The World Bank has approved a $200m concessional credit to support Uzbekistan in modernising its irrigation and drainage infrastructure and improving the quality of irrigation service delivery. The project aims to reduce water losses and increase the energy efficiency of irrigation systems across five regions of the country. The Government of Uzbekistan will provide $23.2m in co-financing.

Uzbekistan’s arid climate makes irrigation essential for agriculture, which contributes approximately 25% of national GDP and total employment. The sector draws most of the water from the Amu Darya and Syr Darya rivers and is delivered to farms through an extensive irrigation network. Agriculture accounts for about 90% of the country’s water consumption, making efficient water use crucial.

Water scarcity is expected to significantly worsen in Uzbekistan, driven by reduced glacier-fed water flows, increased evapotranspiration, erratic rainfall and more frequent droughts. These changes are expected to reduce water availability by 30-40 % and increase irrigation demand by 25%.

The Ministry of Water Resources will lead the implementation of project activities in the Republic of Karakalpakstan, Bukhara, Kashkadarya, Namangan and Surkhandarya regions.

In addition, Uzbekistan is to invest in its electricity distribution networks with World Bank Support. A $100m concessional credit has been provided to support Uzbekistan’s efforts to enhance integration of renewable energy into its electricity distribution networks and improve supply reliability in priority regions. Uzbekistan’s Regional Electric Power Networks will provide $50m in co-financing.