Tashkent, Uzbekistan (UzDaily.com) — During the tenth annual meeting of the Asian Infrastructure Investment Bank (AIIB), the Republic of Uzbekistan and the AIIB concluded negotiations on a US$71.1 million loan to upgrade local road infrastructure in the Republic of Karakalpakstan and Khorezm Region.

This financing represents the first tranche of a two‑phase program totaling US$173.4 million, pending approval by the President of the AIIB. Once implemented, the project will deliver a climate‑resilient, inclusive transport network that enhances rural communities’ access to markets and essential social services in Karakalpakstan and Khorezm.

Disbursement will proceed in stages. The initial phase focuses on reconstructing priority rural roads in Khorezm Region, while the second phase will cover repair and modernization of rural arteries in the Republic of Karakalpakstan.

Such a phased approach enables the Government of Uzbekistan to allocate budgetary resources efficiently, set priorities flexibly in line with national infrastructure goals and ensure effective project delivery. The AIIB will continue to provide support throughout the project lifecycle, including monitoring, institutional capacity building and knowledge transfer.

Final consideration of this project’s financing by the President of the AIIB is expected in the third quarter of 2025.

The Asian Infrastructure Investment Bank, established in 2016, is an international financial institution with 110 member countries and an authorized capital of US$100 billion. Rated AAA by major international agencies, the AIIB’s mission is to promote economic growth through support for sustainable development, regional cooperation and infrastructure investment.