Karakalpakstan to Receive $100 Million World Bank Funds and Hundreds of Billions of Soums in Infrastructure Overhaul

Karakalpakstan is set for a broad infrastructure overhaul under a new decree signed by President Shavkat Mirziyoyev, combining $100 million in World Bank financing with several tranches of budget spending totalling hundreds of billions of soums across social services, water management and urban development.

The centrepiece of the international funding is the World Bank programme titled “Comfortable and Sustainable Cities for Living in Uzbekistan.” Under the decree, Nukus and the district centres of Amudarya and Beruniy must be incorporated into the programme’s second phase by 1 February 2027. Disbursements will be tied to results already achieved, and the funds are earmarked for social and productive infrastructure across those urban areas.

Tashkent Budget Directed Toward Nukus Neighbourhoods

In an unusual arrangement, 100 billion soums will flow to Nukus not from the republican budget but from the Tashkent city budget and the Tashkent City Development Fund. Those funds are designated for landscaping, greening, major repairs and construction in the Nur and Elobod mahallas of Nukus’s 23rd microdistrict.

A separate allocation of 15 billion soums will go toward transforming the Karakalpakstan mahalla in Kungrad district along the principles of the New Uzbekistan programme.

Schools, Hospitals and Industrial Zones

For the two-year period 2026–2027, the decree sets aside 160 billion soums for social infrastructure across the republic. The spending list includes repairs to schools and kindergartens, modernisation of medical facilities — specifically the replacement of 30 lifts and renovation of 20 sanitary facilities — and improvements to small industrial zone infrastructure in Amudarya and Khojeyli districts. Additional unspecified funds are earmarked for projects expected to generate economic growth and employment at the district level.

Water and Land Development

Agricultural and water infrastructure receives particular attention. In 2027, 135 billion soums are planned for the concreting of irrigation canals in Turtkul and Bozatau districts, the construction of three water management structures and the drilling of 22 artesian wells. A further 100 billion soums is allocated for bringing 7,500 hectares of land in Bozatau district into agricultural use.

Spatial Strategy With Foreign Experts

The decree also requires authorities to develop a spatial development strategy for Karakalpakstan by the end of 2027, to be prepared jointly with foreign specialists. The strategy is intended to improve transport links between cities and districts and to integrate the republic into international economic corridors, according to the decree’s provisions.

The announcement follows an earlier plan, previously reported, to build a new Nukus City district designed to accommodate 50,000 residents.