The World Bank has approved a $250 million financing package to support Uzbekistan’s Livable and Productive Cities Program (LPCP), aimed at improving municipal infrastructure and services in 16 districts and cities. The program targets urban areas with a combined population of 3.6 million, addressing the needs of residents and businesses amid rapid urbanization, aging infrastructure, and natural hazards such as earthquakes, heat, and floods.
Uzbekistan’s urban population already exceeds half of the country’s total, a share projected to surpass 60 percent by 2050, highlighting the urgent need for coordinated urban planning, upgraded utilities, and enhanced municipal services including transport, waste management, and public facilities. Uncoordinated expansion and limited access to basic infrastructure have affected both quality of life and economic productivity.
The LPCP will support the government’s Accelerated Integrated Development of Districts and Cities Program (AIDP) to develop infrastructure in cities such as Yangiyul and Margilan, along with 14 districts across 13 regions, including Kungrad, Chimbay, Asaka, and Gijduvon. The program will be implemented by the Ministry of Economy and Finance in collaboration with local authorities.
The initiative aims to expand access to municipal infrastructure and services by investing in social, utility, transport, business, tourism, and public facilities, including hospitals, schools, preschools, water supply systems, roads, pedestrian walkways, markets, parks, and flood-protection measures. Projects requiring land acquisition or involuntary resettlement will not be supported.
A key focus of the LPCP is strengthening local authorities’ capacity to plan and implement spatial, master, and capital investment plans that enhance livability, economic development, and resilience. Citizen and business participation, including attention to the needs of women and vulnerable groups, will guide planning and investment priorities. Funding will be performance-based, with allocations contingent on demonstrated effectiveness in planning, budgeting, and infrastructure delivery.
By 2030, the LPCP aims to directly benefit about 1 million people, half of them women, through improved municipal services. The program will improve transport access for 300,000 residents, enhance public spaces and parks for 400,000, and generate around 10,000 temporary construction jobs, contributing to both economic growth and quality of life improvements.
