President of Uzbekistan Islam Karimov signed a resolution on 13 March, which approved measures on implementation of the project.

According to the document, Uzbekistan Temir Yollari signed agreement on purchase of 11 electric locomotives with Chinese consortium CNTIC-CNRDLRC.

Investment period is 24 months. Total sum of the project financing is US$44.39 million. Uzbekistan Temir Yollari will pay 5% from contract sum or US$2.22 million due to own resources.

Other part – 95% or US$42.17 million – will be paid due to resources of Chinese Eximbank, refinanced due to National Bank of Uzbekistan for Foreign Economic Relations.

The loan issued for 20 years, with five year grace period. Interest rate is 2.25 APR plus margin of refinancing bat at 0.25%, Gazeta.uz reported.

The presidential resolution said that Uzbekiston Temir Yollari is responsible body for targeted use of Eximbank resources.

China Eximbank and consortium CNTIC-CNRDLRC are exempted from income tax of legal entities, which levied in Uzbekistan, and from value added tax for executed works (services).