The South Korean fund will provide 185 million euros for the purchase at a preferential rate until 2058.
As Spot previously wrote, Shavkat Mirziyoyev signed a decree on reforming the railway transportation sector.
The document approves a roadmap for reforms in the industry until 2026. One of the urgent tasks is to simplify the procedure for leasing freight cars – relevant proposals must be submitted to the Cabinet of Ministers by the end of November.
Upgrading passenger rolling stock has also become a priority. In the near future, it is planned to conclude a contract with Hyundai Rotem for the supply of 6 high-speed trains.
The project is expected to be financed from the South Korean Economic Development Co-operation Fund (EDCF). The expected loan amount at 0.1% will be 185 million euros, the term is 35 years.
Another contract – for the purchase of 30 electric trains from Škoda – was signed the day before. To pay for it, it is planned to receive 350 million euros from Czech banks at 5.5% per annum for 15 years.
In order to financially improve Uzbekistan Railways, it is planned to re-issue agreements on loans to its subsidiaries. The transfer of obligations under the loan issued by the Exim Bank of China for the modernization of its facilities to Shargunkumir is separately indicated.
The legal framework in the railway sector will be revised. By January 2024, it was instructed to prepare a new version of the law “On Railway Transport”, and by March – to adopt a new version of the Railway Charter.
No later than June 2024, it was instructed to develop a transparent tariff policy. The methodology for calculating prices must clearly indicate the procedure for taking into account the costs of infrastructure, maintenance of locomotives and cars.
Uzbekistan Railways and its new structures will implement international standards of corporate governance, financial reporting and auditing from the Big Four (Deloitte, KPMG, PwC, EY). Foreign specialists will be involved in their management and supervisory boards.
