AIIB approves $173 million for road upgrade in Karakalpakstan and Khorezm

The Asian Infrastructure Investment Bank (AIIB) has approved financing for a project to reconstruct the regional road network in Karakalpakstan and Khorezm. A total of $173.48 million will be provided under the state guarantees of Uzbekistan.

The project covers the reconstruction and major repair of 647 kilometers of local roads, including 28 sections spanning 414 km in Karakalpakstan and 21 sections covering 233 km in Khorezm.

Works will be carried out within the existing road corridors, avoiding land acquisition and resettlement, thereby minimizing social risks.

According to AIIB, the reconstruction will include pavement strengthening, bridge repair and construction, improvement of drainage systems, installation of modern traffic safety equipment, and the construction of bus stops. Sidewalks will be built where necessary to enhance pedestrian safety.

The project’s social components include professional training programs for women and awareness campaigns on climate change and road safety for youth. Additionally, a digital geo-platform will be developed to monitor project implementation and assess socio-economic impacts.

Funding was officially approved on 29 August 2025, while the project concept was initially endorsed in May 2024. AIIB highlights that road modernization in the western regions is particularly important for environmentally vulnerable areas of the Aral Sea region and will contribute to regional economic growth, improved transport connectivity, and better access to social services.