The overall objective of the project is to improve livelihoods of local communities in the Republic of Karakalpakstan through empowerment of local communities, income generation and job-creation.

Considering that the scale of socio-economic problems in Karakalpakstan is huge compared to technical assistance that can be provided within the framework of one project, the issue of targeting the assistance is crucial. The project applies criteria competitive for selecting target districts, communities, groups and individuals to ensure a balance between concrete needs and commitments to address them in order to ensure effectiveness and sustainability of intervention. Moreover this targeted assistance, while initiated in a competitive and transparent manner, also focuses on the specific needs of men and women in the region, thus ensuring to the greatest extent possible equal participation in relation to gender.

The 3 districts of Shumanay, Karauzak and Kegeily are selected where activities are identified in a consultative process involving major project stakeholders, including European Commission (EC), UNDP, Cabinet of Ministers of Uzbekistan, Council of Ministers of Karakalpakstan, as well as Khokimiyats of project districts. Project communities are chosen on basis of a fair competitive process to further implement social investment projects, micro-credit schemes and other undertakings. Particular attention is paid to equal participation of men and women during the process.

The project is implemented by UNDP on the basis of provisions of the grant agreement concluded between UNDP and EC. UNDP applies National Execution (NEX) modality in implementing this project, which implies direct cooperation with a designated government institution in executing the project.

The ELS project in Karakalpakstan is implemented in dual implementation arrangements with a similar EU-UNDP project in Namangan region which has a similar objective, timeframe, budget and partnership arrangements.

A Project Steering Committee provides guidance and monitors project progress and achievements and ensures that the project is implemented in accordance with the workplan. The Steering Committee includes representatives from the Ministry of Economy, Council of Ministers of Karakalpakstan, Khokimiyat of Namangan region, UNDP, EC, and TACIS National Coordination Unit (UzbyuroKES).