This project has a total value of USD 659.3 million and is scheduled for implementation over the period 2020–2026. As of early 2026, 75 percent of the loan funds have been disbursed. The financing sources include a World Bank loan, contributions from project initiators, and government co-financing.

A number of important activities have been carried out within the framework of the project, including:

strengthening the material and technical base of research institutes;

provision of concessional loans to farms and agro-clusters;

wide introduction of agricultural machinery through leasing schemes;

implementation of modern digital technologies, including monitoring systems using drones.

These efforts have played a significant role in fostering innovative approaches and improving production efficiency in the sector.

At the same time, the audit identified a number of serious shortcomings in the project implementation process:

1.A portion of the funds allocated to commercial banks remained unused, while in some cases loan funds were used for purposes other than intended.

2.Nearly half of the planned 4,589 jobs were not actually created. In addition, 136 projects have not been fully launched and 13 projects have been suspended.

3.A total of 527 farmers who received machinery through leasing have accumulated significant overdue debts, negatively affecting their financial stability.

4.At certain sites, construction works were not carried out in accordance with the equipment specifications outlined in the project, and delays have hindered timely commissioning.

For example, equipment worth USD 1.2 million delivered in 2024 to the Seed Production Center in Bo‘ka district of Tashkent region has not been installed due to unfinished construction works and has been left unattended. Moreover, the dimensions of the reconstructed building did not match the specifications of the purchased equipment.

Nine excess staff positions were introduced in the project implementation, leading to unjustified expenditures.

Funds paid for agro-consulting services did not yield expected results, and contractual obligations were not fully fulfilled.

Based on the audit results, a number of practical measures were proposed to address the identified issues and enhance project effectiveness. In particular:

-Taking strict action against responsible officials at all levels who allowed deficiencies;

-Developing specific measures to improve the financial condition of farms and eliminate outstanding debts;

-Ensuring efficient use of laboratories and equipment;

-Promoting the implementation and commercialization of scientific developments;

-Strengthening project monitoring through digital systems.

During the audit process, the identified problems and deficiencies were discussed with responsible officials of relevant organizations. Appropriate instructions were issued to the Ministry of Agriculture and “Uzagroleasing” JSC to develop measures aimed at eliminating these shortcomings and preventing their recurrence in the future.

In conclusion, the agricultural modernization project plays an important role in the development of the country’s agrarian sector. Although it has delivered certain positive results, the identified shortcomings hinder its full effectiveness.

The key priority is to ensure the rational use of allocated funds, improve management practices, and further strengthen scientific and practical approaches. Achieving these objectives will enable the project to ensure sustainable growth and high performance in the agricultural sector.