Finance

Uzbekistan Launches Second Phase of US$320 Million Rural Development Project

Uzbekistan Launches Second Phase of US$320 Million Rural Development Project
Uzbekistan Launches Second Phase of US$320 Million Rural Development Project / Photo: World Bank in Uzbekistan..

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan has reviewed the results of its Rural Infrastructure Development Project (RIDP), implemented from 2019 to 2026, and presented plans for its continuation under the second phase, RIDP-2.

The new programme will cover 296 mahallas in six regions and focus not only on infrastructure modernisation but also on developing entrepreneurship and creating jobs.

On 4 November, the Ministry of Economy and Finance of Uzbekistan and the World Bank Group held a conference to review the results of the project’s first phase and discuss the transition to its next stage, the Rural Infrastructure Development Project 2 (RIDP-2).

During the implementation of RIDP, around 900 infrastructure projects were completed in 306 mahallas across five regions of the country.

These included the construction and modernisation of more than 340 roads, 220 electricity supply systems and 160 water supply systems.

In addition, rural areas gained around 100 renovated schools, 40 preschool institutions and 10 bridges.

Around 1 million rural residents directly benefited from the project, nearly half of them women.

Second phase with a US$320 million budget

The total budget for RIDP-2 will amount to US$320 million. The World Bank will provide US$150 million, the Asian Infrastructure Investment Bank (AIIB) will contribute US$100 million, and the Government of Uzbekistan will allocate the remaining US$70 million.

The second phase will cover 296 mahallas in six regions of the country. By 2031, it is expected to benefit approximately 1.2 million rural residents, including 600,000 women and 300,000 young people.

The programme will focus not only on improving living conditions through the construction and modernisation of infrastructure. Expanding economic opportunities for rural residents, supporting entrepreneurship and creating new jobs will also be among its priorities.

Support for entrepreneurship and community participation

Under RIDP-2, shared-use centres for entrepreneurs involved in agricultural processing and small-scale manufacturing are planned in 15 pilot mahallas. These facilities are intended to create opportunities for local businesses to grow and expand employment.

The work of the “Mahalla Seven” will play a particularly important role in implementing the new phase. Its involvement is expected to encourage residents to take a more active part in identifying development priorities for their mahallas, preparing initiatives and monitoring project implementation.

Experience from the first phase of RIDP showed that the effectiveness of rural infrastructure investment largely depends on local community participation. When residents identify their most pressing needs and take part in monitoring the implementation of projects, the resulting initiatives are more likely to reflect the priorities of individual communities.

RIDP-2 is therefore intended to build on this approach by combining infrastructure investment with measures to support entrepreneurship, increase incomes and expand employment opportunities.

Particular attention will be given to women and young people, for whom the development of the rural economy offers additional opportunities for employment and personal fulfilment.

Askar Yakubov
Askar Yakubov

Askar Yakubov is a professional photojournalist with extensive experience in news and reportage photography. He specializes in fast-paced coverage of social, political, cultural, international, business, and community events, with a sharp eye for capturing expressive shots and conveying the atmosphere of an event under tight time constraints. His skill set spans reportage, portrait, and documentary photography, along with image editing and color correction, and preparing photo materials for media and digital platforms. He is known for his professionalism, adherence to editorial standards, and ability to work both independently and as part of a shooting team.