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About Project

Implementation Status of the "Medium-Sized Cities Integrated Urban Development Project" of the Ministry of Economy and Finance of the Republic of Uzbekistan (as of 01 December 2025)

IFIs: International Bank for Reconstruction and Development (IBRD)
Project Development Objective: To implement projects aimed at improving urban infrastructure, public spaces, and municipal services in medium-sized cities.

Loan Agreement: No. 8914-UZ dated 11 April 2019 (IBRD)

Legal Basis: Resolution of the President of the Republic of Uzbekistan No. PQ-4409 dated 30 July 2019
“On Measures for the Implementation of the ‘Integrated Urban Development of Medium-Sized Cities’ Project”

Project Implementation Unit (PIU) Director: J.B. Matrasulov
(under LAOG leadership since June 2024)

Project Implementation Period: 2019–2027

Project Locations:

  • Kogon City, Bukhara Region

  • Chortoq City, Namangan Region

  • Yangiyol City, Tashkent Region

Total Project Cost: USD 124.12 million, including:

  • IBRD financing – USD 100.0 million

  • Contribution of the Republic of Uzbekistan – USD 24.12 million
    (taxes and customs duties, financial costs, and resettlement-related expenditures)

Project Components

  1. Component 1: Improvement of Urban Services and Public Spaces – USD 78.7 million (loan)

  2. Component 2: Institutional Capacity Building and Technical Assistance – USD 14.5 million (loan)

  3. Component 3: Project Implementation Support – USD 1.87 million (loan)

Contingencies: USD 4.93 million (loan)


Planned Activities under the Project

1. Chortoq City, Namangan Region

  • Construction of 72.5 km of drinking water supply networks (including a water treatment facility);

  • Construction of one garage complex and procurement of 15 units of special-purpose equipment;

  • Installation of street lighting systems;

  • Energy efficiency retrofitting of Secondary School No. 5 and Kindergarten No. 17;

  • Construction of 11 km of eco-trails;

  • Reconstruction of one recreational park;

  • Implementation of urban upgrading and landscaping works.

2. Kogon City, Bukhara Region

  • Construction of 27.2 km of wastewater networks;

  • Restoration of the Amir Palace and other selected cultural heritage buildings;

  • Construction of one garage complex and procurement of 15 units of special-purpose equipment;

  • Urban upgrading works, including installation of street lighting, reconstruction of one pedestrian bridge, asphalting of 5 km of internal roads, construction of 3 km of eco-trails, and city-wide landscaping.

3. Yangiyol City, Tashkent Region

  • Construction of 52 km of drinking water supply networks;

  • Construction of one garage complex and procurement of 13 units of special-purpose equipment;

  • Urban upgrading works, including construction of 2 underground and 2 overground pedestrian crossings, installation of one water wheel facility in the canal, construction of 8.2 km of pedestrian walkways, construction of one fountain and reconstruction of one existing fountain on the central street, installation of street lighting, benches, and other urban elements.


Completed Activities

  • In Chortoq City, the former Kindergarten No. 17 and Secondary School No. 5 buildings were fully rehabilitated and modernized to improve energy efficiency (USD 0.46 million);

  • To strengthen the machinery and equipment base of Chortoq, Kogon, and Yangiyol city administrations, a total of 43 units of various special-purpose equipment were procured and commissioned (15 units for Chortoq District, 15 units for Kogon City, and 13 units for Yangiyol City) (USD 3.0 million);

  • Three garage complexes for storage and maintenance of the procured equipment were constructed and commissioned in Chortoq, Kogon, and Yangiyol cities (USD 0.9 million);

  • Reconstruction of the former Chortoq farmers’ market into a “Tourist Trade Center” was completed (USD 0.64 million);

  • Five pedestrian bridges crossing the water canal were constructed in Area “A” along the Chortoqsoy in Chortoq City (USD 0.4 million);

  • In Yangiyol City, construction of 52 km of drinking water supply systems under two contracts was completed and commissioned, including:

    • 36.3 km of networks with installation of 84 hydrants, 79 control chambers, 45,000 m² of asphalt reinstatement, and connections to 1,100 households;

    • 12.1 km of main network, construction of 12 wells, 4 pumping stations, installation of pumps in 12 wells;

    • 3.8 km of internal networks and construction of one transformer station
      (total cost: USD 9.8 million).


