ADB Grants $233M Loan to Modernize Climate-Resilient Road Corridor in Uzbekistan

Beyond road upgrades, the project will also enhance efficiency and safety through the introduction of intelligent transport systems (ITS) and weigh-in-motion technologies.

 

The Asian Development Bank (ADB) has approved a $233.1 million loan to the Republic of Uzbekistan to modernize a crucial section of the Central Asia Regional Economic Cooperation (CAREC) Road Corridor 2, a major regional transport artery. The project is expected to improve connectivity, enhance road safety, and build climate resilience while supporting inclusive economic development in the western part of the country.

Upgrading the A380 Highway in Karakalpakstan

The CAREC Road Corridor 2 Resilience and Modernization Project focuses on upgrading approximately 87 kilometers of the Guzar–Bukhara–Nukus–Beyneu (A380) highway in the Republic of Karakalpakstan. Key works include:

• Construction of a new 75 km bypass (Turtkul–Ellikkala–Beruniy) to divert traffic from heavily congested areas.

• Reconstruction of a 12 km stretch of the existing A380 highway.

• Incorporation of climate-resilient engineering features such as cement concrete pavement, elevated embankments, and improved drainage systems to withstand extreme weather and climate-related impacts.

According to Kanokpan Lao-Araya, ADB Country Director for Uzbekistan, the project will “strengthen Uzbekistan’s role as a regional transit hub and support inclusive economic growth in Karakalpakstan,” while embedding sustainable practices into national infrastructure planning.

Intelligent Transport Systems and Modern Facilities

Beyond road upgrades, the project will also enhance efficiency and safety through the introduction of intelligent transport systems (ITS) and weigh-in-motion technologies. These measures will improve traffic monitoring, ensure compliance with axle load regulations, and reduce long-term road maintenance costs.

In addition, five new rest and service areas will be built along the corridor. These will include:

• Electric vehicle charging stations to support the shift toward cleaner mobility.

• Gender-responsive facilities, ensuring safe and accessible amenities for women and other vulnerable groups.

Financing and Strategic Alignment

The total project cost is estimated at $293.7 million, with the Government of Uzbekistan contributing $60.6 million. The project is fully aligned with Uzbekistan’s Strategy 2030 and ADB’s own Strategy 2030 operational priorities, which emphasize climate resilience, regional integration, and gender equality.

By modernizing a vital trade and transport route, the project will facilitate regional connectivity within CAREC countries, contributing to cross-border trade and economic integration in Central Asia.

A 30-Year Partnership Between ADB and Uzbekistan

The approval of this loan coincides with the 30th anniversary of Uzbekistan’s partnership with ADB. Since joining the bank in 1995, Uzbekistan has received commitments totaling about $14.3 billion in loans, grants, and technical assistance. These investments have supported infrastructure, social development, and economic reforms across the country.

The new road project is expected to have long-term benefits by reducing travel time, enhancing trade efficiency, and improving the mobility of communities and businesses in one of Uzbekistan’s most strategically important regions.

Looking Ahead

With climate change intensifying challenges for infrastructure in Central Asia, ADB’s emphasis on climate-resilient road design marks a significant step forward. By combining sustainable engineering, smart transport systems, and inclusive service facilities, the project offers a model for modern, future-ready infrastructure development.

For Uzbekistan, the modernization of CAREC Corridor 2 not only improves domestic transport but also strengthens its position as a key regional transit hub, linking Central Asia more effectively with global markets.