Uzbekistan to create international passenger bus transit company

Uzbekistan Materials 7 March 2018 10:06 (UTC +04:00)

Baku, Azerbaijan, March 7

By Fikret Dolukhanov – Trend:

Uzbekistan will create a company for organization of international passenger bus transit, particularly to Russia and Kazakhstan, Gazeta.uz online newspaper reported, referring to the Uzbek president’s order “On measures aimed at ensuring security of the Uzbek citizens during their departure from the country on transport to carry out temporary labor”.

The decision is made to ensure secure transit of citizens to the places of their temporary labor outside Uzbekistan and to prevent associated road accidents, said the report.

According to the information, the specialized company will be created with a 51-percent share of the Uzbek Road and River Transport Agency and a 49-percent share of the State Foreign Economic Relations Bank. The latter may sell its share to other investors by market price.

At least 100 passenger buses are expected to be purchased for the needs of the company. The buses will meet international passenger transit requirements and will be used in the regions of the country. Expansion of the bus fleet is expected in the future using refinancing loans of foreign banks under the state guarantee of Uzbekistan. The National Bank of Uzbekistan will open a $20 million worth credit line for seven years with 0.5-percent refinancing bank margin.

According to the presidential decree, bus transit organizations and bus stations for the international bus runs, particularly to Russia and Kazakhstan, are to be created in the regions of Uzbekistan in 2018. Foreign investments can also be attracted for that purpose. Some 10 percent of the local budget's overfulfillment balance may be used for the project.

In line with the same decree, proposals on creation of a lowcoster company under the Uzbek Airways, the flag carrier of Uzbekistan, will be submitted to the Uzbek Ministers' Cabinet until May 1, 2018, Uzbek media reported earlier.