Uzbekistan renews bus JV talks with Daimler
TASHKENT. Nov 25 (Interfax) - The stock company Uzavtosanoat (Uzavtoprom) has resumed talks with Daimler AG on the terms for setting up a joint venture to produce large passenger buses on Mercedes-Benz chassis, a source in government circles told Interfax.
This source did not say when a joint venture might be set up or on what terms, but did say the parties have not abandoned the idea. He also declined to say what had put the breaks to the project.
The German Embassy in Uzbekistan said the project had not been stricken from the list of major investment projects slated for implementation in the country.
"We don't know the reasons the partners cannot agree the JV's creation," an embassy employee told Interfax.
As reported, in May of last year Uzavtosanoat and Mercedes-Benz Buses Central Asia, a wholly owned Daimler AG subsidiary, signed an agreement on setting up the bus JV. The production of 600 buses per year was planned at unused GAO V. Chkalov Tashkent Aviation Production Association premises.
The joint venture MB Central Asia was to be set up as a limited liability company with charter capital of $8 million. Uzavtosanoat was to own 49% of the company's capital and Mercedes-Benz Buses Central Asia the other 51%. The project price tag - $31 million.
In June of last year, the project was approved by a special resolution issued by Uzbek President Islam Karimov. The first buses were to roll off the production line that September, but the joint venture has yet to be set up.
At present, some 1,000 German-made buses costing around EUR 120 million operate on the streets of Tashkent. Their purchase was made with German bank loans guaranteed by the Uzbek government. All these are Mercedes-Benz Conecto buses - 12 meters long and with more than 8 tonnes carrying capacity.
Uzavtoprom, which unites Uzbek automotive industry enterprises, was set up in 2004 around the association Uzavtoprom.
There are three operating automotive plans in Uzbekistan: CJSC GM Uzbekistan (the former JSC UzDaewooAvto in Asaka, Andizhan Region), which builds cars, SamAvto (Samarkand, which builds buses and small Isuzu trucks, and the JV MAN Auto-Uzbekistan, which makes 15 to 50-tonne capacity trucks.