ADB Approves $80 Million for Uzbekistan Railway Electrification | Asian Development Bank

ADB Approves $80 Million for Uzbekistan Railway Electrification

News from Country Offices | 24 April 2017

TASHKENT, UZBEKISTAN (24 April 2017) — The Asian Development Bank (ADB) has approved an $80 million loan for the electrification of 145 kilometers (km) of railway in Uzbekistan, linking the cities of Pap, Namangan, and Andijan. The electrified track is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 2, a critical transport link in the region.

“Ensuring the safety, reliability, and sustainability of railway networks is an important component of growth and development for a landlocked country like Uzbekistan,” said Takeo Konishi, ADB’s Country Director for Uzbekistan. “Improving transport in Uzbekistan will strengthen the country’s strategic location as a trade and transport hub in Central Asia.”

The project will facilitate direct and efficient operation of both freight and passenger train services linking major cities in the Fergana Valley — home to nearly a third of Uzbekistan’s population — with Tashkent, the country’s capital. The project will help improve transport connectivity and encourage growth and job creation in the Fergana Valley. It will also increase regional trade along CAREC’s Corridor 2 as well as improve environmental and safety performance of the railway. An expected 10,000 tons of CO2 will be saved every year as a result of the project.

The total project cost is estimated at $177.45 million, with O’zbekiston Temir Yo’llari (UTY) — the public railway company — and the government contributing $97.45 million. ADB’s investment will finance supervision consultants, procurement of plant, procurement of maintenance equipment and machinery, and procurement of materials for external power supply.

The project is in contribution to the ongoing efforts of UTY and the government in upgrading Uzbekistan’s Soviet-era railway network. It builds on the successes of other projects, including one which recently completed the electrification of a 140 km railway track between the historical cities of Samarkand and Karshi in the south of the country.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.