President Shavkat Mirziyoyev signed the Measures To Implement The Electrification of Pap-Namangan-Andijan Railway Project Decree co-financed by the Asian Development Bank.

On 20 April 2017 the Asian Development Bank (ADB) approved an $80 million loan for the electrification of 145 kilometers (km) of railway in Uzbekistan, linking the cities of Pap, Namangan, and Andijan. The electrified track is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 2, a critical transport link in the region.

The total project cost is estimated at $177.45 million, with Uzbekistan Railways (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.

 “Ensuring the safety, reliability, and sustainability of railway networks is an important component of growth and development for a landlocked country like Uzbekistan,” said Takeo Konishi, ADB’s Country Director for Uzbekistan. “Improving transport in Uzbekistan will strengthen the country’s strategic location as a trade and transport hub in Central Asia.”

The project will facilitate direct and efficient operation of both freight and passenger train services linking major cities in the Fergana Valley — home to nearly a third of Uzbekistan’s population — with Tashkent, the country’s capital. The project will help improve transport connectivity and encourage growth and job creation in the Fergana Valley. It will also increase regional trade along CAREC’s Corridor 2 as well as improve environmental and safety performance of the railway. An expected 10,000 tons of CO2 will be saved every year as a result of the project.

The project is in contribution to the ongoing efforts of UTY and the government in upgrading Uzbekistan’s Soviet-era railway network. It builds on the successes of other projects, including one which recently completed the electrification of a 140 km railway track between the historical cities of Samarkand and Karshi in the south of the country.

Uzbek President approved the project’ FS and 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 UTY and the first deputy chairman of the Board of UTY to sign a project agreement with the ADB.

President also allowed to enter into 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.