ABOUT MEASURES FOR IMPLEMENTATION OF THE PROJECT “RECONSTRUCTION OF SECTION 1255 – 1315 KM (60 KM) OF THE M39 HIGHWAY “ALMATY – BISHKEK – TASHKENT – SHAKHRISABZ – TERMEZ” WITH THE PARTICIPATION OF THE ISLAMIC DEVELOPMENT BANK AND THE OPEC FUND BETWEEN TO NATIONAL DEVELOPMENTRESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN DD APRIL 15 2024 y. RP №.-158.

RESOLUTION

OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

APRIL 15 2024 y.

RP №.-158.

.

ABOUT MEASURES FOR IMPLEMENTATION OF THE PROJECT “RECONSTRUCTION OF SECTION 1255 – 1315 KM (60 KM) OF THE M39 HIGHWAY “ALMATY – BISHKEK – TASHKENT – SHAKHRISABZ – TERMEZ” WITH THE PARTICIPATION OF THE ISLAMIC DEVELOPMENT BANK AND THE OPEC FUND BETWEEN TO NATIONAL DEVELOPMENT

In order to build and reconstruct modern highways that meet international requirements and standards, develop the highway network and further improve the national road transport infrastructure in the country:

1. Please note that:

a) The Committee on Highways under the Ministry of Transport (hereinafter referred to as the Committee on Highways) has, in accordance with the established procedure, developed a feasibility study for the project “Reconstruction of the section 1255 – 1315 km (60 km) of the M39 highway “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez” (hereinafter referred to as the project) with a total cost of 195.5 million US dollars;

b) for project implementation:

b) for project implementation:

The Islamic Development Bank (hereinafter referred to as IDB) approved a loan of US$106.7 million for a term of 20 years, including a five-year grace period;

The OPEC Fund for International Development (hereinafter – OPEC Fund) approved a loan of US$47.2 million for a period of 20 years, including a five-year grace period;

c) To implement the project, the Republic of Uzbekistan with the IDB and the OPEC Fund signed the relevant Framework Agreement and Loan Agreement;

d) the project with a total cost of US$195.5 million has the following technical and economic basis:

the contribution of the IDB and the OPEC Fund is 153.9 million US dollars, the contribution of the Republic of Uzbekistan is funds in the amount of 41.5 million US dollars in the form of providing tax and customs benefits and covering other financial expenses;

the project implementation period is 5 years (2024 – 2029, including a two-year warranty period);

e) based on the results of preliminary studies conducted by the Ministry of Investment, Industry and Trade, the Ministry of Economy and Finance, the Ministry of Transport, the Committee on Roads, the possibility of optimizing costs (up to 20 million US dollars) was identified.

2. Establish that:

The Committee on Highways and the «Avtoyulinvest» Agency are the executive bodies responsible for the timely and high-quality implementation of the project, as well as the targeted and effective use of loans from the IDB and the OPEC Fund;

repayment of loans allocated by the IDB and the OPEC Fund, including costs associated with surcharges, interest and other payments, are carried out at the expense of the republican budget of the Republic of Uzbekistan;

The annual cost estimate and staffing of the project implementation group will agreed upon with the Ministry of Economy and Finance.

3. Approve:

Main technical and economic indicators of the feasibility study of the project “Reconstruction of section 1255 – 1315 km (60 km) of the M39 highway “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez” according to Appendix No. 1;

Forecast schedule for payment in installments of funds allocated by the Islamic Development Bank within the framework of the project “Reconstruction of section 1255 – 1315 km (60 km) of the M39 highway “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez”, according to Appendix No. 2;

The forecast repayment schedule for the loan allocated by the OPEC Fund for International Development, interest payments and other payments on it, within the framework of the project “Reconstruction of the section 1255 – 1315 km (60 km) of the M39 highway Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“, according to Appendix No. 3.

4. Approve the proposal of the Ministry of Investment, Industry and Trade, the Ministry of Economy and Finance, the Ministry of Transport, the Committee on Highways to allocate funds optimized and saved within the project to work on the construction of weight control points on public roads in accordance with Appendix No. 4.

The Ministry of Investment, Industry and Trade, together with the Ministry of Economy and Finance, the Committee on Roads, until October 1, 2024, will negotiate with the IDB and the OPEC Fund on the allocation of funds optimized and saved within the project for the work provided for in this paragraph.

5. The khokimiyat of the Kashkadarya region, together with the Committee on Highways, in order to create green areas, ensure the planting of 450 thousand seedlings of ornamental trees and poplars in the roadside areas of the roads reconstructed as part of the project, taking into account their climatic conditions.

