The European Bank for Reconstruction and Development (EBRD) and Beijing-based Asian Infrastructure Investment Bank (AIIB) will provide $55mn ($27.5mn each) to finance the upgrade of a key section of the motorway connecting Tajikistan’s capital Dushanbe with Uzbekistan, the EBRD said on June 24.
The reconstruction of the road, for which the EBRD had also approved separate financing of $35mn in 2015, would benefit Tajikistan by increasing its role as a transit country for transporting goods to Uzbekistan from China and Kyrgyzstan. The road is also part of trans-continental highway networks connecting Tajikistan to Afghanistan, Kazakhstan and Turkmenistan. Approximately 92% of goods are transported via roads in Tajikistan, since its mountainous landscape leaves little space for building railways.
“The road in Dushanbe will not only serve the capital of Tajikistan but can also become a key point on the new Silk Road and beyond,” the EBRD Managing Director of Infrastructure Thomas Maier said.
The signing for the project will take place during the multilateral development bank’s first annual meeting in Beijing.
The AIIB was inaugurated in January this year. In the same month, China became an EBRD shareholder country. The EBRD and AIIB are currently considering other joint projects.
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