World Bank greenlights $250M Uzbekistan funding

The World Bank has greenlit a $250 million financing package for Uzbekistan’s Livable and Productive Cities Program (LPCP). The program will target municipal infrastructure improvements across 16 strategically selected districts and cities.

The program addresses critical infrastructure gaps in areas housing 3.6 million people. It supports the government’s newly launched Accelerated Integrated Development of Districts and Cities Program (AIDP). Over half of Uzbekistan’s 37 million population now lives in urban areas. That figure is projected to exceed 60 percent by 2050. Aging infrastructure and uncoordinated expansion are straining municipal services.

LPCP investments will fund social, utility, and transport infrastructure. Projects include hospitals, schools, water systems, roads, and flood protection works. The program covers cities like Yangiyul and Margilan, plus 14 districts spanning 13 regions. Projects involving land acquisition or involuntary resettlement are excluded.

The initiative introduces Uzbekistan’s first performance-based regional funding model. The Ministry of Economy and Finance will allocate funds annually. Local authorities must first demonstrate strong performance in spatial planning, capital budgeting, and infrastructure delivery.

Local authorities will develop capital investment plans with citizen and business input. This ensures infrastructure responds to community needs. The program prioritizes women and vulnerable groups while supporting local economic development.

By 2030, the program aims to directly benefit approximately 1 million people. Half of them will be women. Expected outcomes include enhanced transport access for 300,000 residents. Upgraded public spaces will serve 400,000 people. The program will create around 10,000 temporary construction jobs.

The Ministry of Economy and Finance will implement the LPCP. It will partner with local authorities in participating regions.