At the same time, in accordance with the established procedure, agreements are concluded with proactive individuals and legal entities to maintain green areas at the proper level.

6. The Ministry of Justice to issue legal opinions on the Framework Agreement and the Loan Agreement signed between the Republic of Uzbekistan, the IDB and the OPEC Fund.

7. The Ministry of Employment and Poverty Reduction, on the basis of applications from the Committee on Highways, in the prescribed manner, ensure the issuance (extension) of confirmations for the right to carry out labor activities in the territory of the Republic of Uzbekistan to foreign specialists brought to the republic as part of the project.

8. The Republican Headquarters for Control and Coordination of the Implementation of State Programs (S.I. Samadov) shall establish constant control over the targeted allocation and expenditure of funds within the framework of the project, as well as submit relevant information to the Administration of the President of the Republic of Uzbekistan every six months.

9. The Anti-Corruption Agency should establish constant control over ensuring openness and transparency in the process of using funds raised under the project.

10. The Ministry of Ecology, Environmental Protection and Climate Change shall ensure that the state environmental assessment of statements on the project’s impact on the environment is carried out in the manner established in legislative acts.

See: Law of the Republic of Uzbekistan “On Environmental Expertise”.

11. Entrust Deputy Prime Minister A.Zh. Ramatov and Chairman of the Committee on Highways Zh.Yu. Tursunov personal responsibility for the effective organization of execution of this resolution.

Discussion of the implementation of this resolution, coordination and control over the activities of responsible organizations shall be entrusted to the Prime Minister of the Republic of Uzbekistan A.N. Aripov.

President of the Republic of Uzbekistan Sh. MIRZIYOEV

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APPENDIX No. 1

To the resolution of the President of the Republic of Uzbekistan

dated April 15, 2024 №. RP-158

MAIN TECHNICAL AND ECONOMIC INDICATORS

Feasibility study of the project “Reconstruction of section 1255 – 1315 km (60 km) of the M39 highway “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“

#	The name of indicators	Unit	Total	Including:
				funds from the Islamic Development Bank	OPEC funds	share of the Republic of Uzbekistan
1	The total cost of the project	eq. thousand USD	195 495 .	106 700 .	47 249 .	41 546 .
1.1	Cost of investment, total:	eq. thousand USD	129 471 .	86 517 .	42 954 .	.
.	of them:	.	.	.	.	.
.	construction and installation work**	eq. thousand USD	129 471	86 517	42 954	.
	in freely convertible currency	thousand USD	129 471 .	86 517 .	42 954 .
.	institutional development and capacity building	eq. thousand USD	1000	1000	. .	.
	in freely convertible currency	thousand USD	1000	1000	.	.
.	equipment purchase	eq. thousand USD	3000	3000	.	.
	in freely convertible currency	thousand USD	3000	3000	.
.	Other expenses	eq. thousand USD .	14 873	4 295	900 .	.
	in freely convertible currency	thousand USD .	14 873	4295	900
1.2	Funds allocated from the republican budget to cover value added tax, as well as in the form of exemption from customs duties	eq. thousand USD .	23700	.	.	23700
1.3	Social tax***	thousand USD .	88	.	.	88
1.4	Financial expenses for the investment period****	thousand USD .	16858	.	.	16858
1.5	Expenses of the project implementation team	thousand USD	1310	1310	.	.
2	Length of road to be reconstructed	km	60
3	Construction of weight and dimensional control points on public roads using saved funds	Unit	20
4	Amount of expected occupancy	pople	–
5	Estimated payback period of the project	years	–
6	Duration of investment period	months	60
7	Loan repayment period	years	20
8	Including grace period	years	5

* The final price indicators are determined based on the results of detailed design and estimate documentation and tenders held for the supply of goods (works, services) in the prescribed manner.

** Taking into account unforeseen expenses in the amount of 10% construction and installation work.

*** Social tax is covered from State Budget funds allocated to the Committee on Roads.

**** The amount of final financial costs depends on the actual amounts, the date of disbursement and the 10-year SOFR in US dollars of the average SWAP indicator.

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APPENDIX No. 2

to the resolution of the President of the Republic of Uzbekistan

dated April 15, 2024 №. RP-158

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FORECAST CHART

payment in installments of funds allocated by the Islamic Development Bank within the framework of the project “Reconstruction of section 1255 – 1315 km (60 km) of the M39 highway “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“

Loan size $106,700,000 USD

Project implementation period 5 years

Loan repayment period 20 years

Investment period 5 years

IDB loan repayment surcharge   10-year SOFR in US dollars average SWAP indicator + 2.1 b.p.

