ADB and AIIB Helps Fund Electrification of Bukhara-Miskin-Urgench-Khiva Railway Line
Posted on 04/17/2022
The Asian Infrastructure Investment Bank (AIIB) and the Republic of Uzbekistan signed a US$ 108 million loan to electrify the Bukhara-Miskin-Urgench-Khiva railway line. The deal was revealed on March 31, 2022. By electrifying 465 kilometers of railway and launching a high-speed service on the route, the project will improve connectivity and further boost tourism by linking remote areas of the Khorezm region in western Uzbekistan to the central and eastern regions of Uzbekistan.
Upon completion, the project will enable the operation of high-speed trains that run at up to 250 kilometers per hour, cutting travel time between Bukhara and Khiva by up to three hours and making it possible to journey from the capital Tashkent to Khiva in seven hours. The project will also help transform the railway into a tourism-led economic corridor by supporting the urban development and sustainable tourism industry of the municipalities along the rail line. The implementation of an electronic ticketing system under the project will make it easier for tourists and domestic passengers to use the railways and support efforts to attract visitors to the region.
The Asian Development Bank approved a US$ 162 million loan for the project back in December 31, 2021. Co-financed with the Asian Development Bank, the project will improve efficiency of train operations, increase transport capacity and remove existing bottlenecks between major urban centers in the country. It will also improve Uzbekistan’s cross-border trade and connectivity with neighboring countries and further afield by supporting Central Asia Regional Economic Corridor (CAREC) development. The project is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 2, which links the People’s Republic of China to Europe via Central Asia.
To date, AIIB has approved eight projects in Uzbekistan, with a total amount of over US$ 1.2 billion. The transport sector has received the highest amount of AIIB’s financing approval within the country.
