Interfax quoted a source in government circles said the stock company Uzavtosanoat has resumed talks with Daimler AG on the terms for setting up a joint venture to produce large passenger buses on Mercedes-Benz chassis.

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.

An embassy employee told Interfax that "We don't know the reasons the partners cannot agree the JV's creation."

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 USD 8 million. Uzavtosanoat was to own 49% of the company capital and Mercedes-Benz Buses Central Asia the other 51%. The project price tag USD 31 million.

In June of last year, the project was approved by a special resolution issued by Uzbek President Mr Islam Karimov. The first buses were to roll off the production line that September but the joint venture has yet to be set up.

(Sourced from Interfax)