Number of Payments 30

years	Prepayment accrued for funds withdrawn during the investment period*	Total cost of paying in installments**
10.07.2024	602 428,20	602 428,20
10.01.2025	602 428,20	602 428,20
10.07.2025	1 210 191,40	1 210 191,40
10.01.2026	1 210 191,40	1 210 191,40
10.07.2026	1 823 289,60	1 823 289,60
10.01.2027	1 823 289,60	1 823 289,60
10.07.2027	2 441 722,80	2 441 722,80
10.01.2028	2 441 722,80	2 441 722,80
10.07.2028	.	5 354 769,52
10.01.2029	.	5 354 769,52
10.07.2029	.	5 354 769,52
10.01.2030	.	5 354 769,52
10.07.2030	.	5 354 769,52
10.01.2031	.	5 354 769,52
10.07.2031	.	5 354 769,52
10.01.2032	.	5 354 769,52
10.07.2032	.	5 354 769,52
10.01.2033	.	5 354 769,52
10.07.2033	.	5 354 769,52
10.01.2034	.	5 354 769,52
10.07.2034	.	5 354 769,52
10.01.2035	.	5 354 769,52
10.07.2035	.	5 354 769,52
10.01.2036	.	5 354 769,52
10.07.2036	.	5 354 769,52
10.01.2037	.	5 354 769,52
10.07.2037	.	5 354 769,52
10.01.2038	.	5 354 769,52
10.07.2038	.	5 354 769,52
10.01.2039	.	5 354 769,52
10.07.2039	.	5 354 769,52
10.01.2040	.	5 354 769,52
10.07.2040	.	5 354 769,52
10.01.2041	.	5 354 769,52
10.07.2041	.	5 354 769,52
10.01.2042	.	5 354 769,52
10.07.2042	.	5 354 769,52
10.01.2043	.	5 354 769,52
Total		172 798 349,50

* The SOFR interest rate and the amount of the prepayment are determined upon actual disbursement of borrowed funds.

** The total cost of payment in installments and the date of repayment of funds under the Framework Agreement with the IDB are determined from the date of withdrawal of borrowed funds.

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APPENDIX No. 3

to the resolution of the President of the

Republic of Uzbekistan dated April 15, 2024 №. RP-158

FORECAST CHART

repayment of a loan allocated by the OPEC Fund for International Development, payment of interest and other payments on it, within the framework of the project “Reconstruction of section 1255 – 1315 km (60 km) of the M39 highway “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“

Loan size                               $ 47 249 170 USD

Loan repayment period   20 years

Grace period                                5 years

Interest rate 6-month SOFR + 2.3 bps

Commissions on obligations 0.25% per annum.

One-time commission 0.25% per annum

usd

Payment period	Development schedule	Procent payments*	Repayment of the main loan	Obligation payments	One-time commission	Total amount to be paid**
01.12.2023	.	.	.	.	118 122,93	118 122,93
10.12.2023	8 000 000	0	.	65 960	.	65 960
10.06.2024	8 000 000	136 714	.	39 929	.	176 643
10.12.2024	8 000 000	270 457	.	29 384	.	299 841
10.06.2025	8 000 000	401 227	.	19 485	.	420 712
10.12.2025	8 000 000	537 941	.	9 112	.	547 053
10.06.2026	7 249 170	683 572	.	.	.	683 572
10.12.2026	.	789 901	.	.	.	789 901
10.06.2027	.	807 455	.	.	.	807 455
10.12.2027	.	794 290	.	.	.	794 290
10.06.2028	.	789 901	1 574 972	.	.	2 364 873
10.12.2028	.	772 055	1 574 972	.	.	2 347 027
10.06.2029	.	753 624	1 574 972	.	.	2 328 596
10.12.2029	.	710 911	1 574 972	.	.	2 285 883
10.06.2030	.	699 794	1 574 972	.	.	2 274 766
10.12.2030	.	661 908	1 574 972	.	.	2 236 880
10.06.2031	.	631 921	1 574 972	.	.	2 206 893
10.12.2031	.	608 955	1 574 972	.	.	2 183 927
10.06.2032	.	592 133	1 574 972	.	.	2 167 105
10.12.2032	.	552 931	1 574 972	.	.	2 127 903
10.06.2033	.	538 303	1 574 972	.	.	2 113 275
10.12.2033	.	503 050	1 574 972	.	.	2 078 022
10.06.2034	.	473 941	1 574 972	.	.	2 048 913
10.12.2034	.	450 097	1 574 972	.	.	2 025 069
10.06.2035	.	430 643	1 574 972	.	.	2 005 615
10.12.2035	.	394 951	1 574 972	.	.	1 969 923
10.06.2036	.	376 812	1 574 972	.	.	1 951 784
10.12.2036	.	346 094	1 574 972	.	.	1 921 066
10.06.2037	.	315 961	1 574 972	.	.	1 890 933
10.12.2037	.	291 240	1 574 972	.	.	1 866 212
10.06.2038	.	269 152	1 574 972	.	.	1 844 124
10.12.2038	.	236 970	1 574 972	.	.	1 811 942
10.06.2039	.	215 321	1 574 972	.	.	1 790 293
10.12.2039	.	185 334	1 574 972	.	.	1 760 306
10.06.2040	.	157 980	1 574 972	.	.	1 732 952
10.12.2040	.	133 113	1 574 972	.	.	1 708 085
10.06.2041	.	107 661	1 574 972	.	.	1 682 633
10.12.2041	.	78 990	1 574 972	.	.	1 653 962
10.06.2042	.	53 830	1 574 972	.	.	1 628 802
10.12.2042	.	26 476	1 574 972	.	.	1 601 448
Total	47 249 170	16 781 610	47 249 170	163 870,0	118 122,93	64 312 762

