Bukhara Region Water Supply and Sewerage Project - Phase 1

Why It Matters

Upgrading water and sewer infrastructure will boost public health, support economic growth, and deepen Central Asia’s integration with international development finance.

Key Takeaways

• AIIB provides $385 million loan, covering 100% of project financing.
• Total project cost estimated at $313.25 million across 20+ contracts.
• Design‑build contracts for six wastewater treatment plants approved.
• Sewer networks to be constructed in five Bukhara districts.
• Several contracts cancelled and later rebid, adjusting procurement timeline.

Pulse Analysis

Uzbekistan’s Bukhara Region faces chronic water‑supply gaps and aging sewerage, challenges that have hampered public health and limited industrial expansion. By channeling a $385 million AIIB loan, the government can accelerate a comprehensive upgrade that aligns with the nation’s broader strategy to modernise essential services and meet Sustainable Development Goal 6. The infusion of fully‑secured financing underscores AIIB’s confidence in the project’s viability and signals growing multilateral support for Central Asian infrastructure.

The Phase 1 rollout spans design, construction, and operation of extensive sewer networks and six new wastewater‑treatment plants, targeting districts such as Gijduvan, Alat, Karakul, Romitan, and Karaulbazar. Procurement relies on international open competitive tendering, with quality‑cost based selection for design services and lowest‑cost evaluation for most construction contracts. This approach aims to attract reputable global firms, ensure cost efficiency, and embed rigorous project‑management standards. Notably, AIIB is covering 100% of the financing, eliminating local fiscal strain and enabling swift contract execution.

When completed, the project will deliver reliable clean‑water delivery and effective sewage treatment for millions of residents, reducing water‑borne diseases and fostering a healthier workforce. Improved sanitation infrastructure also creates a more attractive environment for foreign investment, particularly in agro‑processing and light manufacturing sectors that depend on reliable water services. While some contracts have been cancelled and rebid—reflecting adaptive procurement—overall timelines remain on track, positioning Bukhara as a benchmark for large‑scale, donor‑financed water infrastructure in the region.