The World Bank’s Board of Executive Directors has approved a $200 million project to modernise transport infrastructure in Uzbekistan’s Surkhandarya region, the institution said in a statement on March 23.

According to the World Bank, the five-year initiative will focus on reconstructing a key section of the M41 regional road corridor while also supporting broader reforms in the country’s transport sector. The project is expected to contribute to job creation and stimulate business activity along the upgraded route.

Uzbekistan’s transport sector currently accounts for nearly 8% of gross domestic product and employs around one million people. Its performance has improved in recent years, with the country rising from 129th to 88th place in the World Bank’s Logistics Performance Index between 2014 and 2023. However, rapid growth in the number of vehicles has placed increasing pressure on infrastructure, with officials estimating that road capacity will need to expand by about 500% by 2030 to meet rising freight demand.

“Developing efficient and safe road and railway networks is essential to connect people to jobs, support domestic and international trade, and strengthen Uzbekistan’s overall competitiveness,” said Najy Benhassine, the World Bank’s Division Director for Central Asia.

A central component of the project involves reconstructing a 91-kilometer stretch of the M41 highway in Surkhandarya, a region bordering Tajikistan, Kyrgyzstan, and Afghanistan. The existing two-lane road will be expanded into a four-lane highway. Once completed, it is expected to serve around 35,000 drivers and passengers daily and improve access to transport services for approximately 550,000 residents living in nearby communities.

The project will also finance upgrades to road surfaces, safety features, and bus stops, as well as the construction and rehabilitation of around 180 bridges and drainage systems designed to reduce flood risks. These improvements are expected to shorten travel times, with average speeds projected to increase from 65 to about 90 kilometers per hour on interurban sections, and to reduce accidents along the route.

In addition to infrastructure works, the World Bank will support the development of a National Multimodal Transport Strategy. The roadmap is intended to strengthen government capacity, improve coordination between different modes of transport, and promote more resilient and efficient logistics systems.

Further support will be provided to Uzbekistan Railways, aimed at improving corporate governance, financial transparency, service planning, and its ability to attract private investment.

The latest project builds on ongoing cooperation between Uzbekistan and the World Bank. In December last year, the institution approved a $250 million loan to support reforms in the country’s education system through the Edumkon programme, which aims to expand access to higher and vocational education for around 600,000 young people between 2026 and 2028.

Around 106,000 citizens of Uzbekistan went to work in Russia in 2025 through organised recruitment programs, according to a report prepared by Rahim Khakimov, Deputy Adviser to the President of Uzbekistan, and cited by the Russian state news agency TASS.

The report states that about 50,000 of these workers were employed by major companies, including Gazprom, Lukoil, Kamaz, AvtoVAZ, Ozon, and SPAR. Overall, an estimated 1.3 million Uzbek citizens are currently working in Russia on a temporary basis.

The document also highlights ongoing efforts to simplify labor migration procedures. Agreements reached in 2025 provide for the partial transfer of work patent processing stages to Uzbekistan, allowing migrants to complete key formalities before departure. Authorities also plan to expand Russian-language testing by opening new centres in the cities of Jizzakh and Andijan to better serve the densely populated Fergana Valley, where nearly one-third of the country’s population lives.

At the same time, migration trends are gradually shifting. According to Uzbekistan’s Central Bank, Uzbek labor migrants are no longer concentrated solely in traditional destinations such as Russia, Kazakhstan, South Korea, and Turkey. Increasing numbers are seeking employment opportunities in Europe and other parts of Asia.

This diversification is reflected in remittance flows. Data show that transfers to Uzbekistan from the United Kingdom have increased by 39% in recent years, while remittances from European Union countries have risen by 37%. Significant growth has also been recorded from countries such as Ireland, Croatia, Slovakia, Lithuania, and the Netherlands, as well as from the United States and South Korea. Analysts attribute this trend to stable demand for labor abroad, relatively steady wage levels, and favorable currency exchange rates.

According to the International Fund for Agricultural Development (IFAD), Uzbek labor migrants typically send home between $200 and $300 per month. Separate estimates from the Migration Observatory at the University of Oxford suggest that migrants in the United Kingdom remit between £1,000 and £3,300 annually per person. Overall, the average yearly remittance per recipient in Uzbekistan is estimated at between $2,000 and $4,000.

Alongside these broader trends, consular support for Uzbek citizens abroad continues. On March 22, the Dunyo news agency reported that representatives of Uzbekistan’s embassy visited a Temporary Detention Center for Foreign Citizens in Russia’s Tula region. During the visit, Consul General Mehriddin Khairiddinov reviewed living conditions and held talks with Russian officials on accelerating document processing and facilitating the return of detained Uzbek nationals.

“Supporting fellow citizens and providing them with the necessary assistance remain among the priority tasks of the diplomatic mission,” Khairiddinov said, emphasizing that the protection of citizens’ rights is a key principle of Uzbekistan’s state policy.