Kazakhstan’s national road company KazAvtoZhol and the European Bank for Reconstruction and Development (EBRD) have signed an agreement to finance the reconstruction of the Aktobe–Karabutak–Ulgaysyn highway.
The agreement provides for a loan of 229.5 billion tenge (approximately $470.13 million). The financial terms of the loan have not been disclosed.
The funding will be used to modernize 234 kilometers of highway across two sections, covering km 763–791 and km 819–1025.
Highway to Be Expanded to Four Lanes
Following reconstruction, the highway sections will be upgraded to Category I technical standards, featuring four or more traffic lanes, each 3.75 meters wide, with a maximum design speed of 120 km/h.
Traffic volumes are expected to increase by more than 2.5 times, rising from approximately 18,000 vehicles to 45,000 vehicles after completion.
The project is strategically important for international freight transport, as the Aktobe–Karabutak–Ulgaysyn highway forms part of the Western Europe–Western China international transport corridor. It is also included in CAREC Corridor 1 and the European E38 route.
Total Project Value Exceeds $1 Billion
The overall reconstruction project is valued at 523 billion tenge (around $1.07 billion). In addition to the EBRD, the Asian Infrastructure Investment Bank (AIIB) is participating in the financing.
Construction work began in May 2026 and is scheduled for completion in 2029.
For Kazakhstan, the modernization of this corridor is part of a broader strategy to strengthen the country’s role as a major Eurasian transit hub. Upgrading the highway is expected to improve freight transport efficiency, reduce travel times, enhance road safety, and increase the competitiveness of overland trade routes connecting China, Central Asia, and Europe.
Industry experts note that expanding the corridor’s capacity will benefit international logistics operators by easing congestion, improving supply chain reliability, and providing faster access to industrial and commercial centers in western Kazakhstan.
Read also: Kazakhstan and Iran: Transport Corridor and Port Development Cooperation
