Description: The transaction involves the administration by the Asian Development Bank (ADB) of an equity investment of up to $6,000,000with an initial investment of up to $1,000,000in Electrifi Mobility Private Limited (Electrifi), a company headquartered in India. The investment is to be provided by the ADB Ventures Investment Fund 1 under the ADB Ventures Financing Partnership Facility. The balance of the approved amount may be invested as equity or quasi-equity in subsequent fundraising rounds that Electrifi is expected to undertake. Consistent with the established fund documents, ADB will not invest its own capital alongside the fund.

Description: The proposed Technical Assistance (TA) will support the implementation of the Infrastructure Preparation and Innovation Facility (IPIF) and its additional financing IPIF is a $100 million technical assistance loan that invests in project preparation and development in two critical infrastructure agencies, namely, the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr).

Description: The proposed Timor-Leste Public Transport Project (TLPTP) will support the Government of Timor-Leste's planned public transport agenda to provide (i) a high-quality, sustainable public transport system that meets the needs of users for safety, comfort, security, convenience, affordability, accessibility, and availability, and (ii) a transparent and stable regulatory environment that encourages ongoing private sector investment and operations. The TLPTP is planned to transform interurban land transport and strengthen the position of Dili, the country's capital city, as the transport hub by integrating bus routes and providing convenient and comfortable bus terminals. The TLPTP will be aligned with the following impact: social equality and national unity promoted by having improved connectivity for all in Timor-Leste. The project will have the following outcome: reliable, resilient, and sustainable public transport services provided and access to public services and economic opportunities improved. The outputs of the project will be (i) climate-resilient and optimized public transport network system developed; (ii) institutional capacity strengthened; and (iii) regulatory framework for low carbon and climate-resilient development strengthened.Project Rationale and Linkage to Country/Regional Strategy: While private sector provides public transport services, the role of the public sector has been defined to licensing, providing basic vehicles, registration of vehicles, and ensuring road safety requirements. Inadequate infrastructure and services have been pointed out as part of the hurdles to broader economic diversification and private sector development in Timor-Leste. The project will help provide adequate public transport infrastructure and enforcement of public transport regulations to support private sector participation in public transport. The project is aligned with Strategy 2030 by contributing to achieving the operational priorities (OP) such as: (i) addressing remaining poverty and reducing inequality (OP1), (ii) accelerating progress in gender equality (OP2), (iii) tackling climate change and disaster resilience and enhancing environmental sustainability (OP3), (iv) making cities more livable (OP4), and (v)governance and institutional capacity (OP6).

Description: The TA aims to enhance the Government of Viet Nam (GoV)'s evidence-based economic management capability including macroeconomic monitoring, planning and execution of public investment and external financing, and sector policies' formulation. The TA responds to requests by the GoV for near-and medium- term support on various economic management issues. ADB will serve as the TA executing agency, drawing on expertise of relevant bank staff through a OneADB team, while relevant government ministries, provinces and institutions will serve as implementing agencies for specific outputs as appropriate.Project Rationale and Linkage to Country/Regional Strategy: Viet Nam economy has performed impressively over recent decades. A bold policy package of market-oriented reforms, known as Doi Moi, started in 1986 and unleashed Viet Nam's economic potential. Viet Nam's economic recovery was impressive in 2022 with real GDP growth at 8%. The government is in the process of reviewing its experience of 40 years of reforms, drawing lessons for the next stage of development strategy with a goal to become an upper middle-income country by 2030 and a high-income country by 2045. They have requested ADB support in policy advice both to address emerging economic management issues, especially in the face of post-COVID-19 challenges, and in strategic planning and execution.Viet Nam's national economic planning was effective in the past in initiating and implementing bold reforms which resulted in commendable economic achievements over the past decades. However, increasing cross-sectoral development challenges have exposed critical weaknesses of the sectors or ministries-based economic planning system. Its predominantly administrative approach to economic policy making and planning is also generating more inertia to improving implementation effectiveness.The government is making efforts to address these issues. MPI established the National Economic Steering Committee (NESC) to strengthen cross-sectoral linkages and inter-ministerial coordination, further promote structural reforms, and provide more holistic policy advice to the government. There is a lack of cross-ministerial mechanism that can facilitate inter-ministerial coordination and instill a holistic perspective of the economy rather than siloed views from sectoral ministries and provinces. Inadequate technical skills of staff also pose major constraints in producing high quality, farsighted and impartial policy advice. While the NESC is expected to fill in these gaps, the NESC's technical capacity is still limited and needs to be further strengthened to support their cross-sectoral mandate. Similarly, public investment planning and execution are further decentralized, putting more emphasis on provincial governments' responsibility to deliver local infrastructure investment. However, their capacity is at varying degrees at best, while instructions and guidance from central governments are also fragmented by each ministry (MPI, MOF, MOC, MONRE etc.) without an efficient coordination, resulting in regular revisions and reapprovals.

Description: The knowledge and support TA will support the establishment and initial implementation phase of the Blue Pacific Finance Hub (BPFH), a new regional initiative to support increased investments in ADB's 14 Pacific DMCs in climate-resilient and sustainable blue economies, through support for governance and planning, identification of issues and opportunities, regional capacity development, and knowledge sharing. The TA supports in-country and desk-based activities.Project Rationale and Linkage to Country/Regional Strategy: Pacific Island Countries (PICs) have a combined population of almost 11.5 million with respective Economic Exclusive Zones (EEZ) spanning over 20 million sq. km. Geography, culture and the economy are intertwined with the Pacific Ocean. Most Pacific people live in coastal areas, rely on coastal and marine resources for food and livelihoods, and benefit from significant economic opportunities in fisheries, coastal and marine tourism and maritime transport. In recent decades, however, coastal areas in the Pacific have been exposed to natural hazards and higher risks from climate change which severely impact PIC economies. This can be seen in the increased frequency and intensity of tropical cyclones, storm surges and coastal flooding, sea level rise, and ocean warming and acidification. These impacts significantly affect coastal and marine ecosystems and the services they provide (e.g., food, coastal protection, jobs). The adverse impacts are foreseen to cause widespread damage to many PIC economies and communities which are dependent on marine and coastal resources, which will amplify the vulnerability of communities to climate impacts. In light of these threats, the sustainable management of marine and coastal resources would provide resilience to Pacific island economies. In the same vein, strengthening the blue economies of PICs would alleviate poverty in vulnerable communities which depend directly on healthy coastal and marine ecosystems for food and livelihood. To achieve resilient and vibrant blue economies in the Pacific, however, there is a need to break barriers hindering public and private sector investments in sustainable projects and activities. A key challenge is the difficulty in access and volume of capital to fund and sustain projects that seek to restore and maintain ocean health.

Description: The proposed Flood Management in North Java Project will strengthen the climate resilience of the people and the economy in the Cimanuk-Cisanggarung (CimanCis) and the Seluna river basin territories (RBTs). It will help in reducing the risk to 485,000 people, of which 200,000 are poor and vulnerable, agricultural crops, and assets from flooding in the rapidly urbanizing and industrializing northern coast area of Java island. The project will make the flood risk management (FRM) approach operational by (i) establishing earth observation services (EOSs) and flood forecasting early warning and flood evaluation systems (FFEWFESs) to enhance flood preparedness of communities, (ii) improving regional planning and land zoning to reduce exposure to floods, and (iii) increasing climate resilience of flood protection infrastructure and its operation and maintenance (O&M).Project Rationale and Linkage to Country/Regional Strategy: Indonesia's economy continues to recover from the coronavirus disease pandemic and grew by 5.3% in 2022. Private consumption and investment grew modestly, while commodity exports boomed. The export windfall enabled the fiscal deficit to fall below 3% of the gross domestic product (GDP) 1 year earlier than programmed. However, higher commodity prices also pushed up inflation, which peaked at 6% in September 2022, prompting the central bank to raise its policy rate. ADB projects that the economy will grow by 5.0% in 2023 as domestic demand takes over from commodity exports as the driver of growth. Impacts of floods have been worsening.Floods disrupt economic activities, accentuate economic inequalities, and disproportionately affect vulnerable people. National Disaster Management Agency data show that, during 2008-2021, floods resulted in 2,813 lives lost, 109,958 people injured, 392,000 houses damaged, and 6.7 million houses inundated across Indonesia. Annual average flood losses are estimated to be $2.4 billion. Scientists estimated that, from 2000 to 2030, exposure to flood risk will increase by 76% on average for river floods and 120% for coastal floods. Flood plain communities are particularly affected by climate change. Climate change influences the intensity and frequency of rainfall, exacerbating the impacts of floods. With increasing population and assets in low-lying areas, Indonesia - and particularly the CimanCis and Seluna RBTs - are highly vulnerable to riverine floods and climate change. It is estimated that 389,231 people are at risk from a 1-in-25-year flood in the CimanCis RBT and 268,516 people in the Seluna RBT. The country ranked fifth globally for the highest population inhabiting lower-elevation coastal zones and is particularly vulnerable to sea-level rise. The loss of natural protective barriers such as mangroves, and land subsidence resulting from overextraction of groundwater for urban, industrial, and agricultural uses, further amplifies the impacts of floods. Rapid urbanization reduces pervious surfaces, resulting in higher runoff volumes, ultimately increasing exposure of communities and assets to flood risks. Without climate adaptation, more than 4.2 million people will likely be exposed to permanent flooding by 2070. Floods also affect agriculture, with some 20% of rice cultivation located in low-lying coastal plains with increasing risk of frequent flooding, saline intrusion, and coastal erosion affecting livelihoods and food security. Women are disproportionately affected by climate change. During floods, they tend to work more to secure livelihoods, leaving them with less time to access education, develop skills, or earn income.

Description: ADB and the Government of Nepal are working together to help the residents of the Kathmandu Valley to obtain greater access to clean water on a long-term basis. The Kathmandu Valley Water Supply Improvement Project is working to improve the efficiency and the reliability of the water supply system in the area while at the same time upgrading the infrastructure at the water source areas through a related project that is constructing the Melamchi tunnel and expanding the water treatment plant This project is expanding reservoirs, capacity and providing water connections with a focus on serving the poor and households headed by women. The long-term goal of the project is to provide affordable, clean water to the people of Kathmandu Valley for years to come. Project Rationale and Linkage to Country/Regional Strategy: Kathmandu Valley is heavily populated with more than 10,000 people per square kilometer. The area is expected to have a population of about 3.5 million by 2016. Rapid and largely unplanned urban growth, lack of reliable water sources, and inadequate past investments have resulted in poor quality drinking water in the area, as well as limited access to water, particularly for poor families. The lack of access to clean water has caused an increasing number of people to become sick. The poor have also faced the burden of additional expenses as they struggle to find clean water for their families.

