CDB provides $20 million loan to LLC ‘Uzavtotrans Service’ for the purchase of 168 Yutong buses

On April 23, 2019, Uzbekistan Ministry of Transport purchased 168 modern buses from Zhengzhou Yutong Bus Company using a US$19.99 On March 5, 2018, Uzbekistan’s President Shavkat Mirziyoyev signed an order, authorizing the Uzbek government to actively study the opening of regular direct bus routes to neighboring countries and Russia to improve travel capabilities. One year later, in March 2019, China Development Bank and LLC "Uzavtotrans service" — a joint venture of the Uzbek Agency for Automobile and River Transport (51% ownership stake) and the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (49% ownership stake) — signed a $20 million loan agreement for the acquisition of Chinese buses. The borrowing terms of the loan are unknown. However, it is known that the proceeds of the loan were to be used by LLC "Uzavtotrans Service" to finance a 2018 commercial contract with Zhengzhou Yutong Bus Co., Ltd.(for the acquisition of 168 Yutong buses). The buses were purchased for use on international routes that are in demand among labor migrants. More specifically, the Yutong buses will run to Russia, Kazakhstan, Kyrgyzstan, Tajikistan and other countries. The first batch of 100 buses was delivered in March 2019. Then, on June 18, 2019, an official handover ceremony for the delivery of 168 Yutong luxury coaches (buses) took place. LLC "Uzavtotrans Service" now provides regular bus services along 11 long-distance routes and five international routes: Tashkent-Taraz, Tashkent-Turkistan, Tashkent-Ushkunur, Tashkent-Alma-Ata, Chirchik-Ushkunur.

Additional details

1. Several sources refer to the purpose of the loan as ‘ensuring the safety of citizens of the Republic of Uzbekistan when traveling abroad by transport from the territory of the Republic for temporary labor activities.’ 2. LLC "Uzavtotrans Service" was founded in 2018. 3. The Chinese project title is 乌道路交通服务公司从郑州宇通客车公司购买了168辆现代化客车. 4. This CDB loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.

Number of official sources

4

Number of total sources

18