News Column

FRDU issues US$280m to construction of new railroad

February 24, 2014



Tashkent, Uzbekistan (UzDaily.com) --

Fund for Reconstruction and Development of Uzbekistan (FRDU) provided a loan for US$280 million to Uzbekistan Temir Yollari state joint stock railway company.

The loan was provided to construction of railroad Angren-Pap, which will go through Kamchik pass.

The funds will be used to purchase necessary equipment and tools, as well as to carry out mountain construction works with the project.

Uzbekistan Temir Yollari started construction of new electrified railway Angren-Pap with the length of 122.7 km in July 2013.

The railway will pass through Qamchiq pass and link Ferghana Valley (Andijan, Namangan and Ferghana regions) with other part of Uzbekistan.

Preliminary cost of the project makes up US$1.769 billion and was included to investment plan of the company for next five years.

The project will be financed due to resources of the state budget, own resources of Uzbekistan Temir Yollari and loans of international financial institutions.

China Railway Tunnel signed a contract with the state joint stock railway company Uzbekistan Temir Yollari for construction of tunnel through Qamchiq pass with the cost of US$455million in September 2013.

Within the contract the Chinese company will construct tunnel with the length of 19 km for movement of railway and adit tunnel, which will be used in case of accident.

Uzbekistan Temir Yollari is planning to use investments for US$293.72 million in 2014, including US$120 million of own resources.


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Source: UzDaily (Uzbekistan)


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