World Bank allocates Uzbekistan $250 mln to improve municipal infrastructure
TASHKENT. Dec 16 (Interfax) - The World Bank's Board of Executive Directors has approved a $250 million financing package for Uzbekistan to improve municipal infrastructure and services for residents and businesses in 16 districts and cities across the country through the Livable and Productive Cities Program (LPCP), the World Bank said in a press release.
Over half of Uzbekistan's 37 million people live in cities, a share expected to surpass 60% by 2050, it said. Rapid urbanization demands improved planning, infrastructure, and municipal services, such as transport and waste management.
Uncoordinated urban expansion, aging utility and social infrastructure, and limited access to water, sanitation, roads, and public spaces reduce quality of life and business productivity, while natural hazards such as earthquakes, heat and floods intensify these pressures.
To address these challenges, the government launched the Accelerated Integrated Development of Districts and Cities Program (AIDP) in 2025 to support infrastructure and economic development in 16 strategically important districts and cities with a combined population of 3.6 million. The LPCP will support implementation of the AIDP to develop infrastructure in 13 regions of Uzbekistan.
The LPCP will be delivered by the Ministry of Economy and Finance (MEF) and local authorities. Its goals include strengthening local authorities' capacity to prepare and implement spatial, master, and capital investment plans that enhance livability, business and local economic development, and resilience to natural hazards; and developing capital investment plans with the involvement of citizens and businesses.
The MEF will allocate LPCP funds each year only after local authorities in the covered areas demonstrate strong performance in spatial planning, capital budgeting and infrastructure delivery, "making this the country's first regional performance-based funding model," the World Bank said.
By 2030, the LPCP aims to directly benefit about 1 million people in 16 districts and cities-half of them women-through improved municipal services and infrastructure. This includes better transport access for 300,000 people and enhanced public spaces and parks for 400,000. Infrastructure projects will also create around 10,000 temporary construction jobs.
Uzbekistan is one of the World Bank's largest beneficiaries - the project portfolio currently exceeds $14 billion.
