Uzbekistan, Tashkent, May 7 / Trend D.Azizov /
Korean Kukdong Engineering & Construction (a wholly-owned subsidiary of Kukdong Corp. in Uzbekistan), the operator of the project for the reconstruction of the Guzar-Bukhara-Nukus-Beynau road's section (A-380) in the Bukhara region of Uzbekistan, announced the cancellation of the contract and its liquidation on May 7.
The announcement of the operator's liquidation is published in the local media.
Elimination of the operator and cancellation of a contract is related to financial problems experienced by the parent company, which was declared bankrupt in 2012. In this regard, Kukdong can not fulfill its obligations under the contract, a source close to the project informed Trend.
As previously reported, Kukdong Corp. won the tender for the reconstruction of the Guzar-Bukhara-Nukus-Beineu highway (A-380) worth $162.5 million in the Bukhara region in 2011.
In March last year, the company signed a contract with the government providing for the reconstruction of the 85-km long road section and replacement of the two-lane asphalt cement concrete to four-lane in 2012-2013.
Funding for the contract was provided through a loan from the Asian Development Bank (ADB) in the amount of $240 million, received by the government in April 2011.
According to the source, another tender has been announced for the project. New contractor of the project will be determined on a tender basis by the end of the second quarter of this year.
Section of the Guzar-Bukhara-Nukus-Beineu road (A-380) is part of the National Highway construction program of the first category worth $2.6 billion. The highway construction program was approved by the President of Uzbekistan in May 2009.
It is planned to build four sections of roads with total length of 1.501 kilometers under the program by 2015.
The project is financed at the expense of the government as well as through loans from ADB, the Islamic Development Bank and other international financial institutions for a total of $1.58 billion.
At present, the total length of roads in Uzbekistan is 146,400 kilometers. Of these, 42,500 kilometers are main public roads, including 3,200 kilometers - highways of international importance and 18,800 kilometers of national importance. 20 international transport routes and directions pass through the territory of Uzbekistan.