Incheon to Transform Uzbekistan’s Urgench Airport into a Regional Aviation Hub
Uzbekistan’s ambition to modernise its air transport infrastructure has taken a giant leap forward. Incheon International Airport Corporation (IIAC), operator of South Korea’s largest airport, has officially won the contract to modernise and operate Urgench International Airport in the Khorezm region. This landmark deal is part of Uzbekistan’s broader strategy to position itself as a key logistics and tourism hub in Central Asia.
The project, awarded under a public-private partnership (PPP) project finance framework, follows the increasingly popular Build-Operate-Transfer (BOT) model. This structure not only draws in private sector expertise but also ensures public oversight where it matters most. The private partner—in this case, IIAC—will manage the design, construction, and operation of both passenger and cargo terminals. Ground handling services also fall under their remit. Meanwhile, the Uzbek government retains control over critical airfield infrastructure, including the runway and apron.
A Competitive Tender Process
The journey to secure this contract wasn’t a walk in the park. Uzbekistan’s government launched an open tender process on August 1, 2024, structured in two key stages: the Request for Qualifications (RfQ) and the Request for Proposals (RfP). Out of eight contenders who threw their hats in the ring, only five made it through to the final selection round. After rigorous evaluation, Incheon International Airport Corporation emerged as the winner.
An Uzbek government spokesperson commented: “The selection of Incheon International Airport Corporation marks a significant milestone in our national transport strategy. Their global track record gives us confidence that Urgench Airport will soon become a gateway of international standards.”
Why Incheon International Airport Corporation?
For those unfamiliar with IIAC, their credentials speak volumes. Incheon International Airport is consistently ranked among the best airports worldwide. In 2024 alone, it served more than 70 million passengers and managed one of the world’s largest volumes of international cargo.
A representative from IIAC shared: “We are honoured to partner with Uzbekistan in this transformative project. Our experience in managing one of the busiest airports globally equips us to elevate Urgench Airport to meet world-class standards.”
Economic and Social Impact on Khorezm Region
While the headlines focus on aviation, the real story lies in the potential ripple effects for the Khorezm region. Modernising Urgench Airport is expected to create a wave of economic benefits, including job creation, increased tourism, and improved logistics for regional industries.
Local officials have expressed optimism. One remarked: “This project is not just about an airport. It’s about unlocking the economic potential of the entire Khorezm region.”
With improved air connectivity, the region hopes to attract more international tourists to its historical sites, including the UNESCO-listed Itchan Kala fortress in Khiva. Moreover, enhanced cargo handling capabilities could open new export markets for local producers.
Strategic Significance for Uzbekistan
Uzbekistan has been steadily reforming its economy to attract foreign investment and reduce its dependency on overland trade routes. Air transport plays a crucial role in this vision. Urgench Airport’s strategic location near the borders of Turkmenistan and Kazakhstan makes it a vital link in the country’s logistics network.
Transport analysts believe this project could serve as a model for future airport PPPs in Uzbekistan. One industry expert noted: “If successful, this partnership could pave the way for similar projects in other regions, boosting Uzbekistan’s connectivity and competitiveness on a global scale.”
The BOT Model: A Win-Win Framework
The Build-Operate-Transfer model ensures both parties share risks and benefits. IIAC takes on the responsibility of financing, building, and managing the airport terminals, while the Uzbek government oversees regulatory compliance and maintains control over essential airfield infrastructure.
This approach is designed to attract top-tier international operators, leveraging their expertise without compromising national interests.
Next Steps and Timelines
Though the contract has been awarded, the real work is just beginning. Detailed project planning, environmental assessments, and stakeholder consultations are expected to kick off in the coming months. Construction is slated to begin in 2026, with operations expected to commence by 2029.
Industry observers will be watching closely as the project unfolds, eager to see how this partnership sets new benchmarks for airport development in Central Asia.
Unlocking New Horizons for Uzbekistan
Uzbekistan’s partnership with Incheon International Airport Corporation marks a pivotal moment in its aviation journey. By blending international expertise with local ambition, the project promises not only to elevate Urgench Airport but also to stimulate economic growth across the Khorezm region and beyond.
As the country looks to the future, all eyes are on Urgench as a beacon of what’s possible when public and private sectors work hand in hand.
