China Eximbank provides $70.11 million preferential buyer's credit loan for the purchase of Chinese electric locomotives (Linked to Record ID#40131)

Project narrative

In November 2007, the Chinese Government and the Government of Uzbekistan signed a memorandum of understanding (MoU) in which China pledged to offer concessional loans to Uzbekistan for the acquisition of electric locomotives from China. In May 2009, Uzbekiston Temir Yollari State Joint-Stock Railway Company (Uzbekistan Railways SJSRC) signed a contract with CSR Zhuzhou Electric Locomotive Company for the supply of 15 electric locomotives. The total cost of the project was $75.53 million. The Export-Import Bank of China provided a $70,110,000 preferential buyer's credit loan to the National Bank for Foreign Economic Activity of Uzbekistan to support this contract. The loan carried the following terms: a maturity of 20 years, a grace period of 5 years, an interest rate of 2%, a commitment fee of 0.3%, and a management fee of 0.3%. Uzbekistan Railways SJSRC covered the remaining cost of the project. The projected speed of the electric locomotives was 160 km per hour, which would allow to double passenger turnover at the electrified railway roads of Uzbekistan. The new locomotives were to be used on the Samarkand-Khojidavlet railway line and Navoi-Samarkand line. All 15 electric locomotives were delivered to Uzbekistan Railways SJSRC by the end of 2010.