Description: Tajikistan is recognized as a potential tourism hotspot because of its mountainous topography, natural assets, culture, and history as an important link along the old Silk Road. However, this potential remains largely untapped for various reasons, including poor connectivity, inadequate infrastructure, the absence of a comprehensive tourism ecosystem to ensure quality service delivery, weak institutional and regulatory capacity, and a poor business environment. The government has adopted modest measures to promote tourism, including the introduction of an e-visa system and the provision of tax exemptions for investments in tourism-related facilities such as small hotels and motels, hunting and fishing facilities, and mountaineering infrastructure. However, it has yet to formulate a tourism satellite account (TSA), which is a strategic prerequisite for developing and monitoring the tourism industry in the country and Asian Development Bank (ADB) support is needed to move the government's development efforts to the next level. Project Outputs and activitiesOutput 1: This output will prepare a tourism development plan based on the following three subcomponents.(i)Develop a tourism satellite account. The PRF will help Tajikistan develop its first TSA as well as build capacity for the government to periodically develop future TSAs. The Committee of Tourism Development (CTD) under the Government of Tajikistan, the executing agency, will undertake this subcomponent in coordination with the Economic Research and Regional Cooperation Department, ADB and UNWTO, which has helped countries around the world adopt TSAs. CTD will establish a destination management organization and will also draft tourism plans for heritage sites with the support of UNWTO.(ii)Characterize market demand and undertake skills mapping for the tourism ecosystem. This subcomponent will address data deficiencies related to strategic prioritization, namely, analysis of demand for Tajikistan's tourism attractions. It shall support assess needed skills versus available skills for the tourism ecosystem, assess training needs (in particular for women), and explore the potential for women to enter into tourism jobs that are not traditionally female-oriented.(iii)Institutional strengthening and creating an enabling environment. This subcomponent will strengthen the structure, staff capacity, and business processes of the executing agency, the CTD; streamline interministerial and interagency coordination; improve interaction between public and private sector organizations; enhance capacity of the agencies directly linked to tourism (such as the Agency of Statistics under the President of the Republic of Tajikistan, and the ministries of transport, finance, and internal affairs) to collect and assess tourism-related information; and identify priority policy actions related to improving connectivity (air and land), airport and border procedures, and ease of doing tourism-related businesses. The PRF will facilitate increased coordination with Uzbekistan, which is the largest potential tourism market in the region and can provide a valuable boost to Tajikistan tourism through joint product development.Output 2: The PRF will identify priority investments and policy actions to promote the targeted tourism categories and regions. An investment pipeline comprising at least two stand-alone and two multisector projects will be developed. The projects may comprise public sector, private sector and public-private partnership. Output 3: The CTD will firm up the investment pipeline by carrying out feasibility studies of the projects in the pipeline. These will comprise technical, economic, financial, social, and environmental due diligence; gender and safeguards assessment; categorization of subprojects in accordance with ADB's Safeguards Policy Statement (2009); and financial management and procurement capacity assessment of the executing and implementing agencies of ensuing projects. The CTD will coordinate completion of the detailed engineering design and procurement documents of all subprojects, and link and supplementary documents for report and recommendation of the president for ensuing projects, with the respective sector agencies. All ensuing projects will be procurement-ready. Project Rationale and Linkage to Country/Regional Strategy: Project is in line with Tajikistan National Strategy for Tourism Development adopted in August, 2018. The strategy identifies a range of tourism categories (e.g., ecotourism, extreme tourism, mountain tourism, religious tourism, health tourism, historical tourism, cultural tourism, and hunting tourism) but fails to strategically prioritize the categories, identify investment needs, or adopt financing plans. This reflects an absence of information on the status of tourism activities in the economy and on the market's demand for Tajikistan's tourism products. The government of Tajikistan has announced 2019-2021 as the "Period of Rural Development, Tourism and Folk Crafts" which shows the Government's efforts to develop this sector in the country.

Description: The proposed project will improve climate resilient livelihoods and access to basic services for rural communities living in the three hill districts of Bandarban, Khagrachari and Rangamati of the Chattogram Hill Tracts (CHT) region, a remote and relatively under-developed region of Bangladesh. The project will adopt a holistic approach of addressing deficiencies in financial, human, physical, natural, and social capital that are needed to support sustainable and resilient community development. Specifically, the project will (i) develop small-scale community infrastructure; (ii) improve watershed protection and management; (iii) improve agricultural production, processing, and marketing; (iv) improve non-farm skills amongst rural youth and strengthen capacity of CHT institutions; and (v) improve rural road connectivity. The project will explicitly support climate resilient outcomes and build long-term resilience of the institutional systems that it supports, in one of the most socially disadvantaged and highly vulnerable regions of Bangladesh.The project is aligned with the government's 8FYP, which aims to reduce poverty in lagging regions through investments in rural roads, rural water supply and sanitation, irrigation and agriculture, rural enterprise development, community forest management, promoting sustainable development, and minimizing climate related challenges. The project also supports the strengthening of CHT institutions, empowerment of women, inclusion of ethnic communities in development, and partnerships with civil society organizations. The project compliments the programs of several other development partners engaged in the CHT. The project is also aligned with the objectives of: (i) the Bangladesh Delta Plan 2100; and (ii) the Nationally Determined Contributions 2021 of Bangladesh. Within ADB, the project aligns with: (i) several operational priorities of ADB's Strategy 2030; and (ii) the Country Partnership Strategy for Bangladesh 2021-2025, specifically, strategic objective 2: promote green growth and climate resilience; and strategic objective 3: strengthening human capital and social protection.Project Rationale and Linkage to Country/Regional Strategy: The CHT is predominantly an agrarian economy with 64% of its population engaged in agriculture, compared with the national average of 52% for rural areas. Farming is also the predominant livelihood activity of women, with more than 52% of female household heads reporting agriculture or agriculture labor as their main source of livelihood. The region's poor accessibility to markets, high levels of uncertainty due to climate variability, high post-harvest losses, limited crop diversification, low value addition, and low land productivity underscore the main challenges of supporting sustainable livelihoods of rural communities.The non-farm rural economy in CHT remains underdeveloped with limited employment opportunities in the industry and service sectors. Low levels of education and skills limit employment and livelihood opportunities in the non-farm sector. The average literacy rate across the three districts of the CHT is 44% compared with the national rate of 72%. Less than 1% of the CHT population have received any technical or vocational training. As a result, the CHT has attracted limited interest from commercially oriented entrepreneurs and investors.The CHT districts fare much worse in comparison to the rest of the country in terms of access to basic services. Access to safe water is the main challenge facing rural communities and poor sanitary practices compound the problem of poor drinking water quality. In the Bandarban district, for example, 74% of respondents to a household survey reported a river, canal, or pond/lake as the source of drinking water. Only 11% of households used a water-sealed sanitary latrine and 20% of households still had to resort to open defecation. Lack of access to water and sanitation leads to a greater burden of work for women, increased water-borne diseases, and lost opportunities for women and girls to participate in other productive activities.Access to paved roads is very limited with 74% of the planned rural road network of the CHT being unpaved. Poor road conditions increase transportation time and costs, which in turn affects the disaster preparedness and viability of sustainable livelihood options. Access to electricity in the CHT on the other hand, has increased significantly due to the availability of off-grid solar power.

Description: The proposed project will (i) help provide sustainable, inclusive, and resilient urban services for Nauruans; and (ii) build Nauru's resilience to the impacts of climate change. The project will establish the country's first reticulated water supply system, which will serve 1,200 households (55% of the population), and strengthen the non-reticulated water supply services for the remaining households. The improved water supply system will diversify water sources and provide households with improved access to desalinated water to supplement rainwater, which cannot be relied on during periods of prolonged drought. The project will also contribute to improved public and environmental health by providing improved sanitation services and promote a circular economy by composting and recycling solid waste. The sustainability of the project benefits will be strengthened through building extensive institutional capacity of the Nauru utilities and stakeholders; supporting an improved enabling environment; updating tariffs; and strengthening cost recovery systems. Operation and maintenance capacity building, technology, and knowledge transfer will be supported through a 3-year twinning program with a more advanced utility.Project Rationale and Linkage to Country/Regional Strategy: The National Sustainable Development Strategy (NSDS) 2019-2030 guides Nauru's development objectives. The Nauru Integrated Infrastructure Strategic Plan 2019 identifies high-level infrastructure needs. Long-term sector master plans for water supply, sanitation, and SWM have been developed with support from ADB through a project readiness financing (PRF). The project is aligned with Nauru's NSDS; the Nauru Integrated Infrastructure Strategic Plan; sector master plans; the National Water, Sanitation, and Hygiene Policy (2021); and the government's National Climate Change Policy (2022) and the Higher Ground Initiative, which is a government's long-term climate adaptation initiative to develop the "topside". The project will directly address NSDS's (i) infrastructure goal 2 on providing a reliable, safe, affordable, secure, and sustainable water supply to meet socioeconomic development needs; and (ii) infrastructure goal 3 on the effective management of waste and pollution that minimizes negative impacts on public health and the environment. The project also aligns with Nauru's Updated Nationally Determined Contribution (2021), which identifies water security as one of its seven key priorities. The project is aligned with ADB's Strategy 2030-specifically the differentiated approaches for FCAS and SIDS, which emphasize institutional strengthening. The project is also consistent with the operational priorities of ADB's Strategy 2030; the Sustainable Development Goals (SDG); ADB's Pacific Approach, 2021-2025; ADB's urban sector directional guide; ADB's water sector directional guide; and ADB's Action Plan for Healthy Oceans and Sustainable Blue Economies.

Description: The project adopts a sector approach for developing sustainable, inclusive, and climate resilient water supply and improved sanitation in the greater Honiara area (GHA) and in five other towns of Auki, Gizo, Noro, Munda, and Tulagi in Solomon Islands. The project will implement high priority components following the government's water and sanitation sector plan to increase access to piped water supply and sanitation service, especially among the poor households; reduce reliance on groundwater and rainwater harvest and ensure more efficient use of water. The project will also enhance hygiene awareness, promote water conservation, and improve fecal sludge management.Project Rationale and Linkage to Country/Regional Strategy: The project is aligned with the government's Medium Term Strategy Objective 3: All Solomon Islanders have access to quality social services, including education and health, and will assist Solomon Islands to meet Goal 6 of the Sustainable Development Goals. The project is also aligned with ADB's Strategy 2030, specifically the differentiated approach for fragile and conflict affected situations, small island developing states and its operational priorities of making cities more livable and tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability.

Description: The proposed programmatic policy-based loan for the South Asia Subregional Economic Cooperation Customs and Logistics Reforms Program (Subprogram 1) in the amount of $50 million will help the Government of Nepal strengthen logistics sector in Nepal through reforms in regulations, business processes, and institutional and governance structure. It intends to sustain the reforms implemented under the previous policy-based loan which focused on reforms in customs and trade facilitation to be complemented by policy interventions that will improve enabling environment of the logistics sector and strengthened capacity of public sector to ensure achievement and sustainability of reforms.Project Rationale and Linkage to Country/Regional Strategy: The transaction technical assistance (TA) will help the Government of Nepal implement the South Asia Subregional Economic Cooperation Customs and Logistics Reforms Program specifically in building its capacity to execute the reform measures captured in the policy matrix.

Description: The project invests in increasing the climate resilience and sustainability of coastal and marine fisheries in Cambodia, targeting the four coastal provinces of Cambodia - Kampot, Kep, Koh Kong, and Preah Sihanouk to reverse the sharp decline in fisheries, promote sustainable mariculture, and enhance fish landing sites to improve seafood safety. It is expected that about 40% of the nearshore fishery will be regenerated into a more productive and sustainable fishery. It will make significant contributions to enhance adaptation to climate change. The project will also promote private sector development by enabling coastal communities and small businesses to diversify their livelihoods, adopt sustainable practices, and scale up into viable enterprises. It will support women's economic empowerment by scaling up women's engagement in small and medium-sized enterprises (SMEs). The project will benefit 25 community fisheries (CFi) organizations and members of 15 community protected areas (CPAs), comprising nearly 20,000 households, and a wider coastal community of about 200,000. The project is aligned with the following impact: coastal and marine fisheries resources made sustainable and resilient. The project will have the following outcome: coastal and marine fish stocks recovered, and diversified climate-resilient income generated. To achieve this outcome, the project has 3 key outputs. Output 1 will support enhancement of adaptive coastal and marine fisheries, which targets changes in the use and management of priority ecosystems and fisheries to reduce the likelihood of their continued decline and build their resilience to underlying climate change threats. Output 2 will support investments in climate-resilient and gender inclusive coastal infrastructure for fisheries management including nature-based infrastructure solutions for coastal erosion, climate risk reduction, and fishery productivity. Output 3 will support incubation and commercialization of sustainable and inclusive marine businesses.Project Rationale and Linkage to Country/Regional Strategy: Marine fisheries accounts for 13% of the fishery subsector. By 2018, fish stocks in the Gulf of Thailand (GOT) declined to 10% of the 1970 levels. Further, the value of the landed catch per kilogram has declined along with a substantial increase in the proportion of juvenile and trash fish. The decline in fish stocks is impacting coastal communities and businesses. Increasing competition for declining supplies of fish landed has increased domestic prices. Post-harvest enterprises and small businesses face high costs of raw materials and are extremely vulnerable to external shocks, and many marine fisheries enterprises are failing and closing. Key issues resulting in the decline of marine fisheries and its post-harvest value chain include (i) overfishing and coastal ecosystem degradation, (ii) climate change impacts on fisheries and poor-quality post-harvest infrastructure, (iii) lack of effective regulatory framework for marine fisheries and inadequate management capacity, (iv) inadequate area-based marine fisheries management and co-management, and (v) limited diversification options from reliance on wild capture fisheries. The project responds to several key government strategies, including (i) the Rectangular Strategy Phase IV; (ii) the Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal 2021-2023; (iii) the Agriculture Sector Strategic Development Plan, 2019-2023 for fisheries management; and (iv) the Strategic Planning Framework for Fisheries 20152024 to make coastal and marine fisheries sustainable and resilient. In 2018, the government issued Cambodia's Marine Fisheries Management Key Principles to incorporate more stringent measures to prevent, deter, and eliminate illegal, unreported, and unregulated fishing in and outside Cambodia's exclusive economic zone. The project will also support the implementation of Cambodia's Updated Nationally Determined Contribution, which identifies climate resilience for capture fisheries and ecological restoration of coastal areas as national adaptation priorities. The project supports ADB's Action Plan for Healthy Oceans and Sustainable Blue Economies, and pillar 3 on fostering green, inclusive, and sustainable growth under ADB's country partnership strategy for Cambodia, 2019-2023.

