Country Uzbekistan
Region Asia
Duration Start 24 September, 2021 till 31 May, 2022
Field of expertise Developing Sustainable and Resilient Cities and Communities
Policy field(s) Public finance
Public finance
Intergovernmental relations
Public utilities
Partners IKS Consulting (Islohot Konsalt Servis Ltd.)
The Hague Academy for local governance (THA)
Funding ADB, Asian Development Bank
Project code 11445
The wider objective of the project is to generate knowledge and build capacity in municipal finance of Uzbekistan Asian Development Bank (ADB) funded Integrated Urban Development Project cities. It supports one of the core pillars of ADB's Strategy 2030 Operational Priority 4: Making Cities More Livable which is to strengthen financial sustainability of cities. It is closely aligned with ADB's TA work in Creating Investable Cities. The project aims at analyzing issues and constraints that local governments face in municipal finance, provide recommendations, build capacity, and share knowledge on good practices for replication in Uzbekistan and beyond.

The specific objectives are to prepare a comprehensive assessment of the issues and challenges that Uzbekistan's local governments face in municipal finance. A knowledge product and training will assess the existing ecosystem of municipal finance in the selected cities and give recommendations on further support needed from the government of Uzbekistan and ADB in this regard.

The expected results of the project are:

(i): Output 1: Design and conduct a training workshop on municipal finance and financial decentralisation in Uzbekistan
a. Conduct a 2-day training on municipal finance to UZB stakeholders, encouraging women participation.
b. Present key issues, good practices, and practical approaches for improving municipal for Uzbekistan cities.
c. Conduct post-workshop survey on learning experience.

(ii) Output 2: Create a Knowledge Product and Conduct a final presentation
a. Analyze in detail financial statements of target cities and summarize findings to understand financial health;
b. Review enabling environment for municipal finance and fiscal governance of cities, including national policies and regulations, and identify areas of strengthening.
c. Coordinate with other development partners supporting government in urban development and fiscal decentralization work.
d. Identify past and emerging trends in municipal finance in selected cities;
e. Analyze in detail the challenges related to the local government municipal finance in the selected cities and broader enabling environment, which, among others, are: policies and legal and regulatory framework at the national and subnational level; accounting and financial standards for local governments and subnational entities; systems for assessing fiscal transfers to local governments; barriers to accessing finance; key factors affecting local government's municipal finance (e.g., governance issues, climate change risks, etc.); efficiency, safety, and transparency of the municipal finance system; potential for municipal bonds, land value capture, PPPs, and other innovative financing; risks to financial sustainability; and capacity of local governments;
f. Suggest appropriate improvements to enable local governments to strengthen municipal finance and revenue generation;
g. Identify key policy and regulatory reforms at local and national level to enable municipal finance;
h. Provide key findings and recommendations for government on enhancing the ecosystem of municipal finance;
i. Provide recommendations on the enabling environment and reforms;
j. Consult with ADB project officers, government, other development partners to incorporate experiences and recommendations;
k. Prepare a knowledge product estimated at 40 pages (final output to be confirmed) in consultation with the ADB team indicatively titled “Financial Sustainability Plans for Uzbekistan Municipalities”; and
l. Prepare a presentation to ADB audience, including management, and senior government officials summarizing key findings and recommendations.