Islamic Development Bank allocates $164 million for roads and education in Uzbekistan

The Islamic Development Bank (IsDB) will provide Uzbekistan with $70 million for road reconstruction and $94.06 million for education, according to an announcement on the bank’s official website.

The funding agreements were signed on February 8 during the second AlUla Conference on Emerging Market Economies. IsDB President Muhammad Al Jassir and Uzbekistan’s Deputy Prime Minister – Minister of Economy and Finance Jamshid Qo‘chqorov signed the agreements to advance key infrastructure and social development projects.

Prior to the signing, both sides held bilateral talks to discuss expanding IsDB–Uzbekistan cooperation and accelerating high-impact initiatives aligned with the country’s national development goals.

The first agreement covers the initial $70 million tranche of a total $192 million allocated by IsDB. The funds will be used to reconstruct the 4R40 Dashtobod–Zomin–Baxmal–G‘allaorol highway. The project includes rebuilding 143 kilometers of the regional highway in Jizzakh province and repairing 30 kilometers of local and rural roads.

The initiative aims to eliminate bottlenecks on transit routes and improve the safety of around 200,000 residents. By modernizing this key road connecting to the M39 international route, the project is expected to enhance access to markets and social services, while boosting the region’s economic and tourism potential.

The second agreement formalizes a $94.06 million portion of IsDB’s $160.25 million contribution for the SmartEd project.

Under SmartEd, 58 new educational institutions will be built and equipped nationwide, and 2,431 additional classrooms will be added to existing schools. The project will benefit 72,930 students annually by establishing an inclusive, competency-based education system and will provide specialized training programs for over 36,115 teachers and administrative staff.

Earlier, the Asian Development Bank approved a $233.1 million loan to Uzbekistan for the modernization of the main section of the Central Asia Regional Economic Cooperation corridor.