Fund for Reconstruction and Development of Uzbekistan (FRDU) allocated a loan for US$42 million to Tashkent city administration for construction of hotel under Hyatt Regency trademark.

The loan was issued for 12 years with two year grace period. The interest rate on loan is set at 3% APR.

As earlier reported, in April Hyatt International, Tashkent city administration and FRDU signed agreement on construction of hotel with the cost of US$113 million in 2012-2013.

In line with the agreement, the sides are planning to construct new hotel with 294 rooms in the central part of Uzbekistan.

New hotel will be commissioned in the fourth quarter of 2013. Poytaht Qurilish va Hizmat enterprise will be founded for project implementation.

The project will be financed due to resources of the state budget of Uzbekistan for US$71 million and loan of FRDU for US$42 million. (Source: UzDaily.com)