In 2009, the government of Uzbekistan launched a program to construct new housing for the rural population throughout the country. The program was designed to reduce urban and rural disparities by increasing the living standards, incomes, and job opportunities in rural regions.
A380 highway, the main route between northwestern and southeastern Uzbekistan, is a regionally important road. Prior to the program, the condition of its pavement had deteriorated because of deferred maintenance and traffic increase.
Uzbekistan has been one of the most energy- and carbon-intensive countries in the world, with footprints on both over six times the global average in 2011. To address the situation, the government called for drastic increases in energy efficiency and the development and use of renewable energy.
At project appraisal in 2009, there was no piped water supply in the Khorezm province and in eight project towns of the Republic of Karakalpakstan an autonomous republic within Uzbekistan, and the residents relied largely on yard swigs, wells, or purchased drinking water.