BAKU, Azerbaijan, July 27. The Islamic Development Bank (IsDB) identified its tentative three-year work program in Uzbekistan in May 2024, a source from the bank told Trend.
"The program focuses on enhancing IsDB's footprint in key sectors where the bank possesses significant experience and relevant implementing partners demonstrate strong interest in partnering. The bank also took into consideration the focus on regional connectivity, digitalization, human capital development, and green transition to determine the priority list of projects," the source said.
According to the source, in the transport sector, the IsDB wishes to consider any forms of transportation, including road, railway, and air transport. However, priority would be put on road transport as a key element of the IsDB Work Program given the significant experience of the bank in the sector and the importance of the sector to local and regional connectivity.
"The IsDB mission has discussed the PPP transport sector projects, which comprise the PPP sections and the sections to be financed by Uzbekistan. The IsDB is ready to participate in both sections, subject to the request of Uzbekistan. These projects are included in the list of Category-B (prospective projects), subject to the final decisions by the implementing agencies and further readiness and preparation of the projects," the representative of the bank noted.
The source stressed that in the water resources management sector, enhancing irrigation water efficiency and management is the second key priority of the bank in its work program. Uzbekistan is also putting a high priority on the development and management of irrigation water to reduce water losses. The IsDB has financed several projects in the past in this sector and aims to continue its intervention to enhance the water efficiency of the main irrigation canals.
"The IsDB also has interventions at all levels of education, ranging from preschool to secondary schools and higher education. It was agreed that increasing access to education facilities and improving the quality of education would continue to be prioritized during the programming period. In this regard, the IsDB mission has included the list of projects in the work program. The IsDB will also continue supporting the health sector in addition to the projects under implementation," the source from the bank emphasized.
The representative of the bank noted that the IsDB wishes to maintain its footprint in the water supply and sanitation sectors for the three-year pipeline. There are numerous projects still under implementation in this sector that need to be advanced in implementation. The IsDB is ready to process two water supply and sanitation projects in Uzbekistan's Namangan and Surkhandarya regions, which are at an advanced stage of readiness.
"Sustainable rural development is one of the key areas in the national development strategy 2030 to pursue a comprehensive set of actions, including public education infrastructure, hospitals, enhancing agricultural food processing in rural areas, the development of transport infrastructure and logistics services, the introduction of climate-smart agriculture, etc. Uzbekistan plans to implement 84 rural development projects under direct investment that includes sovereign backing but is largely to be implemented in non-sovereign mode. The bank has agreed to consider the list of priority projects that shall be shared by Uzbekistan's Ministry of Agriculture," the source from the IsDB said.
According to the source, the bank has discussed different potential projects with Uzbekistan, including but not limited to agro-logistical, agro-processing, and livestock development. Uzbekistan's Ministry of Agriculture proposed to set up a working group to be financed through grants for developing a proposal of cooperation with IsDB around the priority areas.
Earlier, a meeting was held between Uzbekistan's Minister of Investment, Industry, and Trade, Laziz Kudratov, and a delegation headed by the head of the Regional Office of the Islamic Development Bank, Ibrahim Shukri.
During the meeting, the sides announced that the IsDB is developing four promising projects worth $434 million with Uzbekistan.