The World Bank has approved $150 million in concessional financing to support the second phase of Uzbekistan’s Rural Infrastructure Development Program. The funding, provided through the International Development Association, will help improve public infrastructure and essential services for rural communities in six regions across the country.
The program aims to address infrastructure gaps in rural areas, where nearly half of Uzbekistan’s 38 million people live. Many villages continue to face limited access to quality roads, schools, healthcare facilities, water services, and electricity, which also affects local business activity, entrepreneurship, and job creation.
Uzbekistan first launched the Rural Infrastructure Development Program in 2019 with support from the World Bank and the Asian Infrastructure Investment Bank. By June 2026, the first phase had financed more than 900 subprojects in 306 mahallas across Andijan, Ferghana, Namangan, Jizzakh, and Syrdarya regions.
The earlier phase supported the construction and modernization of roads, electricity systems, water supply networks, schools, preschools, and bridges. These improvements directly benefited around 1 million rural residents, including women who made up half of the beneficiaries.
A key feature of the program is its community-led approach. Local residents help select subprojects and oversee implementation through Mahalla Development Units, with women required to make up at least 50% of their membership.
The second phase of the program has a total budget of $340 million, including $150 million from the World Bank, $120 million from the Asian Infrastructure Investment Bank, and $70 million from the government of Uzbekistan. It will be implemented by the Ministry of Economy and Finance in 296 mahallas across Andijan, Ferghana, Namangan, Jizzakh, Syrdarya, and Tashkent regions.
World Bank financing will be released in tranches based on agreed program results and implementation milestones. The approach is expected to strengthen accountability while ensuring that infrastructure investments respond to local needs.
By 2031, the second phase is expected to improve transport, drinking water, electricity, and other essential infrastructure in participating mahallas. The program will benefit approximately 1.2 million rural residents, including 600,000 women and 300,000 young people.
The initiative will also support entrepreneurship and job creation. In 15 pilot mahallas, Common Facility Centers will be established to help local entrepreneurs in agricultural processing and small-scale manufacturing access finance, improve business skills, and reach markets.
These activities are expected to create around 1,500 direct jobs and strengthen local business environments. Together with other World Bank-financed projects in agriculture and micro, small, and medium enterprise development, the program is expected to contribute to around 25,000 new and better-paid jobs across participating mahallas.
The second phase of Uzbekistan’s rural infrastructure program is expected to improve living standards, expand access to basic services, and create new economic opportunities for women, young people, and rural communities across the country.
