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Infrastructure Development

Uzbekistan and Islamic Development Bank Sign $164 Million Agreements for Roads and Schools

Uzbekistan and the Islamic Development Bank (IsDB) have signed new financing agreements totaling $164 million to support major infrastructure and education initiatives, further deepening a partnership that plays a key role in the country’s long-term development strategy. The agreements were formalized on February 8 in AlUla, Saudi Arabia, during the Second AlUla Conference for Emerging Market Economies. Prior to the signing, both sides held bilateral talks focused on scaling up cooperation across transport, education, and other high-priority sectors. The discussions emphasized the importance of projects that strengthen regional connectivity and human capital. Road Infrastructure: 4R40 Project One agreement allocates $70 million under the IsDB’s broader $192 million commitment for the 4R40 road project. The funds will support the reconstruction of 143 kilometers of the Dashtabad-Zaamin-Bakhmal-Galyaaral highway, as well as the rehabilitation of 30 kilometers of local and rural roads in the Jizzakh region. The road upgrades are expected to ease transit bottlenecks, enhance safety, and improve access to markets and public services for approximately 200,000 residents. The project will also strengthen regional links to the M39 international transport corridor. Education Reform: SmartEd Project The second agreement covers $94.06 million, part of a total contribution of $160.25 million for the SmartEd project, a national initiative aimed at transforming Uzbekistan’s education system. Funds will be used to build and equip 58 new schools and expand existing institutions with an additional 2,431 classrooms. The initiative targets nearly 73,000 students annually, with provisions for specialized training for over 36,000 teachers and administrators. The project is designed to promote a competency-based, inclusive education system. A Broader Partnership These new agreements build on earlier commitments. At the first AlUla conference in February 2023, Uzbekistan and the IsDB signed $299 million in financing deals, laying the foundation for the infrastructure and education reforms now entering the implementation phase.

Lake Issyk-Kul

Kazakhstan and Kyrgyzstan Plan Shorter Route from Almaty to Lake Issyk-Kul

Kazakhstan has formed a working group to develop a shorter road route from Almaty to Lake Issyk-Kul in Kyrgyzstan, which could reduce travel time by nearly half. The initiative, reported by Kazakh media, aims to improve regional connectivity and enhance tourism flows between the two countries. According to Kazakhstan's Ministry of Transport, the proposed route will serve as an alternative to the current 460-kilometer drive through Korday and Bishkek. The new road is expected to be approximately 277 kilometers long, with a travel time of about three hours. Preliminary estimates indicate the road will traverse roughly equal distances in both countries: 127 kilometers in Kazakhstan and 150 kilometers in Kyrgyzstan. Much of the required infrastructure is already in place. Kazakhstan will need to repair about 80 kilometers of road, while Kyrgyzstan is expected to reconstruct just six kilometers. The project was initiated by the Asian Development Bank (ADB), which has committed grant funding for the development of a feasibility study. An agreement to that effect was signed in December 2024. In spring 2025, Kazakhstan and Kyrgyzstan established a joint working group to develop infrastructure for the Almaty-Bishkek and Almaty-Issyk-Kul economic corridors. That summer, both countries also began upgrading border crossing facilities. The current phase of the project involves preparing the feasibility study. The study, led by the Kazakh authorities in collaboration with the Eurasian Development Bank, is expected to be completed by September 2026. It will determine the road’s exact route, classification, projected traffic volume, financial model, and potential toll structure. Early indications suggest the road may operate as a toll road. Once approved by both governments, the feasibility study will serve as the basis for a final construction decision. Project financing is expected to follow a public-private partnership model, including the formation of a joint venture between Kazakhstan and Kyrgyzstan. The idea of creating a direct route to Issyk-Kul for Kazakh tourists has been under discussion for decades. Since Kyrgyzstan’s independence, successive presidents have expressed support for the project, but political disagreements have repeatedly stalled progress. Similar political issues prevented the reopening of a once-popular hiking trail from Almaty to Issyk-Kul. During the Soviet era, tourists could walk from Kol-Sai to Issyk-Kul via the Kyrgyz village of Tyup, roughly a 30-kilometer journey. The trail remained active until the 2000s, when it was closed due to bilateral tensions. A final attempt to revive cross-border tourism occurred in August 2022, when a delegation of politicians, journalists, and tourism experts retraced the route. While the two governments agreed on border and passport control protocols, the initiative was soon suspended again. Experts suggest that, with sustained political will, both the highway project and the restoration of the historic hiking route could be implemented in the future.

