World Bank Approves $200 Million for Uzbekistan's M41 Highway Upgrade

The World Bank has approved a $200 million financing package to support a major infrastructure project in Uzbekistan. The funds are allocated for the reconstruction of a 91-kilometer section of the M41 regional highway in the Surkhandarya region.

The five-year initiative aims to transform this critical transport corridor, which connects Uzbekistan with Tajikistan, Kyrgyzstan, and Afghanistan. A core component is widening the road from two to four lanes. The upgrade is expected to significantly improve traffic flow and safety for an estimated 35,000 daily users and enhance transport access for approximately 550,000 people living in adjacent areas.

Beyond physical expansion, the project encompasses comprehensive improvements. These include enhancing road surfaces, modernizing bus stops, and constructing or rehabilitating around 180 bridges and drainage structures to bolster flood protection. These measures are projected to reduce traffic accidents and increase average travel speeds from 65 km/h to about 90 km/h outside populated areas.

The investment also supports broader sectoral reforms within Uzbekistan's transport system. The country's logistics performance has improved markedly over the past decade, rising from 129th place in the Logistics Performance Index in 2014 to 88th in 2023 among 139 nations. However, rapid growth in the vehicle fleet is outpacing road network development; estimates suggest road capacity needs to increase by roughly 500% by 2030 to handle growing freight volumes.

To address these systemic challenges, part of the funding will assist the Ministry of Transport in developing a national strategy for multimodal transport. This framework is intended to improve system management, enhance coordination between different transport modes, and build resilience against supply chain disruptions and climate risks.

Furthermore, the project targets reforms for Uzbekistan Railways (O‘zbekiston temir yo‘llari). Planned measures focus on strengthening corporate governance, increasing financial transparency, improving passenger service planning, and adopting modern environmental, social, and governance (ESG) standards. These steps are designed to boost operational efficiency and attract private investment.

The overall initiative is anticipated to generate new employment opportunities in transport, trade, and tourism sectors. By increasing passenger transit volumes and industry revenues, it aims to solidify Uzbekistan's position as a key regional transit hub.