The World Bank’s Board of Executive Directors has approved a $200 million project to modernize transport infrastructure in Uzbekistan’s Surkhandarya region. The project aims to create new jobs and business opportunities along a reconstructed section of the M41 regional road corridor while supporting comprehensive reforms in the country’s transport sector.
Uzbekistan’s transport sector contributes nearly 8 percent of GDP and employs around one million people. It has improved significantly over the past decade, rising from 129th to 88th place in the World Bank’s Logistics Performance Index between 2014 and 2023. However, rapid growth in the vehicle fleet is outpacing road infrastructure expansion, and road capacity will need to increase by about 500 percent by 2030 to meet projected freight volumes.
The five-year project includes the reconstruction of a 91-kilometer section of the M41 road, expanding it from two lanes to a four-lane highway. The improved road will benefit approximately 35,000 drivers and passengers daily and enhance economic opportunities for around 550,000 residents in surrounding communities. Civil works will include pavement upgrades, road safety features, bus stop accessibility improvements, and the construction or rehabilitation of 180 bridges and drainage structures designed to withstand flooding risks. These measures are expected to reduce accidents, shorten travel times, boost transport reliability, and strengthen regional connectivity with neighboring countries.
The project will also support the Ministry of Transport in developing a National Multimodal Transport Strategy to guide infrastructure improvements, enhance government capacity, and promote data-driven decision-making. The strategy will aim to improve passenger and freight transport, strengthen resilience to disruptions, and promote lower-emission solutions without increasing costs.
Additionally, the project will invest in Uzbekistan Railways JSC to enhance business processes, corporate governance, financial transparency, passenger service planning, and environmental, social, and governance practices. These efforts are expected to improve operational efficiency, performance, and the company’s ability to attract private investment.
Together, the project’s activities are anticipated to create new and better-quality jobs, increase passenger and transit freight volumes, boost transport sector revenues, and strengthen Uzbekistan’s position as a regional transit hub, supporting long-term economic growth and connectivity.
