EU Financing Backs €124 Million Škoda Rail Project in Uzbekistan

Source：European Investment Bank，“EGAP ALLOCATION I - SKODA TRANSPORTATION (UZB)”，26 August 2026

https://www.eib.org/en/projects/all/20250739

The inaugural counter‑guarantee allocation under the EGAP EU Export Finance Envelope, extended to Škoda Group for a rolling‑stock project in Uzbekistan, marks a triple milestone: it is the first EGAP operation backed by the NDICI/EFSD+ mandate, the debut transaction under the EIB Trade and Investment Booster initiative, and the initial sub‑operation within the European Guarantee for Action Package’s first allocation tier. The underlying buyer’s credit finances the acquisition of up to ten zero‑emission electric multiple units (EMUs) by Uzbekistan Railways, with the EIB providing a counter‑guarantee on a portion of EGAP’s sovereign‑risk exposure. This risk‑sharing arrangement enhances credit terms for the European exporter, preserves EGAP’s underwriting capacity for future deals, and strictly adheres to the OECD Arrangement on Officially Supported Export Credits.

Strategically, the operation advances multiple policy layers. At the EU level, it aligns with the Global Gateway, the Central Asia Strategy, and the Competitiveness Compass—fostering deeper economic ties with Central Asia while reinforcing European industrial supply chains. For Uzbekistan, the new EMUs directly support the 2030 Strategy and the 2026–2030 railway development programme, upgrading regional and suburban passenger fleets with modern traction and regenerative braking systems that cut energy consumption relative to older stock. Beyond modernisation, the project enhances service reliability, accessibility, and capacity, making rail a more attractive alternative to road transport. This modal shift is expected to curb greenhouse gas emissions and local air pollution, contributing to SDGs 8, 9, 10, 11, and 13.

On environmental and social governance, the transaction falls under the EIB’s Standard 11 (Intermediated Finance). EGAP maintains robust systems for identifying and monitoring environmental, climate, and social risks, while the EIB conducted its own due diligence on the underlying investment, engaging with the Uzbek Ministry of Economy and Finance and its subsidiaries. The final beneficiary must comply with national legislation and applicable EIB requirements, ensuring the new EMUs deliver tangible ecological gains through improved efficiency and low‑carbon rail operations. Procurement follows the officially supported export‑credit framework, exempting the EIB Guide to Procurement, though the EIB requires satisfactory confirmation that all Uzbek laws and regulations are met.

Uzbekistan’s rail upgrade is part of a larger infrastructure push, with rising public and private investment in transport corridors, power systems, and urban construction. This scaling‑up drives steady demand for hardware, components, and maintenance equipment—from fasteners and bearings to welding tools and power transmission parts. For suppliers seeking to tap into this expanding market, the Central Asia International Hardware Expo (CAIHE) offers a dedicated platform to connect with regional buyers and project contractors, facilitating trade in industrial materials and after‑sales support that complement large‑scale procurements like the EMU fleet renewal.