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14-01-2015, 15:04

Tajik parliament ratifies loan agreement with China Exim Bank


Avesta.Tj | 14.01.2015 |Tajikistan's Majlisi Namoyandagon (lower chamber of the parliament) ratified on Wednesday an agreement between Tajikistan and China Exim Bank on concessional loans for construction of the Vahdat-Yovon section of the rail link connecting Dushanbe and Kurgan-Tyube.

Speaking at the session, First Deputy Finance Minister Jamoliddin Nuraliev said that the project is aimed at bringing Tajikistan out of communication deadlock and linking the country's central and southern parts.

Three tunnels and 11 bridges will be constructed along the Vahdat-Yavan railway that is 40.7 kilometers in length.

72 million U.S. dollars are needed for implementation of this project. The China Exim Bank will provide a 68 million U.S. dollar loan.

Komil Mirzoaliev, the director of Tajik state railway company -- Tajik Railways, said that to-date, more than 260 million somoni have been spent for implementation of this project.

The construction of a rail link connecting Dushanbe, Vahdat and Yovon is expected to be completed in the next two years, Mirzoaliev added.

The Export-Import Bank of China (China Exim Bank) is one of three institutional banks in China chartered to implement the state policies in industry, foreign trade, diplomacy, economy, and provide policy financial support so as to promote the export of Chinese products and services. Established in 1994, the bank is subordinated to the State Council.

The focus of the bank is to promote foreign trade and investment. Exim Bank is not limited though to concessional funding and commercial operations form the backbone of the bank. Commercial activity includes export credits mainly in the infrastructure fields (roads, power plants, oil and gas pipelines, telecom, and water projects) and investment loans for Chinese businesses to establish overseas in the energy, mining and industrial sectors.