The State Development Bank of China to provide loans for the modernization and development of the infrastructure of Uzbektelecom
Tashkent, Uzbekistan (UzDaily.com) -- The Ministry of Information Technologies and Communications Development of the Republic of Uzbekistan published for discussion a draft Resolution of the Cabinet of Ministers of Uzbekistan “On Measures for Implementing Investment Projects on Modernizing and Developing Telecommunications Infrastructure of Uzbektelecom” with a loan from the State Development Bank of China”.
The document is proposed to be adopted in order to ensure favorable conditions for the active introduction of modern data transmission technologies, the development of optical broadband access networks and the modernization of the mobile communications network with the attraction of a loan from the State Development Bank of China
The draft Resolution, in particular, envisages to determine the sources of financing investment projects for the modernization and development of the telecommunications infrastructure of Uzbektelecom due to the credit funds of the Bank.
It is expected that the Chinese bank will issue a loan for US$40 million for five years with a grace period of 1.5 years. The interest rate is equal to six months or 4 plus, 2 percent per annum, including the margin of the National Bank of Foreign Economic Activity of the Republic of Uzbekistan in the amount of 1 percent per annum.
It is planned that the Uzbekistan plans to cooperate with Huawei Technologies. The document will allow the Ministry for the Development of Information Technologies and Communications to enter into contracts (agreements) for the supply of technological equipment, software and services within the project “Development of telecommunications networks with the prospect of the introduction of 5G technology”, “Expansion of the data storage and processing center” and “The introduction of wireless technologies for connecting to broadband the Internet.”