Description: The project will (i) reconstruct the 49 km Dangara-Guliston road (part of Asian Highway 66) involving rehabilitation of the existing degraded two-lane carriageway, and duplication to four lanes to accommodate growing demand; (ii) construct charging stations to extend the range of the growing national EV fleet in the two major economic centers in South Tajikistan: Dangara and Bokhtar; and (iii) support implementation of the CAREC climate change vision by developing transport sector policies as they relate to (a) supporting the development of climate-resilient, green road practices in Tajikistan; and (b) the establishment of enabling EV regulation and private sector investment frameworks.Project Rationale and Linkage to Country/Regional Strategy: The project will address is low transport sector climate resilience and weak connectivity in southern Tajikistan.

Description: The proposed Enhancing Climate Resilience and Food Security Project will support Maldives' efforts to build climate resilience focusing on the interlinkages between human settlement and agri-food systems. It will enhance the country's adaptation capacity in line with Maldives Climate Change Policy Framework (MCCPF) and Nationally Determined Contribution (NDC).Project Rationale and Linkage to Country/Regional Strategy: Maldives is an archipelago in the Indian Ocean comprising 1,192 small and low-lying islands, of which 187 are inhabited. Being a small island economy, the country faces underlying vulnerabilities which makes it particularly at risks to the impacts of climate change. More than 80% of Maldives' land area is less than one meter above mean sea level and hence it is highly exposed to climate-induced hazards such as sea level rise, coastal storms, and flooding. The impact of climate change is already being felt with evidence of (i) increasing mean average temperatures and sea surface temperatures; (ii) increasing frequency of cyclones, storm surges, larger swell waves, and coastal erosion; (iii) sea level rise; and (iv) changing monsoon patterns (footnote 1). Future climate projections indicate that these impacts will be exacerbated, which will affect the country's natural ecosystems such as its coral reefs, water resources, and shorelines, and its economy and population's well-being. Estimates indicate that economic impact of climate change on Maldives could reach 2.3% of gross domestic product (GDP) by 2050 and 12.6% of GDP by 2100, higher than the rest of the Asian countries whose GDP losses are projected to range from 2.2% to 8.8% in 2100.

Description: The Precision Agriculture for Resilient Commercial Horticulture Sector Project will promote horticulture commercialization by (i) catalyzing the formation of producer groups and (ii) strengthening vertical market linkages between producer groups and downstream agribusiness. The project location is in Bakhmal district in the Jizzakh region, directly benefiting at least 170 small-scale farmers while indirectly supporting at least 85 agricultural workers and their families. The beneficiary small-scale farmers will collaborate in producer groups to produce consistent and high-quality produce, and the beneficiary agribusinesses will source raw produce from these producer groups. The project will provide digital and climate-smart equipment for horticultural production, post-harvest handling, and processing. In addition to supporting horticulture commercialization, the project will also promote adaptation of new technologies to improve water- and energy-efficiency and climate resilience.Project Rationale and Linkage to Country/Regional Strategy: Climate vulnerability of agriculture. Agriculture in Uzbekistan faces significant vulnerability to climate change. Rising temperatures lead to increased evapotranspiration rates and greater water demand for crops. Land degradation and desertification are eroding arable land and soil fertility. Reduced snowmelt and rainfall exacerbate water scarcity. Over the past 15 years, per capita yearly water availability has declined from 3,048 m3 to 1,589 m3. By 2030, water scarcity is projected to increase from 2 billion m3 to 7 billion m3, and further to 13 billion m3 by 2050. These combined forces pose a serious threat to agricultural production and food security in Uzbekistan. Urgent adoption of new technologies is essential to enhance the resilience of the country's food system. Small-scale farms in Uzbek agriculture. About 4.7 million rural households operate small-scale farms. The small-scale farmers (dehkans) have landholdings between 1 to 5 hectares (ha) in size, operate independently of government support, and account for the production of 66% of vegetables and 54% of fruits. Dehkans possess about 12% of total agricultural land out of 4.5 million ha. While the Asian Development Bank (ADB) has been supporting horticulture in Uzbekistan, further support is needed to promote horticulture commercialization. The project's objective is to address the following constraints: Weak dehkans cooperation and value chain linkages. Traditionally, dehkans were given land plots to produce food for their own consumption. They are not accustomed to making joint investment and operations decisions. However, commercial horticulture calls for a high level of cooperation to create economies of scale, for example, in cultivating produce of uniform quality, buying inputs or selling output in bulk, sharing market information, disseminating knowledge and best practices. In addition, since dehkans have small volumes of produce, individual linkage with downstream agribusiness is weak. Unfavorable government policies for promoting market linkages. Existing government policies do not foster farm-to-farm cooperation or farm-to-business linkages. Government initiatives aimed at promoting agricultural clusters have primarily focused on the cotton and wheat subsectors, yielding mixed outcomes. In contrast, horticulture producers lack organized clusters. The issue of insecure land tenure exacerbates the problem, leading to landholding fragmentation and discouraging horticulture producers from investing time and resources in long-term partnerships. Additionally, government support in horticulture tends to prioritize enhancing productivity at the individual farm level, rather than emphasizing horizontal (dehkan-dehkan) or vertical (dehkan-agribusiness) market linkages to maximize overall synergy. Limited value-addition. A lack of consistent, high-quality produce at the on-farm level discourages downstream agribusiness from investing in processing facilities. These facilities play a crucial role in preserving quality and adding value to agricultural produce. As a result, the bulk of agribusiness trade consists of fresh produce or involves only basic processing. The inherent perishability of these goods limits their reach to distant markets. Deep-processing methods that transform raw produce into more stable forms, such as frozen or canned vegetables, fruit juice, or dried fruit, remain underutilized.

Description: The proposed project will contribute to the government's goal of providing access to proper and safe Sanitation and is aligned with the National Medium- Term Development Plan which in itself is aligned with the Sustainable Development Goals (SDGs).Project Rationale and Linkage to Country/Regional Strategy: The project supports accelerating economic recovery, in line with the Indonesia Country Partnership Strategy 2020-2024.

Description: The TA will assist the government in achieving health related objectives set in the Vision 2050, Mongolia's long-term national development policy, and medium-term strategies and priorities, by implementing the Public Health Law (2024). The law creates legal basis for the new developments in the system for prevention and control of diseases, health promotion, and response to public health threats and emergencies. The TA's assistance will include consulting support for development and implementation of practical recommendations and actions to implement the law, including defining the structure and functions of the new system for public health services, policy to ensure availability of qualified human resources for public health services, and designing optimal systems for the provision of health education among the general population and promoting health at workplace, complemented by the wide range of capacity building. The TA will support PBL Strengthening Health Security Subprogram 2 by assisting the government in implementing policy actions related to implementing the Public Health Law and the Health Sector Resilience Plan. The TA is in line with the directions of ADB's long engagement and support for the health sector in Mongolia, and the vision of the CAREC Health Strategy 2030 - public health threats in the CAREC region are addressed comprehensively, efficiently and sustainably'.Project Rationale and Linkage to Country/Regional Strategy: State the development problem(s) being addressed and why an ADB-assisted TA is needed (ensure consistency with the problem analysis diagram, if prepared).Describe the rationale for the ensuing project(s) or constraints to implementing the ongoing project(s), as relevant.Highlight the TA's alignment with the DMC's or region's knowledge needs and priorities as provided in the country knowledge plan; country partnership strategy; and other relevant DMC or regional policies, strategies, and action plans. Mention related lessons and experiences by ADB and other partners in implementing similar initiatives."If the TA is categorized gender equity theme (GEN) or effective gender mainstreaming (EGM), summarize the key gender issues in the sector and/or subsector relevant to the TA, including those identified in the preliminary gender analysis.Mongolia has made significant progress in improving its health outcomes. Life expectancy at birth increased and reached 71.0 (females 76.5; males 67.1) in 2022, an increase of 1 year compared with the previous ten years' average. Mongolia achieved its Millennium Development Goal targets for maternal and child mortality in 2015. The good coverage of antenatal and postnatal care contributes to decreasing maternal (35.1 per 100,000 live births, 2022) and infant mortality and under-5 mortality rates (12.4 and 15.5 per 1,000 live births, 2022). While health outcomes have been improved due to significant improvements in curative medical services, the country still struggles with organizing a robust system for ensuring effective public health measures to prevent and control disease, promote health, and respond to public health threats and emergencies. NCDs are a major burden, with cardiovascular diseases and cancer expected to remain the main causes of mortality, and led to 32.5% and 23.7% of all deaths, respectively, in 2022. The main risk factors of NCDs, such as smoking, consumption of alcohol, and obesity, exacerbated by physical inactivity and unhealthy diet, tend to increase steadily. Besides, some communicable diseases, such as tuberculosis (186 per 100,000 in 2006 and 70 per 100,000 in 2022) and viral hepatitis, continue to be a challenge for the country. Therefore, improving prevention and control of communicable and non-communicable diseases is a problem that needs to be urgently addressed. Mongolia maintained one of the lowest case-fatality ratios throughout the COVID-19 pandemic and during its peaks in 2021-2022 (JHU, June 2022). However, shortcomings in the coordinated multisectoral response to public health threats were visible. This needs to be addressed, considering the growing global threat of emerging infectious diseases and zoonoses, with the potential for a pandemic.The government recognizes the need to bolster the system for ensuring public health, as envisioned in the longand medium-term national development policies. It submitted the new Law on Public Health, which was approved by Parliament in January 2024. The law defines the main principles to be followed by the state regarding public health and provides a legal environment for the MOH to reform the system for the provision of public health services. The law envisions strengthening the system by establishing a national center for public health, with functions similar to disease control and prevention centers in other countries, which will spearhead public health measures nationwide and oversee and coordinate responses to public health threats and emergencies. The center will ensure technical oversight and support for public health centers in aimags (provinces) and cities, primary health care centers, and other relevant sectors and institutions. The government plans to boost health education and promotion nationwide, including health promotion at the workplace, with the involvement of public and private organizations and entities of various sectors by deploying public-private partnership models where possible. Since all these plans require qualified staff with clear career pathways, the government needs to define a policy on developing public health human resources that would cover undergraduate and postgraduate training. ADB is a major international development partner for Mongolia's health sector and has supported the government in critical health system reforms since 1994. The TA is consistent with ADB's long engagement and support for strengthening the health system through assisting systemic reforms, including continuing primary health care assistance, recent extensive support for the COVID-19 response, and improving long-term health security and preparedness for public health emergencies. The TA will align with long- and medium-term national policies and strategies, such as (i) Vision 2050, which sets the objective to have citizens with healthy behavior and active lifestyle, and to have a quality, accessible and effective health system;' (ii) Main Directions for Mongolia's Five-year Development, 2021-2025 which outline the medium-term objective to reform the health system to improve quality, accessibility and efficiency,' with the emphasis on preparedness to public health emergencies, and screening and early detection of NCDs.More than 80% of health workers in Mongolia are women, and they will be directly involved in and benefit from the TA's capacity-building activities. The TA will address the control and prevention of NCDs, such as cervical cancer, which will help women the most.