* The SOFR interest rate is determined after the actual disbursement of borrowed funds.

** The amount of payment for the main loan, interest and other payments and the date of loan repayment under the loan agreement with the OPEC Fund are determined from the date of withdrawal of borrowed funds.

APPENDIX No. 4

to the resolution of the President of the

Republic of Uzbekistan dated April 15, 2024 №. RP-158

ADDRESS PROGRAM

for the construction of weight and dimensional control points on public roads using funds optimized and saved within the framework of the project “Reconstruction of section 1255 – 1315 km (60 km) of the M39 highway “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“

#	Name of Highway	Address of points	Number of installed control points, sets
Total points across the republic			22
Republic of Karakalpakstan
1	Highway A380 “Guzar – Bukhara – Nukus – Beyneu“	883 km	1
Andijan region
2	Highway 4Р112 “Fergana Ring Road”	103 km	1
3	Highway A373 “Road M39 – Gulistan – Buka – Angren – Kokand and through Andijan – Osh”	457km	1
Bukhara region
4	Highway M37 “Samarkand – Bukhara – Turkmenbashi“	212 km	1
5	Highway 4Р220 “Vabkent – Shafirkan – Jilvon”	20 km	1
Jizzakh region			.
6	Highway M39 “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“	1013 km	1
Kashkadarya region			.
7	Highway A378 “Samarkand – Guzar”	58 km	1
8	Highway 4Р79 “city. Karshi – village Khonabad – village Chim – s. Chirakchi – Shakhrisabz“	7 km	1
Navoi region			.
9	Highway 4Р64г “Point to the city of Navoi from the M37 highway”	12 km	1
10	Highway M37 “Samarkand – Bukhara – Turkmenbashi“	162 km	1
Samarkand region			.
11	Highway M39 “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“	1,081 km	1
Surkhandarya region			.
12	Highway M41 “Bishkek – Dushanbe – Termez“	1,618 km	1
13	Highway M39 “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“	1,400 km	1
Syrdarya region			.
14	Highway M39 “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“	140 km	1
15	Highway M39 “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“	871 km	1
.	Tashkent region		.
16	Highway 4Р21 “Tashkent bypass road”	9 km	1
17	Highway 4Р12 “g. Bektemir – Chirchik – Gazalkent – Chorbog village”	18 km	1
18	Highway A373 “Road M39 – Gulistan – Buka – Angren – Kokand and through Andijan – Osh”	60 km	1
19	Highway 4P20 “s. Karasuv – Buka – Bekabad“	63 km	1
20	Highway M39 “Almaty – Bishkek – Tashkent – Shakhrisabz – Termez“	817 km	1
21	Highway A373 “Road M39 – Gulistan – Buka – Angren – Kokand and through Andijan – Osh”	45 km	1
Fergana region			.
22	Highway 4Р147 “city. Margilan – Rishtan city – village. Ukchi – s. Karimdevona – Kanibadam“	101 km	1

Note: to this targeted program by the Cabinet of Ministers may be changes and additions.

The document presented in an unofficial translation from the database of the law firm “S VERENIN’S LEGAL GROUP”.

The document presented from the database of the law firm “S VERENIN’S LEGAL GROUP”.

The document presented as of _______2024г.

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