Chinese Eximbank provides loan to Uzbekistan for tunnel construction

According to Uzbekistan Temir Yollari, Eximbank of China provided US$350 million loan to the project on financing of construction of the tunnel.

The loan is issued for 20 years with five year grace period. The interest rate set at 2.25% APR.

China Railway Tunnel Group Co. Ltd will construct the tunnel in line with the agreement signed with Uzbekistan Temir Yollari.

The tunnel with total cost of US$481.7 million will be part of the electrified railroad Angren-Pap.

Uzbekistan Temir Yollari started construction of new electrified railway Angren-Pap with the length of 129 km in July 2013. The railway will pass through Qamchiq pass and link Ferghana Valley (Andijan, Namangan and Ferghana regions) with other part of Uzbekistan.

The project with preliminary cost of US$1.9 billion will be financed due to loans of international financial institutions for US$1 billion and own resources of the Uzbek side. It is planned to complete final version of the feasibility study by the end of 2013. The construction works will take five years.