Description: The proposed loan will finance the development, construction and operation of a 445-megawatt solar photovoltaic power plant in Azerbaijan.

Description: The proposed loan will finance the development, construction and operation of a 315-megawatt solar photovoltaic power plant in Azerbaijan.

Description: The proposed project will undertake a long-term and strategic approach to deliver climate adaptive solutions for water resources management in the Amu Darya River Basins in Uzbekistan. Predicted climate change impacts include increased temperatures, increased frequency and severity of extreme events such as floods and droughts, and a reduction of water availability and increased variability of water flows in the major river basins. Decreasing availability and increased water requirements by different sectors are leading to a growing seasonal and absolute supply-demand gap. The water imbalance will contribute to the instability of agricultural production.The proposed project intends to address these climate change challenges by creating reservoirs to reduce the risks of drought and floods, improve irrigation, improve agriculture practices, and improve management of the reservoir and related project components. The proposed project is considered a Type IIb adaptation project, which can be counted in full as climate adaptation finance.Project Rationale and Linkage to Country/Regional Strategy: Uzbekistan has the largest population of 36.7 million among the Aral Sea Basin countries. In 2017, about 11% of people in Uzbekistan lived below the national poverty line. Agriculture is key economic sector in Uzbekistan, employing 3.5 million people, 27% of the total workforce and represents 28% of gross domestic product. Growth in agriculture moderated slightly from 4.0% in 2021 to 3.6% in 2022, reflecting deceleration in crop production in particular cotton and wheat. The rural population accounts for nearly 50 per cent of the total Uzbek population and 75 per cent of the low-income population. Around 4.3 million hectares of land are irrigated, and 700,000 hectares are viable for rainfed production. The irrigation system however is outdated, resulting in low water use efficiency, soil salinity and erosion and overall low productivity.Climate change and natural disaster risks. The Amu Darya and Syr Darya rivers emanate from snow and glacier melt in the Tien Shen and Pamir Mountain ranges. Predicted climate change impacts include increased temperatures, increased frequency and severity of extreme events such as floods and droughts, and a reduction of water availability and increased variability of water flows in the major river basins. Decreasing availability and increased water requirements by different sectors are leading to a growing seasonal and absolute supply-demand gap. The water imbalance will contribute to the instability of agricultural production.Limited water resources. Water availability has already been affected by climate change, which has caused shrinking glaciers and a shift in the peak flows. Estimates are that by 2050, Syr Darya basin water resources will decrease by 5% and Amu Darya basin resources by up to 15%. Transboundary water resources are also an overarching challenge for Uzbekistan. Of the total 123 cubic kilometers of water resources of the Aral Sea Basin, only 9% originate within Uzbekistan, highlighting its transboundary water dependency. The country relies on the Amu Darya and Syr Darya rivers, which emanate from upstream riparian countries (Afghanistan, Kyrgyz Republic, and Tajikistan) for water supply. As these countries continue to develop water resources for hydropower, better water resource management becomes increasingly relevant.Gender issues. Women play an important role in agriculture and accounted for 41.3% of employed persons in the sector at the end of 2022, however, their contributions are often limited to informal, seasonal work due to limited access to resources and skills development opportunities. Also, women in agriculture are more likely to be concentrated in labor-intensive, seasonal, informal work and non-managerial roles. Climate change poses significant threats to Uzbekistan's agricultural productivity and of public well-being, and women will be affected. The project has a potential to support the economic development and improve the livelihoods of women in project area, including the most vulnerable strata included in the Women's Notebooks. The project's institutional strengthening component may consider providing internship opportunities for undergraduate female students of the agro-universities.Government priorities and strategic alignment. The project will be strategically aligned with the ongoing government reforms in the water sector, aiming to improve water efficiency and productivity and support climate change adaptation. The climate adaptation investments under the project will be based on the upstream climate risk assessment and adaptation pathways approach.

Description: The project will reduce trans-boundary animal diseases (TAD), food safety and zoonotic disease risks and strengthen livestock value chains and COVID-19 responses through investments in infrastructure, capacity building and policy support. The project will have the following outcome: health, value chains, and formal trade of livestock and livestock products improved. The project will be aligned with the following impact: GMS vision as a leading supplier of safe and environmentally friendly agriculture products realized. Output 1: Livestock health and value chain infrastructure expanded and upgraded in a climate-friendly manner. The output will establish DCZs comprising feedlots, quarantine facilities, laboratories, and health inspection and vaccination facilities in priority border areas. It will address critical infrastructure gaps in livestock health systems and value chains by developing (i) breeding and waste management facilities; (ii) slaughtering, processing, and cold storage facilities; and (iii) market infrastructure, which are gender-responsive and integrate climate change mitigation and adaptation measures. It will finance remodeling and improvement of laboratories, and zoonotic disease and AMR control facilities. Establishing DCZs is expected to leverage private sector investment in value chain facilities, such as feedlots, slaughtering, processing, packaging and cold chains, biogas digesters and bio-fertilizer factories. Priority border areas for DCZs include those between Yunnan province, the PRC and Lao PDR; Myanmar and Thailand; and borders between Cambodia and Viet Nam. DCZs will be extended to trade routes between Cambodia and Thailand; Lao PDR and Viet Nam; and Myanmar and Thailand. Targeted investments in shared SPS facilities will be considered. Operations and maintenance plans for infrastructure, involving smallholders, will be developed.Output 2: Capacity for improved production and health of livestock and livestock products strengthened. The output will strengthen capacities of government staff in areas, such as (i) animal health services and extension; (ii) disease risk analysis and communication, (iii) field epidemiology, early detection, and hazard monitoring; (iv) laboratory business plans, protocols, and accreditation; (v) TADs, safety, and AMR risk management; (vi) emergency preparedness and responses; (vii) traceability systems; (viii) livestock and meat inspection; (ix) operation of feedlots and quarantine facilities; and (x) cold chain management. A gender-responsive information technology-based platform for preventing livestock epidemics and an e-traceability system will be piloted. Government staff will be trained on (i) hazard analysis and critical control points, (ii) good manufacturing practices towards certification for ISO 22000 or equivalent; (iii) certification of livestock service providers, and (iv) integration of e-traceability systems in disease risk communication and management systems harmonized with ASEAN standards. Smallholders will receive training on disease reporting, monitoring, and livestock value addition options.Output 3: Enabling policies for better supply, health, safety, and trade in livestock and livestock products enhanced. This output will provide gender-responsive policy support for (i) effectively integrating smallholders and promoting women's roles in livestock production and value addition; (ii) recognizing equivalence and harmonization of quality and safety systems in the GMS to support the formalization of trade in livestock and livestock products; (iii) incentivizing the use of e-traceability systems; and (iv) mobilizing the private sector investment into DCZs, feedlots, and processing facilities, including those related to COVID-19 responses.Project Rationale and Linkage to Country/Regional Strategy: The livestock subsector in the Greater Mekong Subregion (GMS) has high potential for economic growth and contribution to food security and livelihoods. Livestock production in the GMS region has more than doubled during 2006-2016 and is expected to continue in the medium-term. Increasing household incomes have affected dietary preferences, leading to a rapid growth in demand for livestock and livestock products (footnote 1). Such rising demand presents opportunities for smallholders, including women, and small- and medium-sized agribusinesses. Growing demand for livestock and livestock products, especially in the People's Republic of China (PRC), has increased large-scale movement and trade of livestock through other GMS countries. However, such trade is mainly informal and uncontrolled, raising risks for the spread of transboundary animal diseases (TADs) and zoonoses (diseases transmitted from animals to humans). Lao People's Democratic Republic (Lao PDR) and Myanmar signed memoranda of understanding with the PRC to harmonize trade protocols for ruminants. However, with limited capacity, it is not yet practical for Cambodia, Lao PDR, and Myanmar to realistically meet such protocols with high standards to allow formal trade with PRC and other countries. Prevention and control of health hazards are critical to reduce livestock losses and improve resource efficiency. Transboundary animal diseases pose a threat to livelihoods, food security, trade, and economic growth. The global cost of foot and mouth disease is estimated at more than $6.5 billion annually. The African swine fever, a devastating hemorrhagic fever in pigs with high mortality rates approaching 100% and no vaccine, also provides a sobering example of the threat TADs pose to food security. TADs hamper livestock productivity, cause market disruptions, and limit formal trade and market access for GMS livestock suppliers. They often form a key non-tariff barrier to trade in live animals and, in some cases, animal products as per the World Trade Organization's Sanitary and Phytosanitary (SPS) Agreement. The agreement allows countries to ban imports from other countries where TADs are present unless the exporting country can demonstrate effective risk management systems. This is also the case with foodborne hazards, including enteric pathogens such as Salmonella and enterotoxigenic E. Coli strains.Zoonoses, foodborne hazards, and antimicrobial resistance threaten human health in addition to causing high costs in terms of healthcare, lost labor and tourism, and limited access to export markets. Approximately 60% of diseases recognized in humans to date are due to multi-host pathogens. Around 75% of newly emerging human infectious diseases, including the recent coronavirus disease (COVID-19), are zoonotic. More than 600 million cases of foodborne illnesses are estimated globally each year, causing over 5.5 million disability-adjusted life years and over 400,000 deaths. Pathogens exhibiting antimicrobial resistance (AMR) currently cause about 700,000 deaths per year globally, which, if left unchecked, is expected to reach 10 million deaths and a global cost of $100 trillion by 2050. Overuse and inappropriate use of antimicrobials in animal production, a key driver of AMR, are already high in GMS and is expected to grow with intensification of livestock industry. Control of TADs is also essential to reduce reliance on antimicrobials in livestock. The proliferation of food safety laws and AMR national action plans in the GMS demonstrate recognition of the critical threat these hazards pose. COVID-19 impacts. COVID-19 has become a global pandemic with adverse impacts on food security and livelihoods. Restrictions on the movement of labor, goods, and services, as well as containment measures such as factory and market closures, have reduced food supplies and increased prices sharply. As COVID-19 is zoonotic, investing in livestock disease monitoring and preparedness, and healthy livestock value chains can contribute to COVID-19 response and reduce the risk of emerging infectious diseases with pandemic potential (see Appendix 5).Livestock value chains in GMS are complex, fragmented, inefficient, and frequently cross borders. Inefficiencies in current systems are due to suboptimal infrastructure at key value chain nodes, and absence of effective disease monitoring and control facilities. Lack of livestock breeding centers, feedlots, and facilities for slaughtering, cold storage, and processing contribute to high food losses and low competitiveness. Smallholders lack access to value chain services and markets due to the absence of formal trade pathways. Investments in infrastructure, such as animal disease control zones (DCZs) comprising feedlots, laboratories, and quarantine facilities, can improve livelihoods, resilience, and food security while reducing public health risks including COVID-19, increasing market access, and mitigating adverse environmental impacts.Low capacity to manage animal health and food safety risks is a key concern. Strengthening capacities and policies, including those related to COVID-19 responses, is critical to manage health risks and allow safe movement of livestock and livestock products. The establishment and management of DCZs, with collaboration from the PRC, Australia, and other countries with advanced disease control systems, can improve risk management policies and capacity across the subregion and attract investments from the private sector. The traditional livestock subsector is a major contributor to greenhouse gas emissions accounting for 14.5% of global emissions. It is also a major water consumer and a source of water pollution and other environmental impacts. Improving livestock feed, reducing losses to disease and waste, and adopting greener production and processing technologies can reduce emissions and increase resource use efficiency. Climate change impacts result in low animal productivity. High temperatures, low water availability, and extreme weather events exacerbate animal disease risks. Integration of adaptation measures (e.g., stress-tolerant breeds, feeds, and infrastructure) in livestock health and value chain management can enhance productivity and resilience of livestock farmers and associated ecosystems in a holistic manner. Although the GMS governments have prioritized livestock production, health, trade, and food safety in national strategies, investments in livestock disease control infrastructure, capacity building, and enabling policies are inadequate. National strategies stress the need to improve competitiveness of livestock subsector through adoption of a value chain approach and policies prioritizing smallholder integration in the value chains. Addressing livestock health hazards and strengthening value chains while increasing cross-border benefits through regional cooperation and integration can deliver strong pro-poor and climate-smart development outcomes. Mobilizing private sector investments into livestock value chains through public private partnerships is feasible only when conducive policies and supportive institutions are in place.Investing in infrastructure, capacity building, and policies for livestock disease monitoring, preparedness, and control can increase productivity, inclusiveness, sustainability, and resilience of GMS livestock value chains. Such efforts will produce measurable pro-poor outcomes while promoting trade and regional public goods, including regional health security. They will contribute to the objectives of _One Health Approach_, which recognizes that animal health, plant health, human health, and environmental health are interrelated and contribute to planetary health.

