Country Operations Business Plan: Uzbekistan, 2021–2023

Country Operations Business Plan

October 2020

Uzbekistan 2021–2023

This document is being disclosed to the public in accordance with ADB's Access to Information Policy.

CURRENCY EQUIVALENTS (as of 31 August 2020)

Currency unit – sum (SUM) SUM1.00 = $0.00010 $1.00 = SUM10,263

ABBREVIATIONS

ADB – Asian Development Bank ADF – Asian Development Fund COBP – country operations business plan COVID-19 – coronavirus disease CPS – country partnership strategy EAL – emergency assistance loan OCR – ordinary capital resources PBL – policy-based loan RCI – regional cooperation and integration

NOTE

In this report, “$” refers to United States dollars.

Vice-President Shixin Chen, Operations 1 Director General Werner Liepach, Central and West Asia Department (CWRD) Country Director Cindy Malvicini, Uzbekistan Resident Mission (URM), CWRD

Team leader Begzod Djalilov, Senior Economics Officer, URM, CWRD Team members Eduardo Banzon, Principal Health Specialist, Health Sector Group, Sustainable Development and Climate Change Department (SDCC) Pratish Halady, Principal Public–Private Partnership Specialist, Advisory Division 1, Office of Public–Private Partnership Alexander Nicholas Jett, Senior Investment Specialist (Guarantees), Guarantees and Syndications Unit, Private Sector Operations Department Jukka Tulivuori, Social Sector Specialist, Education Sector Group, SDCC Uzbekistan country team CWRD team

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1 II. INDICATIVE RESOURCE PARAMETERS 1 III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 2

APPENDIXES

1. Country Assistance Results Areas 3 2. List of Linked Documents 5 3. Indicative Assistance Pipeline 6 4. Assistance Program for the Current Year 12 5. Indicative Knowledge Publications and Events 15

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY

1. The country operations business plan (COBP), 2021–2023 of the Asian Development Bank (ADB) for Uzbekistan is consistent with the recent initiatives of the government; ADB’s country partnership strategy (CPS), 2019–2023 for Uzbekistan; and ADB’s Strategy 2030 operational priorities.1 The key objective of ADB’s CPS is to support the country’s move toward a vibrant and inclusive market economy, including the transformation of the state’s role. ADB will assist in this transition by providing policy advice, investments, and capacity development in three strategic areas: (i) supporting private sector development, (ii) reducing economic and social disparities, and (iii) promoting regional cooperation and integration (RCI). To this end, this COBP includes operational support for energy, transport, finance, agriculture, water supply and other urban infrastructure, health, and education.

2. To support the government in combating the coronavirus disease (COVID-19) pandemic, the COBP incorporates projects, accounting for 13% of the financial envelope, in education, health, finance, and urban and water.2 They improve distance learning in public education, widen access to clean water and sanitation, strengthen the health care system’s resilience to the pandemic and emergencies, and accelerate post-COVID recovery of small and family businesses. In identifying new projects for the COBP, ADB considered the government’s policy to expand private sector engagement in investment projects, sector reforms and absorptive capacity of investments, and an expected cap on external borrowing. ADB also sequenced the projects in the pipeline based on their readiness for implementation, especially in terms of procurement and consultant recruitment.

II. INDICATIVE RESOURCE PARAMETERS

3. Uzbekistan, a group B developing member country, is eligible for regular ordinary capital resources (OCR) lending and concessional OCR lending. The indicative resources available for commitment during 2021–2023 for sovereign operations total $2,473 million, comprising $1,524 million for regular OCR lending and $949 million in concessional OCR lending.3 The final allocation will depend on, among other factors, available resources, project readiness, and the outcome of the country performance assessments. Cofinancing and funding from other sources,

1 The CPS is aligned with the operational priorities of ADB’s Strategy 2030: (i) strengthening governance and institutional capacity, (ii) addressing remaining poverty and reducing inequalities, (iii) promoting rural development and food security, and (iv) fostering regional cooperation and integration (RCI). ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila; and ADB. 2019. Country Partnership Strategy: Uzbekistan, 2019–2023—Supporting Economic Transformation. Manila. The CPS is also in line with the national development strategy, 2017–2021 and the subsequent reform agenda. The government’s ultimate objectives of improving the quality of people’s lives and enabling the creation of quality jobs can be achieved only by developing a robust private sector and by reducing the state’s pervasive footprint in the economy. Government of Uzbekistan. 2017. Presidential Decree No. 4947. On Strategy of Actions for Further Development of Uzbekistan. Tashkent. 2 In 2020, ADB is supporting the government with the COVID-19 Active Response and Expenditure Support Program (policy-based loan [PBL], $500 million), the COVID-19 Emergency Response Project (emergency assistance loan [EAL], $100 million), the knowledge and support Technical Assistance for Assessment of Socioeconomic Impacts of COVID-19 and Institutional Strengthening for Policy Responses ($0.65 million), and COVID-19 Emergency Response grant ($3 million) funded by the Asia Pacific Disaster Response Fund (APDRF). In 2021–2023, ADB will support Uzbekistan’s recovery and resilience to COVID-19 with the Small and Medium-Sized Enterprises Development Program (PBL, $100 million), the Integrated Perinatal Care Project ($100 million), the Water Supply and Sanitation Sector Development Program ($100 million), the Integrated Urban Development Project ($100 million), and the Secondary Education Investment in Science, Technology, Engineering, and Math Project ($100 million). 3 Additional resources were provided subsequently for a prioritized Climate-Adaptive Water Resources Management in the Aral Sea Basin Project from the ADF 13 thematic pool for $3.0 million.

