The World Bank Agriculture Modernization Project (P158372)
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in both foreign currency and Uzbek Soms at the prevailing market interest rate.
28. Component 3: Facilitating Trade and Marketing (US$77.5 million). The objective of this component is to improve
market access for Uzbekistan’s horticulture products through improvements in: (i) agro-logistics; (ii) plant protection and
phytosanitary measures; and (iii) market information collection and dissemination.
29. Sub-component 3.1 Establishing agro-logistical centers in selected regions (US$65.0 million). The objective of
this sub-component is to create markets by improving agro-logistics infrastructure. AMP will finance construction of
ALCs
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, tentatively in Bukhara and Khorezm regions, which will be part of integrated network of ALCs. The ADB plans to
finance six of such ALCs country wide, with the financing for the first three in Tashkent, Andijan and Samarkand is already
secured
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. Regional ALCs will be connected to a central hub in Tashkent to support horticulture export, promote CSA
through crop diversification, improve food distribution and food safety, reduce food losses and waste, and give access to
market to farm cooperatives, smallholders, and small traders. Streamlined processing platforms, including improved and
new storage
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facilities, reduce the risk of losses due to climate, and increase resilience.
30. ALCs can take many forms dependent upon the needs and requirements of a specific region, value chain structures
and potential users. They can provide a large range of functionalities, which are particular for each context. Typically,
they will include wholesale market services, collection, storage, conditioning (e.g. grading, sorting) and quality control
services and a range of logistics services. Such centers can provide vital infrastructure to improve the organization of
fresh food distribution in a specific region or country. They can be specialized in their design, focused exclusively on
particular types of fresh produce such as fruits and vegetables or they can be more diverse, covering a range of products
including meat, fish and other commodities.
31. ALCs can allow producers of all sizes in a specific region or country to gain access to the market (both wholesale
and retail) and strengthen links with other market operators in the sector (other wholesalers, exporters, supermarkets).
The centers can provide a platform for producers to better organize their activities, build synergies and economies of
scale. They can also assist in facilitating vertical coordination in the value chain, where supply and demand for food
products can find their equilibrium.
32. Investment in ALCs can provide an opportunity to improve the
competitiveness of the entire agri-food sector in a
specific region, by providing a space where all the operators will have access to the main services of logistics, sanitary
controls, and security. This can create strong synergies among the operators and enhance their professionalization for
the benefit of all value chain participants. Dependent upon the scale and needs, agri-logistics services may therefore
include: (i) market services (farmer markets, wholesale, retail); (ii) storage services (dry, cool, cold, rapid freezing); (iii)
value-added/processing services (sorting, grading, cleaning, packing and food processing); (iv) logistics and
transportation services (including cross-docking); (v) advisory, training and consulting services; (vi) import and export
services (customs, free trade zone, inspection, quality assurance, testing laboratories, certification); (v) finance,
accounting and office services (meeting rooms, office space, banking, accounting, advisory); and (vi) other services (cash
and carry, supermarkets, fuel services, other retail services etc.). Investment in ALCs is also expected to provide a fast
track for Uzbekistan to extend its trade links across the broader central Asian region and beyond, connecting Uzbekistan
to other satellite collection, conditioning and marketing centers in Russia/CIS and linked European and Asian markets.
33. Investments in ALCs will be guided by the Agro-Logistics Infrastructure Strategy and Plan, which is currently under
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Construction will be climate proof and energy efficient.
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The ADB Loan 3737-UZB: Horticulture Value Chain Infrastructure Project in the amount of US$197 million will finance the establishment of the
ALCs in Andijan, Samarkand, and Tashkent. The additional loan of the ADB will be secured in the amount of US$150 million to finance the regional
ALCs in Fergana, Jizzakh, and Surkhandarya regions.
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Investments in storage facilities will be designed with an objective, among others, to reduce exposure of products to extreme weather conditions.