Uzbekistan takes on another 250 million dollars in loans

The World Bank’s Board of Executive Directors has approved a financing package of 250 million dollars for Uzbekistan, the bank’s press service reported.

The funds are expected to be allocated under the Livable and Productive Cities Program (LPCP) to develop municipal infrastructure and services for residents and businesses in 16 districts and cities across the country.

More than half of Uzbekistan’s population of 37 million currently lives in urban areas. By 2050, this figure is expected to exceed 60 percent. Accelerating urbanization requires improvements in urban planning and management systems, infrastructure, and public utilities, including public transport and waste management services.

To address these challenges, the government launched a program for the accelerated integrated development of territories in 2025. This state program is aimed at supporting infrastructure and economic development in 16 strategically important districts and cities with a total population of 3.6 million.

The World Bank–financed LPCP will support the implementation of measures included in the state program and help develop infrastructure in 13 regions of the country. These include the cities of Yangiyul and Margilan, as well as 14 districts nationwide: Kungrad, Chimboy, Asaka, Gijduvan, Gallaorol, Yakkabog, Khatirchi, Chartak, Bulungur, Syrdarya, Denov, Kuva, Shovot, and Hazarasp.

The LPCP will be implemented by the Ministry of Economy and Finance in coordination with local authorities in the targeted regions, districts, and cities.

Under the program, infrastructure projects that may lead to land acquisition or forced resettlement of citizens will not be financed.

According to the World Bank, by 2030 the LPCP is expected to directly improve living conditions for nearly one million people in 16 districts and cities. Half of the beneficiaries whose quality of life will improve due to better municipal services and infrastructure are expected to be women.

In particular, the program will improve access to transport services for 300,000 people and support the development of public spaces and parks for 400,000 residents. The implementation of infrastructure projects under the program is also expected to create nearly 10,000 temporary jobs in the construction sector.

Earlier, it was reported that the Asian Infrastructure Investment Bank and the Government of Uzbekistan had signed an agreement to allocate 500 million dollars for the implementation of the Green and Sustainable Market Economy Transition Program.