including Asian Development Fund (ADF) grants from the ADF 13 thematic pool for projects addressing specific challenges, will be explored.4 The proposed cumulative lending program for the 3-year period is $3,123 million.5 An overprogramming of 26% is included to place the program on the trajectory for a scale-up, as requested by the government, and to allow for greater project implementation readiness.6 Policy-based lending (PBL) operations for 2021–2023 will be subject to availability of resources and headroom under ADB’s PBL ceiling. In addition to public sector assistance, ADB will explore private sector undertakings in finance, energy efficiency, agribusiness, health, and other areas that support respective sector reforms, employment, export promotion, and innovation. Consistent with a “One ADB” approach, ADB will expand integrated solutions that draw on expertise in ADB’s Central and West Asia Department, Office of Public– Private Partnership, and Private Sector Operations Department.7 Technical assistance grants totaling about $24.5 million (including $6.0 million projected cofinancing) will be extended for project preparation, demand-led reforms, capacity development, policy advice, and knowledge management.

4. The areas of intervention and the indicative resource allocation for each sector are in Appendix 1. The list of linked documents is in Appendix 2. The updated lending and nonlending programs are in Appendixes 3 and 4. The list of indicative knowledge publications and events for 2021 is in Appendix 5.

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS

5. Adjustments to the 2021–2023 lending program are made to meet evolving government priorities.8 The Power Sector Reform Program (PBL) was added with two subprograms in 2020 and 2023.9 The Gas Sector Reform Program (PBL) was added in 2022. The Solar Public–Private Partnership Program with three tranches of partial credit guarantee, $20 million each, for 2021– 2023 replaced the Renewable Power Project. The Small Business Finance and Rural Financial Inclusion Project (financial intermediary loan) planned for 2021 commitment was changed to the Small and Medium-Sized Enterprises Development Program (PBL). The Surkhandarya Regional Road Project replaced the Rehabilitation of Darband–Denov Road Project. The Sustainable Urban Services Projects Readiness Facility was added in the 2022 pipeline.

4 The proposed ADF 13 framework introduces a single thematic pool. Group A countries, including International Development Association gap countries and, on a very selective basis, group B countries, are eligible. The single thematic pool addresses thematic priorities in gender equity; climate change adaptation and disaster risk reduction; and RCI, including regional public goods. Cofinancing will be sought through both sovereign and private windows financing. 5 The COBP comprises projects promoting gender equality (77% of total firm projects), tackling climate change (74%), and facilitating RCI (26%). RCI is embedded in eight projects promoting regional transport connectivity, trade in agriculture products, and water resource management. 6 To meet the excess demand of 42% in the regular OCR lending pipeline, other sources will be explored: (i) regular OCR resources allocated to the department that are unutilized and (ii) external sources. 7 ADB will provide upstream policy advice in transformation of state-owned banks and improvement of corporate management in utilities companies to facilitate private sector investment. ADB will continue to lead engagement to promote private sector advisory in strategic sectors of the economy—energy, water and wastewater, solid waste management, district heating, public education, and health—through public–private partnership initiatives. ADB’s ongoing public–private partnership projects include (i) capacity-building support to relevant ministries and agencies; (ii) transaction advisory services for the Four Cities Water and Wastewater Project (including the Namangan Wastewater Treatment Plant), Tashkent District Heating Project, Sherabad Solar Photovoltaic Project (Phase 1 and Phase 2), and Tashkent Public Schools Project; and (iii) a project definition grant from the Asia Pacific Project Preparation Facility (AP3F) for the Tashkent and Bekabad Solid Waste Management Project. 8 At the government’s request and in response to the COVID-19 pandemic and the Sardoba Dam burst in May 2020, the COVID-19 Active Response and Expenditure Support Program (PBL), the COVID-19 Emergency Response Project (EAL), and the Sardoba Emergency Response Project (EAL) were added in the 2020 pipeline. 9 The Power Sector Reform Program (PBL) Subprogram 1 is approved on 28 September 2020. Appendix 1 3

COUNTRY ASSISTANCE RESULTS AREAS

ADB Key Country Development Indicative Resource Available for Changes from Last Outcomes that ADB Contributes to Key Areas of Assistance Commitment in 2021–2023a COBP 1. Agriculture, Natural Resources, and Rural Development CPS priority area: Promotion of exports based on comparative advantages Proportion of exports from horticulture Livestock $520 million (all from COL) for 2021– Livestock is added as subsector increased Agro-industry, marketing, and trade 2023, 17% of total COBP envelope a key area of Water-based natural resources management assistance. Agriculture finance is deleted as a key area of assistance. 2. Education CPS priority area: Enabling environment for private sector development Skills and competitiveness of the Education sector development $100 million (all from COL) for 2021– Education sector labor force improved Secondary education (in science, technology, 2023, 3% of total COBP envelope development is added engineering, and math) as a key area of assistance. Technical and vocational education and training, and labor market and system are deleted as key areas of assistance.

