ADB grants $121m loan to complete Uzbekistan railway upgrade project


The Asian Development Bank (ADB) has approved a $121m loan to complete the modernisation of eastern Uzbekistan railway network.

The loan amount will be an addition to the $80m loan, which was approved by the same bank in 2017 to help electrify 145.1km of railway track between Pap, Namangan, and Andijan cities in the Fergana Valley.

This additional funding from ADB will help to increase the amount of freight shipped as well as the frequency of passenger trains.

It will eliminate gaps in signalling and telecommunications systems, and improve the capacity of railway staff in modern train management techniques.

The bank said that the project will help stimulate economic growth in the Fergana Valley and improve trade and regional connectivity.

The project, which is part of the Central Asia Regional Economic Cooperation (CAREC) Programme’s Corridor 2, will also boost tourism and trade between Uzbekistan and neighbouring countries.

According to ADB, Uzbekistan’s railway network carries 30%-40% of its freight and 3%-4% of its passenger traffic.

The modernisation of the railway network aligns with the country’s national development objectives that include the development of transportation infrastructure to promote economic development and support the development of the social sectors.

ADB Central and West Asia principal transport specialist Ko Sakamoto said: “This expanded support will help ensure that trains on the modernised railway network operate safely and more frequently.

“The project will enhance the attractiveness of railways as an environmentally friendly, reliable, and affordable mode of transport for the people of Uzbekistan.”


ADB approves $121m additional loan to complete the upgrade of eastern Uzbekistan railway network. (Credit: Martin Winkler from Pixabay.)

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