The initiative is expected to upgrade the existing single-lane second-category road to a dual-lane first-category highway, significantly enhancing regional connectivity. The project will also include the modernization of auxiliary infrastructure and the construction of a bridge over the Amu Darya River.

The EBRD loan comes with an 18-year term, including a four-year grace period, with repayment expected by November 2041. Uzbekistan will repay a total of $382.68 million, including principal and interest, from the state budget.

The reconstruction will span from 2024 to 2029, with a two-year warranty period. Initial feasibility studies suggest potential cost savings of up to $32.7 million, which have been allocated for the reconstruction of another key road segment in the region, the D217 highway.

The project includes a greening initiative to plant 30,000 trees and shrubs along the reconstructed route, taking into account the region's climate conditions. Local authorities will collaborate with the State Committee for Motor Roads to ensure the green spaces are established and maintained.

The project aligns with Uzbekistan’s infrastructure development goals and regional transport strategies. It also supports the EU’s Global Gateway initiative, aimed at improving global transport and logistics infrastructure.

Odile Renaud-Basso, President of the EBRD, emphasized the strategic value of the project, stating: “We support this initiative as it aligns with our goals for Uzbekistan and Central Asia. It also contributes to the EU’s Global Gateway program for global transport solutions.”

The EBRD has also pledged €1.5 billion in the next two to three years for infrastructure development along the Trans-Caspian Corridor, underscoring its commitment to the region’s connectivity.