ADB approves $233 million loan to upgrade Karakalpakstan highway

The Asian Development Bank (ADB) has approved a $233.1 million loan to Uzbekistan to modernize a key section of the Central Asia Regional Economic Cooperation (CAREC)-2 corridor, the ADB press service announced.

The CAREC-2 Road Rehabilitation and Modernization Project will upgrade about 87 kilometers of the Guzar–Bukhara–Nukus–Beyneu (A380) highway in Karakalpakstan. Plans include constructing a 75-kilometer bypass between Tortkul, Ellikkal’a, and Beruniy, as well as reconstructing a 12-kilometer stretch of the existing A380. The project will feature climate-resilient measures such as concrete pavement, elevated embankments, and improved drainage systems to mitigate the effects of climate change and extreme weather.

“These investments will strengthen Uzbekistan’s role as a regional transit hub and support inclusive economic growth in Karakalpakstan. Implementing climate-resilient infrastructure and intelligent transport systems will ensure long-term sustainability and make travel safer and more efficient for people and businesses,” said Kanokpan Lao-Araya, ADB Country Director for Uzbekistan.

The project will also introduce intelligent transport systems and smart road technologies to improve traffic monitoring, enforce axle-load regulations, and lower road maintenance costs. Five service areas will be built along the corridor, equipped with electric vehicle charging stations and gender-sensitive facilities designed to ensure safety and accessibility for women.

Total project costs are estimated at $293.7 million, with the Uzbek government contributing $60.6 million. The initiative supports Uzbekistan’s Strategy 2030 and aligns with ADB’s 2030 Strategy priorities, including climate resilience, gender equality, and regional integration.

This year marks 30 years of ADB’s partnership with Uzbekistan. Since the country joined the bank in 1995, ADB has provided nearly $14.3 billion in loans, grants, and technical assistance to Uzbekistan’s public sector.

Established in 1966, ADB has 69 member countries, 50 of which are located in the Asia-Pacific region.

Earlier this year, the World Bank approved a $150 million concessional loan to Uzbekistan for a project to expand small hydropower and improve the reliability of electricity supply nationwide.