IsDB and Uzbekistan Sign US$ 396.7 Million Financing Agreements to Boost Infrastructure, Rural Development, and Early Childhood Education

Tashkent, Uzbekistan, 26 April 2023 - Islamic Development Bank (IsDB) President and Group Chairman, H.E. Dr. Muhammad Al Jasser, and Uzbekistan Minister of Investments, Industry, and Trade, H.E. Mr. Laziz Kudratov, have signed three financing agreements to support the development of critical infrastructure and social services in Uzbekistan. These agreements aim to promote sustainable economic growth, enhance rural development, and improve early childhood education in the country.

Under the first agreement, IsDB will provide US$ 260 million in financing for the Integrated Rural Development Project, which is being implemented under the IsDB Group’s Food Security Response Program (FSRP). The project will empower local communities, improve their access to quality and resilient infrastructure, and strengthen knowledge of climate-smart agriculture practices. By reducing rural poverty and increasing the resilience of the target population, this project will contribute to achieving sustainable development in the country.

The second financing agreement, worth US$106.7 million, is to support the reconstruction and upgrading of the M39 road in Uzbekistan. This project will improve the efficiency of the road transport infrastructure and ensure the safe movement of goods and people along the project road section. This will not only benefit the local economy but also promote regional integration and trade.

The third agreement provides US$30 million in financing for Enhancing Access to Quality Early Childhood Education Project which will support the Government of Uzbekistan’s target of achieving universal pre-school enrollment. It aims to enhance access to quality early childhood education facilities and improve the quality of early learning environments in Uzbekistan.

Speaking on the occasion, IsDB President, H.E. Dr. Muhammad Al Jasser, said: "These agreements demonstrate our commitment to supporting Uzbekistan's efforts to promote sustainable economic growth, reduce poverty and enhance human development. We are pleased to partner with the Government of the Republic of Uzbekistan on these key projects that will have a significant impact on the country's infrastructure, food security, and education sectors and will ultimately contribute to the nation's efforts towards achieving the Sustainable Development Goals."

For his part, H.E. Mr. Laziz Kudratov, Uzbekistan Minister of Investments, Industry, and Trade appreciated the dynamic partnership between IsDB Group and his country adding: "We are pleased to partner with IsDB Group to finance these critical projects that will contribute to Uzbekistan's development and progress. These projects will create new opportunities and improve the lives of our people, particularly those in rural areas and young children who will benefit from enhanced education facilities. We appreciate IsDB Group for its continued support and look forward to working together to achieve our shared development objectives."

The IsDB Group and Uzbekistan have been partners since 2003, and to date, the Group has financed several projects in the country across various sectors, including agriculture, energy, education, and transport worth more than US$ 3.46 billion approvals. The IsDB Group remains committed to supporting Uzbekistan's development priorities and promoting inclusive and sustainable growth in the country.