Think Railways

The World Bank’s Board of Executive Directors has approved a USD 195 million IBRD  (the International Bank for Reconstruction of Development) loan for the Pap-Angren Railway Project in Uzbekistan.

The project development objectives are to reduce transport costs and to increase transport capacity and reliability through the construction of a rail link between the Uzbek part of the Ferghana Valley and the rest of Uzbekistan.  The line will offer a faster, cheaper, all season, and safer and more reliable transport service. The State Joint Stock Railway Company “Uzbekistan Temir Yullary” (UTY) is forecasting about 600,000 passengers to use the new infrastructure and about 4.6 million tons goods to be transported during the first year of operation.  The project is expected to reduce greenhouse gas emissions by about 200,000 tons annually.

The total project cost is USD 1,633.75, of which USD 1,088.75 million is provided from the UTY own funds, the state budget and the Fund for Reconstruction and Development of Uzbekistan, USD 350 million from China Exim Bank, and USD195 million from the World Bank (in particular, IBRD).

The project to build a single 124 km track rail link between Angren and Pap, including a 19.2 km rail tunnel through the Kamchik Pass, includes the following six components:

• Rail Main Infrastructure (estimated total cost USD 1,438.75 million)
• Rail Electrification, Signaling, Track Maintenance and Railway Video Surveillance System (estimated total cost USD 154 million, 100% IBRD financing)
• Power Distribution Line (estimated total cost USD 35 million, 100% IBRD financing)
• Technical assistance to UTY for Supporting Railway Construction (estimated cost USD 0.5 million, 100% IBRD financing)
• Technical Assistance to UTY for Improving Railway Logistics (estimated cost USD 1.0 million, 100% IBRD financing)
• Implementation Support (estimated cost USD 4.5 million, 100% IBRD financing)