Description: Project objectives. The proposed project will assist the government in addressing climate vulnerabilities and enhancing public health and economic conditions by ensuring inclusive access to safe, reliable, climate-resilient, and sustainable WSS services for the residents of Andijan, Djizzak and Fergana provinces; and the Republic of Karakalpakstan. The project will help upgrade and expand the WSS infrastructure in the project regions and support regional suvtaminots in implementing transformational changes. The physical investments will be supplemented with targeted institutional strengthening, including enhancement of operational capabilities of regional suvtaminots on the development of district metering areas (DMAs) and NRW reduction practices. This will involve establishing specialized operations and maintenance (O&M) teams for effective management of both new and rehabilitated WSS assets to ensure sustainable and resilient WSS service delivery. Furthermore, the project will promote awareness of water conservation, health, sanitation, and hygiene with particular emphasis on empowering women and vulnerable populations.Project Rationale and Linkage to Country/Regional Strategy: Climate change risk and water scarcity. Uzbekistan is highly vulnerable to climate change impacts, ranking 72nd out of 185 countries in the 2021 Notre Dame Global Adaptation Initiative Country Index, and Asian Development Bank's (ADB) Asian Water Development Outlook 2020. Average annual temperatures have increased steadily, at an average rate of 0.27C per decade (19502013). The World Bank reports that warming will exceed the global averages in Central Asia, and annual average temperatures could rise by 5C6C by 2100. Approximately 10% of Uzbekistan's water resources are within the country boundary, making the nation susceptible to transboundary water availability challenges. Reduced river flow from upstream countries poses a significant threat of acute water scarcity in its principal river basins. The total annual water shortages will increase to 7 billion cubic meters (m3) in 2030 and 15 billion m3 in 2050. This situation raises concerns over potential mudslides, accelerated glacier melting, and exacerbating shortages of potable water. Climate change, population pressures (especially in Andijan and Fergana that are the most populated areas with high trends of population increase) and anticipated economic growth will intensify the demand for water resources, both surface water and groundwater. Water scarcity will become a more prevalent challenge threatening health and food security countrywide, with potentially dire social impacts, especially on the poor. Improved water management, diversification of water resources, and practical adaptation measures play a vital role in addressing the risks of water scarcity along with other supportive measures and climate-aligned water sector policies.Environmental risks in conjunction with climate change impacts. Climate change extreme events and impacts aggravate existing environmental and land degradation in Central Asia, which can create further pressure on biodiversity and undermine the capacity of ecosystems to provide critical services. In particular, Fergana Valley was designated as the highest climate change risk area among 11 identified regional and transboundary climate change hotspots in Central Asia. The Fergana Valley is the Central Asia's most extensive oil refinery and a hub for key industries such as chemicals, textiles, and mining, and it also serves as a critical junction for transportation networks that link neighboring nations and the wider region. The presence of inadequately maintained and unprotected mines, situated near groundwater sources and tributaries leading into the Syr Darya watershed, heightens the risk of groundwater contamination and public health hazards, and the risk is exacerbated by extreme climate events (floods etc.). The result of this situation in Fergana Valley is that the majority of groundwater wells have a high content of calcium carbonate and other mineralsthis is a typical result of groundwater contamination by mining waste and agricultural chemicalsand water is no longer accepted by consumers. Disaster risk management shall be integrated, then, into water and land use planning at all levels (community, management level, nongovernment organizations, private sector, and other stakeholders). Water resources, especially groundwater, should be protected from environmental hazards which are exacerbated by extreme climate change events. An efficient diversification of water resources between groundwater and surface water will be necessary to maximize the use of surface water. The protection of groundwater is also planned in the Fergana Valley through the construction of various wastewater treatment plants (WWTPs).Water supply and sanitation management and challenges. The Uzsuvtaminot Joint Stock Company (UJSC), established in 2019, is a government-owned entity responsible for improving and expanding water supply and sanitation (WSS) services throughout the country, serving 22.2 million people through its 17 regional WSS utilities (suvtaminots). The regional suvtaminots, however, face challenges as they strive to evolve into modern, performance-driven utilities grappling with persistent issues such as excessive non-revenue water (NRW) and energy costs, high staff turnover rate, and a lack of smart water management systems and technologies essential for efficient asset and operational management. System and operational deficiencies contribute negatively to suvtaminot financial performance: 6 suvtaminots report net incomes of only around 1%, 10 report losses (2%238%), 5 report liquidity issues, and 10 report negative returns on equity. The sector is constrained through compliance with over 200 regulations, some of which overlap, or are unclear and ambiguous. Historically, tariffs have been highly variable and unable to support full cost recovery. Despite a strong gender equality legal framework, women are underrepresented in higher-paying and decision-making positions. Insufficient legal framework, low tariff to provide return on equity, and no government guarantee mechanism can be obstacles in attracting the private sector. Water and sanitation issues in project areas. The Republic of Karakalpakstan along with the provinces of Andijan, Djizzak, and Fergana face deficiencies in WSS services. More than 2.3 million inhabitants in these areas lack access to municipal water supply systems, 3.4 million rely on standpipes for water, and only 4.3 million (representing 43% of the total population) have piped household supplies. Wastewater services are even more inadequate, with just 11% of the region's population covered by a centralized sewerage system, leading to significant discharge of untreated wastewater into local environments. Water continuity diminishes beyond larger cities, especially in Djizzak province where the majority of areas receive water for an average of only 5 hours per day. Cumulatively, nearly one-third of all installed water pipelines and networks (approximately 8,000 kilometers [km]) in these regions require rehabilitation, along with 750 km of the 2,500 km of wastewater collectors and networks. However, the water supply systems in Andijan city and neighboring districts as well as in Fergana City were recently rehabilitated and expanded under Uzbekistan: Multitrance Financing Facility Water Supply and Sanitation Services Investment Program (20102019). Synergy with the ADB's Climate-Smart Water Management Improvement Project (2024). The proposed project (Climate-Resilient Water and Sanitation Services Project [CRWSSP]) is part of the more comprehensive initiative of ADB to reform the water sector through the Climate-Smart Water Management Improvement Project (CSWMIP) (approval in 2024). The initiative aligns and is in full coordination with the government's initiative to upgrade the UJSC and suvtaminots by deploying a comprehensive digital transformation of water sector management nationwide. The CSWMIP proposes innovative approaches and climate-smart solutions to improve the efficiency of water utilities through the operationalization of digital tools and information technology (IT) smart systems. Geographic information system and smart metering in conjunction with tactical water network management system and asset management system tools will (i) provide real-time monitoring of water flow, pressure, and quality; (ii) allow the creation of network zones and DMAs to better manage networks and help identify leaks and other issues in the network to reduce NRW; and (iii) allow suvtaminots to manage asset efficiently and develop O&M programs for key infrastructure. The proposed project suvtaminots (Andijan, Djizzak, Fergana, and Karakalpakstan) are part of this nationwide initiative and will benefit from the related institutional reforms, operational support, and capacity-building activities which will be integrated and complemented by the proposed CRWSSP institutional strengthening activities. In particular, the Climate-Smart initiative will support smart systems management and operations through the development of methodologies for IT systems. It will also prepare investment strategies and roadmaps for each suvtaminot, establish collaborative change management partnerships with UJSC and the suvtaminots, and enhance data management centers' staff capabilities. The CSWMIP will also increase the financial management proficiency by (i) establishing a robust financial risk management unit within UJSC and its suvtaminots and supporting tariff reforms, (ii) updating accounting policies and procedures for the integration of the billing system and Asset Management System with the financial management system and providing training on the updated procedures, (iii) supporting the shift to International Financial Reporting Standards and the audit of the 20242027 financial statements, and (iv) providing hands-on capacity building for the UJSC and suvtaminots to produce the International Financial Reporting Standards-based financial statements.

Description: The proposed Northern China Agriculture and Food Ecosystem Net Zero Transformation Project (project) will support the PRC to achieve its climate commitment through catalyzing financing and strengthening institutional capacity for net zero transformation in agriculture and food ecosystem.

Description: The proposed project will build a bridge across the Fanga'uta Lagoon in Nuku'alofa, the capital of the Kingdom of Tonga (Tonga). The crossing will consist of an approximately 720 m long bridge and 4.96 km of approach roads from Nuku'alofa to Vaini, southern Tongatapu. The project will (i) provide reduced traffic congestion and shorter journey for people living in or traveling to and from Nuku'alofa and the southern parts of Tongatapu; (ii) provide an evacuation route to higher areas in the event of a tsunami and extreme weather events; and (iii) facilitate long-term climate change-induced relocation of communities currently living in low-lying areas to higher areas.Project Rationale and Linkage to Country/Regional Strategy: Tonga is in the South Pacific Ocean and comprises around 170 islands in an archipelago, of which 36 are populated. Tongatapu, the main island of Tonga, has approximately 75,000 residents, or nearly 70% of Tonga's population. Roads play a vital role in social and business connectivity on the main island. Nuku'alofa, located on the north coast of Tongatapu, is home to the country's critical infrastructure and services, such as government offices, the country's main port, hospitals, commercial hubs, schools, and water and power utilities. The traffic growth of 2.9% per annum in Nuku'alofa has resulted in congestion on the main and feeder roads into the city center. The heavy traffic congestion restricts regional areas surrounding Nuku'alofa access to employment, education, health, and government services in the city. Nuku'alofa is on low-lying land, with much of its infrastructure stock susceptible to sea level rise and other climate-induced risks such as storm surges and coastal erosion. Consequently, the entire country's economic and operational vulnerability to disasters resulting from natural hazards, such as tsunami, tropical cyclones, and floods, is extreme.

