AIIB Watch Cases

Status: Approved
Timeframe: 2020 - ?
Area: Burkhara Region, Uzbekistan
AIIB Investment Amount: 165.5 million USD
Total Project Cost: 214.7 million USD
Co-financier:  Government of Uzbekistan

E&S Category: B

Project details: The project aims to enhance road efficiency, safety, and climate resilience of major cross-border roads in Bukhara, Karakalpakstan, and Khorezm regions. It involves rehabilitating and maintaining a critical section of international road A380 (km 150+000 to km 228+000) and includes construction supervision, technical audit consultancy, project preparation, institutional strengthening, and equipment purchase for innovative contracting methodologies. Components focus on rehabilitation, detailed design, capacity building, and equipment procurement to modernize road infrastructure and management practices.

 

Project Concerns: The project will lead to economic displacement due to loss of land and subsequent loss of farm income. The Environmental and Social Impact Assessment (EISA) raises several concerns as it presents conflicting information regarding the scale and effects of land acquisition and the nature of the acquisitions. The land needed to be acquired varies from 5.6 hectare (ha) of land to 7.41 ha in the report. While the report states the land acquisition will lead to loss of livelihood through income losses stemming from reduced farm activities the reasoning of the compensation for land plots states low economic impact and no need for land-to-land compensation. This raises another concern regarding the nature of these acquisitions. It appears questionable that there is no demand for land-to-land compensation in any instances, particularly given the country's historical record of forced 'voluntary' land lease terminations. Given these contradictions there seems to be a lack of transparency and integrity throughout the project in need of clarification.

Further information: AIIB Page

Last update: 15.05.2024