Procedure for Compensating Damage Incurred in Providing Passenger Transport Services on Domestic Trains at the Expense of the State Budget

The Cabinet of Ministers has adopted a resolution on July 16, 2024, No. 425, titled “On the Approval of the Procedure for Compensating Damage Incurred in Providing Passenger Transport Services on Domestic Trains at the Expense of the State Budget.”

According to the Presidential Resolution No. PP-329 dated October 10, 2023, “On Measures for Fundamental Reform of the Railway Transport Sector in the Republic of Uzbekistan,” a compensation procedure will be introduced starting January 1, 2025, to cover losses incurred from providing passenger transport services on local routes (excluding high-speed and express trains).

It has been noted that, starting January 1, 2024, the practice of state regulation of tariffs for freight wagons, containers, and passenger transport services on high-speed and express trains will be abolished, transitioning to market-based regulation.

The document establishes a Temporary Regulation on the procedure for compensating damage incurred in providing passenger transport services on domestic trains at the expense of the State Budget. It outlines the procedures for:

• Calculating the losses of carriers from providing passenger transport services on domestic trains;
• Considering the issue of reimbursement of these losses from the State Budget;
• Providing the necessary documents for compensation requests.

By December 1, 2025, a procedure will be developed for determining and approving prices for state-regulated services in the railway transport sector. Mechanisms for incentives (bonuses) aimed at improving service quality and operational efficiency will also be introduced, along with a methodology for advance payments.

By July 1, 2026, a draft procedure for concluding and financing Public Service Agreements for passenger transport services on domestic railway routes will be developed.

Starting in 2027, compensation funds from the State Budget will only be allocated based on contracts for passenger transport services on domestic routes.

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