Uzbekistan, Tashkent, April 11 / Trend, D. Azizov /
A consortium of Chinese companies called China National Technical Imp & Ex Corporation (CNTIC) and CNR Dalian Locomotive and Rolling Stock Co. Ltd (CNR DLRC) began delivering freight locomotives for the Uzbekistan Railways State Joint Stock Railway Company, a representative of the company told Trend on Thursday.
"We received the first electric locomotive," the interlocutor said. "Three more locomotives are planned to be supplied in the second half of the year. All electric locomotives will be delivered to Uzbekistan by late 2014 instead of late 2015," - said the source.
It was previously reported that in December 2011, Uzbekistan Railways signed a contract with a Chinese consortium to supply 11 electric freight locomotives worth $44.39 million.
The project is financed by Uzbek Railways's own funds and a Chinese Eximbank loan worth $42.17 million.
A loan was allocated for 20 years with a five-year grace period at an interest rate of 2.25 percent per annum.
Freight locomotives, equipment and materials, including technical documentation and spare parts required during the warranty period that are imported by Uzbekistan Railways are exempt from customs payments (except customs duties).
Moreover, Chinese Eximbank and CNTIC-CNRDLRC consortium are exempted from paying tax on legal entities' profit taken from a source of payment inside of Uzbekistan and from the VAT for the conducted work (services).
According to the document, it is allowed to formalize the equipment imported by CNTIC-CNR DLRC consortium during the warranty and maintenance period within the project without paying periodic customs payments.
Freight locomotives are being supplied within the rolling stock renewal and modernization program for 2011-2015.
Uzbekistan Railways purchased electric locomotives from China to the amount of $114 million during the past 10 years.
From 2002-2004, China's CSR Zhuzhou electric lokomotive delivered 12 freight locomotives and spare parts worth $40 million to Uzbekistan Railways.
The contract was fully financed with credit from the European Bank for Reconstruction and Development allocated to the Uzbek government in 1999.
CSR Zhuzhou Electric provided Uzbekistan with 15 passenger electric locomotives worth $74.3 million from 2008-2010.
The contract was financed by Chinese Eximbank's loan worth $ 70.1 million and Uzbekistan Railways's own funds.
Some 930 kilometers of 4,200 kilometers of railroad were electrified in Uzbekistan and more than 600 kilometers for the last seven years.
In total, the country plans to electrify about 2,000 kilometers of railway.
Some 60 percent of turnover in the country and almost 80 percent of total export and import cargo transportation is handled by the railroad.
