World Bank Document

 
The World Bank 
Agriculture Modernization Project (P158372) 
Page 54 of 70 
preparation. To guide the preparation of the ALC Strategy and Plan and to oversee its implementation, MOA has 
established the agro-logistics management coordination group chaired by the MOA Minister and consisting of the 
representatives of the Department for Attraction and Monitoring of Investments, Department for Agro Processing and 
Infrastructure Development, Department for Strategic Analysis and Forecasting, Department for Internal and External 
Market Analysis, the Center for Agricultural Standardization, and UZAIFSA. This group has been working with other MOA 
departments, other oversight ministries (MIFT and MOF), and development partners (ADB, FAO, WB, and USAID).
34. 
AMP plans to finance construction of two regional ALCs, tentatively in Bukhara and Khorezm regions, subject to 
confirmation during the project implementation from ALC Strategy and Plan and lessons learned from ADB investments 
in the first three ALCs. AMP could also finance feasibility studies for three additional ALCs in Fergana, Jizzakh, and 
Surkhandarya regions, the construction of which will be financed by ADB’s second ALC project, to speed up the 
completion of Uzbekistan’s ALC network.
35. 
Options considered for the management and operation of the ALCs:
• Private Operator-Concession arrangement. An experienced private sector operator could manage ALCs based 
on a concessional arrangement. This solution would allow the support of an efficient start-up of the activity 
by sector professionals. In particular, management companies of international reputation and experience in 
agri-logistics management are likely to be interested to in managing some of the ALCs. A market scoping 
exercise will be conducted early in project implementation to gauge international interest in such a model. 
Prospective private operators would not be expected to invest equity capital and/or finance the construction 
and/or equipment of the ALCs but would be solicited and employed because of their expertise and experience 
in operating such platforms for profit.
• 
Semi-public Company-Concession arrangement. ALCs could be managed by a semi-public company that would 
operate the site under a concession arrangement with GoU. The following features would be considered: (i) 
a public authority keeps a strategic control over the activities; and (ii) the managing company supports and 
manages all the operating costs and, possibly, future investments. A separate international service provider 
could be procured to provide capacity building in operational management aspects
. 
36. 
International benchmarks: Majority of wholesale markets world-wide are public or semi-public (83 percent) as the 
analysis of wholesale market ownership by World Union of Wholesale Markets shows based on its 141 members 
(Table A1.4).