Ongoing Activities

  • A contract for reconstruction of 72.5 km of drinking water supply systems in Chortoq City was signed on 12 March 2025 with Henan Water & Power Engineering Consulting Co., Ltd. (China). Currently, construction works are underway, including installation of water pipelines in Area “A” along the Chortoqsoy and construction of a water reservoir in Arbag‘ish village (USD 24.0 million);

  • For technical supervision of construction works related to drinking water and wastewater systems in Chortoq City, contracts were signed on 7 April 2025 with Megastroy Kontrol Biznes LLC, Sardor Construction Control LLC, and Navbahor Qurilish Nazorat Monitoring JV (Uzbekistan). Technical supervision activities are ongoing (USD 0.3 million);

  • Construction of a 2.0 km pedestrian and bicycle eco-trail in Area “A” along the Chortoqsoy is ongoing. To date, 1.7 km has been completed, and tree planting and paving works are in progress (Ko‘chma Mexanizatsiyalashgan Korxona LLC and Hidro Inshaat Servis JV, Uzbekistan–Azerbaijan) (USD 3.3 million);

  • Contracts for construction of eco-trails in Areas “B” and “C” along the Chortoqsoy were signed on 4 April 2025 with Uychi Mega Stroy LLC and Samo Build-14 JV (Uzbekistan). Earthworks and installation of curbstones are currently underway (USD 1.3 million);

  • Restoration works of the Amir Palace and other cultural heritage buildings near the railway station in Kogon City are being carried out under a contract signed on 20 February 2025 with the Bukhara Regional Directorate for Restoration of Cultural Heritage Objects. Additional design amendments are currently being introduced by the designer (USD 3.2 million);

  • For urban upgrading works in Yangiyol City, including pedestrian crossings, water wheel installation, walkways, fountains, street lighting, benches, and other elements, a design contract was signed on 17 July 2025 with Asia Industry Invest LLC and Water Engineering Pro JV. Design works, including drawings and capacity calculations, have been completed and preparation of detailed design and cost estimates is ongoing (USD 0.37 million);

  • A contract for preparation of integrated development strategies and master plans for Kashkadarya and Surkhandarya regions and selected cities/districts was signed on 11 July 2025 with an international consultant consortium consisting of Groupe Huit (France, lead), Buro Happold (United Kingdom, member), and InfraTech Consulting SDN Ltd. (Uzbekistan, member). Data collection, analysis, stakeholder meetings, and training seminars are ongoing (USD 2.3 million). In addition, an addendum is being prepared to cover master planning and design documentation for additional areas (Yakkabog, Qamashi, and Denov administrative building), with an estimated value of USD 1.5 million;

  • To support data collection, analysis, and coordination with international consultants in line with national construction and legal norms, 3 urban planners and 3 GIS specialists were engaged (USD 0.2 million);

  • A contract for reconstruction of the 7.2-hectare “Furqat” Park in Chortoq City was signed on 7 October 2025 with QURILISH ZIYO BUILDING LLC. Demolition of old structures, site leveling, and preparation works for concreting the artificial lake are ongoing (USD 2.8 million);

  • For design of urban upgrading works in Chortoq City, a contract was signed on 7 October 2025 with CLIFFS DESIGN GROUP LLC & INFRATECH CONSULTING SDN JV. Preparation of drawings and schemes is ongoing (USD 0.4 million);

  • For design of urban upgrading works in Kogon City, a contract was signed on 7 October 2025 with BUXARA ARXPROEKT PE & MAXSUS STANDART PROJECT LLC JV. Design works are currently underway (USD 0.3 million).


