WASHINGTON, March 23, 2026 - The World Bank's Board of Executive Directors has approved a $200 million project to help Uzbekistan modernize transport infrastructure in the country's Surkhandarya region. It will contribute to the creation of new jobs and businesses along a reconstructed section of the M41 regional road corridor. The project will also support the authorities in implementing comprehensive reforms in the transport sector.
Uzbekistan's transport sector, which contributes to nearly 8 percent of the country's GDP and employs about a million people, has significantly improved its performance over the past decade, climbing from 129th to 88th place between 2014 and 2023 in the World Bank's Logistics Performance Index.
At the same time, the rapid expansion of the vehicle fleet is far outpacing the growth of road infrastructure, increasing pressure on Uzbekistan's transport network. Road capacity will need to expand dramatically, by around 500 percent by 2030, to accommodate the projected growth in freight volumes passing through the country.
"Developing efficient and safe road and railway networks is essential to connect people to jobs , support domestic and international trade, and strengthen Uzbekistan's overall competitiveness," said Najy Benhassine, World Bank Division Director for Central Asia. "Through this new project, the World Bank will support Uzbekistan in improving transport infrastructure and services as well as reforming the transport sector."
The five-year project includes the following components:
1) Support the Avtoyulinvest Agency under the Committee for Roads in reconstructing a 91-kilometer section of the M41 regional road corridor in Surkhandarya region, connecting Uzbekistan with Tajikistan, the Kyrgyz Republic, and Afghanistan. The existing two-lane road will be expanded into a four-lane highway.
Once completed, the reconstructed road section will benefit around 35,000 drivers and passengers daily. It will also expand access to transport services and economic opportunities for around 550,000 residents in the surrounding communities, including through the creation of new jobs and businesses along the reconstructed road section.
The project will finance civil works to improve pavement quality, road safety features and bus stop accessibility, as well as to build and rehabilitate around 180 bridges and drainage structures designed to withstand flooding risks.
These activities will help reduce road accidents and fatalities along the reconstructed section, shorten travel time (with average speeds expected to increase from 65 to about 90 km/h in interurban sections), boost the reliability of passenger and freight transport, and strengthen Surkhandarya region's connectivity with the rest of Uzbekistan and neighboring countries.
2) Assist the Ministry of Transport in developing a National Multimodal Transport Strategy. This document will serve as a roadmap to strengthen government capacity to improve transport services and infrastructure. The strategy will promote data-driven decision-making to improve passenger transport, freight delivery, and connections between different transport modes, strengthen resilience to supply chain and weather-related disruptions, and support lower-emission solutions without increasing costs in the sector.
3) Invest in activities helping O'zbekiston Temir Yo'llari JSC (Uzbekistan Railways JSC) improve its business processes, corporate governance, financial transparency, passenger service planning, and environmental, social, and governance (ESG) practices. These measures will enhance the railway company's operational efficiency and performance, as well as strengthen its ability to attract private investment.
Together, these project activities are expected to contribute to the creation of additional new and better-quality jobs across the transport, trade, tourism, and other sectors; increase passenger and transit freight volumes; raise transport sector revenues; and better leverage Uzbekistan's position as a regional transit hub.