Description: The project will support Ho Chi Minh City People's Committee and their government to finance sound wastewater and drainage system in the remaining catchments, thereby strengthening its foundation as the socioeconomic growth pole of southern Viet Nam. The impact of the project will be improved surface water quality and drainage capacity in HCMC. The outcome will be increased wastewater and drainage collection and treatment capacity in key catchments in HCMC. Project outputs will (i) upgrade the existing combined sewer system with interceptors; (ii) construct new separate sewer pipeline systems for storm run-off and sewage, and advanced centralized wastewater treatment plants; (iii) strengthen septage management of household septic tanks by a developing desludge and collection scheme with appropriate equipment and vehicles; and (iv) capacity building and institutional strengthening of the implementing agency for medium- and long-term strategic planning for sewage and drainage, and asset construction and management skills including private sector participation, the operating agencies for operation and maintenance and climate resilient disaster management planning, and the local people for awareness raising.Project Rationale and Linkage to Country/Regional Strategy: Ho Chi Minh City (HCMC), the largest city in Viet Nam with 8.0 million inhabitants, is the center of Viet Nam's economic activity, contributing 27% of the national gross domestic product (GDP) in 2014. Under the central government's long-term strategic vision of Socio-Economic Development Strategy (SEDS), 20112020 and its 5-year Socio-Economic Development Plans (SEDP), HCMC will remain the main engine of Viet Nam's urbanization and industrialization with its higher GDP growth rate over the national average.While HCMC's growth has been underpinned by investments on basic urban infrastructure and improved water supply system, its development stands at a turning point. Weak wastewater and drainage system has become a clear bottleneck as surface water quality of inland canals and rivers has been rapidly deteriorated, raising serious public health and environmental concerns. In HCMC, the country's typical sector problems occur at the largest scale: (i) a sewer network coverage has little improved from 12% in 1997, with only 50-80% user connections even in the central districts; (ii) a sewer network predominantly uses combined collection system of sewer and storm water; (iii) only two out of twelve existing drainage catchments have the centralized wastewater treatment plants, treating less than 10% of city's domestic wastewater or only 14% of the water supplied in HCMC; and (iv) about 80% of households still rely on septic tanks with many lacking proper septage management. HCMC's low lying terrain adds technical complexities to the system adopting gravity flow for collection and transportation. Although the key regulations came into force on clarifying ownership and responsibilities of wastewater and drainage assets, and promoting financial cost recovery, weak financial basis of local governments and lack of their institutional capacity to implement the regulation cause a spiral of technical, financial and market failures in sector performance.Viet Nam's vulnerability to climate change further exacerbates the problem. HCMC is one of the 10 cities in the world likely to confront the early impacts of climate change. The projected sea-level rise of 33 centimeters (cm) by 2050 and 100 cm by 2100 is alarming for HCMC, where 40-45% of the central districts are within 100 cm above sea-level. By 2050, twelve out of 14 wastewater related facilities will be inundated in regular flood events. The city's wastewater and drainage system faces challenges of rising sea-level and enhanced storm surges to control floods and mitigate sewage backflow.Since 1998, $1.1 billion (in 2005 constant price) has been provided by the government of Belgium, Japan International Cooperation Agency (JICA) and the World Bank to upgrade the wastewater and drainage system in HCMC. Their interventions have been individually effective, but less coordinated. Many catchments are still left out from the support. The city's construction Master Plan does not recognize climate risk appropriately. A large financial gap must be filled by rationalized investment planning that effectively mobilizes public and private funds.

Description: The project is aligned with the following impact: Livability of Gia Nghia city in Dak Nong province enhanced. The project will have the following outcome: access to urban environmental infrastructure and services in Gia Nghia improved. The project is expected to benefit approximately 68,215 residents through an improved environment and the establishment of public green spaces around the lakes, and approximately 20,810 residents additionally through access to networked sewer services by 2028. Downstream populations will also benefit from lower pollution loads in water courses, lakes and reservoirs, lowering water treatment costs and improving ecosystem health.Project Rationale and Linkage to Country/Regional Strategy: Gia Nghia city (population 68,215) is located in the south of Dak Nong province on the Mo Nong plateau. Gia Nghia city, the provincial administrative capital of Dak Nong province established in 2005, is the youngest city in the country. The city is along National Highway (NH) 14 and is an important economic center of the central highland region. It is connected to Da Lat, a major tourist hub, through NH 28. The planned 128km Gia Nghia-Chon Thanh expressway linking the province to the Ho Chi Minh City region will reduce travel times and potentially strengthen socio-economic development in Gia Nghia. However, in the absence of urban service provision, the new proximity to the economic centers of the south may not translate to socio-economic growth and development in Gia Nghia City, preventing the city from assuming its role as a socioeconomic sub-regional hub. The project will benefit approximately 68,215 residents through an improved environment and the establishment of public green spaces around the lakes, and approximately 20,810 residents additionally through access to networked sewer services by 2028. Downstream populations will also benefit from lower pollution loads in water courses, lakes and reservoirs, lowering water treatment costs and improving ecosystem health.

Description: The project aims to establish a high-quality, climate-resilient road network in northern Armenia, which will enhance trade, and stimulate inclusive economic growth. By improving the resilience and transport connectivity, the project seeks to promote a more balanced development across the region. Additionally, it focuses on enabling the development of future roads that are sustainable, safe, inclusive, and support low-carbon mobility, ensuring long-term benefits for the environment and communities.Project Rationale and Linkage to Country/Regional Strategy: Armenia, a landlocked country in the South Caucasus region, is bordered by Georgia and Azerbaijan to the north and east and by Iran, Azerbaijan's exclave Nakhchivan, and Turkiye to the south and west. The country heavily relies on road connections to Georgia for trade, making a resilient road network vital for its economic growth and stability. Armenia's road network handles 77% of freight traffic (by tonnage) and nearly all passenger transport. However, several challenges impact its resilience, and any disruption to critical routes significantly affects the economy. Moreover, climate change exacerbates these issues, leading to increasingly severe weather events. For instance, the May 2024 floods caused extensive damage to critical transport infrastructure, including the M6 and M4 roads and railway connections to the Bagratashen border crossing point, which handles 80% of the country's imports and exports. This event severely disrupted transport services across the road network, increasing total vehicle travel time by 7,200 hours (3%), and total vehicle-kilometers traveled by 276,200 kilometers (km) (2%). Additionally, around 52% of Armenia's roads are in poor or very poor condition, highlighting a pressing need for investment in rehabilitation and maintenance to ensure an efficient and robust road network with all-weather access, particularly for republican and local roads. Road safety is also a major concern, with the socio-economic costs of fatal and severe injuries estimated at 5% of the gross domestic product annually. Addressing these challenges requires strategic investments in critical transport infrastructure, a systematic and proactive approach to scaling up climate adaptation and infrastructure resilience measures, and implementation of effective road safety policies and actions.The Asian Development Bank's (ADB) transport sector strategy for Armenia has centered on three key objectives: (i) enhancing connectivity along the North-South Road Corridor (NSRC), (ii) improving links with Georgia, and (iii) strengthening road subsector management. Since 2009, ADB has been supporting the construction of the NSRC, through a Multi-Tranche Financing Facility (MFF). The three ADB-financed tranches are either completed or on schedule for completion in 2025. Leveraging the lessons from the MFF and the ongoing ArmeniaGeorgia border regional road improvement project, ADB's proposed support in the road transport aims to assist the government in enhancing road subsector management and enabling the transition to an inclusive, safe, and low-carbon transport system.The Government of Armenia has sought assistance from the ADB to rehabilitate and reconstruct the Pushkin and Dilijan tunnels. This project also includes the build back better' reconstruction of the M6 sections damaged by flooding. Improving these critical road infrastructures will improve the resilience of transport services and regional trade flows in Armenia and with trading partners.This is the second phase of the proposed Resilient and Inclusive Economic Corridor Improvement Project.

Description: 1. Output 1: Quality of STEM education with support of technology improved. This output will support (i) pilot testing of interdisciplinary STEM classes for grades 5-11, (ii) strengthening curriculum of STEM subjects (physics, chemistry, biology, geography, informatics and mathematics) with EdTech, (iii) upgrading e-platforms for providing pre- and in-service teacher training, (iv) updating national assessment on STEM subjects aligned with the competency-based curriculum standards, (v) improving school-based assessment in STEM subjects, (vi) designing and implementing a special arrangement of recruitment and placement of additional STEM teachers, (viii) designing and mobilizing an incentive scheme for increased girls enrollment in STEM subjects, and (viii) strengthening e-learning and training platform such as Maktab.uz.2. Output 2: Learning environments improved. This output will support (i) upgrading, science laboratories and ICT facilities in 200 schools and pre- and in-service teacher training institutes; (ii) rehabilitating selected schools with energy efficient, disaster resilient features, and with improved WASH facilities; (ii) upgrading teaching and learning equipment and (iii) strengthening internet connection in the schools.3. Output 3: Sector management strengthened with expanded partnership. This output will support (i) establishing STEM center with private sector engagement, and developing operational mechanism with the private sector, the academe and civil society organizations in promoting STEM in secondary education, (ii) developing the STEM network where the 200 specialized schools support disadvantaged schools in each district, (iii) strengthening the Public Education Management Information System, and (iv) mainstreaming e-procurement and e-financial management.Project Rationale and Linkage to Country/Regional Strategy: Uzbekistan has achieved high school enrollment rates. The 2020 school gross enrollment reached 97% for secondary level with gender parity. Despite good enrollment, the overall learning achievement appears to be low, especially in the critical thinking and problem-solving domains. Learning outcome achievement in primary education is worrisome with more than a third of students scoring below minimum standard in reading, mathematics, and science. Furthermore, a significant gap in learning outcome exists between urban and rural schools, and within and among individual schools. Recent qualitative studies indicate similarly low achievement and school quality in the secondary level grades, particularly among science, mathematics, and informatics, especially in rural areas.

Description: The proposed SMEDP2-Phase 2 will consist of a $100 million concessional loan from ADB's ordinary capital resources and an attached technical assistance of $950,000 in aggregate from TASF-7 and Financial Sector Development Partnership Special Fund. It will finance the continuation and expansion of activities financed under the SMEDP2 project by increasing the number and size of commercially viable cottage, micro, small and medium enterprises (CMSMEs), as well as supporting employment in the CMSME sector.Project Rationale and Linkage to Country/Regional Strategy: Based on the successful implementation of the ongoing project, and renewed demand for SME financing driven by the COVID-19 pandemic, the government has requested $200 million for additional financing to enhance the project impact. SMEs play important roles in economic growth and job creation in Bangladesh. They account for 99% of all enterprises, generate 23% of the gross domestic product (GDP) and employ 25% of the workforce including 86% of the non-farm workforce. Access to finance is critical to the development of SME sector in Bangladesh. Improvement has been observed because of concerted efforts by the government and Bangladesh Bank, but overall, financial access remains a major challenge for the SMEs. 12.The government prioritized the SME sector development and provided consistent policy and financial support. The SME policy (2019) highlighted the importance of the SME sector and provided the road map for its development. SME development was prominently highlighted in the Sixth, Seventh, and Eighth Five-Year Plan. Bangladesh Bank also set an annual target to boost SME financing and established various refinancing schemes to make low-cost funds available to SMEs through banks and nonbank financial institutions. Recently, new market mechanisms have been introduced to support SME financing including credit guarantees for SME lending and the development of SME-focused equity market. In April 2019, the two stock exchanges in the country established dedicated SME platforms that have easier listing requirements. Since then, nine SMEs have been listed, creating an alternative source of financing for the SMEs.Bank loans to the SMEs grew on average 12% each year from 2014 to 2020 in Bangladesh, the highest in South Asian countries. The share of SME bank loans to total bank lending reached 20.2% in Bangladesh, also the highest among the South Asian countries. However, the share of SME loans to GDP ratio remains low at 8% ($27 billion) in 2020, behind India's 12%. 14.The COVID-19 pandemic deeply impacted SMEs. Economic growth slowed to 3.5% in 2020 from 8.2% in FY2019. Two successive lockdowns (from March to May in 2020 and from July to August 2021), the supply chain disruption, and depressed aggregate demands have had deep impact on the SMEs. The government has provided timely relief. An emergency revolving refinancing program helps support the working capital requirements of SMEs. Bangladesh Bank approved a credit guarantee scheme on 23 July 2020 to buttress SME lending. In recognition of severe cash flow constraints because of the pandemic, the loan moratorium facility by Bangladesh Bank allows the borrowers to pay 15% of the payment due in 2021 without being classified as defaulters. Supported by the government stimulation measures and by adopting various coping measures and innovations including e-commerce and digital payments, SMEs in Bangladesh demonstrated resilience and contributed to a remarkable 6.9% economic growth in 2021. But significant risks remain with the distressed supply chain and high inflation, and as most of the SMEs emerged from the pandemic weaker and more financially constrained, there is a pent-up demand for financing.The SMEDP2 program has experienced increased demand in 2021 and 2022, which is in line with the increased demand for financing in the overall SME sector. In 2021, SMEDP2 disbursed $50 million to the SMEs and in 2022, the remaining $40 million was disbursed in the first half of the year. The annual demand has been on track at more than $80 million in 2022 and is expected to grow further in the future as businesses fully recover. The proposed additional financing will help to sustain and expand on the current project to support a broad-based economic recovery from the pandemic. The additional financing will also help ADB to stay engaged in the sector to address new development priorities such as green growth and climate resilience as well as to deepen ADB's support in gender equity and social inclusion.

