ADB allocates loan to Uzbekistan to modernize railway fleet

Business Materials 21 May 2019 10:50 (UTC +04:00)

Baku, Azerbaijan, May 21

By Fakhri Vakillov – Trend:

The Asian Development Bank (ADB) has approved $170 million loan to help improve Uzbekistan’s railway fleet through the procurement of 24 state-of-the-art electric locomotives, Trend reports with reference to ADB.

The new locomotives will enhance the performance of the railway system by offering cleaner, more reliable and efficient passenger and freight transport services.

Under the project, 24 electric locomotives will be supplied, 16 of which are optimized for freight trains and eight for passenger trains. These locomotives will help cut greenhouse gas emissions by 900,000 tons per year, while reducing local air pollution.

The locomotive depot in Tashkent, called O’zbekiston, will also be upgraded to effectively cater to service and maintenance needs of the new electric fleet. O’zbekiston Temir Yo’llari, the publicly owned railway company, will implement a long-term development strategy to equip itself for the emerging transport needs of the country.

The project also aims to reduce travel time on Uzbekistan’s railway network, improve service quality and reliability in the Central Asia Regional Economic Cooperation (CAREC) transport network, and strengthen the conditions for the private sector in the country to grow.

The project is aligned with the goals under the CAREC Railway Strategy 2017–2030, which notes railways’ role as an engine for economic growth in Central Asia.

Total cost of the project is $218.3 million, with the Government of Uzbekistan contributing $48.3 million. The project is expected to be completed by June 2025.

Established in 1966, ADB is owned by 68 members, of which 49 are from the region.


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