Uzbek Railways Freight Traction Renewal & Management Project

Location:

Uzbekistan

Project number:

4033

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Approval date:

20 Jul 1999

Status:

Complete

PSD disclosed:

17 Jul 1999

Project Description

Priority investment to enhance the performance of the Uzbek rail freight business and to increase its profitability and commercial viability. The investment is part of the railway modernisation programme, which is financed with the participation of the Asian Development Bank and Overseas Economic Cooperation Fund.

The main objectives of the project are to:

  • support the modernisation and restructuring of the railways in Uzbekistan in response to the changing market demands; and
  • assist in financing the most urgent investment needs.

 

Transition Impact

The project will have a positive impact on the transition in the following ways:

Commercialisation and market efficiency: The implementation of the restructuring measures will help to ensure that the railways are transformed into a commercial, self-sustaining enterprise. The project will result in lower energy consumption and reduced train operating and maintenance costs for freight haulage. Together with a more comprehensive fleet management plan, it will assist UTY in providing better transport services at lower costs.

Trade facilitation and market expansion: Because of the geopolitical location, Uzbekistan plays an important role in the strategic Eurasian corridor linking Asia and Europe. This project forms part of the Bank's strategy, in line with the TRACECA initiative, to facilitate trade flows in the Eurasian corridor. Other projects being developed in this area include the Trans-Caucasian rail line in Georgia and Azerbaijan, the rail rehabilitation (track maintenance) project in Kazakhstan and the road rehabilitation project in Turkmenistan. The EBRD is also engaged in port infrastructure in Baku (Azerbaijan) and Turkmenbashi (Turkmenistan).

Transfer of skills in the areas of procurement and modern fleet management practices.

The Client

The client is the national railway, Uzbekistan Temir Yullari (UTY)

EBRD Finance

US$ 40 million (EUR 36.7 million) sovereign-guaranteed loan.

Project Cost

US$ 44 million (EUR 40 million).

Environmental Impact

The project was screened as B/0 requiring an environmental analysis which is being performed as part of a grant-financed technical cooperation project. The first draft of this study is expected by the 1 April. As a condition of the Bank’s involvement in the financing of the investments, UTY will need to develop in-house capacity for environmental management and develop an Environmental Action Plan.

Technical Cooperation

None

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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