The World Bank's Board of Executive Directors has approved an $800 million financial package in concessional loans to support Uzbekistan's reform agenda. The aim is to facilitate the country's transition to a more inclusive and resilient market economy.
This initiative by the Uzbek government, with backing from the World Bank, targets improvements across several sectors. These include enhancing the business environment, increasing efficiency in agriculture, railways, and energy sectors, improving public finance management, expanding social protection services, and strengthening preparedness for climate change risks.
The financing offers Uzbekistan low-cost, long-term repayment options that are more favorable than those available on international markets. This arrangement will help reduce loan repayment costs and allow for greater allocation of resources towards social and economic priorities.
Key areas targeted by this program include:
1. Expanding unemployment, sickness, and maternity benefits within the social protection system.
2. Improving legal mechanisms to provide better access to justice for survivors of gender-based violence.
3. Introducing legal mechanisms for land tenure security to enable investment in productive agricultural practices.
4. Enacting legislation to enhance investor protection guarantees and attract investments.
5. Increasing transparency in fiscal reporting and strengthening public procurement management.
6. Developing legislation aimed at reducing emissions related to climate change and improving energy efficiency.
7. Enhancing water resource use efficiency through institutional reforms.
8. Building capacity for environmental assessments affecting health and well-being.
9. Boosting state funds in climate-friendly projects led by private investors.
10. Modernizing railway infrastructure through private investments while reducing emissions.
11. Reforming energy tariffs for operational effectiveness while protecting vulnerable groups.
These efforts align with the broader goals of promoting sustainable development and transitioning Uzbekistan towards a green economy.