The World Bank has approved a $250 million financing package to help Uzbekistan improve municipal infrastructure and services in 16 districts and cities. The funding, part of the Livable and Productive Cities Program (LPCP), is intended to benefit residents and businesses across the country.
Uzbekistan's urban population now exceeds half of its 37 million people, with projections suggesting this could rise above 60 percent by 2050. This rapid growth places pressure on city planning, infrastructure, and essential services such as transport and waste management. Uncoordinated expansion, outdated utilities, limited access to water and sanitation, as well as exposure to natural hazards like earthquakes and floods, further challenge quality of life.
In response, the government introduced the Accelerated Integrated Development of Districts and Cities Program (AIDP) in 2025. This initiative focuses on infrastructure and economic development in 16 key areas with a combined population of 3.6 million. The LPCP will support these efforts in cities including Yangiyul and Margilan, along with districts such as Kungrad, Chimbay, Asaka, Gijduvon, Gallaaral, Yakkabog, Khatirchi, Chartak, Bulungur, Syrdarya, Denov, Kuva, Shovot, and Khazorasp.
According to the World Bank’s announcement: “Expand residents and businesses’ access to municipal infrastructure and services by investing in social, utility, transport, business, tourism, and public facilities—such as hospitals, schools, preschools, water supply systems, public toilets, roads, pedestrian walkways, markets, parks, and flood-protection works among others. Infrastructure projects involving land acquisition or involuntary resettlement will not be supported under the LPCP.”
The program will be implemented by Uzbekistan’s Ministry of Economy and Finance (MEF) together with local authorities. It aims to strengthen local capacity for planning and managing investments that support livability and resilience against natural hazards.
Another goal outlined is: “Develop capital investment plans with the involvement of citizens and businesses to ensure that the municipal infrastructure and services included in these plans respond to their needs including the needs of women and other vulnerable groups and support local economic development and job creation.”
The MEF will distribute LPCP funds annually based on performance criteria met by local governments in spatial planning and project delivery. This marks Uzbekistan’s first regional performance-based funding model.
By 2030 the program expects to directly benefit about one million people—half of them women—with improved municipal services such as better transport for 300 thousand people plus upgraded public spaces for 400 thousand more. Additionally it is estimated that around ten thousand temporary construction jobs will be created through these projects.