TASHKENT, Uzbekistan, July 11. The Fund for Reconstruction and Development will provide a loan to Uzbekistan Railways in the amount of $255 million to finance Uzbekistan's share in the authorized capital of the China - Kyrgyzstan - Uzbekistan railroad project company, Trend reports.
This was stated in the decree signed by President of Uzbekistan Shavkat Mirziyoyev on approving the international agreement.
As per the document, a grand total of $14 million of this amount will be divvied up by the end of this year.
The loans will be allocated at 5 percent per year for 15 years, including a 7-year grace period.
Under the terms of the agreement signed on June 6, the share of Uzbekistan and Kyrgyzstan in the project company will be 24.5 percent each, and 51 percent will belong to China. The total authorized capital of the project company will amount to $1.04 billion.
Meanwhile, Uzbekistan, Kyrgyzstan, and China signed an agreement on cooperation in the joint promotion of the railroad project on June 6.
The China-Kyrgyzstan-Uzbekistan railroad project is a strategic infrastructure project that will connect China, Kyrgyzstan, and Uzbekistan, creating a new overland transportation corridor between Central and East Asia.