Uzbekistan and the Asian Infrastructure Investment Bank (AIIB) have concluded negotiations on a $71.1mn loan to improve local road networks in the Khorezm and Karakalpakstan regions. The agreement was reached on the sidelines of AIIB’s 10th Annual Meeting in Beijing.
The funding forms the first tranche of a larger $173.4mn loan package aimed at enhancing climate-resilient and inclusive road transport infrastructure.
The two-phase project, titled the Karakalpakstan and Khorezm Local Roads Network Reconstruction Project, will be submitted for formal approval by the AIIB president.
The first loan tranche will focus on upgrading priority rural roads in Khorezm, while the second tranche will target roads in the Republic of Karakalpakstan. The phased approach is designed to help Uzbekistan better manage budget allocations, align with national infrastructure priorities, and improve implementation efficiency.
The project will also contribute to building institutional capacity and offer flexibility in delivery through tailored support mechanisms across both tranches.
Founded in 2016, the Asian Infrastructure Investment Bank is a multilateral development institution focused on financing sustainable infrastructure projects across its 110 member countries. With a capital base of $100bn and AAA credit ratings, AIIB aims to promote regional connectivity and economic development through partnerships and long-term investments.
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