World Bank Approves $200 Million for Road and Transport Reforms in Uzbekistan
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.
