ADB allocates $170 M to Uzbekistan for purchase of locomotives

Business Materials 9 May 2019 13:40 (UTC +04:00)

Baku, Azerbaijan, May 9

By Fakhri Vakilov - Trend:

Uzbekistan Railways JSC plans to implement a project to upgrade the fleet of locomotives with a total value of $226.1 million, Trend reports with reference to a draft government decree.

Asian Development Bank (ADB) will finance the project with loan of $ 170 million from ADB's ordinary capital resources for a period of 25 years.

The purchase of locomotives is scheduled for the end of 2021. Their number hasn’t announced yet.

Uzbekistan’s contribution to the implementation of projects will amount to $ 56 million, including $45.06 million in the form of tax and customs benefits, as well as at the expense of own funds of Uzbekistan Railways JSC in an equivalent of $ 11.08 million.

Uzbekistan Railways JSC also signed a contract with Spanish Patentes Talgo for the purchase of two high-speed passenger electric trains Talgo-250 and four economy-class cars. Financing of the purchase will be provided by a loan from the Foundation for the Corporate Internationalization of Spanish Companies (FIEM).

Today there are 17 long-distance rail flights in the country. Last year, about 4.7 million passengers were flown to destinations, while approximately 740,000 of these used the services of the Afrosiab high-speed electric train.