AIIB Approves USD75.5M Loan for Tajikistan Cross-Border Connectivity Project - News

The Asian Infrastructure Investment Bank (AIIB) has approved a loan equivalent to USD75.5 million for the Republic of Tajikistan for the construction of a 920-meter-long bridge and its approaches along the Obigarm-Nurobod section of M41 International Highway.

The project is the first bridge of such magnitude in Tajikistan and will be a critical component of the county’s road network. It will serve as a vital link for Corridors 2, 3 and 5 of the Central Asia Regional Economic Cooperation Program, establishing essential connectivity between Tajikistan’s landlocked terrain and neighboring regional markets. The bridge will provide an all-weather connection for over 350,000 residents of the northeast region of Tajikistan, not only to the capital city Dushanbe but also to the border of the Kyrgyz Republic, fostering broader cross-border connectivity.

Aligned with Tajikistan’s National Development Strategy, the timely completion of this road is a governmental priority. At the same time, it incorporates climate adaptation and resilience measures to address climate risks, ensuring the project’s full alignment with the Paris Agreement. The project also integrates a component for gender economic empowerment, championing the inclusion of women from local communities to ensure equitable access to project benefits.

Construction of the 75-kilometer Obigarm-Nurobod section has been divided into three sections to ensure synchronized implementation. AIIB’s close coordination with other financiers, including the Asian Development Bank, OPEC Fund for International Development and European Bank for Reconstruction and Development, shows a collaborative approach aimed at advancing sustainable development and enhancing connectivity in Tajikistan.

Recognizing the scale and unique challenges of the project, AIIB previously approved a USD3.2 million grant to Tajikistan in 2020 under the Bank’s Project Preparation Special Fund. This grant facilitated various value-added contributions, including informed decision-making on cost-effective bridge solutions, enhanced design to tackle geological challenges and adoption of the Design-Build method for streamlined project delivery. Additionally, it bolstered the implementation agency’s capacity through comprehensive capacity-building initiatives.

“The project aligns with two core thematic priorities of AIIB,” said Konstantin Limitovskiy, AIIB’s Vice President for Investment Operations in Region 2. “First, it contributes to cross-border connectivity by establishing vital cross-border links with improved road safety along Tajikistan's essential corridor and ensuring connectivity between regions. Second, it project embraces green-finance principles by integrating environmentally and socially responsible practices and promoting resilient sustainable mechanisms in the road infrastructure development.”

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank dedicated to financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. Operational since January 2016 and boasting 109 approved members worldwide, AIIB is capitalized at USD 100 billion and Triple-A-rated by major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.

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READ MORE The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond—infrastructure with sustainability at its core. We began operations in Beijing in 2016 and have since grown to 110 approved members worldwide. We are capitalized at USD100 billion and AAA-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.

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