Uzbekneftegaz (Uzbek Oil and Gas) national holding company will attract credit of Chinese Eximbank for US$57 million for modernization of gas transportation system.

The credit will be directed to the realization of the project to create management system and technologic communication of Uzbekistan’s gas transportation system.

It is expected that the Chinese credit will be used to buy necessary equipment for distance communication management system SCADA. The credit will be attracted for 20 years with five year of grace period. The interest rate set at the volume of 2% and it is attracted under guarantee of the Uzbek government.

Total volume of the project is US$85 million and it will be financed due to the Chinese credit and own funds of Uzbekneftegaz. It is expected that the tender on selection of general contractor among Chinese firms. The project will be launched in 2008 and implemented within 1.5 year.

Currently, SCADA system is used at Shurtan-Sherabad gas pipeline with extension of 193 kilometers.

Uzbekneftegaz plans to attract US$1.5 billion to develop export gas pipeline system and reconstruction of internal gas transportation system of Uzbekistan by 2010.