Islamic Development Bank and the Government of Uzbekistan sign US$ 200 million Financing Agreement to finance “Sustainable Rural Development Project”

Tashkent, Uzbekistan, 2 September 2021 – The Islamic Development Bank (IsDB) and the Government of the Republic of Uzbekistan have signed a US$ 200 million Financing Agreement to finance “Sustainable Rural Development Project” in the country. The agreements were signed on the sidelines of the IsDB Group Annual Meetings held in Tashkent, Uzbekistan.

The US$ 200 million Sustainable Rural Development project (SRDP) aims to enhance the living standards of the rural residents in Uzbekistan by providing access to quality infrastructure and service delivery. 
Speaking on the occasion, H.E. Mr. Sardor Umurzakov, the Deputy Prime Minister of the Republic of Uzbekistan, expressed his appreciation to the Islamic Development Bank for the strong cooperation and support for the country. He highlighted that the project will significantly improve the living standards of the rural communities in the lagging villages in Karakalpakstan, Khorezm, Bukhara and Navoiy regions while expressing his desire for further scale up of the program in other regions of the country. 
H.E. Dr. Muhammad Al Jasser, IsDB President and Chiarman of the IsDBGroup, stated that the project will develop vital infrastructure to support the rural residents in confronting the socio-economic, environmental and climate challenges facing the world today, through building resilient irrigation and drainage canals, drinking water infrastructure, road network and bridges, rural electricity and social infrastructure including markets, schools, and health clinics that will benefit more than 710,000 rural residents in the project areas.

The project also aims to strengthen the participatory local governance process and enhance community engagement in the planning of socio-economic development, project delivery and the sustainable use of infrastructure for the optimum benefits of the rural communities. It draws on best practices from around the world in design and implementation of Community Driven Development programs, which have proven to be successful in sustainable development of rural areas. 
The project is part of the Government of Uzbekistan’s Prosperous Villages Program, which targets to prioritize accelerated development of the lagging villages across the country. It is anchored with the IsDB’s strategy for alleviating poverty and reducing inequality and is expected to contribute to the poverty reduction and to build resilience of the targeted population to social, economic, climate and environmental risks.