Activities under Tender Process

  • The Terms of Reference for preparation of a regional spatial development strategy integrating Tashkent Region with Tashkent City, as well as comprehensive master plans for three districts (cities), were advertised in June 2025. Following the first-stage evaluation, a shortlist of interested bidders was formed and approved by the World Bank and the Evaluation Committee in October 2025. Requests for Proposals (RFPs) were issued to shortlisted firms on 16 October 2025. The proposal submission deadline was set for 13 November 2025, and final evaluation to identify the winning bidder is planned to be completed by the end of December 2025.

Implementation Status of the "Medium-Sized Cities Integrated Urban Development Project" (Additional Financing) of the Ministry of Economy and Finance of the Republic of Uzbekistan
(as of 01 December 2025)

IFIs: International Development Association (IDA) and Asian Infrastructure Investment Bank (AIIB)

Project Development Objective: To implement projects aimed at improving urban infrastructure, public spaces, and municipal services in medium-sized cities.

Loan Agreements:

  • IDA Credit No. 6913-UZ dated 30 September 2022

  • AIIB Loan No. L0474A dated 14 October 2022

Legal Basis: Resolution of the President of the Republic of Uzbekistan No. PD-47 dated 31 January 2024 “On Measures for the Implementation of the ‘Integrated Urban Development of Medium-Sized Cities’ Project (Additional Financing)”

Project Implementation Unit (PIU) Director: J.B. Matrasulov (under PIU leadership since June 2024)

Project Implementation Period: 2024–2027

Project Areas:

  • Kashkadarya Region: 6 cities (Koson, Dehqonobod, Shahrisabz, Kitob, Guzor, and Qamashi (Maydanak))

  • Surkhandarya Region: 8 cities (Jarkurgan, Kumkurgan, Sariosiyo, Uzun, Denov, Shurchi, Sherobod, and Boysun (Omonkhona))

Total Project Cost: USD 243.19 million, including:

  • IDA contribution – USD 100.0 million;

  • AIIB contribution – USD 100.0 million;

  • Contribution of the Republic of Uzbekistan – USD 43.19 million (taxes and customs duties, financial costs, and resettlement-related expenditures).


Project Components

  1. Component 1: Improvement of Urban Services and Public Spaces – USD 177.0 million (loan)

  2. Component 2: Institutional Capacity Building and Technical Assistance – USD 17.75 million (loan)

  3. Component 3: Project Implementation Support – USD 5.0 million (loan)

In addition, USD 0.25 million has been allocated for a one-time front-end fee.


Planned Activities under the Project

Kashkadarya Region (6 cities)

  • Construction and rehabilitation of 206.7 km of drinking water supply networks and 6 water facilities;

  • Construction of 227.9 km of wastewater networks and 21 facilities;

  • Improvement of 32.8 km of road infrastructure;

  • Construction of 1.3 km of pedestrian and bicycle lanes;

  • Installation of 80 street lighting systems and procurement of 70 units of small machinery;

  • Reconstruction of 2 central recreational parks;

  • Construction of 1 House of Culture and establishment of 1 youth co-working center within a mahalla building.

Surkhandarya Region (8 cities)

  • Construction and rehabilitation of 331.0 km of drinking water supply networks and 6 water facilities;

  • Construction of 99.3 km of wastewater networks and 9 facilities;

  • Improvement of 319.8 km of road infrastructure;

  • Construction of 43.5 km of pedestrian and bicycle lanes;

  • Installation of 1,400 street lighting systems;

  • Construction of 7 garage complexes and procurement of 56 units of small machinery.


