The funding sources for the modern history’s largest projects on construction of new subway lines and stations have been approved in Uzbekistan.
The Ministry of Finance of Uzbekistan has published the first action plans for the development of the Tashkent subway in the coming years. The two major projects envisage the completion of the Yunusabad line of the metropolitan subway by 2019, and the construction of a new terrestrial branch in Sergeli district with the launch in 2020.
$124.8 million will be allocated fir the completion of the construction of the Yunusabad line, $72 million of which are centralized investments from the government budget, as provided by the Investment Program for 2017-2020. The money will be allocated on an annual basis in equal installments.
The remaining $52.8 million will be invested as a loan from the Fund for Reconstruction and Development of Uzbekistan (FRDU). They will be channeled in the purchase of imported equipment, materials and components, payment for services of foreign experts for examination of project documentation, support and technical supervision of construction.
If necessary, the funds of the FRDU loan will be channeled in specific construction and installation works by foreign contractors, including other currency expenses under the project, as well as for the purchase of equipment for contractors.
The construction of the so-called ‘skytrain’ line in Sergely region of Tashkent will cost $170.1 million. It will be funded through $70.1 million of centralized investments from the government budget, as well as a FRDU loan in the amount of $35.1 million. The government will also draw funds from loans and other sources in the amount of $64.9 million.
The implementation of such large-scale projects is going to be a serious financial burden for the Tashkent subway, as part of Uzbekistan Railways. With this in mind, the government has provided companies with significant benefits and preferences.
In particular, under the resolution of the government, the Tashkent subway will be exempted from land tax, property and mandatory contributions to the state funds by 1 January 2022.
In addition, the State Unitary Enterprise ‘Tashkent Subway’ and JSC ‘Uzbekistan Railways’ have been released by January 1, 2027, from customs duties for imported cars, machinery, equipment, materials, spare parts, components, assemblies and technical documents for maintenance needs of the subway, which are not produced domestically.
The government also entrusted the Tashkent municipality with taking measures to enhance the efficiency of the underground. For example, municipal authorities should optimize the current urban and suburban routes to orient the passenger traffic to the subway.
The specialists will review the extent and traffic schemes of certain routes of land transport that pass along metro stations, as well as eliminate duplication of bus and subway routes. Several projects envisage attraction of passenger traffic to the subway through the construction of new terminal routes for buses and fixed run taxi close to metro stations.