3. Energy CPS priority area: Enabling environment for private sector development and transformation of state’s role in the economy Higher efficiency and competition in Renewable energy generation – solar $710 million (all from regular OCR) Combined-cycle power the energy sector Energy efficiency and conservation for 2021–2023, 23% of total COBP generation is deleted Energy transmission and distribution envelope as a key area of Energy sector development and institutional assistance. reform $500 million in potential cofinancing 4. Finance CPS priority area: Provision of equal access to economic opportunities and enabling environment for private sector development Immediate adverse effects of Finance and leasing of small and medium- $400 million ($334 million from Immediate adverse coronavirus disease (COVID-19) sized enterprises regular OCR, and $66 million from effects of COVID-19 outbreak on businesses reduced Inclusive finance COL) for 2021–2023, 13% of total outbreak on More competitive and enabling Money and capital markets COBP envelope businesses reduced environment for private sector Finance sector development $100 million in potential cofinancing was added as a key

4 Appendix 1

ADB Key Country Development Indicative Resource Available for Changes from Last Outcomes that ADB Contributes to Key Areas of Assistance Commitment in 2021–2023a COBP development in the finance sector Housing finance country development Women’s financial inclusion outcome that ADB increased contributes to.

5. Health CPS priority area: Reducing economic and social disparities Access to quality health services Mother and child health care $100 million (all from COL) for 2021– No change improved Health system development 2023, 3% of total COBP envelope 6. Public Sector Management CPS priority area: Enabling environment for private sector development and transformation of state’s role in the economy Reform of state-owned enterprises in Public expenditure and fiscal management $100 million (all from OCR) for 2021– No change energy and transport sectors Reforms of state-owned enterprises 2023, 3% of total COBP envelope More competitive and enabling Economic affairs management environment for private sector development 7. Transport CPS priority area: Reduction of distance between regional economies and promotion of trade in Central Asia Transport connectivity improved Road transport (nonurban) $630 million (all from regular OCR) No change Rail transport (nonurban) for 2021–2023, 20% of total COBP Transport policies and institutional envelope development $408 million in potential cofinancing 8. Water and Other Urban Infrastructure and Services CPS priority area: Equitable improvement of living standards in cities and small towns Coverage, quality, efficiency, and Other urban services $548 million ($382 million from Other urban services reliability of urban services improved Urban water supply regular OCR, and $166 million from are added as a key Urban sanitation COL) for 2021–2023, 18% of total area of assistance Urban solid waste management COBP envelope.b Urban policy, institutional, and capacity development $170 million in potential cofinancing ADB = Asian Development Bank, COBP = country operations business plan, COL = concessional OCR lending, COVID-19 = coronavirus disease, CPS = country partnership strategy, OCR = ordinary capital resources. a To meet the excess demand of 42% in the regular OCR lending pipeline, other sources will be explored: (i) regular OCR resources allocated to the department that are unutilized and (ii) external sources. The total indicative resource allocation for lending product cofinancing during 2021–2023 is $1,178 million. b This does not include the project readiness facility ($15 million) for the Sustainable Urban Services Project that supports the water and other urban infrastructure and services sector. Source: Asian Development Bank estimates. Appendix 2 5

