (SMEs) development.

ADB has approved a $200-million loan to upgrade 26 distribution substations across the country’s regions. These will become digital substations to be operated using a supervisory control and data acquisition system. Another $125-million loan will help enhance the country’s power transmission grid and enable the integration of more renewable energy into the country’s power mix. It will rehabilitate 12 transmission lines of about 359 kilometers (km) in 7 regions— Bukhara, Fergana, Kashkadarya, Navoi, Samarkhand, Surkhandarya, and Tashkent.

Aligned with the government’s National Development Strategy 2030 and Rural Road Strategy 2035, a rural roads project marks a key initiative to kickstart the government’s rural road program. The $240-million concessional loan will improve 700 km of rural roads in Uzbekistan to help rural communities stay connected to markets and services. It will focus on ensuring safe, reliable, and climate-resilient local and inter-farm rural roads in 12 regions and the Republic of Karakalpakstan. The project also aims to empower rural women through training in sustainable agriculture and climateresilient practices.

Photo: Asian Development Bank
Photo collage of ADB projects in Uzbekistan focusing on urban water and road infrastructure.

A $59.5-million integrated urban development project will support inclusive, resilient, and sustainable urban infrastructure and services in four secondary cities (Djizzak, Havast, Khiva, and Yangiyer).

ADB has approved a $150-million policy-based loan and a $400,000 grant that continue and deepen ADB’s earlier support to public sector management reforms. The program supports government efforts to reform the legal, regulatory, and institutional framework for strengthening the effectiveness and transparency of fiscal management. Another $100-million policy-based loan will help strengthen the operating environment for SMEs to drive private sector development-led economic growth and increase resilience to future economic shocks.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Uzbekistan as of 31 December 2023 amounted to $688.27 million representing 5.83% of ADB’s total private sector portfolio.

Operational challenges. ADB and the government are working closely to ensure compliance with good international practices in procurement, financial management, and integrity and anticorruption and to incorporate climate change adaptation and mitigation and gender equality measures into development projects. The bank will continue to strengthen policy and sector coordination while improving project implementation. It will help line ministries and agencies with sector strategic planning, institutional development and project preparation, capacity building in project design and implementation, streamlining of project readiness processes, and improving procurement and consultant recruitment protocols. While the effects of the geopolitical disturbances still cause delays and rerouting in supply chains needed for ADB-supported projects, the bank will continue to closely monitor efforts to deliver project benefits in a timely manner.

 

Knowledge Work

ADB remains Uzbekistan’s trusted advisor and provider of knowledge solutions especially in reforming critical sectors including urban services, energy, and skills development. Institutional strengthening in pursuing economic reforms and the transition to a green economy were critical topics in ADB’s policy dialogue with the Ministry of Finance and Economy. ADB also provided analytical support and capacity building to the Ministry of Energy on gender-related aspects in the energy sector; and on the environmental, social, and governance transformation and decarbonization of state-owned enterprises. Capacity building was conducted for the Ministry of Investment, Industry and Trade in assessing Uzbekistan’s project preparation and implementation systems. In addition, ADB’s resident mission in Uzbekistan increased its network with think-tanks and promoted research communications in 2023.

Shareholding and Voting Power

Number of Shares Held
71,502 (0.672% of total shares)

Votes
110,616 (0.832% of total membership, 1.277% of total regional membership)

*Overall capital subscription
$959.32 million

*Paid-in capital subscription
$47.98 million

* United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Jamshid Khodjaev
ADB Alternate Governor: Vacant
ADB Director: Sangmin Ryu (Republic of Korea)
ADB Alternate Director: Damien Horiambe (Papua New Guinea)
ADB Director’s Advisors: Sun Young Jin (Republic of Korea) and Hsu-Juan Hou (Taipei,China)

 

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Uzbekistan:

  • Sovereign cofinancing: $3.03 billion for 22 investment projects and $25.53 million for 27 technical assistance projects since 2000
  • Nonsovereign cofinancing: $5.24 billion for 12 investment projects since 2004

In 2023, Uzbekistan received a $500,000 grant cofinancing from the High-Level Technology Fund for the Integrated Urban Development Project and $75 million in loan cofinancing from the Agence Française de Développement for the Distribution Network Digital Transformation and Resiliency Project.

 

Future Directions

ADB support in education and health care will be critical in developing Uzbekistan’s human capital. About $200 million is expected to be allocated for projects in these 2 sectors. In 2024, ADB plans to commit to a new project involving science, technology, engineering, and math in secondary schools to equip students with relevant skills to succeed in an evolving and diverse labor market. The bank is also working on a new health project to improve perinatal care by upgrading perinatal centers throughout Uzbekistan. ADB will continue supporting smart water management, regional road connectivity, energy sector reforms, and financial inclusion and financial markets development. The bank will also continue helping with PPP advisory and private sector investments. ADB is preparing the country partnership strategy for Uzbekistan for 2024– 2028, with priority areas aligned with Uzbekistan’s National Development Strategy 2030 and ADB’s Strategy 2030.

This article was originally published in the ADB and Uzbekistan: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Last updated: 24 July 2023

Contacts

Uzbekistan Resident Mission
64, Oloy Bozori Berk Street
Tashkent 100000, Uzbekistan
Tel: +998 71 140 1920
Fax: +998 71 140 1976
E-mail

Ministry of Investment, Industry and Trade
1 Islam Karimov Street
Tashkent, Uzbekistan
Tel: +998 71 238 5000
E-mail

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