ASIATODAY.ID, WASHINGTON — The World Bank has approved $150 million in concessional financing to support the second phase of Uzbekistan’s Rural Infrastructure Development Program (RIDP), a major initiative aimed at upgrading public infrastructure, improving living standards, and expanding employment opportunities for an estimated 1.2 million rural residents across the country.
The funding, approved by the World Bank’s Board of Executive Directors on June 17, forms part of a broader $340 million investment package that also includes financing from the Asian Infrastructure Investment Bank (AIIB) and the Government of Uzbekistan.
Nearly half of Uzbekistan’s population of 38 million lives in rural areas, where many communities continue to face limited access to quality roads, schools, healthcare facilities, clean water, and reliable electricity. These infrastructure gaps have long constrained local economic activity, entrepreneurship, and job creation.
The new program builds on the success of the first phase of RIDP, launched in 2019 with support from the World Bank and AIIB. By its completion in June 2026, the initial phase had financed more than 900 community-led infrastructure projects across 306 rural neighborhoods, known locally as mahallas.
The projects included the construction or rehabilitation of more than 340 roads, 220 electricity systems, 160 water supply networks, nearly 100 schools, 40 preschools, and 10 bridges. These improvements directly benefited around one million rural residents, with women accounting for half of all beneficiaries.
A distinctive feature of the program is its community-driven approach. Local residents participate directly in selecting and monitoring projects through Mahalla Development Units, where women make up at least 50 percent of membership.
Under the second phase, the Ministry of Economy and Finance will oversee implementation in 296 mahallas across the regions of Andijan, Ferghana, Namangan, Jizzakh, Syrdarya, and Tashkent.
“The new phase of the program, like its predecessor, places the needs of mahalla residents at the center of infrastructure development. It will help improve living standards in rural areas and expand opportunities for women and young people. This phase will also place a stronger emphasis on entrepreneurship development and job creation,” said Najy Benhassine, World Bank Division Director for Central Asia on June, 17, 2026.
By 2031, the initiative is expected to deliver significant improvements in transport, drinking water, electricity, and other essential services while benefiting approximately 1.2 million people, including 600,000 women and 300,000 young people.
The program also aims to strengthen local economies through the establishment of Common Facility Centers in 15 pilot mahallas. These centers will support entrepreneurs engaged in agricultural processing and small-scale manufacturing by improving access to finance, business development skills, and markets.
The pilot initiative is projected to generate around 1,500 direct jobs, while complementary World Bank-supported projects in agriculture and small-business development are expected to contribute to the creation of approximately 25,000 new and better-paying jobs across participating communities.
The investment underscores Uzbekistan’s ongoing efforts to modernize its rural economy, reduce regional disparities, and foster inclusive growth through infrastructure-led development and private sector expansion. (AT Network)
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