RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of August 12, 2024 No. PP-289

About measures for project implementation "Purchase of 6 high-speed electric trains" with participation of Eximbank of Korea

For the purpose of establishing movement of high-speed modern electric trains for improvement of service quality of passengers on rail transport, developments of tourist capacity of regions, expansions of long-distance railway services:

1. Take into consideration that:

as a result of completion of works on electrification on sites of the railroad "Bukhara-Urgench-Khiva" 465 km long until the end of 2024 and Miskin-Nukus until the end of 2026 bringing speed of movement of electric trains to 250 km/h is planned;

according to the resolution of the President of the Republic of Uzbekistan of October 10, 2023 No. PP-329 "About measures for radical reforming of the sphere of rail transport of the Republic of Uzbekistan" are signed on June 14, 2024 contracts with the Hyundai Rotem company (Republic of Korea) on purchase and maintenance of 6 high-speed electric trains;

the total cost of the Purchase of 6 High-speed Electric Trains project (further - the project) constitutes 220, 03 million euros, from them share of the Republic of Uzbekistan - 21, 3 million euros and share of JSC Uzbekiston temir yullari - 13, 5 million euros;

on the project between the Republic of Uzbekistan and Eximbank of Korea the loan agreement on allocation of borrowed funds in the Korean wons in equivalent 185, by 18 million euros for a period of 40 years, including grace period of 10 years, at the annual interest rate 0,05 rate on June 14, 2024 is signed;

the project deadline constitutes 6 years (2024 - 2030);

according to article 483 of the Tax Code of the Republic of Uzbekistan till January 1, 2028 turnover on realization, and also commodity importation (services) acquired within the projects realized fully or partially at the expense of the public external debt attracted from the international financial institutions and the foreign government financial organizations by legal entities from shares of the state in authorized fund (authorized capital) in the amount of 50 percent and more is exempted from the value added tax;

according to Article 297 of the Customs code of the Republic of Uzbekistan the tariff privileges in the form of exemption of customs duty are provided concerning the goods acquired by legal entities within the projects realized in the Republic of Uzbekistan fully or partially at the expense of means (loans, the credits) of the international financial institutions and the foreign government financial organizations according to international treaties of the Republic of Uzbekistan.

2. Determine that:

JSC Uzbekiston temir yullari and JSC Temiryulexpress in its structure are the executive bodies responsible for timely and high-quality project implementation, and also target and effective use of loans of Eximbank of Korea;

JSC National Bank of Foreign Economic Activity of the Republic of Uzbekistan (further - JSC Uzmilliybank) is financial agent on implementation of calculations for the loans granted by Eximbank of Korea. At the same time payments for services of the financial agent are made by JSC Uzbekiston temir yullari on applicable fares of JSC Uzmilliybank;

repayment of the loans allocated with Eximbank of Korea, including the expenses connected with allowances, interest and other payments are performed at the expense of means of JSC Temiryulexpress as a part of JSC Uzbekiston temir yullari.

At the same time in case of decline in the ability of JSC Temiryulexpress on timely repayment of loans these payments are made by JSC Uzbekiston temir yullari.

3. Approve:

The main technical and economic indicators of the Purchase of 6 High-speed Electric Trains project according to appendix No. 1;

The forecast repayment schedule of the borrowed funds allocated by Eximbank of Korea including payment of interest payments, within the Purchase of 6 High-speed Electric Trains project according to appendix No. 2.

4. Confer to the Minister of Economy and Finance power to sign on behalf of the Government of the Republic of Uzbekistan the agreement on loaning up of loans between JSC Uzbekiston temir yullari and JSC Temiryulexpress in its structure, JSC Uzmilliybank and Eximbank of Korea.

5. Confer to JSC Uzmilliybank power to sign the interbank contract with authorized bank of the Republic of Korea for implementation of calculations for loan of Eximbank of Korea.

6. In week time in accordance with the established procedure to issue to the Ministry of Justice the legal conclusions under the loan agreement signed between the Government of the Republic of Uzbekistan and Eximbank of Korea, and also, if necessary, to agreements on modification and amendments in this agreement.

7. To the ministry of transport together with JSC Uzbekiston temir yullari to approve and organize execution of "road map" on creation of the infrastructure necessary for project implementation, achievement of the main technical and economic indicators of the project, and also increase in amounts of the income on the services rendered by means of high-speed electric trains in a month.

8. To provide to the ministry of employment and reducing poverty of requests of JSC Uzbekiston temir yullari in accordance with the established procedure issue (prolongation) to the foreign experts involved to the republic within project implementation, confirmations on the right of labor activity in the territory of the Republic of Uzbekistan.

9. Assign to the deputy prime minister A. Zh. Ramatov and the Minister of Transport I. R. Makhkamov the personal responsibility for the effective organization of execution of this resolution.

To assign discussion of course of execution of this resolution, implementation of coordination and control of activities of the responsible organizations to the Prime Minister of the Republic of Uzbekistan A. N. Aripov.

Appendix No. 1

to the Resolution of the President of the Republic of Uzbekistan of August 12, 2024 No. PP-289

Main technical and economic indicators of the Purchase of 6 High-speed Electric Trains project with participation of Eximbank of Korea

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