Residents of cities located in two southern regions of Uzbekistan will benefit from improved urban infrastructure and municipal services, thanks to Additional Financing for the Medium-Size Cities Integrated Urban Development Project (MSCIUDP), approved today by the World Bank’s Board of Executive Directors. The project will be supported by a $100 million concessional credit. The International Development Association, the part of the World Bank Group, will provide it to the Government of Uzbekistan at a very low-interest rate and with a repayment period of 30 years.

This additional financing will expand the geographic scope of the ongoing project funded by the World Bank that has been implemented in Tashkent (Yangiyul and Pskent), Bukhara (Kagan) and Namangan (Chartak) regions since 2019.

The new project activities will cover selected mid-sized cities in Kashkadarya and Surkhandarya regions of Uzbekistan. The final list of all project cities in this part of the country will be validated over the next 6 months, in consultation with the regional and municipal governments (hokimiyats), based on local needs and economic potential.

Medium-size cities participating in the project in Surkhandarya and Kashkadarya regions will benefit from an integrated and specifically designed program of investments that will include the following: improved and expanded water supply and sanitation networks; upgraded electricity infrastructure and street lights, as well as vehicular, pedestrian and multimodal accesses to public transportation; upgraded energy-efficient public buildings; reconstructed public spaces and parks, street networks and associated infrastructure; and restored objects of cultural heritage.

The majority of the cities covered by the project have untapped growth potential. Many are located along strategic transport corridors; some have prominent tourist attractions; and most are well-positioned to create a range of quality service jobs for the surrounding rural areas.