The Asian Development Bank (ADB) has approved a $100 million loan to finance Project 3 of the Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Program. This loan represents the last tranche of the multitranche financing facility and will fund the project’s road development and road sector sustainability components.
Project 3 of the investment program will upgrade 40 kilometers (km) of the A380 highway—the Uzbekistan section of CAREC Corridor 2—between km 315 and km 355. The road will be upgraded to four lanes with international design standards. Consulting services on procurement and social safeguards, as well as construction supervision will be provided.
As part of the overall road section sustainability plan under the investment program, the project will improve cross-border facilities at Daut-ata, resulting in a shorter cross-border processing time. It will also expand the community development program and institutional capacity.
The overall investment program aims to rehabilitate 220 km of the A380 highway, resulting in better connectivity and improved efficiency of the transport system along the highway. This highway connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan.
To date, the investment program is undertaking reconstruction of about 135 km of the A380 highway. Project 1, financed by the $115 million first tranche, is reconstructing 50 km between km 440 and km 490. The second tranche (Project 2) of $240 million is funding the reconstruction of 85 km between km 355 and km 440.
Having invested $31 million and $49 million for Projects 1 and 2, respectively, the Government of Uzbekistan is providing $17 million in counterpart funding for Project 3.