Cost of Urgench-Khiva Toll Road Rises to US$150 Million

Tashkent, Uzbekistan (UzDaily.uz) — The construction cost of Uzbekistan's first toll highway connecting Urgench and Khiva has increased from an initial estimate of US$120 million to US$150 million, officials said.

Anvar Davletov, First Deputy Governor of the Xorazm region, announced the updated figure on 25 August 2026 during a ceremony launching new infrastructure facilities attended by President Shavkat Mirziyoyev. The Road Committee subsequently clarified that US$120 million represented the original project budget, marking a US$30 million, or 25 percent, cost increase.

The new 35-kilometer, four-lane highway connects Urgench and Khiva, cutting travel time between the two cities to approximately 15 to 20 minutes. Regional authorities expect the infrastructure to support the tourism potential of the Xorazm region.

The infrastructure buildout includes one underground tunnel, eight overpasses, 15 bridges, and 106 culverts. The initial project outline planned for 17 bridges, eight overpasses, one tunnel, and seven specialized crossings. The road is designed to handle a capacity of approximately 20,000 vehicles per day.

Construction on the highway began in February, with design and engineering work conducted concurrently alongside physical construction—a factor noted in reported data as carrying potential risks for project adjustments and cost overruns.

The Directorate for Construction and Reconstruction of Public Roads under the Road Committee serves as the project developer, with construction executed by enterprises within the committee's structure. Financing is provided through external investment funds alongside the Fund for Reconstruction and Development of Uzbekistan. Specific details regarding the identity of the external investor and individual funding shares were not disclosed.

President Shavkat Mirziyoyev characterized the highway as the country's pilot toll road project, noting its implementation in Xorazm forms part of preparations for designating 2027 as the Year of Xorazm in Uzbekistan.

Toll operations began in August. The toll fee for passenger cars traveling the entire route is set at 25,000 soums, while a shortened 28-kilometer section costs 20,000 soums. Toll collection is processed electronically without requiring vehicles to stop. On 18 August 2026, President Mirziyoyev traveled along the new route from Khiva to Urgench International Airport.