Uzbekistan - Connectivity and Transport Sector Improvement Project

Overview & Synopsis

Connectivity and Transport Sector Improvement Project for Uzbekistan has the development objectives of improving road connectivity, safety and climate resilience in the Surkhandarya region and strengthening transport sector institutions. Component 1: Enhancing Road Connectivity of Surkhandarya Region, Improving Road Sector Institutions, and Support Private Capital Mobilization includes four Sub-components. Sub-component 1.1 finances the reconstruction of Lots 1 and 2 of the M41 regional corridor to a four-lane climate resilient standard with improved drainage, embankment protection, pavement, and bus stops, together with construction supervision. Sub-component 1.2 finances compensation for environmental and social impacts, including resettlement, affected structures, and tree management in line with national legislation and World Bank requirements. Sub-component 1.3 supports road sector reform through a roadmap to commercialize the Committee for Roads (CR), clarify CR’s asset manager role and its companies’ supplier roles, study additional revenue sources including user-based fees, introduce performance-based maintenance contracts, and modernize procurement systems and forms. Sub-component 1.4 supports the introduction of private capital mobilization through continued transaction advisory for the Tashkent Andijan Toll Road Project (TAR) and preparation of pre-investment studies and the Environmental and Social Impact Assessment. Component 2: Development of National Multimodal Transport Strategy provides technical assistance to the Ministry of Transport (MoT) to prepare a new strategy, national transport model, and transport pricing and service policy to enable data-driven, resilient, and lower-carbon planning and investment decisions. Component 3: Implementing Measures to Transform Uzbekistan Railways (UTY) for the Future includes three Sub-components. Sub-component 3.1 supports UTY’s Transformation Office with project management and capacity building to enhance operational efficiency, process optimization, and digitalization. Sub-component 3.2 strengthens UTY financial and accounting systems through adoption of International Financial Reporting Standards and initiation of an Enterprise Resource Planning system. Sub-component 3.3 develops tools for restructuring, including a modernized passenger service development model, a standard structure for Public Service Obligation contracts, UTY’s corporate strategy through 2036, a risk management system, and enhanced Environmental, Social and Governance reporting with a decarbonization program and ESG rating. Component 4: Capacity Building and Project Management strengthens institutional capacity and provides project management support, financial audit, and core consultants, including training in modern design, contract management, environmental sustainability, digital solutions, and road asset management with international knowledge exchange. Component 5: Contingent Emergency Response Component enables rapid reallocation of uncommitted funds to support emergency response following an eligible crisis or disaster under an agreed implementation manual.