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/COBP/?id=UZB-2021

1. Portfolio at a Glance: Uzbekistan

6 Appendix 3

INDICATIVE ASSISTANCE PIPELINE

Table A3.1: Lending Products, 2021–2023

Appendix 3 7

Year Cost ($ million) of ADB Poverty Operational TRTA/ Regular ADF Co- Project/Program Namea Sector Targeting Priority Division PRF Total OCRb COL Grants Total Gov’t finance Integrated Urban Development WUS GI OP1, OP2, OP3, CWUW 2019 200.0 0.0 100.0 0.0 100.0 0.0 100.0d Project OP4, OP6 Sustainable Urban Services WUS GI OP1, OP4, OP6 CWUW NA 15.0 15.0 0.0 0.0 15.0 0.0 0.0 Projects Readiness Facility Total 870.0 329.0 316.0 0.0 645.0 25.0 200.0 2022 Firm Infrastructure for Rural ANR GI OP1, OP3, OP5 CWER 2020 100.0 0.0 100.0 0.0 100.0 0.0 0.0 Productivity Enhancement Project Secondary Education Investment EDU GI OP1, OP2, OP3, CWSS 2020 50.0 0.0 50.0 0.0 50.0 0.0 0.0 in Science, Technology, OP5, OP6 Engineering, and Math Project Regional Energy Transmission ENE GI OP1, OP3, OP4, CWEN 2019 300.0 200.0 0.0 0.0 200.0 100.0 0.0 and Dispatch Enhancement OP5, OP6 Project Solar Public–Private Partnership ENE GI OP1, OP3, OP4, CWEN NA 20.0 20.0 0.0 0.0 20.0 0.0 0.0 Program (Phase 2) (PCG) OP5, OP6 Gas Sector Reform Program, ENE GI OP1, OP2, OP4, CWEN 2021 200.0 100.0 0.0 0.0 100.0 0.0 100.0d subprogram 1 (PBL) OP5, OP6 Second Economic Management PSM GI OP2, OP6 CWPF 2019 100.0 100.0 0.0 0.0 100.0 0.0 0.0 Improvement Program, subprogram 1 (PBL) Surkhandarya Regional Road TRA GI OP1, OP2, OP3, CWTC 2019 180.0 180.0 0.0 0.0 180.0 0.0 0.0 Project OP7 Navoi–Bukhara Regional Road TRA GI OP1, OP3, OP7 CWTC 2021 235.0 132.0 0.0 0.0 132.0 0.0 103.0d Development Project Water Supply and Sanitation WUS GI OP1, OP2, OP3, CWUW 2019 125.0 34.0 66.0 0.0 100.0 25.0 0.0 Sector Development Program OP4, OP6 Sustainable Urban Services WUS GI OP1, OP4, OP6 CWUW NA 15.0 15.0 0.0 0.0 15.0 0.0 0.0 Projects Readiness Facility Integrated Urban Development WUS GI OP1, OP2, OP3, CWUW 2019 200.0 0.0 100.0 0.0 100.0 0.0 100.0d Project OP4, OP6 Total 1,525.0 781.0 316.0 0.0 1,097.0 125.0 303.0 2022 Standby Agro-logistical Infrastructure ANR GI OP1, OP3, OP5, CWER 2022 150.0 0.0 150.0 0.0 150.0 0.0 0.0 Expansion Project OP7 Livestock Feed and Fodder ANR GI OP1, OP2, OP3, CWER 2021 120.0 0.0 120.0 0.0 120.0 0.0 0.0 Commercialization Project OP5 Power Sector Reform Program, ENE GI OP1, OP2, OP3, CWEN 2021 300.0 100.0 0.0 0.0 100.0 0.0 200.0d subprogram 2 (PBL) OP4, OP5, OP6, OP7

8 Appendix 3

Year Cost ($ million) of ADB Poverty Operational TRTA/ Regular ADF Co- Project/Program Namea Sector Targeting Priority Division PRF Total OCRb COL Grants Total Gov’t finance Financial Markets Development FIN GI OP1, OP2, OP6 CWPF 2019 100.0 100.0 0.0 0.0 100.0 0.0 0.0 Program, subprogram 2 (PBL) Ferghana Water Supply and WUS GI OP1, OP2, OP4, CWUW 2021 140.0 70.0 0.0 0.0 70.0 0.0 70.0d Sanitation Project OP6 Total 810.0 270.0 270.0 0.0 540.0 0.0 270.0 2023 Firm Agro-logistical Infrastructure ANR GI OP1, OP3, OP5, CWER 2022 150.0 0.0 150.0 0.0 150.0 0.0 0.0 Expansion Project OP7 Livestock Feed and Fodder ANR GI OP1, OP2, OP3, CWER 2021 120.0 0.0 120.0 0.0 120.0 0.0 0.0 Commercialization Project OP5 Secondary Education Investment EDU GI OP1, OP2, OP3, CWSS 2022 50.0 0.0 50.0 0.0 50.0 0.0 0.0 in Science, Technology, OP5, OP6 Engineering, and Math Project (additional financing) Distribution Network ENE GI OP1, OP3, OP4, CWEN 2022 250.0 100.0 0.0 0.0 100.0 50.0 100.0d Modernization Project (Phase 2) OP5, OP6 (RBL) Solar Public–Private Partnership ENE GI OP1, OP3, OP4, CWEN NA 20.0 20.0 0.0 0.0 20.0 0.0 0.0 Program (Phase 3) (PCG) OP5, OP6 Power Sector Reform Program, ENE GI OP1, OP2, OP3, CWEN 2021 300.0 100.0 0.0 0.0 100.0 0.0 200.0d subprogram 2 (PBL) OP4, OP5, OP6, OP7 Mortgage Market Sector FIN GI OP4, OP6 CWPF 2022 200.0 100.0 0.0 0.0 100.0 0.0 100.0d Development Program (additional financing) (SDP) Financial Markets Development FIN GI OP1, OP2, OP6 CWPF 2019 100.0 100.0 0.0 0.0 100.0 0.0 0.0 Program, subprogram 2 (PBL) Guzar–Buhkara–Nukus–Beyneu TRA GI OP1, OP3, OP7 CWTC 2021 110.0 60.0 0.0 0.0 60.0 0.0 50.0d Road Reconstruction Project (54 km, 673-698 km, and 765 794 km sections) Western Uzbekistan Railway TRA GI OP2, OP3, OP6, CWTC 2022 250.0 100.0 0.0 0.0 100.0 0.0 150.0d Electrification Project (Phase 1) OP7 Ferghana Water Supply and WUS GI OP1, OP2, OP3, CWUW 2021 140.0 70.0 0.0 0.0 70.0 0.0 70.0d Sanitation Project OP4, OP6 Sustainable Solid Waste WUS GI OP1, OP3, OP6 CWUW 2021 100.0 100.0 0.0 0.0 100.0 0.0 0.0 Management Project (Phase 2) Total 1,790.0 750.0 320.0 0.0 1,070.0 50.0 670.0

