The Asian Infrastructure Investment Bank (AIIB) has approved $173.4 million in financing for a project to reconstruct local road networks in Karakalpakstan and Khorezm regions, UzDaily.uz reports.
The initiative is aimed at supporting the government of Uzbekistan’s strategy to improve transport connectivity, enhance public access to social services, and increase regional resilience to climate change.
As part of the project’s first stage, AIIB and the government signed a loan agreement worth $71.1 million, which provides for the reconstruction of roads in Khorezm. The second phase will be implemented in the Republic of Karakalpakstan.
The project will cover more than 516 km of roads: 16 sections across nine districts of Khorezm and 23 sections in 14 districts of Karakalpakstan. This will significantly improve transport links, access to markets, medical and educational institutions, as well as road safety.
According to Konstantin Limitovsky, AIIB’s Investment Operations Department Head, the project exemplifies how the bank contributes to building inclusive and sustainable infrastructure in its member states. “Together with the government of Uzbekistan, we are developing a phased investment plan that will strengthen regional connectivity, enhance resilience to climate risks, and create new economic opportunities for millions of people,” he said.
The program is expected to benefit more than 3.8 million residents of the country’s western regions, improve mobility, and lay the foundation for sustainable socio-economic development. The project will employ climate-resilient solutions, digital monitoring tools, and place particular emphasis on the involvement of women and youth.
Uzbekistan is one of AIIB’s founding members and remains one of its most active partners in Central Asia. The joint project portfolio includes initiatives in transport, energy, water supply, and urban infrastructure.
CentralasianLIGHT.org
Sept. 4, 2025