Uzbekistan and the Asian Infrastructure Investment Bank (AIIB) have completed negotiations on a $71.1 million loan for the Khorezm and Karakalpakstan province local roads reconstruction project.
This loan is expected to be the first of a two-stage financing worth total of $173.4 million. The decision on its provision will be submitted for approval by the AIIB President.
The project is aimed at developing climate-resilient and inclusive transport links with markets and social services in Karakalpakstan and the Khorezm provinces of Uzbekistan.
The project is planned to be financed in two stages. The first tranche will be directed to priority rural roads in the Khorezm province, the second - to rural roads in Karakalpakstan.
“The phased approach to financing allows the Government of Uzbekistan to more effectively use budget funds, align them with national infrastructure priorities and ensure consistent implementation of the project,” the statement concluded.