Appendix 3 9

Year Cost ($ million) of ADB Poverty Operational TRTA/ Regular ADF Co- Project/Program Namea Sector Targeting Priority Division PRF Total OCRb COL Grants Total Gov’t finance 2023 Standby Climate-Adaptive Water ANR GI OP1, OP2, OP3, CWER 2023 150.0 0.0 150.0 0.0 150.0 0.0 0.0 Resources Management in the OP5, OP7 Aral Sea Basin Project (Phase 2) Water Resources Management ANR GI OP1, OP2, OP3, CWER 2023 150.0 150.0 0.0 0.0 150.0 0.0 0.0 Modernization Project OP5, OP7 Gas Sector Reform Program, ENE GI OP1, OP2, OP4, CWEN 2021 200.0 100.0 0.0 0.0 100.0 0.0 100.0d subprogram 2 (PBL) OP5, OP6 Solar Public–Private Partnership ENE GI OP1, OP3, OP4, CWEN NA 20.0 20.0 0.0 0.0 20.0 0.0 0.0 Program (Phase 4) (PCG) OP5, OP6 Almaty-Tashkent-Samarkand- TRA GI OP1, OP3, OP7 CWTC 2021 132.0 70.0 0.0 0.0 70.0 0.0 62.0d Termez Road (44 km) Reconstruction Projectf Guzar-Buhkara-Nukus-Beyneu TRA GI OP1, OP3, OP7 CWTC 2022 184.0 184.0 0.0 0.0 184.0 0.0 0.0 Road Reconstruction Project (92 km, 581–673 km section) Integrated Urban Development WUS GI OP1, OP2, OP3, CWUW 2021 200.0 100.0 0.0 0.0 100.0 0.0 100.0d Project (Phase 2) (SDP) OP4, OP6 Total 1,036.0 624.0 150.0 0.0 774.0 0.0 262.0 ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; COL = concessional OCR lending; CWEN = Energy Division, Central and West Asia Department; CWER = Environment, Natural Resources, and Agriculture Division, Central and West Asia Department; CWPF = Public Management, Financial Sector, and Trade Division, Central and West Asia Department; CWSS = Social Sector Division, Central and West Asia Department; CWTC = Transport and Communications Division, Central and West Asia Department; CWUW = Urban Development and Water Division, Central and West Asia Department; EDU = education; ENE = energy; FIN = finance; GI = general intervention; Gov’t = government; HLT = health; km = kilometer; NA. = not applicable; OCR = ordinary capital resources; OP1 = addressing remaining poverty and reducing inequalities; OP2 = accelerating progress in gender equality; OP3 = tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; OP4 = making cities more livable; OP5 = promoting rural development and food security; OP6 = strengthening governance and institutional capacity; OP7 = fostering regional cooperation and integration; PBL = policy-based loan; PCG = partial credit guarantee; PRF = project readiness financing; PSM = public sector management; RBL = results-based loan; SDP = sector development program; TRA = transport; TRTA = transaction technical assistance; WUS = water and other urban infrastructure and services. a Given the provisional nature of the indicative lending program; the composition of lending instruments in the actual loan delivery may change. Programmed PBLs are subject to available resources and available headroom under the policy-based lending ceiling. b To meet the excess demand in the regular OCR lending pipeline, other sources will be explored, including: (i) regular OCR resources allocated to the department that are unutilized and (ii) external sources. c An additional $3.0 million ADF grant will be financed from the ADF 13 thematic pool, for this project addressing climate change adaptation and disaster risk reduction. d Cofinancing sources to be determined. e Cofinancing from the Asian Infrastructure Investment Bank. f The project scope is within the territory of Uzbekistan. Source: Asian Development Bank estimates.

10 Appendix 3

Table A3.2: Nonlending Products and Services, 2021–2023

Sources of Funding ADB Others Assistance Amount Amount Total Assistance Name Sector Division Type Source ($’000) Source ($’000) ($’000) 2021 Enabling Environment for Public–Private ANR URM, CWER KSTA TASF 500.0 PRC Fund 500.0 1,000.0 Partnership in the Agriculture and Natural Resources Sector Energy Sector Reform Program ENE CWEN TRTA TASF 800.0 800.0 Supporting the Financial Markets Development FIN CWPF TRTA TASF 500.0 500.0 Program Second Economic Management Improvement PSM CWPF TRTA TASF 500.0 TBD 500.0 1,000.0 Program, subprogram 1 (PBL) Transformation of State-Owned Enterprise Banks FIN PSFI KSTA TASF 500.0 500.0 (additional financing) (nonsovereign) Sustainable Debt Management FIN URM KSTA TASF 500.0 500.0 Small and Medium-Sized Enterprises Development FIN CWPF TRTA TASF 150.0 150.0 Program Effective Economic Management (additional PSM URM TRTA TASF 200.0 200.0 financing) (TA 9684-UZB) Preparing Road Modernization Projects TRA CWTC F-TRTA TASF 1,200.0 TBD 1,200.0 2,400.0 Institutional Strengthening of State-Owned TRA URM, CWTC KSTA TASF 500.0 TBD 500.0 1,000.0 Enterprise Uzavtoyul in Road Management Preparing Support for Urban Sector Projects WUS CWUW F-TRTA TASF 1,500.0 TBD 1,500.0 3,000.0 Total 6,850.0 4,200.0 11,050.0 2022 Preparing Agro-logistical Infrastructure Expansion ANR CWER TRTA TASF 800.0 800.0 Project Preparing Livestock Feed and Fodder ANR CWER TRTA TASF 800.0 800.0 Commercialization Project Preparing Secondary Education Investment in EDU CWSS TRTA TASF 800.0 800.0 Science, Technology, Engineering, and Math Project (additional financing) Preparing Distribution Network Modernization ENE CWEN TRTA TASF 800.0 800.0 Project (Phase 2) (RBL) E-Mobility Pilot Program ENE CWEN KSTA TBD 1,000.0 1,000.0 Preparing Mortgage Market Sector Development FIN CWPF TRTA TASF 800.0 800.0 Program (Phase 2) (SDP) Urban Governance and Resilience WUS CWUW KSTA TASF 500.0 500.0 Water Supply and Sanitation Sector Development WUS CWUW TRTA TASF 800.0 800.0 Program Appendix 3 11

