WASHINGTON, June 17, 2026 - The World Bank's Board of Executive Directors today approved $150 million in concessional financing from the World Bank's International Development Association (IDA) to help Uzbekistan implement the Second Phase of the Rural Infrastructure Development Program. The program activities will improve public infrastructure and services for rural communities in six regions across the country.
Nearly half of Uzbekistan's 38 million people live in rural areas. Yet many villages still lack reliable access to quality roads, schools, healthcare facilities, and water and electricity services. These gaps also limit local business activity, entrepreneurship, and job creation.
To help address these challenges, the government of Uzbekistan launched the Rural Infrastructure Development Program (RIDP) in 2019 with financial support from the World Bank's IDA ($100 million) and the Asian Infrastructure Investment Bank (AIIB) ($82 million). By its completion in June 2026, the program had financed more than 900 subprojects in 306 neighborhoods (mahallas) in rural areas across Andijan, Ferghana, Namangan, Jizzakh, and Syrdarya regions.
These subprojects, among others, included the construction or modernization of more than 340 roads, 220 electricity systems, 160 water supply systems, about 100 schools, 40 preschools, and 10 bridges. Together, these improvements directly benefited around 1 million rural residents, half of whom were women.
A key feature of the program is that the selection of subprojects and close oversight of their implementation are carried out by local residents through Mahalla Development Units, with at least 50% women in their composition.
The RIDP's Second Phase has a total budget of $340 million, financed by the World Bank ($150 million), the AIIB ($120 million), and the government of Uzbekistan ($70 million). It will be implemented by the Ministry of Economy and Finance in 296 mahallas across Andijan, Ferghana, Namangan, Jizzakh, Syrdarya, and Tashkent regions. World Bank financing will be disbursed in tranches upon the achievement of agreed program results and implementation milestones.
"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.
By 2031, the second phase of the RIDP is expected to improve public infrastructure and services in participating mahallas across six regions through investments in transport, drinking water, electricity, and other essential infrastructure. The program will benefit approximately 1.2 million rural residents, including 600,000 women and 300,000 young people.
Additionally, in 15 pilot mahallas, Common Facility Centers will be created to help local entrepreneurs involved in agricultural processing and small-scale manufacturing improve their access to finance, business skills, and markets. These activities are expected to create around 1,500 direct jobs and strengthen the local business environment.
Together with other World Bank-financed projects focused on agriculture and micro, small, and medium enterprise development, the program will further contribute to the creation of about 25,000 new and better paid jobs across mahallas in the program areas.
