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World Bank to give Uzbekistan $100M loan for rural development

Business Materials 19 November 2019 09:43 (UTC +04:00)

BAKU, Azerbaijan, Nov. 19

By Fakhri Vakilov-Trend:

The World Bank's Board of Executive Directors has approved the provision of a $100 million loan to Uzbekistan’s Government by the International Development Association (IDA, an organization within the World Bank Group), Trend reports citing Uzbek media.

The funds will be directed to the implementation of the project “Well-maintained villages”. It aims to improve the quality of social infrastructure and utilities in rural areas. Villages will independently decide in which infrastructural subprojects to invest project funds.

“This project will help people in rural areas receive funds for the development of those social infrastructure and utilities, which are extremely popular in their villages. The project will also help strengthen partnerships between local authorities and rural communities by stimulating the participation of rural residents, men and women, older people and young people, in decision-making on issues that directly affect their daily life,” said Hideki Mori, head of the World Bank office in Uzbekistan.

The villages that will be selected to participate in the project will be able to independently determine small subprojects for the restoration or construction of the social infrastructure facilities necessary for their villages, including kindergartens, schools, clinics, roads, street lighting, bus stops, antennas for transmitting wireless Internet, etc. In addition, the communities will be able to improve their water supply and sanitation systems, solid waste management, as well as other utilities in their villages.

About 300 villages in Andijan, Fergana, Namangan, Jizzakh and Syrdarya regions of Uzbekistan are entitled to receive funding for the implementation of such subprojects. In each of the settlements, the villagers will jointly determine subprojects for the development of social infrastructure and services, based on their priority for the village.

The Asian Infrastructure Investment Bank (AIIB) is expected to provide additional funding for this project in the form of a loan to Uzbekistan’s Government in the amount of $82 million.

The World Bank supports Uzbekistan through the financing of 23 projects totaling $4.1 billion, as well as a comprehensive program of analytical and advisory services. These activities contribute to economic growth by supporting market reforms, the development of the agricultural and water management sectors, energy, transport, health, education, social protection, water and sanitation, urban and rural sectors.

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