Sources of Funding ADB Others Assistance Amount Amount Total Assistance Name Sector Division Type Source ($’000) Source ($’000) ($’000) Preparing the Western Uzbekistan Railway TRA CWTC F-TRTA TASF 800.0 TBD 800.0 1,600.0 Electrification Project Total 6,100.0 1,800.0 7,900.0 2023 Climate-Adaptive Water Resources Management in ANR CWER TRTA TASF 800.0 800.0 the Aral Sea Basin Project (Phase 2) (SDP) Water Resources Management Modernization ANR CWER TRTA TASF 800.0 800.0 (SDP) Secondary Education Investment in Science, EDU CWSS TRTA TASF 800.0 800.0 Technology, Engineering, and Math Project (additional financing) Preparing the Miskin–Nukus Railway Electrification TRA CWTC TRTA TASF 800.0 800.0 Project Inclusive and Sustainable Growth Assessment PSM URM KSTA TASF 800.0 800.0 Ferghana Water Supply and Sanitation Project WUS CWUW TRTA TASF 500.0 500.0 Sustainable Solid Waste Management Project WUS CWUW TRTA TASF 225.0 225.0 (Phase 2) Integrated Urban Development Project (Phase 2) WUS CWUW TRTA TASF 800.0 800.0 Total 5,525.0 5,525.0 ADB = Asian Development Bank; ANR = agriculture, natural resources, and rural development; CWEN = Energy Division, Central and West Asia Department; CWER = Environment, Natural Resources, and Agriculture Division, Central and West Asia Department; CWPF = Public Management, Financial Sector, and Trade Division, Central and West Asia Department; CWSS = Social Sector Division, Central and West Asia Department; CWTC = Transport and Communications Division, Central and West Asia Department; CWUW = Urban Development and Water Division, Central and West Asia Department; EDU = education; ENE = energy; FIN = finance; F-TRTA = transaction technical assistance facility; KSTA = knowledge and support technical assistance; PBL = policy-based loan; PRC Fund = People's Republic of China Poverty Reduction and Regional Cooperation Fund; PSFI = Financial Institutions Division, Private Sector Operations Department; PSM = public sector management; RBL = results-based loan; SDP = sector development program; TA = technical assistance; TASF = Technical Assistance Special Fund; TBD = to be determined; TRA = transport; TRTA = transaction technical assistance; URM = Uzbekistan Resident Mission, Central and West Asia Department; UZB = Uzbekistan; WUS = water and other urban infrastructure and services. Source: Asian Development Bank estimates.

12 Appendix 4

ASSISTANCE PROGRAM FOR THE CURRENT YEAR

Table A4.1: Lending Products, 2020

Year Cost ($ million) of ADB Poverty Operational TRTA/ Regular ADF Co- Project/Program Namea Sector Targeting Priority Division PRF Total OCR COL Grants Total Gov’t finance Firm Sardoba Emergency Response ANR GI OP2, OP5 CWER NA 100.0 0.0 100.0 0.0 100.0 0.0 0.0 Project (EAL) Skills Development for a Modern EDU GI OP1, OP6 CWSS 2017 200.0 36.0 64.0 0.0 100.0 100.0 0.0 Economy Project Sustainable Hydropower Project ENE GI OP1, OP5 CWEN 2016 75.0 60.0 0.0 0.0 60.0 15.0 0.0 Power Sector Reform Program, ENE GI OP1, OP2, CWEN 2019 364.0 200.0 0.0 0.0 200.0 0.0 164.0 subprogram 1 (PBL) OP3, OP4, (AFD) OP5, OP6, OP7 COVID-19 Active Response and PSM GI OP1, OP2, CWPF 2020 500.0 500.0 0.0 0.0 500.0 0.0 0.0 Expenditure Support Program OP5 (PBL) COVID-19 Emergency Response HLT GI OP1 CWSS NA 200.0 0.0 100.0 0.0 100.0 0.0 100.0 Project (EAL) (AIIB) Central Asia Regional Economic TRA GI OP1, OP7 CWTC 2018 274.0 248.0 26.0 0.0 274.0 0.0 0.0 Cooperation Corridor 2 Karakalpakstan Road Project (A380 Kungrad to Daut-Ata Section) Central Asia Regional Economic TRA GI OP7 CWTC 2019 151.0 121.0 0.0 0.0 121.0 30.0 0.0 Cooperation Corridor 2 (Pap– Namangan–Andijan) Railway Electrification Project (additional financing) Sustainable Solid Waste WUS GI OP1, OP6 CWUW 2018 152.2 60.0 0.0 0.0 60.0 92.2 0.0 Management Project

