The Government of Uzbekistan and JICA signed a credit agreement within the project in Tashkent on 27 February 2012.

The project is directed at strengthening capacity of railroad Qarshi-Termez through increasing transportation of passengers and cargo and improving quality of railway services.

Qarshi-Termez railroad will include newly constructed Tashguzar-Qumqurgan line, which was constructed with financial support of Japan. In 2004, the Japan government issued 16.539 billion yens (about US$150 million) to project on construction of Tashguzar-Qumqurgan railroad.

Implementation of the project will improve social and economic development of Uzbekistan, as well as Central Asian states and Afghanistan.

The Government of Japan issued loan for 30 years with 10-year grace period. Interest rate on loan is 1.2%.