The cost of constructing Uzbekistan's first toll highway connecting Urgench and Khiva has increased from the initial estimate of $120 million to $150 million, officials reported.
Budget Update and Project Launch
Anvar Davletov, First Deputy Governor of the Khorezm Region, announced this revised sum on August 25, 2026, during the opening ceremony of new infrastructure facilities attended by President Shavkat Mirziyoyev. The Roads Committee specified that the project's initial budget was $120 million, representing an increase in costs of $30 million, or 25 percent.
The new four-lane road, spanning 35 kilometers, connects Urgench and Khiva, reducing travel time between the two cities by approximately 15–20 minutes. Regional authorities expect this infrastructure to support the tourism potential of the Khorezm Region.
Construction of the highway began in February, with design and engineering work running parallel to physical construction—a factor that, according to available data, could have led to risks of project adjustments and cost overruns.
Infrastructure Details and Financing
The infrastructure complex includes one underground tunnel, eight overpasses, 15 bridges, and 106 culverts. The initial plan called for 17 bridges, eight overpasses, one tunnel, and seven specialized crossings. The road is designed to handle approximately 20,000 vehicles daily.
The project developer is the Directorate for Construction and Reconstruction of Public Roads under the Roads Committee, and construction is carried out by enterprises within this committee's structure. Financing is provided by external investment funds and the Uzbekistan Reconstruction and Development Fund. Specific details regarding the external investor and individual financing shares were not disclosed.
Significance for the Region and Start of Operation
President Shavkat Mirziyoyev characterized this road as the country's pilot toll road project, noting that its implementation in Khorezm is part of preparations for declaring 2027 the Year of Khorezm in Uzbekistan. Toll collection began in August. The fare for passenger cars along the entire route is set at 25,000 soms, and 20,000 soms for the shortened 28-kilometer section. Payment is collected electronically, without requiring a vehicle stop. On August 18, 2026, President Mirziyoyev traveled along the new route from Khiva to Urgench International Airport.