Total 2,016.2 1,225.0 290.0 0.0 1,515.0 237.2 264.0

Appendix 4 13

Year Cost ($ million) of Operational TRTA/ Priority PRF ADB Poverty Regular ADF Co- Project/Program Namea Sector Targeting Division Total OCR COL Grants Total Gov’t finance Standby Small and Medium-Sized FIN GI OP1, OP2, CWPF 2019 100.0 34.0 66.0 0.0 100.0 0.0 0.0 Enterprises Development OP5 Program (PBL) Financial Markets Development FIN GI OP1, OP6 CWPF 2019 100.0 100.0 0.0 0.0 100.0 0.0 0.0 Program, subprogram 1 (PBL) Tashkent Province Sewerage WUS GI OP1, OP5, CWUW 2018 178.0 178.0 0.0 0.0 178.0 0.0 0.0 Improvement Project OP6 Bukhara–Miskin–Urgench–Khiva TRA GI OP3, OP7 CWTC 2020 263.0 158.0 0.0 0.0 158.0 0.0 105.0 Railway Electrification Project (AIIB) Total 641.0 470.0 66.0 0.0 536.0 0.0 105.0 ADB = Asian Development Bank; ADF = Asian Development Fund; AFD = Agence Française de Développement (French Development Agency); AIIB = Asian Infrastructure Investment Bank; ANR = agriculture, natural resources, and rural development; COL = concessional OCR lending; COVID-19 = coronavirus disease; CWEN = Energy Division, Central and West Asia Department; CWER = Environment, Natural Resources, and Agriculture Division, Central and West Asia Department; CWPF = Public Management, Financial Sector, and Trade Division, Central and West Asia Department; CWSS = Social Sector Division, Central and West Asia Department; CWTC = Transport and Communications Division, Central and West Asia Department; CWUW = Urban Development and Water Division, Central and West Asia Department; EAL = emergency assistance loan; EDU = education; ENE = energy; FIN = finance; GI = general intervention; Gov’t = government; HLT = health; NA = not applicable; OCR = ordinary capital resources; OP1 = addressing remaining poverty and reducing inequalities; OP2 = accelerating progress in gender equality; OP3 = tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; OP4 = making cities more livable; OP5 = promoting rural development and food security; OP6 = strengthening governance and institutional capacity; OP7 = fostering regional cooperation and integration; PBL = policy-based loan; PRF = project readiness financing; PSM = public sector management; TRA = transport; TRTA = transaction technical assistance; WUS = water and other urban infrastructure and services. a Given the provisional nature of the indicative lending program, the composition of lending instruments in the actual loan delivery may change. Source: Asian Development Bank estimates.

14 Appendix 4

Table A4.2: Nonlending Products and Services, 2020

Sources of Funding ADB Others Assistance Amount Amount Total Assistance Name Sector Division Type Source ($’000) Source ($’000) ($’000) Economic Management Improvement FIN CWPF TRTA TASF 150.0 150.0 Program (additional financing) (TA 9538- UZB) Economic Management Improvement FIN CWPF TRTA TASF 500.0 500.0 Program (additional financing) (TA 9538- UZB) Assessment of Socioeconomic Impacts of PSM URM KSTA TASF 650.0 650.0 COVID-19 and Institutional Strengthening for Policy Responses Economic Management Improvement FIN CWPF TRTA TASF 300.0 300.0 Program (additional financing) (TA 9538- UZB) Secondary Education Investment in EDU CWSS TRTA TASF 500.0 500.0 Science, Technology, Engineering, and Math Project Road Subsector Development Strategy and TRA CWTC KSTA EAKPF 500.0 1,000.0 Action Plan PRC Fund 500.0 Transformation of State-Owned Enterprise FIN/NSO URM/PSFI KSTA TASF 375.0 FSDPSF 375.0 750.0 Banks Promoting Distributed Solar Photovoltaic for ENE CWEN KSTA TASF 300.0 CEF 1,000.0 1,300.0 Enhanced Access to Energy Gas Sector Reform Program ENE CWEN TRTA TASF 300.0 300.0 Total 3,075.0 2,375.0 5,450.0 ADB = Asian Development Bank; CEF = Clean Energy Fund; COVID-19 = coronavirus disease; CWEN = Energy Division, Central and West Asia Department; CWPF = Public Management, Financial Sector, and Trade Division, Central and West Asia Department; CWSS = Social Sector Division, Central and West Asia Department; CWTC = Transport and Communications Division, Central and West Asia Department; EAKPF = e-Asia and Knowledge Partnership Fund; EDU = education; ENE = energy; FIN = finance; FSDPSF = Financial Sector Development Partnership Special Fund; KSTA = knowledge and support technical assistance; NSO = nonsovereign operation; PRC Fund = People's Republic of China Poverty Reduction and Regional Cooperation Fund; PSFI = Financial Institutions Division, Private Sector Operations Department; PSM = public sector management; TA = technical assistance; TASF = Technical Assistance Special Fund; TRA = transport; TRTA = transaction technical assistance; URM = Uzbekistan Resident Mission, Central and West Asia Department; UZB = Uzbekistan. Source: Asian Development Bank estimates. Appendix 5 15

