World Bank to provide $200 mln for transport infrastructure modernization in southern Uzbekistan
TASHKENT. March 24 (Interfax) - The World Bank's Board of Executive Directors has approved a $200 million project to help Uzbekistan modernize transport infrastructure in the country's Surkhandarya region, the World Bank said in a press release.
The five-year project will contribute to the creation of new jobs and businesses along a reconstructed section of the M41 regional road corridor connecting Uzbekistan with Tajikistan, Kyrgyzstan and Afghanistan.
The existing M41 two-lane road will be expanded into a four-lane highway. The project will finance civil works to improve pavement quality, road safety features and bus stop accessibility, as well as to build and rehabilitate around 180 bridges and drainage structures designed to withstand flooding risks.
These activities will help reduce road accidents and fatalities along the reconstructed section, shorten travel time with average speeds expected to increase from 65 to about 90 km/h in interurban sections, boost the reliability of passenger and freight transport, and strengthen Surkhandarya region's connectivity with the rest of Uzbekistan and neighboring countries.
The project will assist the Transport Ministry in developing a National Multimodal Transport Strategy to improve transport services and infrastructure. The strategy will strengthen resilience to supply chain and weather-related disruptions, and support lower-emission solutions.
The project will help JSC Uzbekistan Railways to improve its business processes, corporate governance, financial transparency, passenger service planning, and environmental, social, and governance practices. These measures will enhance the railway company's operational efficiency and performance, as well as strengthen its ability to attract private investment.
Project-related activities are expected to contribute to the creation of additional new and better-quality jobs across the transport, trade and tourism, increase passenger and transit freight volumes and better leverage Uzbekistan's position as a regional transit hub.
Uzbekistan's transport sector, which contributes to nearly 8% of the country's GDP and employs about a million people, has significantly improved its performance over the past decade, climbing from 129th to 88th place between 2014 and 2023 in the World Bank's Logistics Performance Index.
But the rapid expansion of the vehicle fleet is far outpacing the growth of road infrastructure, increasing pressure on Uzbekistan's transport network. Road capacity will need to expand dramatically, by around six-fold by 2030.
Uzbekistan is one of the World Bank's largest beneficiaries, with a project portfolio currently exceeding $14 billion. A regional World Bank office has opened in Tashkent.
