The World Bank has announced a $250m financing package to improve municipal infrastructure and services in Uzbekistan.

The country is experiencing rapid, uncoordinated urbanisation amid ageing utility and social infrastructure, leading to poor life-quality outcomes and low business productivity, the bank said.

Part of the bank’s “Livable and Productive Cities Program”, the money will help pay for hospitals, schools, water systems, public toilets, roads and flood-protection in 16 districts with a combined population of about a million people.

The funding excludes projects involving land acquisition or the involuntary resettlement of people.

The program is designed to boost local authorities’ ability to make spatial, master and capital investment plans.

Toward that end, the country’s finance ministry will disburse funds yearly only to local authorities who’ve demonstrated strong performance in planning, budgeting and infrastructure delivery.

That made the package Uzbekistan’s first regional performance-based funding model, the bank said.

Now, around half of Uzbeks live in cities. The bank believes that will rise to 60% by 2050.