INDICATIVE KNOWLEDGE PUBLICATIONS AND EVENTS

Table A5.1: Knowledge Publications and Events for 2021

Department or Sector Group or Funding Title of Publication or Event Subject Type Thematic Group Source Key Indicators for Asia and the Pacific 2021 Economics Publication and documentation ERCD TA 9920-REG Data for Development: National Accounts Administration Economics In-country training and ERCD TA 9356-UZB workshop Asian Development Outlook 2021, Asian Development Outlook Economics Publication and documentation ERCD TA for Update, and its supplements approval Enabling Environment for Public–Private Partnership in Agriculture and natural Publication and in-country URM, CWER TA for Agriculture and Natural Resources Sector resources workshop approval Sustainable Debt Management Economics, finance Publication and documentation URM, CWPF TA for approval Several publications and events organized in 2021 as part of Various Publication and documentation, CWRD TA 9556-REG the Central Asia Regional Economic Cooperation Program Event organization TA 9776-REG activities Institutional Strengthening of State-Owned Enterprise Public sector Publication and documentation, URM, CWTC TA for Uzavtoyul in Road Management management, transport Event organization approval Total number of publications = 6 Total number of events = 4 CWER = Environment, Natural Resources, and Agriculture Division, Central and West Asia Department; CWPF = Public Management, Financial Sector, and Trade Division, Central and West Asia Department; CWTC = Transport and Communications Division, Central and West Asia Department; CWRD = Central and West Asia Department; ERCD = Economic Research and Regional Cooperation Department; REG = regional; TA = technical assistance URM = Uzbekistan Resident Mission, Central and West Asia Department; UZB = Uzbekistan. Note: “Publications” may include databases, multimedia, and other forms of documentation. “Events” may include event organization and training or capacity development. Source: Asian Development Bank.

16 Appendix 5

Table A5.2: Additional Knowledge Publications and Events Delivered in 2020

Department or Sector Group or Thematic Funding Title of Publication or Event Subject Type Group Source Uzbekistan: Road Sector Development Strategy Public sector Publication and documentation CWTC TA 9987-UZB management, transport Scoping Study on Assessment of Uzbekistan’s Potential Economics, regional Publication and documentation, URM TA 9905-UZB Accession to the EEU cooperation and event organization integration Preliminary Analysis of Impact of Accession to the EEU on Economics, regional Publication and documentation, URM TA 9905-UZB Uzbekistan’s Trade Flows cooperation and event organization integration Skills Development Sector Assessment Education management Publication and documentation CWSS TA 9727-UZB Uzbekistan: Capital Markets Development Strategy Public sector Publication and documentation CWPF TA 9770-UZB management, finance Total number of publications = 5 Total number of events = 2 CWPF = Public Management, Financial Sector, and Trade Division, Central and West Asia Department; CWSS = Social Sector Division, Central and West Asia Department; CWTC = Transport and Communications Division, Central and West Asia Department; EEU = Eurasian Economic Union; TA = technical assistance; URM = Uzbekistan Resident Mission, Central and West Asia Department; UZB = Uzbekistan. Note: “Publications” may include databases, multimedia, and other forms of documentation. “Events” may include event organization and training or capacity development. Source: Asian Development Bank.

Appendix 5 17

Table A5.3: Innovation, Advanced Technology, and Pilot Initiatives to be Implemented in 2021

Item Nature Project Number Sector or Theme Division Application of ICT in asset operation and in waste TCH, PLT 51034-002 WUS CWUW management Promotion of hybrid-engine trucks to be used for waste TCH, PLT 51034-002 WUS CWUW collection to minimize carbon emissions and improve air qualitya Development of heath management information system, TCH 52340-002 HLT CWSS integration of electronic medical records into national health management information system Implementation of weigh-in-motion, and intelligent transport ICT, TCH 48414-006 TRA CWTC systems

Installation of signaling, telecommunications, and video ICT, TCH 48025-004 TRA CWTC surveillance systems

Centralized train control and management system ICT, TCH 48025-004 TRA CWTC

Automated train ticketing system ICT, TCH 53271-001 TRA CWTC Total number of innovation, advanced technology, and pilot initiatives = 7 CWSS = Social Sector Division, Central and West Asia Department; CWTC = Transport and Communications Division, Central and West Asia Department; CWUW = Urban Development and Water Division, Central and West Asia Department; HLT = health; ICT = information and communication technology, PLT = pilot initiative; TCH = advanced technology; TRA = transport; WUS = water and other urban infrastructure and services. a A hybrid-engine truck is a form of truck that uses hybrid electric vehicle technology for propulsion, instead of using only a combustion engine. It is one of the priority development trends being explored for waste collection trucks. Source: Asian Development Bank.