Bukhara M37 Corridor Improvement Project

Why It Matters

By modernising a key east‑west highway, the project reduces logistics costs, boosts Uzbekistan’s trade connectivity, and demonstrates AIIB’s commitment to climate‑aligned infrastructure in Central Asia.

Key Takeaways

• AIIB funds 100% of $1.64 million project cost.
• Two contracts: technical audit and ESIA for M37 highway.
• Procurement uses International Open Competitive Selection with QCBS criteria.
• Project targets 158 km highway segment between Samarkand and Bukhari.
• Contract signing slated for late 2026; audit lasts 810 days.

Pulse Analysis

The Bukhara M37 Corridor Improvement Project marks a strategic upgrade of Uzbekistan’s key east‑west artery linking Samarkand, Bukhara and the Turkmenbashi port on the Caspian Sea. Backed entirely by the Asian Infrastructure Investment Bank (AIIB), the $1.64 million initiative focuses on a 158‑kilometre stretch of the M37 highway, a vital conduit for freight and passenger traffic across Central Asia. By modernising this segment, the project aims to reduce travel times, lower vehicle operating costs, and bolster the country’s role in regional supply chains.

The procurement plan, approved in June 2026, outlines two international contracts awarded through an Open Competitive Selection using Quality‑Cost Based Selection (QCBS). The first contract, valued at $1.5 million, secures a technical audit consultant to assess reconstruction standards, while the second, a $140,000 ESIA and Paris Alignment assessment, ensures compliance with environmental and climate‑finance criteria. Both contracts are fully financed by AIIB, reflecting the bank’s emphasis on sustainable infrastructure and its commitment to integrating climate considerations into transport projects across its portfolio.

Successful execution of the M37 upgrades is expected to generate measurable economic benefits, including increased trade volumes between Uzbekistan and neighboring Turkmenistan, and improved access to the Caspian maritime gateway. The project also sets a precedent for future AIIB‑backed initiatives in the region, showcasing a model where full financing, rigorous procurement standards, and climate‑aligned assessments converge. As the corridor becomes more reliable, logistics providers and exporters are likely to experience lower costs, fostering broader economic diversification and attracting further private investment.