Description: The project integrates crop diversification with the adoption of climate-smart irrigated agricultural practices that require modernization of irrigation systems and on-farm water management to improve irrigation efficiency and crop water productivity. It includes the following three outputs: (i) irrigation management services strengthened, (ii) modern irrigation and drainage infrastructure developed, and (iii) efficient on-farm water management practices adopted. Specifically, the project will modernize eight irrigation subprojects in four provinces experiencing dwindling water resources but high vulnerability to the impacts of climate change: Binh Phuoc, Gia Lai, Kon Tum, and Quang Ngai. The modernized systems under the subprojects will enhance provincial capacity to manage climate variability, improve water productivity of agriculture, and increase incomes by supporting farmers in growing high-value crops: perennial crops such as coffee, pepper, and fruit trees as well as high value annuals such as vegetables.Project Rationale and Linkage to Country/Regional Strategy: While Viet Nam ranks sixth worldwide for climate risk exposure in the global climate risk index, climate change poses as one of the biggest threats to future agriculture performance. The frequency and intensity of floods and droughts yearly increases. In 2017, economic loss caused by typhoons in the southcentral coastal region (SCR) in flatlands along the east sea and central highland region (CHR) reached $2.7 billion. The El Nido Southern Oscillation-induced drought in 2014-2016, which was the most severe in the last 90 years, severely affected the livelihood of more than two million people and damaged around 20,000ha crops in CHR and the southeast region.The irrigation and drainage system developed in CHR and SCR is largely for rice production and is not yet well suited to irrigate high value crops due to insufficient drainage capacity and insensitive water management system. This is a fundamental issue for farmers in CHR and SCR who are aiming to meet the growing demand for safe and quality food products such as coffee, vegetable, pepper, and cashew nuts in both domestic and international markets. Further constraints in irrigation are (i) premature degradation of irrigation and drainage infrastructure because of inefficient operation and maintenance and asset management systems; (ii) poor water governance, largely because of weak enforcement of regulations on economic and workload burden among water users; and (iii) unreliable water resources for irrigation.

Description: The Republic of Armenia is located at the intersection of major tectonic faults, making it highly prone to seismic activity. The devastation of the 1988 Spitak earthquake claimed about 25,000 lives, including 6,000 school children; left 517,000 people homeless, destroyed 190 schools and many urban infrastructures; and incurred direct economic losses of $15 billion-$20 billion. The recent 7.8-magnitude earthquake in neighboring Trkiye and Syria in 2023 is a wake-up call for Armenia, posing a significant threat to the country. Since 2015, ADB has partnered with the government of Armenia to enhance the seismic resilience of its schools through the School Strengthening and Renovation Program (SSRP). To date, ADB has processed two loans (SSIP and SSIP-Additional Financing), both of which have significantly contributed to government efforts. Based on this successful partnership and good program implementation track record, the government is in discussion with ADB for a new loan, SSIP-3, as a continuation of the first two SSIP loans. A Japan Fund for Prosperous and Resilient Asia (JFPR) grant funded project, Seismic Safety Enhancement Project, which aims to further improve Armenia's resilience to disasters by sharing international best practices, is being processed with approval scheduled in Q3 2024. Over the years, at least 16 ADB board members, as well as the ADB President, have visited SSIP schools and supported ADB's leadership and ongoing partnerships to strengthen Armenia's safety and disaster resilience.Most public buildings, particularly schools from the Soviet Union, were poorly designed to withstand earthquake with substandard construction and maintenance increasing vulnerability. Armenia has about 1,400 public schools, of which about 1,000 need retrofitting or reconstruction; including over 430 at high risk of collapse even in a moderate earthquake. Demographic decline over 30 years, has left half of the school buildings empty, resulting in inefficient public education spending. Armenia also faces significant urban challenges, include a very limited waste recycling, high air pollution levels, and insufficient green spaces. Racing against time, the next major earthquake could strike Armenia at any moment, and over 1,000 schools and other critical infrastructures remain vulnerable against earthquake. Quick, efficient, and timely program processing are critical. In 2021, new state educational standards were approved. However, climate education and disaster awareness remain a challenge, as many teachers lack the knowledge, and skills needed to enhance youth's sensitivity to climate and disaster awareness.Project Rationale and Linkage to Country/Regional Strategy: The government has been implementing the original SSIP for close to 10 years since 2015. There is a great opportunity to update the program scope with new technologies, innovations, and good practices into the proposed SSIP-3. As schools play an important role in increasing education quality and improving urban challenges, and livability in Armenia, the SSIP-3 will introduce several new initiatives such as Recycling Stations and Environmental Education Hubs to promote waste separation and environmental awareness, Urban Agriculture and Edible Gardens to integrate sustainable food production into school environments, Smart Urban Furniture with solar-powered charging stations and air quality sensors, and a Waste-to-Build Initiative that repurposes construction debris into new building materials. These initiatives will transform schools into vibrant, sustainable centers that enhance both education and urban livability.

Description: It is proposed to modernize the 1,147 km strategic railway line between Turkmenabat, Mary, Ashgabat, and Turkmenbashi (TMAT), which is located at the crossroads of major eastwest and northsouth international trade routes and accounts for over 50% of freight movements in Turkmenistan. In line with the agreements reached with the government, the proposed investment approach for TransTurkmenistan, i.e., TMAT corridor, is phased to deliver an optimum project based on operational, technical, and financial considerations, with Phase 1 modernizing the section between Ashgabat and Dushak, financing the construction of a concrete sleeper plant, and assisting in scaling up the operational and institutional capacity of TRA. The proposed future Phase 2 would support the modernization of section between Dushak and Mary, and the electrification of the section from Ashgabat to Mary. Subsequent phase(s) will finance the modernization and electrification of the section between Mary and Turkmenabat and between Ashgabat and Turkmenbashi.Project Rationale and Linkage to Country/Regional Strategy: Importance of rail transport in Turkmenistan. Rail transport has a unique competitive advantage over road transport for moving commodities and goods in bulk over long distances. The 5,173 km Turkmenistan rail network carries about 14 billion of ton-kilometers of freight and 2,479 million passenger-kilometers annually. Between 2012 and 2023, Turkmenistan's gross domestic product has grown by an average of 7.3% per year, contributing to strong demand for rail transport. Turkmenistan has continued to modernize and expand its railway infrastructure.Importance of railways to domestic and regional connectivity. Two main railway corridors serve domestic traffic as well as Turkmenistan's connectivity to neighboring countries and beyond. The first is the east-west corridor linking the port city of Turkmenbashi on the Caspian Sea, the capital city of Ashgabat, the major junction at Mary, and Turkmenabat near the border with Uzbekistan, which is part of the Central Asia Regional Economic Corporation (CAREC) Corridors 2, 3, and 6. With the reinvigorated interest to the CAREC Corridor 2 (Middle Corridor), the route from Turkmenabat to Turkmenbashi becomes important not only for Central Asia, but also for trans-Eurasian transit between the People's Republic of China (PRC) and Europe/Mediterranean/Middle East. The second is the north-south corridor linking Kazakhstan through western Turkmenistan to Iran. Turkmenistan in this way is in the middle of the crossroad between east-west and north-south regional and trans-continental corridors.Government plans for modernization. The Turkmen Railway Agency (TRA), the executing agency (EA) and implementing agency (IA) of this project, is gradually implementing a holistic railway modernization program, including the completion of new railway lines, modernization of existing lines, and improvement of rolling stock. Electrification of the network, as well as double-tracking of main lines are currently being studied.Remaining challenges. Despite these efforts, the railways still face long travel times, inadequate service quality, and high operating costs, due to aged or inadequate infrastructure, operational inefficiencies, competition from road transport, and insufficient rolling stock. This resulted in lost economic opportunities, suboptimal regional trade, and negative environmental impacts.Sector experience and lessons learned. ADB has supported the government and Ministry of Railway and Transport of Turkmenistan (MRT), which is now TRA, for the North-South Railway Project, approved in 2011 and completed in 2017, with significant delay and overcoming many challenges during the implementation. Both ADB and the MRT have learned lessons from the implementation of the North-South Railway Project, including;"The importance of having dedicated (full-time) staff working on project preparation and implementation;"Need to coordinate across various government agencies on a timely basis; and"Clear understanding of roles and responsibilities between MRT, consultants, contractors, and other government agencies.

