(MENAFN - Trend News Agency ) Baku, Azerbaijan, Nov. 10
By Nigar Guliyeva – Trend:
The Asian Development Bank (ADB) and Uzbekistan signed an $80 million loan agreement for Pap-Namangan-Andijan railway electrification project.
The signing ceremony took place within ADB Vice-President Wencai Zhang's visit to the country, the Bank reported Nov.10.
The project will electrify 145.1 kilometers of non-electrified track linking major cities in the Fergana Valley with the capital. This will facilitate direct and efficient operation of freight and passenger train services, and promote economic and social development in the Fergana Valley.
The ADB approved the loan back in April 2017 .The electrified track is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 2, a critical transport link in the region. An expected 10,000 tons of CO2 will be saved every year as a result of the project.
The total project cost is estimated at $177.45 million, with O'zbekiston Temir Yo'llari (UTY) — the public railway company — and the government contributing $97.45 million. ADB's investment will finance supervision consultants, procurement of plant, procurement of maintenance equipment and machinery, and procurement of materials for external power supply.
In mid-October, 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'.
Then, 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.
Since joining ADB in 1995, Uzbekistan has received 65 loans totaling $6.3 billion, including two private sector loans totaling $225 million, $6 million in equity investment, $200 million in guarantees, and $65.6 million in technical assistance grants.