The construction of the railway connecting China, Kyrgyzstan, and Uzbekistan is set to commence on December 27. This was announced by Kyrgyz President Sadyr Japarov during the third People's Kurultai.
According to him, the project for the trilateral railway has been "gathering dust on the shelves for decades." The head of state expressed hope that this "construction of the century" will open new opportunities for trade, tourism, and industry.
“When we started this project, there were those who did not believe in it, considering it a fairy tale. However, today you all have witnessed that this is a feasible project. Official work on the construction of this road will begin on December 27. It will become a strategic bridge connecting the East and the West,” said Sadyr Japarov.
On December 20, a ceremony was held to sign the Investment Agreement between the Government of Kyrgyzstan and the LLC “Railway Company China-Kyrgyzstan-Uzbekistan.” The ambassador of Uzbekistan in Bishkek, Saidikram Iazkhodjaev, participated in the signing ceremony.
In turn, the Vice Prime Minister and Minister of Water Resources, Agriculture, and Processing Industry of Kyrgyzstan, Bakyt Torobaev, noted that the day of signing the investment agreement can be considered a historic day for the three participating countries.
Trilateral Railway
In September 2022, Uzbekistan, Kyrgyzstan, and China agreed on the route of the railway line, which is 454 km long. The financial aspect of the project became one of the main topics of subsequent discussions.
The Deputy Minister of Transport of Uzbekistan, Jasurbek Choriyev, estimated the project at $5 billion and referred to the creation of a consortium as one possible solution. Meanwhile, Kyrgyz Prime Minister Akylbek Japarov mentioned a figure of $8 billion.
The final agreement for the construction of the railway line was signed in June of this year. Uzbekistan and Kyrgyzstan will each hold a 24.5% stake in the joint project company, while the remaining 51% will belong to China.
Photo: Press Service of the President
The project's cost, according to the director of “Kyrgyz Temir Zholu,” Azamat Sakiyev, is estimated at $4.7 billion. Half of this amount will be financed by the participating countries according to their shares in the project, while an additional $2.35 billion will be provided by Beijing as a non-commercial loan.
In July, Shavkat Mirziyoyev approved the allocation of $255 million by “Uzbekiston Temir Yullari” for the implementation of the project. The first $14 million will be allocated by the end of this year.
In November, the Ministry of Transport and the EBRD exchanged views on financing opportunities for the construction of the China-Kyrgyzstan-Uzbekistan railway.
Earlier, Spot reported that the structure of “Uzjidorpassa” lost the appeal regarding the decision of the Competition Committee.