Uzbekistan – World Bank country assistance strategy for the period FY08-FY11

The World Bank Country Assistance Strategy (CAS), rooted in Uzbekistan’s own vision (the Welfare Improvement Strategy – WIS), sets out the planned lending and advisory support to the country from the World Bank Group (WBG) over the period FY08-11.

The new CAS will rely both on the implementation of ongoing WBG projects and the development of technical assistance and new lending. Six Bank projects in the current portfolio will continue during the CAS period. These are concentrated in key areas of support for human development: improved access to safe water, improved health status, improved incomes in rural areas, and protection of the environment.

The average annual International Development Association (IDA) allocation to Uzbekistan was approximately US$77 million over the three years (IDA 14) before 2008. The IDA15 allocation will be determined annually through the IDA Performance Based Allocation (PBA) system, and is likely to be of a similar order of magnitude.

New IDA lending of about 2-3 projects per year will continue to focus:

• on the development of economic opportunities in rural areas, where the majority of the poor live;
• on improving delivery of basic municipal services as well as reforms in health and education;
• promoting sound environmental management; and regional development and the contribution of Uzbekistan to the provision of global goods.

The size of the projects will be determined based on the overall IDA envelope available. International Finance Corporation (IFC) will continue its active engagement in advisory services in the areas:

• of the business enabling environment and financial sector development;
• providing funding and advisory services to support financial intermediation to micro and small business enterprises, particularly in rural areas in collaboration with IDA;
• increasing its direct lending to small and medium enterprises;
• and seeking opportunities to finance and provide advisory services to support energy and infrastructure development with private sector participation.