roads

Kazakhstan Develops Technology to “Revive” Worn Asphalt

Scientists at the Kazakh Road Research Institute (KazdorNII) are developing a technology that restores worn asphalt for reuse in highway repair and construction. According to the institute, the project involves the creation of an innovative restorative compound. Experts say that the regeneration process could significantly reduce construction waste, lower energy consumption, and cut CO₂ emissions during asphalt production. This model supports more sustainable road construction by giving materials a “second life.” “We are developing solutions that allow existing resources to be restored instead of consuming new ones. This will not only reduce the burden on the environment but also make the road industry more efficient and technologically advanced,” said Saltanat Ashimova, head of the department of road construction materials and new technologies at the institute. The initiative is part of a grant awarded through a competition for scientific and technical projects for 2025-2027. The research is focused on integrating green technologies into road construction. The institute expects the new compound to be environmentally friendly, produced domestically, and adapted to Kazakhstan’s climate and road conditions. Its use is expected to improve road surface durability and quality, while supporting the country’s shift toward a sustainable economy. As previously reported by The Times of Central Asia, severe road surface deformations were recorded across inter-city highways in Kazakhstan this summer amid extreme heat.

Trade

Kyrgyzstan Begins Building Strategic Highway to China’s Xinjiang

Kyrgyzstan has begun construction on the Barskoon-Bedel highway, a key section of the future Barskoon-Uchturfan-Aksu corridor that will link the Issyk-Kul region with China’s Aksu prefecture in Xinjiang via the Bedel Pass. The new road is expected to shorten the distance between Aksu and Kyrgyzstan by 500 kilometers, saving at least 12 hours of travel time for freight carriers. Route and Infrastructure The highway will cross the Barskoon and Soek passes, the Kara-Sai valley, and the Ashuu-Suu pass. To ensure year-round use, the project includes construction of a 5.5 km tunnel under the Soek pass and a 3.8 km tunnel beneath the Ashuu-Suu pass, both areas prone to heavy winter closures. Timeline and Contractor Construction is being carried out by China Road and Bridge Corporation (CRBC). The main roadworks are scheduled for completion in September 2029, with full commissioning of the highway and supporting facilities expected by September 2030. The Bedel checkpoint, first opened under a simplified regime in September 2024, lies in a remote mountain zone roughly equidistant from Karakol in Kyrgyzstan and Aksu in China. Its full-scale development with international-standard infrastructure is slated for completion by 2027. Trade and Regional Connectivity Once finished, the Barskoon-Bedel corridor will become Kyrgyzstan’s third road crossing with China, alongside the Irkeshtam (Osh region) and Torugart (Naryn region) passes. Unlike the older routes, which are frequently closed during winter, the new corridor is designed to provide a more reliable and time-efficient link. The project is expected to strengthen Kyrgyzstan’s role as a transit hub for Chinese goods heading to third-country markets. Bilateral trade between Kyrgyzstan and China reached $23 billion in 2024, an eightfold increase in recent years. Chinese Support Speaking at the ceremony, Chinese Ambassador Liu Jiangping said the new highway is part of a wider set of strategic projects advancing between the two countries, aimed at accelerating cargo flows and expanding trade, investment, and economic cooperation.

