Uzbekistan channels more than $234.7 million for the electrification of the railway section Maroqand-Qarshi.

The project will be financed through Asian Development Bank loan and Uzbekistan Railways own funds. As a result, 140.8 km of railway line will be electrified.

On September 28, 2011 Board of Directors of the Asian Development Bank (ADB) approved a $100 million loan to Uzbekistan toward the project from ADB’s ordinary capital resources with a maturity of 25 years, including a five-year grace period. Uzbekistan provides $134.76 million, of which $23.84 million are tax and customs allowances and $110.92 million are Uzbekistan Railways own funds. The electrification project is scheduled to last 4 years, from 2012 to 2016.

Presidential decree has exempted goods, works, services and vehicles, purchased at the expense of the ADB loan, from customs duties, value added tax, mandatory fees and taxes to the state trust funds, off-budget fund of reconstruction, refurbishment and equipping of educational and medical facilities and National Road Fund.

The above mentioned benefits were also extended to goods, works, services and vehicles, purchased by Uzbekistan Railways for the project. The amount of funds released as a result of these benefits is the contribution of Uzbekistan to the project.

Given the difficult climatic conditions in the area of the project, as well as the nature of the work to wage rate for all categories of workers directly employed in the electrification of the railway section Maroqand-Qarshi will is increased by a factor of 1.4. In addition, free meals three times a day for workers directly employed in the electrification will not be subject to tax when calculating the tax on corporate income tax, value added tax and income tax for individuals.

Uzbekistan Railways plans to buy a new hybrid train on electric and diesel traction from the Spanish company Talgo. The new train will be able to move in the sections under construction. The speed on electricity will reach 250 km/h, and on diesel up to 200 km/h. Today two high-speed electric trains Spanish Talgo- 250, purchased last year, running daily between Tashkent and Samarqand.

Currently, Uzbekistan is carrying a program for the electrification of railway network. By 2018, in addition to sections Tashkent-Samarqand, Tashkent-Khojikent, Tuqimachi-Angren electrified the years of independence, the national rail carrier will provide electric lines in sections Maroqand-Navoi-Bukhoro and Maroqand-Qarshi. This means that the rail transportation from Tashkent to Bukhoro and Qarshi will be possible using high-speed electric locomotives.

Electrification of railways is planned to continue in the future. First of all the line connecting Qarshi and Termiz. As part of this work, electricity will be provided on the most difficult part Toshguzar-Boysun-Qumqurghon, which passes through the highlands and crosses 1,800-meter high ridge. This segment includes 37 road bridges, a gallery and a tunnel. (Source: “Uzbekistan Today” newspaper)