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

Project narrative

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.