The European Bank for Reconstruction and Development (EBRD) has announced a financial contribution towards the enhancement of crucial transportation infrastructure in Uzbekistan. With a commitment of $238mn, the EBRD aims to support the upgrade and expansion of a pivotal transportation route within the country.
This substantial sovereign loan, amounting to $238mn (€224mn), will facilitate the rehabilitation and expansion of approximately 81 kilometers of the 4R156 road, along with the construction of a bridge spanning the Amu Darya River in the Khorezm region of western Uzbekistan. The 4R156 road serves as an essential link connecting Urgench, the regional administrative center, with the A380 road leading to Kazakhstan, thus forming a vital segment of the Central Asia Regional Economic Cooperation Corridor 2.
The transformative project will see the conversion of the current single-carriageway category-II road into a dual-carriageway category-I road, significantly bolstering its capacity and efficiency. Additionally, the funds provided by the EBRD will facilitate the modernization of supporting infrastructure along the 4R156 route. These developments are poised to catalyze trade and tourism in the Khorezm region, stimulating economic growth and regional connectivity.
In expressing the EBRD's commitment to the project, President Odile Renaud-Basso emphasized its alignment with strategic objectives for Uzbekistan and Central Asia. Renaud-Basso noted that the initiative also resonates with the European Union's Global Gateway initiative, which underscores the importance of robust transport and logistics infrastructure on a global scale.
“We are supporting this project because it meets our strategic objectives for Uzbekistan and Central Asia. It is also part of the global transport and logistics infrastructure solutions covered by the European Union’s (EU) Global Gateway initiative,” President Odile Renaud-Basso voiced.
The announcement comes on the heels of the EBRD's pledge, made during the Investors Forum for EU-Central Asia Transport Connectivity in Brussels in January 2024, to invest approximately €1.5bn in infrastructure related to the Trans-Caspian Corridor and associated transport solutions over the next two to three years. This reaffirms the EBRD's commitment to fostering regional connectivity and economic development in Central Asia.
Uzbekistan has emerged as the primary recipient of EBRD funding in Central Asia for the fourth consecutive year. The EBRD's investments in the country have totaled around €4.42bn across 151 projects, with a focus on bolstering private entrepreneurship and fostering sustainable economic development.
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