The Sustainable Rural Development Project will be implemented based on the Decree of the President of the Republic of Uzbekistan dated September 18, 2021, No. PD-5246 “On measures to implement the Sustainable Rural Development project with the participation of the Islamic Development Bank and the OPEC Fund for International Development”.

Total cost of the project: 338 million USD

Objectives of the project:
• radical renewal of the architectural appearance of rural areas;
• integrated development of regions;
• construction of road transport infrastructure, engineering and communication networks, and social facilities;
• improving the culture of life of the population.

The implementation of the Sustainable Rural Development Project is planned to create new jobs in 4 regions of our country, in particular, in 170 mahallas (40 central, 130 adjacent mahallas) in 20 districts of the Republic of Karakalpakstan, Bukhara, Navoi, and Khorezm regions.

On March 28, 2024, the Presidential Decree initiating the second stage of Integrated Rural Development Project was signed to improve socioeconomic conditions in rural communities. Islamic Development Bank has provided credit funds for the construction of road transport infrastructure, engineering networks, and social amenities in addition to comprehensive territorial development.

The total cost of the project is 293.5 million dollars. It will be implemented in 21 districts in three regions - Kashkadarya, Samarkand and Surkhandarya - affecting 157 mahallas over five years (from 2024 to 2028). During this time, the project envisages construction and repair of 20 schools, 14 pre-school educational institutions, 10 medical institutions and other social facilities. It also envisages construction of 31 drinking water supply facilities and 199.1 km of drinking water supply networks, 367.7 km of power lines and 53 transformer points, 3 wastewater facilities and 20 km of sewerage networks, as well as rehabilitation and repair of 328.2 km of road infrastructure and 41 centers managed by the residents and community of the mahalla.

The loan agreement between the parties was executed in April 2023 against the backdrop of the Islamic Development Bank President Muhammad Sulaiman Al Jasser’s official visit to Tashkent. 

According to the resolution, the Ministry of Economy and Finance is designated as the responsible executive body for the timely implementation and coordination of the project, as well as the purposeful and efficient use of the loans allocated by the Islamic Development Bank.

The selection of organizations responsible for the designing subprojects and carrying out contract works will be done openly and transparently, based on the requirements of the IsDB, and following the procedures that are not contrary to the state procurement regulations.

Once the necessary subprojects have been identified in the selected villages, technical-economic calculations for the planned activities will be developed for each region in a prescribed manner and will undergo expert review according to established procedures.

For the implementation of the project, the Unitary Engineering Company “Yagona buyurtmachi xizmati injiniring kompaniyasi” SUEs under the khokimiyats of the Kashkadarya, Samarkand, and Surkhandarya regions will act as the customer.

The Rural Infrastructure Development Project is considered as the first-ever CDD Project in Uzbekistan, all stages of which are implemented taking into account the opinion of the population. 

The project implementation period is 2020-2024.

The project covers 21 backward districts in Fergana, Andijan, Namangan, Syrdarya and Jizzak regions.

The population of these districts is 1,069,443.

Main implementing agency/agencies:

- Ministry of Economy and Finance;

- Project Implementation Unit under the MoEF;

- Regional khokimiyats of Andijan, Namangan, Fergana, Jizzakh and Syrdarya regions.

Presidential Decree No. PD-4898 "On measures to implement the Rural Infrastructure Development Project with the participation of the International Development Association of the World Bank and the Asian Infrastructure Investment Bank" was aimed at complete renovation of the architectural appearance of rural settlements, integrated development of territories, creation of road and transportation infrastructure, engineering and communication networks and social facilities in order to improve the culture of life of the population.

Within the framework of this project, on January 17, 2020, an agreement was signed between the Republic of Uzbekistan and the International Development Association of the World Bank for the amount of USD 100 million, and on May 28, 2020, an agreement was signed with the Asian Infrastructure Investment Bank for the amount of USD 82 million for the implementation of the Rural Infrastructure Development Project. Both loan agreements provide for a grace period of 5 years for a period of 30 years.