Rural development

AIIB and Uzbekistan Finalize $71.1 Million Loan for Climate-Resilient Rural Roads

Uzbekistan and the Asian Infrastructure Investment Bank (AIIB) have concluded a $71.1 million loan agreement to upgrade rural roads in the Khorezm and Karakalpakstan regions. The deal was finalized during the AIIB’s 10th Annual Meeting in Beijing. The loan will finance the first phase of the Karakalpakstan and Khorezm Local Roads Network Reconstruction Project, which aims to modernize rural road infrastructure to improve climate resilience and community accessibility. The project is expected to facilitate better access to markets and essential public services for rural populations. The total cost of the project is projected at $173.4 million, with a second loan tranche planned to cover the remaining amount. The initial phase will prioritize road improvements in Khorezm, while the second tranche will address road upgrades in the Republic of Karakalpakstan. According to the AIIB, a phased approach will allow Uzbekistan to better manage its fiscal resources and enhance project planning and execution. This method also enables the bank to provide tailored technical assistance and integrate lessons learned from earlier phases into subsequent work. This initiative builds on a broader partnership between Uzbekistan and the AIIB. In 2024, the bank approved a $250 million program to support the country's transition to a greener economy. That package includes measures to reduce greenhouse gas emissions, reform climate-related policies, and promote sustainable land and water management, as well as low-carbon transportation and energy solutions. The AIIB also backs Uzbekistan’s efforts to boost energy efficiency, expand renewable energy capacity, promote e-mobility, and encourage state-owned enterprises to adopt climate risk reporting practices. The rural roads project aligns with Uzbekistan’s wider development agenda, which includes modernizing infrastructure, revitalizing underserved regions, and fostering long-term sustainability.

Infrastructure

ADB Finances 90% of Road Projects in Tajikistan’s Regions

The Asian Development Bank (ADB) has financed the construction and reconstruction of 90% of all roads in Tajikistan outside the capital, Dushanbe. This was announced by Evgeny Zhukov, ADB Director General for Central and West Asia, during the 58th Annual Meeting of the Bank’s Board of Governors in Milan. Tajikistan’s Largest Transport Infrastructure Investor According to Zhukov, Tajikistan has long been a key partner for the ADB. Since the start of cooperation, the bank has invested approximately $2.7 billion in the country, with the majority of funds directed toward public sector development. “If you travel outside Dushanbe, there is a 90% chance the roads you are on were built or modernized with ADB support. This confirms the effectiveness of our investments,” Zhukov stated. Laziza Sabirova, Head of Regional Cooperation and Integration at the ADB’s Central and West Asia Department, emphasized the bank’s commitment to quality control. An independent unit evaluates whether project outcomes align with initial objectives and ensures efficient use of funds. “These specialists assess each project’s relevance and effectiveness, checking if goals were achieved, whether there was overspending, and evaluating construction quality. Post-completion, they also analyze facility use, maintenance, and any further funding needs,” Sabirova explained. Zhukov also highlighted the ADB’s intent to strengthen cooperation with other international financial institutions, including the World Bank and the Asian Infrastructure Investment Bank. One of the largest upcoming joint initiatives will involve funding the Rogun hydroelectric power plant. The ADB plans to allocate up to $500 million for this project in the coming years. Future Development Plans Earlier announcements indicated that the ADB is planning around 20 major projects in Tajikistan between 2025 and 2029. These initiatives span agriculture, social services, urban development, and energy. Particular emphasis will continue to be placed on improving transport infrastructure to enhance domestic logistics and boost economic ties with neighboring countries. Currently, the ADB’s portfolio in Tajikistan includes 19 ongoing public investment projects valued at about $1 billion. These cover key sectors such as energy, healthcare, water supply, irrigation, environmental protection, and tourism. In support of these efforts, the ADB has also provided 12 technical assistance grants totaling $11.2 million. Supporting Economic Stability Ko Sakamoto, the ADB’s permanent representative in Tajikistan, affirmed the bank’s ongoing partnership with the government to reinforce economic stability and improve living standards. “Our collaboration with local partners is already producing tangible results, and we are confident that upcoming projects will contribute to sustainable development,” Sakamoto said. Tajikistan remains one of the largest recipients of ADB grants in Central Asia. Since the beginning of their partnership in 1998, the ADB has delivered significant financial support for vital infrastructure projects, helping lay the groundwork for long-term economic progress.