The Asian Infrastructure Investment Bank (AIIB) has approved $173.5mn in a loan for the projects of repair of local roads network in Karakalpakstan and Khorezm province, aimed at enhancing connectivity, mobility, and climate resilience in the country's least-developed western provinces.
The funds will support the Government of Uzbekistan’s strategy to improve transport connectivity, service availability, and climate resilience in the western provinces of the country.
Under a phased financing, the Government of Uzbekistan and AIIB signed a $71.1 million loan agreement for phase I of the local road repair project in Khorezm province. The phase II includes similar work in Karakalpakstan.
The project includes the repair and reconstruction of 516.1 km of local roads: 16 sections (188 km) in 9 districts of Khorezm province and 23 sections (328.1 km) in 14 districts of Karakalpakstan.
“This is a clear example of how the AIIB promotes the development of inclusive and sustainable infrastructure in the participating countries,” said Konstantin Limitovsky, chief of the AIIB Investment Unit. “Together with the Government of Uzbekistan, we are developing a phased investment plan that will improve the connectivity of provinces, increase resilience to climate challenges, and open up new economic opportunities for millions of people.”
