President approves measures to implement project “Electrification of Pap Namangan-Andijan railway line”
19/10/2017 16:47
President approves measures to implement project “Electrification of Pap Namangan-Andijan railway line”
19/10/2017 16:47
Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to implement the project “Electrification of Pap Namangan-Andijan railway line” with participation of the Asian Development Bank”.
On 20 April 2017, the Board of Directors of the Asian Development Bank (ADB) approved allocation of a loan to Uzbekistan for implementation of the project “Electrification of Pap Namangan-Andijan railway line” for US$80 million from the ordinary capital resources of ADB. The loan is issued for 25 years, including a five-year grace period .
The project will be implemented within five years (2017 - 2021). The contribution of Uzbekistan to the project is equivalent to US$122.03 million, including US$38.72 million in the form of tax and customs privileges, as well as from own funds of Uzbekistan Temir Yollari for US$72.09 million and Uzbekenergo for US$11.22 million.
The project will facilitate the direct and efficient operation of freight and passenger rail services, linking the main cities in the Fergana Valley - the home of almost a third of the population of Uzbekistan - with Tashkent, the capital of the republic. The project will help improve transport connectivity and will contribute to the growth and creation of jobs in the Fergana Valley. The project will also promote the growth of regional trade along Corridor 2 of the CAREC program, as well as the improvement of indicators for the ecology and safety of the railways. As expected, as a result of the project, the annual CO2 emissions will be reduced by 10 thousand tons.
The executive body responsible for targeted and effective use of loan and implementation of the project is Uzbekistan Temir Yollari.
The costs associated with the repayment of the ADB loan, as well as interest, commissions and other costs of the ADB loan are made from own funds of Uzbekistan Temir Yollari.
Design and construction of external power supply facilities within the project are carried out at expense of Uzbekenergo.
Uzbekiston Temir Yollari will hand over materials and equipment of external power supply purchased through the ADB loan and own funds of Uzbekiston Temir Yollari within the framework of the project to Uzbekenergo, the document said.
Uzbek President approved the feasibility study of the project “Electrification of Pap Namangan-Andijan railway line”.
The President authorized the Minister of Finance to sign a loan agreement with ADB on behalf of Uzbekistan, as well as an agreement on on-lending with Uzbekistan Temir Yollari and the first deputy chairman of the Board of Uzbekiston Temir Yollari to sign a project agreement with the ADB.
Shavkat Mirziyoyev allowed, as an exception, Uzbekiston Temir Yollari and Uzbekenergo within the framework of the project to implement until 1 April 2018 electrification of the railway line Pap Namangan-Andijan and construction of external power supply facilities simultaneously, with parallel development of design estimates documentation.
He also allowed to conclude contracts for supply of equipment and materials, spare parts and components on basis of selecting the best offer, with pre-shipment inspection, with the manufacturing plants or their official dealers (distributors), without holding tenders.
Uzbek President granted tax and customs privileges until 1 January 2020 to the project.
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