The loan agreement was signed in Jeddah, Saudi Arabia, after the negotiations of the delegation of Uzbekistan and Saudi Finance Minister Ibragim al-Assaf.

The Project aims to enhance the economic and social development of the central and southern regions of Uzbekistan to satisfy the increasing demand for local traffic and promote regional commercial exchanges. The Project forms a part of the transport corridor connecting the capital city Tashkent with city of Termez at the border with Afghanistan.

The project with the cost of US$80 million envisages construction of 73 km with 4-lane asphalt carpet and construction of road junction in Kashkadarya region. The project will be implemented within three years.

The project will be financed due to resources of Arab Coordination Group along with the financial resources of the SFD.

In March 2011, Kuwait Fund for Arab Economic Development (KFAED) issued a loan for 6 million Kuwaiti Dinar (equivalent to about US$20.4 million) to Uzbekistan to implementation of the project.