World Bank approves $200 million to modernize Uzbekistan’s transport infrastructure

Uzbekistan’s transport sector currently accounts for nearly 8% of the national GDP and employs approximately one million people. While the country improved its standing in the World Bank’s Logistics Performance Index – rising from 129th to 88th place between 2014 and 2023 – the rapid expansion of the domestic vehicle fleet continues to outpace infrastructure growth. Experts estimate that road capacity must expand by 500% by 2030 to accommodate projected freight volumes.

“Developing efficient and safe road and railway networks is essential to connect people to jobs, support domestic and international trade, and strengthen Uzbekistan’s overall competitiveness,” said Najy Benhassine, World Bank Country Director for Central Asia.

Upgrading the M41 regional corridor

A primary component of the project involves supporting the Avtoyulinvest Agency under the Committee for Roads to reconstruct a 91-kilometer section of the M41 highway in the Surkhandarya region. This critical corridor connects Uzbekistan with Tajikistan, the Kyrgyz Republic, and Afghanistan.

Key infrastructure improvements include:

• Capacity expansion: Expanding the existing two-lane road into a four-lane highway.
• Structural rehabilitation: Building or rehabilitating approximately 180 bridges and drainage structures designed to withstand flooding.
• Safety and accessibility: Enhancing pavement quality, road safety features, and bus stop accessibility.

Once completed, the reconstructed section is expected to benefit 35,000 daily commuters and provide 550,000 local residents with improved access to transport and economic opportunities. Average interurban travel speeds are projected to increase from 65 km/h to 90 km/h.

National strategy and multimodal connectivity

The project will also assist the Ministry of Transport in developing a National Multimodal Transport Strategy. This roadmap is designed to shift the sector toward data-driven decision-making, improving the synergy between different modes of transport.

The strategy aims to strengthen supply chain resilience against weather-related disruptions and promote lower-emission solutions without increasing operational costs.

Reforming the railway sector

In addition to roadworks, the investment will support Uzbekistan Railways JSC in enhancing its corporate structure. These activities will focus on:

• Improving business processes and financial transparency.
• Enhancing passenger service planning.
• Implementing Environmental, Social, and Governance (ESG) practices.

These reforms are intended to boost the operational efficiency of the national railway and increase its attractiveness to private investors.

By leveraging Uzbekistan’s geographical position as a regional transit hub, the project is expected to stimulate job creation across the trade, tourism, and transport sectors while significantly increasing transit freight volumes and national revenues.