Issues of using foreign loans in the development of the transport system in the Republic of Uzbekistan

Abstract

Since 1996, political tensions among Central Asian states have resulted in major disruptions in regional
transportation. Uzbekistan faced serious challenges due to the closure of railway connections with Khorezm, Surkhandarya,
and Karakalpakstan, along with transit fee demands in foreign currency. These restrictions critically impacted the Fergana
Valley transport corridor, which serves as a vital link for 10 million residents and houses the country’s only oil refinery.
In response to the economic blockade, the Uzbek government undertook urgent strategic actions. Faced with a budget
deficit, the country increasingly relied on external borrowing. This paper explores the causes, characteristics, and
governance aspects of Uzbekistan’s external debt policy in the context of developing its transportation infrastructure.
Using a comparative analysis approach, the article provides an original evaluation of external debt utilization in major
transport investment projects.