Activities Implemented in Kashkadarya Region

  • A contract for design of construction and rehabilitation of drinking water supply networks in Kitob and Shahrisabz cities was signed on 12 May 2025 with Asia Industry Invest LLC, Navoiy Suv Loyiha LLC, and Water Engineering-Pro JV (Uzbekistan). Design works are ongoing, including preparation of drawings and capacity calculations and development of detailed design and cost estimates (USD 0.62 million);

  • A contract for design of construction and rehabilitation of wastewater networks in Koson and Guzor cities was signed on 29 July 2025 with ALTER Uluslararası Mühendislik ve Müşavirlik Hizmetleri A.Ş. (Türkiye). Design drawings have been prepared and technical capacity calculations are underway (USD 0.9 million);

  • For design of reconstruction of central culture and recreation parks in Kitob and Guzor cities, a contract was signed on 7 August 2025 with ULTRA GROUP LLC (Uzbekistan). Site studies, conceptual designs, drawings, and renderings have been prepared, and project concepts are being coordinated with district administrations (USD 0.1 million);

  • The specifications (quantity and capacity) of special-purpose equipment to be procured in the region were approved by the regional administration. Tendering for selection of suppliers is planned to commence from January 2026;

  • For construction of a House of Culture in Dehqonobod City, the Terms of Reference for engaging a design firm were prepared by PIU and submitted to the World Bank for review and approval. Subject to approval, tender announcement is planned from December 2025;

  • For construction of a Youth Co-working Center building in Koson City, the Terms of Reference were prepared by PIU and submitted to the World Bank for review and approval. Subject to approval, tender announcement is planned from December 2025;

  • Additionally, design works for construction and rehabilitation of road infrastructure leading to the Maydanak area of Qamashi District were initiated under a supplementary plan. A contract was signed on 15 October 2025 with Qashqadaryo Kompleks Loyiha Qidiruv Ekspeditsiyasi JV, and design works are ongoing (USD 0.24 million).


Activities Implemented in Surkhandarya Region

  • A contract for design of construction and rehabilitation of drinking water and wastewater networks in Jarkurgan, Kumkurgan, Shurchi, Uzun, and Sariosiyo cities was signed on 25 July 2025 with Art Cevre Teknolojileri Insaat Muhendislik Turizm Ticaret JV and Kommunal Liti SUE (Türkiye–Uzbekistan). Design drawings have been prepared and technical capacity calculations are ongoing (USD 0.9 million);

  • For design of construction of 7 garage complexes in Surkhandarya Region, a contract was signed on 16 June 2025 with Nufuz LLC (Uzbekistan). Design works have been completed and the prepared documentation is being submitted to the State Expertise Portal on a phased basis (USD 0.1 million);

  • Contracts for procurement of special-purpose equipment were signed on 8 October 2025 with HEBEI YOUNGSUN LOGISTICS CO., LTD. (Lots 11 and 12) and GUANGZHOU HALO IMPORT AND EXPORT CO., LTD. (Lots 13 and 14) (China). According to the contracts, delivery of equipment will be completed by the end of the current year and in the first quarter of 2026, with deliveries implemented in lots;

  • For construction of a “Tourism Center” building in Sherobod City, the Terms of Reference for engaging a design firm were prepared by PIU and submitted to the World Bank for review and approval. At the proposal of the regional governor, the project site was relocated from Sherobod City to Termez District, and the site area was increased threefold compared to the initial plan. Due to changes in location and capacity, amendments to the Terms of Reference are currently being introduced in coordination with the World Bank;

  • Additionally, under a supplementary plan, design works for construction and rehabilitation of road infrastructure and drinking water supply networks leading to the Omonkhona area of Boysun District were initiated. A contract was signed on 7 October 2025 with JANUBYOLLOYIHA LLC (Uzbekistan), and design drawings and technical capacity calculations are ongoing (USD 0.3 million);

  • Under Component 2 of the Project, in accordance with Presidential Resolutions No. PD-132 dated 1 April 2025 and No. PD-298 dated 8 October 2025, Terms of Reference for preparation of accelerated development strategies and master plans for 33 locations across the Republic (divided into 5 lots) were developed jointly with World Bank consultants and approved by the World Bank. Accordingly, international tendering for selection of consulting firms commenced in August 2025 and was completed in September 2025. Currently, evaluation of tender submissions and formation of shortlists are underway with the involvement of World Bank experts.