Uzbekistan has initiated a project to purchase six high-speed electric trains with financial assistance from Korea Eximbank. The decree was adopted by Uzbek leader Shavkat Mirziyoyev on August 12 and came into force on August 14. The project is estimated to cost €220mn, with Uzbekistan contributing €21.3mn and Uzbekistan Temir Yollari, the national railway company, adding €13.5mn.
A loan agreement was signed between Uzbekistan and Korea Eximbank on June 14, 2024. Korea Eximbank will provide funding equivalent to €185mn in Korean won. The loan has a 40-year term, including a 10-year grace period, with an annual interest rate of 0.05%. The project is set to be implemented over six years, from 2024 to 2030.
The Prime Minister of Uzbekistan, Abdulla Aripov, is tasked with overseeing the project's implementation and coordinating the activities of responsible organizations.
Uzbekistan Railways and its subsidiary, Temiryulekexpress, will manage the project, ensuring timely execution and efficient use of the loan. Uzmilliybank will act as the financial agent, managing debt repayments provided by Korea Eximbank. Temiryulekexpress will cover all debt repayments, including interest and related expenses, from its funds.
Additionally, the Minister of Economy and Finance has been authorized to sign the debt refinancing agreement on behalf of the government. Uzmilliybank will also sign an interbank agreement with an authorized bank in South Korea to facilitate the settlement of the debt from Korea Eximbank.
Earlier, Daryo reported that Uzbekistan is set to acquire 38 new locomotives and modernize 12 electric locomotives as part of its ongoing railway sector reforms. During a presentation in Tashkent on August 6, President Shavkat Mirziyoyev was briefed on the progress and plans for Uzbekistan Railways. The review aligns with the government’s broader efforts to revamp the railway system following the adoption of measures in October last year.
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