The World Bank has approved $150 million in concessional financing for the second phase of Uzbekistan’s Rural Infrastructure Development Program, a major initiative aimed at improving living conditions and boosting economic opportunities in remote communities across the country.

The new funding will support infrastructure upgrades in 296 rural districts across the Andijan, Fergana, Namangan, Jizzakh, Syrdarya, and Tashkent regions. The project is expected to benefit around 1.2 million residents by improving access to roads, drinking water, electricity, and other essential public services, The Caspian Post reports via Anhor.uz.

Implemented by Uzbekistan’s Ministry of Economy and Finance, the program has a total budget of $340 million, combining resources from the World Bank, the Asian Infrastructure Investment Bank (AIIB), and the Uzbek government.

By 2031, the initiative aims to significantly enhance rural infrastructure and improve quality of life for hundreds of thousands of people. Among the expected beneficiaries are approximately 600,000 women and 300,000 young people.

A key component of the second phase is the creation of business development centers in 15 pilot districts. These centers will help entrepreneurs involved in agricultural processing and small-scale manufacturing gain access to financing, expertise, and new markets.

The centers could generate around 1,500 direct jobs while strengthening local businesses and encouraging private-sector growth.

The first phase of the program concluded earlier this year and covered 306 remote districts in five regions of Uzbekistan. More than 900 infrastructure projects were completed, including the construction and modernization of roads, bridges, water supply systems, power networks, schools, kindergartens, and other public facilities.

Around one million rural residents benefited from the first phase. Combined with other World Bank-backed projects supporting agriculture and entrepreneurship, the broader initiative is expected to help create approximately 25,000 new and better-paying jobs across participating communities.