Uzbekistan, Tashkent, Aug. 24 / Trend D.Azizov /
The Asian Development Bank (ADB) is providing a multitranche financing facility of up to $500 million to help Uzbekistan reconstruct around 230 kilometers of poor quality roads, which will improve road connectivity and safety, and boost trade along a key regional transport corridor linking Asia to Europe, the ADB reported.
The ADB Board of Directors approved the multitranche financing facility for the Second Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Program. The first tranche of $130 million will be used to rehabilitate a 74-km section of A373 highway running through the Fergana Valley, where a third of all Uzbeks live and a large proportion of the country's agricultural goods are produced. Assistance will also be given for road safety and asset management improvements, the report reads.
The financing facility will release loans for three separate projects under the investment program. A total of $320 million will come from ADB's ordinary capital resources and up to $180 million from its concessional Asian Development Fund. The first tranche loan will have a 24-year term, with a 4-year grace period and annual interest determined in accordance with ADB's LIBOR-based lending facility.
The Government of Uzbekistan will extend counterpart funds of $100 million for a total program cost of $600 million. The Ministry of Finance-controlled Republican Road Fund will be the executing agency for the program which is due for completion in March 2017.
Earlier, Uzbek President Islam Karimov approved a program on national road construction until 2015. The program is worth $2.6 billion. Construction of four roads is planned along the Beinau-Kungrad-Bukhara-Samarkand-Tashkent-Andijan, Bukhara-Alat, Bukhara-Karshi-Guzar-Termez, and Samarkand-Guzar routes.
Under the program, 400 kilometers of four-lane cement concrete roads and 813 kilometers of four-lane asphalt roads are planned for construction, as well as 288 kilometers of two-lane asphalt roads. The program envisages construction of seven transport road junctions and 1,488 kilometers of bridges and underpasses.
In addition to the ADB funds, the project will be financed by the Uzbek government for $1.68 billion of credit from the Asian Development Bank (ADB), a credit line from China, the SCO member-states, and other international financial institutes.
The total length of Uzbek roads is 146,400 kilometers. About 20 international transport routes run through the country.