Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Islam Karimov signed a resolution, which approved financing sources of the project on purchase of two high-speed passenger trains of Talgo AVE 250 series (Spain). The resolution was adopted in order to organize high-speed train communication between Tashkent and Samarkand, which meet high international requirements and standards, improve quality of transportation and level of passenger servicing, further develop railway tourism transportation.

Uzbekistan Temir Yollari state joint-stock railway company held negotiations with Spain’s PATENTES TALGO, S.L. and inked contract on purchase of two high-speed passenger trains of Talgo AVE 250 series (Spain) with 18 cars. The contract sum is 38 million euros.

The document said Uzbekistan Temir Yollari will finance 50% cost of contract on purchase of Talgo trains. Fund for Reconstruction and Development of Uzbekistan will issue loan to cover other 50%.

The fund will issue loan through National Bank for Foreign Economic Activity of Uzbekistan (NBU). The loan is issued for 10 years, including two-year grace period. The interest rate set at 2% APR, including 0.25% refinancing margin.

Uzbekistan Temir Yollari will carry out financing of the project on construction of railway infrastructure between Tashkent and Samarkand in line with international requirements and standards to ensure effective use of newly purchased trains. The company will also construct and re-construct railroads and stations, two-sided fences, and others.

The project will be implemented in one stage and Uztyajneftegazhimproyekt Institute will develop technical-economic calculations of the project on purchase of Talgo 250 trains.

The document exempted Uzbekistan Temir Yollari from payment of customs payments, except registration fees, for imported equipment, materials and tools, which will be used in organization of high-speed train communication between Tashkent and Samarkand.

The company will be also exempted from value added tax for works and services, which were executed by non-residents of Uzbekistan and property tax for purchased high-speed trains for five years from the start of their exploitation.

The resolution allowed to register equipment and tools, imported by PATENTES TALGO, S.L. during guarantee and service period of Talgo 250 trains, in temporary import regime without payment of periodic customs payments.

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