World Bank Approves $250 Million to Upgrade Urban Services in Uzbekistan Cities

The initiative aims to enhance urban livability, strengthen local economic development and improve resilience to natural hazards, benefiting both residents and businesses across the country.

The World Bank’s Board of Executive Directors has approved a $250 million financing package to help Uzbekistan improve municipal infrastructure and public services in 16 districts and cities under the Livable and Productive Cities Program (LPCP). The initiative aims to enhance urban livability, strengthen local economic development and improve resilience to natural hazards, benefiting both residents and businesses across the country.

Uzbekistan is undergoing rapid urbanisation, with more than half of its 37 million population currently living in cities. This share is projected to exceed 60% by 2050, placing increasing pressure on urban planning systems, infrastructure and municipal services. Many cities and districts face challenges linked to uncoordinated urban expansion, aging utilities, and insufficient access to essential services such as water supply, sanitation, transport networks, waste management and public spaces.

At the same time, growing exposure to natural hazards, including earthquakes, extreme heat and flooding, is intensifying stress on urban systems and undermining quality of life and business productivity. Addressing these challenges has become a central priority for Uzbekistan’s development agenda.

In response, the government launched the Accelerated Integrated Development of Districts and Cities Program (AIDP) in 2025. The programme targets 16 strategically important districts and cities with a combined population of 3.6 million people, aiming to drive infrastructure investment, improve economic opportunities and promote balanced regional development.

The LPCP will support the implementation of the AIDP by financing critical municipal infrastructure in selected locations, including the cities of Yangiyul and Margilan, and 14 districts across 13 regions: Kungrad, Chimbay, Asaka, Gijduvon, Gallaaral, Yakkabog, Khatirchi, Chartak, Bulungur, Syrdarya, Denov, Kuva, Shovot and Khazorasp.

The programme will be implemented by the Ministry of Economy and Finance (MEF) in close coordination with local authorities in participating regions, districts and cities. It adopts a comprehensive approach that combines physical investments with institutional strengthening to ensure long-term impact.

Under the LPCP, investments will expand access to municipal infrastructure and services for residents and businesses. These include social and utility facilities, transport infrastructure, business and tourism amenities, and public spaces, such as hospitals, schools and preschools, water supply systems, public toilets, roads, pedestrian walkways, markets, parks and flood-protection works. To safeguard social outcomes, the programme will not support projects involving land acquisition or involuntary resettlement.

Beyond infrastructure delivery, the LPCP will focus on strengthening the capacity of local authorities to prepare and implement spatial plans, master plans and capital investment plans. These planning tools are intended to improve urban livability, support local economic development and enhance resilience to climate and disaster risks.

A key feature of the programme is its emphasis on citizen and business engagement. Capital investment plans will be developed with input from communities and the private sector to ensure that investments reflect local priorities, including the needs of women and other vulnerable groups, and contribute to job creation and inclusive growth.

The programme also introduces Uzbekistan’s first regional performance-based funding model. Each year, the MEF will allocate LPCP funds only after local authorities demonstrate strong performance in spatial planning, capital budgeting and infrastructure delivery, creating incentives for efficiency, transparency and results.

By 2030, the LPCP is expected to directly benefit around 1 million people in the 16 participating districts and cities, with women accounting for half of the beneficiaries. The programme will improve transport access for approximately 300,000 people and enhance public spaces and parks for about 400,000 residents. In addition, infrastructure investments are projected to generate around 10,000 temporary construction jobs, supporting local employment and economic activity.

Overall, the World Bank–supported LPCP represents a major step in Uzbekistan’s efforts to build more livable, productive and resilient cities, ensuring that urban growth translates into better services, stronger local economies and improved quality of life.