Uzbekistan, in collaboration with the Islamic Development Bank (IsDB), is launching the second phase of its rural modernization project.

Under the Decree of the President of the Republic of Uzbekistan No. PP-141 dated March 28, 2024, “On measures to implement the project ‘Integrated Rural Development’ (2nd stage) with the participation of the Islamic Development Bank,” a total of $293.5 million will be allocated for the comprehensive development of rural areas.

The project aims to enhance the socio-economic landscape of rural settlements, promote integrated development across regions, and elevate living standards by bolstering infrastructure, including road transport networks, engineering, communication systems, and social facilities. Of the total project cost, $33.5 million constitutes Uzbekistan’s share.

Over a five-year period (2024-2028), the project will be executed in 157 citizens’ gatherings of mahallas spread across 21 districts within Kashkadarya, Samarkand, and Surkhandarya regions.

Specifically, $260 million will be directed towards rural infrastructure development, $15.9 million allocated for advisory services, and $2.5 million designated for project support, with an additional $15 million reserved for contingencies.

This initiative builds upon an agreement signed between the IsDB and the Republic of Uzbekistan in April 2023 to support rural development. The IsDB is also extending $136.7 million for the modernization of the M39 road segment and the advancement of preschool education within the republic.