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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.

Construction Infrastructure Asian Development Bank roads reconstruction

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.

roads Route Issyk-Kul Transport

Kazakhstan and Kyrgyzstan Plan Faster Routes from Almaty to Issyk-Kul

Kazakhstan and Kyrgyzstan have taken another step toward implementing a long-discussed infrastructure project: the construction of an alternative highway linking Almaty, Kazakhstan’s largest city, to Lake Issyk-Kul, Kyrgyzstan’s top tourist destination. On March 28, Almaty hosted the sixth meeting of the Kyrgyz-Kazakh Working Group on Transport and Infrastructure Development, held under the framework of the Almaty-Bishkek Economic Corridor Project, with support from the Asian Development Bank. Participants agreed on the key parameters for a feasibility study and committed to accelerating the implementation of the new road. [caption id="attachment_30342" align="aligncenter" width="740"] @AKIPress/The existing road from Almaty to Issyk-Kul and three possible alternative routes[/caption] Lake Issyk-Kul remains a major draw for tourists from across the region and is especially popular with residents of Almaty seeking weekend or summer getaways. Although the two locations are only 80 kilometers apart in a straight line, they are separated by mountain ranges. The existing route detours through Bishkek, extending the distance to more than 460 kilometers and turning what could be a short trip into an 8-hour drive to Cholpon-Ata, the largest resort town on the lake’s northern shore. Kazakhstan and Kyrgyzstan first signed a memorandum of understanding on the construction of an alternative route in 2007, but progress has since stalled. The proposed new highway would bypass Bishkek, passing through the town of Uzynagash, west of Almaty, and the town of Kemin, located approximately 100 kilometers east of Bishkek, before continuing to Cholpon-Ata. This revised route would reduce the total distance to around 260 kilometers, significantly shortening travel time.

economic Infrastructure Development roads Infrastructure Projects Investment Projects

Strategic Bypass Route Opens in Southern Kyrgyzstan

On December 6, Kyrgyzstan’s President Sadyr Japarov inaugurated a new bypass road around Uzgen, a historic city located 56 kilometers northeast of Osh, the largest city in southern Kyrgyzstan. The bypass is designed to alleviate traffic congestion in Uzgen by redirecting vehicles away from the city center. This development is expected to improve traffic flow, reduce travel times, and lower the risk of accidents on the former main route through the city. Construction of the bypass began in January 2024. The project includes two significant bridges: a 197-meter-long bridge spanning the Kara-Darya River and a 77-meter-long bridge over the Jazy River. To address the needs of residents, the project also features underground crossings for pedestrians and livestock and access roads connecting nearby villages. Speaking at the opening ceremony, Japarov emphasized that the Uzgen bypass is Kyrgyzstan’s first infrastructure project completed through a public-private partnership model. He reiterated the government’s dedication to expanding the country’s road network to enhance connectivity and boost logistics capabilities. Japarov also outlined plans for additional road projects, including a proposed 150-kilometer route linking Almaty, Kazakhstan’s largest city, to Kyrgyzstan’s Lake Issyk-Kul. This new route would significantly shorten the current travel distance, providing a faster and more efficient connection between the two destinations. While acknowledging the long-term nature of infrastructure investments, Japarov highlighted their critical importance for national and international development. He encouraged private investors, particularly domestic ones, to participate in upcoming road construction projects. If sufficient local investment is not secured, the government plans to seek foreign partnerships. In his closing remarks, Japarov likened road infrastructure to the "circulatory system" of the state, underlining its fundamental role in driving economic growth. He noted that improved roads enhance regional logistics, foster trade, and promote tourism, all of which are vital for Kyrgyzstan’s development.

roads Infrastructure Development Local Economy Construction Economy Transport

New Road Promised for Kyrgyzstan’s Highest Village

The Ministry of Transport and Communications of Kyrgyzstan has announced a tender for the construction of a road to Kyrgyzstan's highest village of Zardaly in the Batken oblast. Authorities have set aside 389 million KGS ($4.5 million) for the construction of the 4.2 kilometer road and according to published data, bids will be accepted until October 22 this year. The village of Zardaly is located in the highlands on Kyrgyzstan's border with Uzbekistan and Tajikistan. At present, only one narrow, stony road leads to the settlement, accessible only between May to October. With the onset of cold weather, snow makes it impossible to get to the village, and residents are cut off from the outside world. It should be noted that Zardaly lacks cellular communication, the recently installed internet only serves the local school, and there are significant problems with electricity. As a local proverb says, “If there is no urgent business - do not enter Zardaly." On the day prior to the announcement of the tender, Kyrgyz President Sadyr Zhaparov visited Zardaly by helicopter. Whilst there, he promised residents that a highway would be built in the village in spring 2025, after which electricity would be supplied. He also instructed the presidential administration to solve the issue of cellular communications in the region. In earlier complaints about the situation in the village, Kyrgyzstan's ombudsman said that although Zardaly became a village in 2016, residents still require help accessing medical services and quality education.

roads Infrastructure Development Logistics Construction China Transport

Turkmenistan to Build New High-Speed Highway

The private company "Ojar Asia" has signed a contract with the Eurasian representative office of China's Sino Hydro Bureau 12 Co. Ltd., for the parties to jointly build the Serakhs-Mary-Serkhetabat highway in Turkmenistan. This road will have a length of about 450 kilometers. The highway will be an important element of the country's transport infrastructure, and will improve conditions for foreign trade, including the export of Turkmenistan's natural resources. More than $2 billion in investment from Sino Hydro Bureau will finance it, and Ojar Asia will lead the construction. Turkmenistan is developing road infrastructure to improve transportation links and stimulate its economy. Road projects are strategically important as the country plans to integrate the new highways into international East-West and North-South transportation corridors. This helps increase transit transportation and natural resource exports, which are vital in diversifying an economy traditionally dependent on hydrocarbon exports.