Uzbekistan Railways to buy 11 freight locomotives from China.

Uzbek president has approved the basic parameters of the feasibility study of upgrading the locomotive fleet of the State Joint Stock Railway Company Uzbekistan Railways, under which the national rail carrier of Uzbekistan and Chinese consortium CNTIC-CNRDLRC signed a for $44.39 million contract for supply of 11 electric freight locomotives.

Beginning in 2014, when all electric locomotives will be delivered, Uzbekistan Railways plans to increase turnover by 1.296 billion tons/km.

The project is financed by Uzbekistan Railways itself ($2.2 million) and China Eximbank loans ($42.1 million). Funds will be provided by the Chinese bank for 20 years, including a 5-year grace period and interest rate of 2.25% per annum, including 0.25% margin of the refinancing bank.

As part of the project, president has released the national rail carrier from customs duties on imported freight locomotives, equipment and materials, including technical documentation and spare parts required during the warranty period.(Uzbekistan Today Newspaper)