The EDB signs a memorandum for the construction of a bypass road around Uzgen to enhance road infrastructure in the Kyrgyz Republic
Bishkek, 22 May 2024. On 21 May, two agreements were signed in Bishkek to build and maintain a bypass road around Uzgen using a public-private partnership (PPP) mechanism. This project aims to develop road infrastructure in the Uzgen District, Osh Region, and advance the nation’s transport sector. The agreements were signed by the Eurasian Development Bank (EDB), a consortium comprising Tez Zhol as the lead partner and Zhagalmai, and DemirBank.
- Under the project implementation support agreement between the EDB and the consortium of Tez Zhol and Zhagalmai, the Bank intends to provide funding for the project from its Technical Assistance Fund (TAF).
- The financing agreement between Tez Zhol, DemirBank and the EDB outlines cooperation between the parties in developing a funding proposal, liaising with relevant authorities on the terms and conditions of project implementation, and conducting project analysis concerning funding.
This project aims to develop the road sector and improve connectivity in the Osh Region, ensuring high road safety and improving the environmental situation in Uzgen, including through new information technologies for toll road management.
The project concept was shaped by the following factors:
- The Bishkek–Osh highway, a key transport corridor with a daily traffic of approximately 23,000 vehicles, passes through the densely populated town of Uzgen, causing congestion and reducing road capacity.
- The route through the town centre affects the socioeconomic situation in Uzgen by increasing noise and pollution.
- Congestion creates risks for pedestrians, including schoolchildren, exacerbating safety concerns.
The project timeline is 49 years, from 2024 to 2073, with an estimated total value of US $29.9 million. It is expected to construct a 14.1-km road with three bridges and a toll management system.
“The Uzgen Bypass is the first toll road initiative in the Kyrgyz Republic. This project will increase the daily capacity of the Bishkek–Osh road from 8,000 to 12,000 vehicles, create approximately 300 jobs and boost demand for local industrial enterprises such as reinforced concrete and concrete plants. Additionally, it will improve the environmental situation and reduce the load on Uzgen’s roads by diverting traffic to bypass the residential sector. It is crucial that this project is effectively implemented in the investment phase and is successful in operation. It will become a positive example for other similar initiatives currently being developed in Kyrgyzstan,” said Nikolai Podguzov, Chairman of the EDB Management Board.
The EDB is currently financing several major investment initiatives in the country, including the construction of the 100-MW Kulanak HPP and a state-of-the-art clinker burning line at the Kant Cement Plant.
Additionally, the Bank is considering several projects in utilities, renewable energy and infrastructure.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB Technical Assistance Fund (TAF) is a special fund helping to create enabling conditions for investment and development projects in the Bank’s member countries. The Fund operates to enhance the Bank’s ability to finance investment projects that are in line with its mission. The TAF supports potential borrowers at the project preparation stage as well as national governments and organisations whose projects promote the institutional environment, economic development and growth. The Fund is financed from the Bank’s net profit and donor funds.
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