The funds will be used to implement the second phase of the Rural Infrastructure Development program, aimed at improving public infrastructure and basic services in rural areas of six regions of the country.

Almost half of Uzbekistan's 38 million inhabitants live in rural areas. At the same time, many villages still lack high-quality roads, schools, medical facilities, as well as access to water and electricity services. These restrictions hinder the development of entrepreneurship and the creation of new jobs.

To address these challenges, the Government of Uzbekistan launched the Rural Infrastructure Development program in 2019 with financial support from the International Development Association of the World Bank ($100 million) and the Asian Infrastructure Investment Bank ($82 million). As a result of the first phase, completed in June 2026, more than 900 subprojects were implemented in 306 mahallas in rural areas of Andijan, Ferghana, Namangan, Jizzakh and Syrdarya regions.

More than 340 roads, 220 electricity supply systems, 160 water supply systems, about 100 schools, 40 preschool institutions, and 10 bridges have been built and upgraded under the program. About 1 million rural residents, half of whom are women, have directly benefited from the improved infrastructure.

A special feature of the program is the participation of local residents in the selection and monitoring of projects through mahalla development groups, with at least 50% of participants being women.

The total budget of the second phase of the program is 340 million dollars. Financing is provided by the World Bank ($150 million), the Asian Infrastructure Investment Bank ($120 million) and the Government of Uzbekistan ($70 million). The program will be implemented by the Ministry of Economy and Finance in 296 mahallas of Andijan, Ferghana, Namangan, Jizzakh, Syrdarya and Tashkent regions.

The World Bank funds will be provided in tranches as key results and milestones of the program are achieved.

"The new stage of the program, like the first phase, is focused on the real needs of mahalla residents. The development of in-demand infrastructure will improve the standard of living of the population, including women and youth. The new directions of the program also provide for the development of entrepreneurship and job creation in rural areas," said Naji Benhasin, World Bank Regional Director for Central Asia.

By 2031, the program is expected to significantly improve public infrastructure and services in the mahallas of six regions through investments in roads, drinking water supply systems, electricity and other facilities. The beneficiaries will be about 1.2 million rural residents, including 600,000 women and 300,000 young people.

In addition, business development centers will be established in 15 pilot mahallas to help local entrepreneurs in the field of agricultural processing and small-scale production expand access to financial services, develop business skills and expand sales markets. About 1,500 direct jobs are expected to be created.

Together with other World Bank projects, the program will also contribute to the creation of about 25,000 new and higher-paying jobs in rural areas.