First Inclusive and Resilient Market Economy Development Policy Operation

This Development Policy Operation (DPO) of US$800 million supports the Government of Uzbekistan in advancing the country’s transition to an inclusive and resilient market economy. It comprises an IBRD Loan of US$300 million and three IDA Credits: a concessional IDA Credit of US160 million dollars; a concessional IDA Shorter‐Maturity Loan (SML) Credit of US240 million dollars (US100 million dollars of which is made available through the IDA Scale‐Up Window [SUW]) 2 and a non‐ concessional IDA Credit of US100 million dollars through the IDA SUW. The proposed operation is the first in a series of two operations supporting reforms across three areas: (i) creating markets; (ii) improving fiscal risk management and public procurement; and (iii) supporting social inclusion and green resilience. Following five successive standalone operations, the shift to a programmatic DPO series reflects the maturation of the government policy and planning process. The operation is central to the World Bank Group’s (WBG) overall engagement with Uzbekistan, as outlined in the 2022-2026 Country Partnership Framework (CPF). Per IDA20 SUW-SML implementation arrangements, this program is aligned with the WBG Global Crises Response Framework (GCRF) pillar 2: protecting people and preserving jobs, GCRF pillar 3: strengthening resilience, and GCRF pillar 4: strengthening policies, institutions and investments for rebuilding better. The Asian Infrastructure Investment Bank (AIIB) and KfW Development Bank (KfW) are also expected to provide parallel financing in support of this operation.