Description: The project will build and equip 3 climate-resilient and energy-efficient border crossing points (BCP) between the Kyrgyz Republic and Kazakhstan on the Kyrgyz side of the border and a training center for the Kyrgyz Border Service (the project EA). The project with the total loan and grant financing of $37 Million will help facilitate trade and tourism between the Kyrgyz Republic and Kazakhstan and will contribute to the sustainable economic development along the Almaty-Bishkek Economic Corridor. Project Rationale and Linkage to Country/Regional Strategy: The Kyrgyz Republic is characterized as a small and open economy, with trade to gross domestic product ratio at 124% in 2023. In 2015, the country joined the Eurasian Economic Union (EAEU) of Armenia, Belarus, Kazakhstan, and Russia and adopted its trade rules and procedures. Nevertheless, cross-border time and cost at the key Kazakh-Kyrgyz border crossing points (BCPs) remain high after 2015. The country strives to improve its physical and digital infrastructure to facilitate the smooth movement of goods, people, and investment capital across borders. The midterm development plan emphasizes the full economic recovery after the coronavirus disease (COVID-19) pandemic and sets the goal for the average economic growth of at least 5% per year until 2026. The plan prioritizes improving transit flows of export and import goods through neighboring countries, strengthening border control procedures, infrastructure, facilities, and technologies to facilitate smooth and safe crossing of the national borders by persons and goods.In 2014, the Kyrgyz Republic and Kazakhstan, supported by the Asian Development Bank (ADB), launched the AlmatyBishkek Economic Corridor (ABEC) development program to foster shared economic development of the two largest city agglomerations in the ABEC region. The ABEC program conducted several studies of the BCP infrastructure and procedures between Kazakhstan and the Kyrgyz Republic. The studies helped identify issues with the cross-border movement of people and goods and outline possible responses within the scope of the ABEC program. The ABEC program consultants estimated that due to long border delays at the BCP Ak-Tilek alone, the Kyrgyz Republic lose $9 million a year of export trade to Kazakhstan and the same amount of trade to Russia, while Kazakhstan lose $16 million of export trade a year to the Kyrgyz Republic. Within the ABEC program framework the Kyrgyz Republic and Kazakhstan identified three pairs of BCPs requiring urgent modernization: (i) Ak-Tilek Karasu, mostly used for freight traffic and commercial passenger transport; (ii) Karkyra Kegen, used for the passenger traffic to the Issyk-Kul tourism area; and (iii) Kichi-Kapka Besagash, connecting western parts of the Kyrgyz Republic and Zhambyl oblast of Kazakhstan, but closed for traffic since 2010. Within the ABEC program framework two countries agreed that both countries will proceed with the BCP improvements in the coordinated manner. Kazakhstan will use its own state budgetary resources, while the Kyrgyz Republic requested ADB to finance the modernization of its BCPs and a training center through the proposed ABEC RIBS project. Kazakhstan is slightly ahead of the Kyrgyz Republic with the modernization of their BCPs. In 2024 they plan to complete the detailed engineering design and intend to begin construction works at BCPs Karasu and Besagash. Furthermore, both countries are planning to develop the e-queuing systems with truck parking areas to enhance border crossing experience for drivers of heavy goods vehicles. Kazakhstan has already implemented such systems at its BCPs with People's Republic of China, Russia and Uzbekistan and experienced positive outcomes from this initiative. The ABEC cross-border transport connectivity study completed by ADB in April 2024 demonstrated that key BCPs between Kazakhstan and the Kyrgyz Republic operate at or above their design throughput capacity. With the double-digit growth of cross-border cargo traffic expected in the next several years, the BCPs will become operational bottlenecks in the regional transport network. Without the BCP modernization projects on both sides of the border, and with the continuing growth of traffic and associated cross-border transport costs, export trade will face physical constraints, thus resulting in the slower overall economic growth and social development. The Kyrgyz economy is more susceptible to this trend than Kazakhstan, hence need to advance improvements of the physical BCP infrastructure and border control procedures. The Kyrgyz Republic is characterized as a small and open economy, with trade to gross domestic product ratio at 124% in 2023. In 2015, the country joined the Eurasian Economic Union (EAEU) of Armenia, Belarus, Kazakhstan, and Russia and adopted its trade rules and procedures. Nevertheless, cross-border time and cost at the key Kazakh-Kyrgyz border crossing points (BCPs) remain high after 2015. The country strives to improve its physical and digital infrastructure to facilitate the smooth movement of goods, people, and investment capital across borders. The midterm development plan emphasizes the full economic recovery after the coronavirus disease (COVID-19) pandemic and sets the goal for the average economic growth of at least 5% per year until 2026. The plan prioritizes improving transit flows of export and import goods through neighboring countries, strengthening border control procedures, infrastructure, facilities, and technologies to facilitate smooth and safe crossing of the national borders by persons and goods.In 2014, the Kyrgyz Republic and Kazakhstan, supported by the Asian Development Bank (ADB), launched the AlmatyBishkek Economic Corridor (ABEC) development program to foster shared economic development of the two largest city agglomerations in the ABEC region. The ABEC program conducted several studies of the BCP infrastructure and procedures between Kazakhstan and the Kyrgyz Republic. The studies helped identify issues with the cross-border movement of people and goods and outline possible responses within the scope of the ABEC program. The ABEC program consultants estimated that due to long border delays at the BCP Ak-Tilek alone, the Kyrgyz Republic lose $9 million a year of export trade to Kazakhstan and the same amount of trade to Russia, while Kazakhstan lose $16 million of export trade a year to the Kyrgyz Republic. Within the ABEC program framework the Kyrgyz Republic and Kazakhstan identified three pairs of BCPs requiring urgent modernization: (i) Ak-Tilek Karasu, mostly used for freight traffic and commercial passenger transport; (ii) Karkyra Kegen, used for the passenger traffic to the Issyk-Kul tourism area; and (iii) Kichi-Kapka Besagash, connecting western parts of the Kyrgyz Republic and Zhambyl oblast of Kazakhstan, but closed for traffic since 2010. Within the ABEC program framework two countries agreed that both countries will proceed with the BCP improvements in the coordinated manner. Kazakhstan will use its own state budgetary resources, while the Kyrgyz Republic requested ADB to finance the modernization of its BCPs and a training center through the proposed ABEC RIBS project. Kazakhstan is slightly ahead of the Kyrgyz Republic with the modernization of their BCPs. In 2024 they plan to complete the detailed engineering design and intend to begin construction works at BCPs Karasu and Besagash. Furthermore, both countries are planning to develop the e-queuing systems with truck parking areas to enhance border crossing experience for drivers of heavy goods vehicles. Kazakhstan has already implemented such systems at its BCPs with People's Republic of China, Russia and Uzbekistan and experienced positive outcomes from this initiative. The ABEC cross-border transport connectivity study completed by ADB in April 2024 demonstrated that key BCPs between Kazakhstan and the Kyrgyz Republic operate at or above their design throughput capacity. With the double-digit growth of cross-border cargo traffic expected in the next several years, the BCPs will become operational bottlenecks in the regional transport network. Without the BCP modernization projects on both sides of the border, and with the continuing growth of traffic and associated cross-border transport costs, export trade will face physical constraints, thus resulting in the slower overall economic growth and social development. The Kyrgyz economy is more susceptible to this trend than Kazakhstan, hence need to advance improvements of the physical BCP infrastructure and border control procedures. The following factors were identified by the ABEC program studies as the most critical constraints on cross-border trade, tourism, and transport.Limited cross-border connectivity. During the EAEU establishment period in 2010, the Kyrgyz Republic lost connectivity with Kazakhstan across several BCPs, including the BCP Kichi-Kapka connected the agricultural region of western Talas Oblast of the Kyrgyz Republic with Zhambyl Oblast of Kazakhstan and its largest town, Taraz. Its closure in 2010 resulted in longer travel time for tourists and agricultural producers across the alternative BCP Chon-Kapka. Other BCPs, such as the BCP Karkyra in Issyk-Kul oblast, operate with limited seasonal operational modality due to its infrastructural limitations. High climate vulnerability of the existing border crossing infrastructure. The BCP Ak-Tilek is located very close to the Chui riverbank and is impacted by spring flooding, hence needs to be moved away from the water line. Most BCPs experience electricity cuts, which are mitigated by diesel generators rather than by sustainable energy sources. Most BCPs do not have stable water supply which will further exacerbate due to the climate change. Lack of modern border control equipment. The Kyrgyz Republic's BCPs lack essential control equipment, such as passport scanners, cargo inspection equipment, weighbridges, etc. It reduces the speed of control and increases risks of illegal movement of people and goods across the borders. Inefficient border procedures. The ABEC study of cross-border transit times and control procedures in 2022 reported that due to the procedural inefficiencies, the average border crossing time at the BCP KarasuAk-Tilek was 12 hours for entry from Kazakhstan to the Kyrgyz Republic and 3 days for crossing from the Kyrgyz Republic to Kazakhstan, hence affecting trade logistics costs. Furthermore, long truck queues lead to high emissions of carbon dioxide, other gases, and particles from running truck engines, especially during the cold season.Security of national borders. The Kyrgyz Republic lacks sufficient capacity to track and prevent all cases of illegal trafficking of persons. Modern passport scanners, face-recognition equipment, and real-time access to relevant international databases are required. Most of the BCP facilities are not sufficiently equipped to host victims of human trafficking on arrival to BCPs, and the Border Service of the State Committee for National Security of the Kyrgyz Republic (Border Service) personnel do not have sufficient training in handling such cases.Training and capacity development of border management agencies. The Border Service personnel have limited knowledge of modern control technologies and procedures, which leads to slow control processes and increased illegal movement of persons and goods.

Description: The project will continue the support of the Asian Development Bank (ADB) to Bangladesh in managing the influx of around one million displaced people from Myanmar (DPFM) since 2017. Now a protracted situation, the crisis is putting significant pressure on infrastructure and causing substantial challenges in terms of food, shelter, health, security, water, sanitation, and other services in the DPFM camps and host communities. The project will work with the government, humanitarian agencies, and other development partners to address the critical and complex infrastructure needs and basic services with a focus on cost-effective and sustainable solutions while providing opportunities for skills development and livelihoods. Support will encompass interventions in water, sanitation, and hygiene (WASH); roads; security and safety; drainage; food security; and disaster resilience, applying a differentiated approach in the DPFM camps and host communities. Capacity building support will also be provided to the government to deliver interventions efficiently, effectively, and sustainably while coordinating with the large-scale humanitarian response.

Description: The proposed project will build on the ongoing Loan 4347-UZB, by helping rehabilitate additional 40 critical distribution substations in 13 regions across the country, expand power transformation capacity, and modernize and digitalize the distribution system operations. The 40 substations are prioritized based on (i) criticality for system reliability, (ii) number of consumers served, and (iii) operation status and efficiency. Additionally, the proposed project will digitalize the 110 kV to 35 kV substations and deploy a modern distribution supervisory control and data acquisition (SCADA) and other automation systems following the roll out plan prepared under Loan 4347-UZB, which would allow for reduced technical losses and more efficient demand response. ADB intends to provide financing of $275 million based on the indicative investment program for 2025 agreed between the Government and ADB. REPN's internal resources, totaling $80 million, will cover the costs associated with taxes and duties, financial charges during construction, project management, and related contingencies. The detailed amount will be determined through due diligence during project preparation.Project Rationale and Linkage to Country/Regional Strategy: Uzbekistan's distribution system comprises more than 260,000 kilometers (km) of 0.4 kilovolt (kV) to 110 kV networks, 1,655 substations, and more than 86,000 transformer points, providing electricity to 7.6 million households and industrial consumers. The distribution system is characterized by outdated infrastructure, with more than 50% of the distribution network operating for over 30 years and 30% of the substation transformers requiring urgent replacement. With the forecasted power demand growth of up to 8% per annum, the aging distribution system has developed serious problems, such as overloads, voltage drops related to increased load demand, excessive reactive power, and increasingly frequent blackouts. Additionally, significant technical losses, estimated at 13%, in the distribution system remain unresolved, even though Uzbekistan's nationwide advanced metering program and prepaid billing system have effectively reduced commercial losses. Electricity brownouts and blackouts are common, even in cities, and are especially severe in rural areas during the winter months (lasting for days in some villages) affecting essential services such as schools and medical clinics. Women, who are the primary users of electricity in households, are disproportionately impacted by the unstable and poor quality of electricity supply.Uzbekistan is currently one of the world's most energy- and carbon-intensive economies, with more than 85% of its electricity generated from fossil fuels, which has contributed to a high level of carbon emissions. Increasing the operational efficiency of the distribution system would decrease substantially associated greenhouse gas (GHG) emissions, as well as facilitate the penetration of a higher share of variable renewable energy generation,Considering the government plans to double its power generation capacity from 12.9 gigawatt (GW) in 2019 to 29.3 GW by 2030 to meet the fast-growing power demand, the modernization of the outdated distribution network is a critical component to keep pace with the additional renewable energy generation capacity, support current economic development and increase the quality of life and welfare of the most vulnerable that depend on basic services. However, the investment to modernize the transmission and distribution network has been slow due to limited access to capital markets and long-term financing of the power utilities. ADB and other development partners are already developing various grid reinforcement projects at the high voltage transmission level.To this end, the government and the national electricity distribution utility, Joint Stock Company Regional Electrical Power Networks (REPN), requested Asian Development Bank's (ADB) support to carry out in 2021 a comprehensive assessment on the distribution system, where a total of 161 substations and 1,270 km of 35 kV and 110 kV distribution lines were assessed. In September 2023, ADB approved a loan of $200 million (Loan 4347-UZB) with cofinancing of 70 million from the Agence Franaise de Dveloppement (AFD) to assist REPN in modernizing and digitalizing critical distribution substations as well as advancing institutional reform measures to improve the sustainability of REPN operations. Nevertheless, additional public investments are needed to continue strengthening the country's distribution network, overcoming system bottlenecks, improving efficiency, and enhancing REPN's financial and technical capacity to become a modern and efficient power distribution utility.The proposed project will continue the efforts of the ongoing Distribution Network Digital Transformation and Resiliency Project (Loan 4347-UZB). The ongoing project is well on track, exceeding targets of contract awards and 83% of disbursement targets as of Q2 2024.