South Korean company will reconstruct 91 km part of highway, while Chinese corporation will repair road with the extension of 41 km. The sides will complete works by the end of 2011.

It is planned to construct three areas of 4-lanes cement concrete pavement with total extension of 91 km within the project.

The project cost is US$173.5 million. The Asian Development Bank (ADB) allocated a loan to Uzbekistan for US$75.3 million. The loan was issued in April 2008 under the guarantee of the government. The loan was allocated for 24 years with four-year period. Interest rate is LIBOR plus 0.2%. Uzbekistan will also invest US$98.2 million to the project.

The loan will be directed at purchasing modern road construction equipment, carrying out construction work and managing project.

A-380 highway with extension of 1,204 km is part of transit corridor, which links Uzbekistan with Afghanistan and Turkmenistan in south and Kazakhstan in north.

As earlier reported, the ADB allocated US$600 million of multitranche financing facility to construct road, which will link Uzbekistan with neighbouring states. The objectives are to reconstruct over 220 kilometers of the A380 highway, and to provide training support for improved planning, project management, road asset management, and community facilities.

In early May, the ADB and the Government of Uzbekistan inked the agreement on first tranche for US$115 million within the multitranche financing facility.