The Urgench-Khiva toll road increased in price from $120 million to $150 million during construction.
In February, the cost of constructing Uzbekistan's first toll road, the Urgench-Khiva road, was estimated at $120 million. The previous day, the Khorezm regional administration announced a figure of $150 million. The Committee for Roads confirmed to Gazeta that the project has increased in cost by 25%. A foreign partner is still being determined.
The cost of constructing Uzbekistan's first toll road, the Urgench-Khiva road, has increased from $120 million to $150 million. This was announced on August 25 by Anvar Davletov, First Deputy Governor of the Khorezm Region, at a ceremony to launch the new facilities attended by President Shavkat Mirziyoyev.
"Today we are attending the opening ceremony of the first toll road, the Urgench-Khiva road, built with an investment of $150 million," Davletov said. He added that the road connects Urgench and Khiva and is designed to promote the development of the region's tourism potential.
The project for the 35-kilometer, four-lane road was previously estimated at $120 million.
At the ceremony, Shavkat Mirziyoyev called this road the first toll road in Uzbekistan.
"As we agreed, next year will be the Year of Khorezm in Uzbekistan. Therefore, we need to prepare well for this year – in terms of entrepreneurship, business, the social sphere, schools, and roads." "Secondly, for the first time in Uzbekistan, we are beginning the toll road experiment with Khorezm. I've driven this road myself—it's amazing," the president said.
The Committee on Roads confirmed that the initial project cost was $120 million, and that the total cost has now reached $150 million. This represents a $30 million, or 25%, increase in cost.
The construction included one underground tunnel, eight overpasses, 15 bridges, and 106 culverts. The original project called for 17 bridges, eight overpasses, one tunnel, and seven special crossings.
Regarding the foreign partner announced at the project's inception, the committee noted that the foreign partner was still being determined.
Construction of the Urgench-Khiva toll road began in February. At the time, the project was estimated to cost $120 million. The new four-lane, 35-kilometer highway is an alternative to the existing road between the two cities and should reduce travel time to approximately 15-20 minutes.
The client is the Directorate for Construction and Reconstruction of Public Roads under the Committee for Roads. The contractors are companies within the committee's structure. Financing is provided by an undisclosed external investor and the Fund for Reconstruction and Development of Uzbekistan. The parties' shares were also not disclosed.
In February, the Committee for Roads refused to provide the presidential decree under which the project is being implemented. Information about an open tender was also not disclosed. The Anti-Corruption Agency reported that it was reviewing the project.
Experts have previously noted that combining the functions of client, contractor, and supplier in a single system could create a conflict of interest. Furthermore, construction began simultaneously with the design phase, which could lead to project adjustments and increased costs.
Gulom Zakhidov, director of the state-owned company Yo'l-Loyiha Byurosi, previously reported that the design of the Urgench-Khiva toll road had begun based on presidential decrees. However, the committee refused to provide the relevant document. The agency did not specify whether the document was classified, but according to Gazeta, it is.
Toll traffic on the road was launched in August. Travel along the full route costs 25,000 soums for a passenger car, and 20,000 soums for a shortened 28-kilometer section. Payment is processed electronically, without stopping the vehicle.
On August 18, the president traveled along the new highway from Khiva to Urgench International Airport.
The highway's capacity is approximately 20,000 vehicles per day.