The construction of the China-Kyrgyzstan-Uzbekistan railway will begin on December 27. An investment agreement on designing, constructing, financing, operating, and maintaining the railway was signed in Bishkek between the government of Kyrgyzstan and the China-Kyrgyzstan-Uzbekistan Railway Company, Gazeta.uz reports.
This project had been "gathering dust for decades," stated Kyrgyz President Sadyr Japarov at the People's Kurultai on December 20, calling it one of the country's priority projects.
“When we started this project, there were skeptics who dismissed it as fanciful. But today, everyone has witnessed that this is a realizable project. Official construction works for this railway will commence on December 27. It will become a strategic bridge connecting the East and the West,” the president said.
Japarov highlighted that this "project of the century" will open new opportunities for trade, tourism, and industry.
The General Director of the state enterprise "Kyrgyz Temir Jolu," Azamat Sakiev, noted that the construction of the China-Kyrgyzstan-Uzbekistan railway will take about six years.
About the Railway Project
The construction of the railway branch connecting China with Central Asia has been under discussion for around 25 years. Various routes were considered, including one through Kyrgyzstan to Uzbekistan and onward to Turkmenistan, Iran, and Turkey. However, disagreements over track gauge, construction costs in challenging mountainous terrain, and route selection delayed progress. This railway is expected to reduce dependence on Russia and Kazakhstan.
According to the agreement, the international transport corridor will follow the combined route Kashgar-Torugart-Makmal-Jalal-Abad-Andijan. Uzbekistan’s Ministry of Transport stated that the project’s implementation will expand trade and transport routes from China through Uzbekistan to Turkey, Europe, and the Gulf countries.
The China-Kyrgyzstan-Uzbekistan railway will span 486 km, of which approximately 312 km will pass through Kyrgyzstan. This will involve the construction of 18 railway stations, 81 bridges, and 41 tunnels totaling over 120 km due to the mountainous terrain.
Azamat Sakiev explained that the railway will consist of two parts. From the Chinese border to the Makmal station (165.5 km), the track will be laid with a 1,435 mm gauge according to the standard used in China. From Makmal to Jalal-Abad (146.2 km), the track will follow the 1,520 mm gauge.
At Makmal station, cargo trains will be reassembled, unloaded, sorted, and weighed. It is projected that by 2035, the railway's annual freight capacity will reach 5 million tons, with over half of it expected to be transit cargo.
Under the agreement, China will hold a 51% stake in the joint venture, while Kyrgyzstan and Uzbekistan will each hold 24.5%. The joint venture's founders include China Railway International, Kyrgyz Temir Jolu, and Uzbekistan Temir Yullari. Kyrgyzstan has allocated 11 billion soms (approximately $130.5 million) in its budget for the project.
“Construction of the railway on Chinese territory will be fully implemented and funded by China. They will also participate in processes within Kyrgyzstan. In Uzbekistan, around 10 km of railway needs to be built to connect to the project. The bulk of the work lies in Kyrgyzstan,” a representative of Uzbekistan's Ministry of Transport told Gazeta.uz.
Financing and Further Developments
The project is estimated to cost $4.7 billion. Participating countries will contribute half of the required funds in proportion to their shares in the joint venture: China will allocate $1.18 billion, and Kyrgyzstan approximately $700 million. A June presentation in Kyrgyzstan's parliament mentioned that Uzbekistan and Kyrgyzstan would each allocate $573 million.
An additional $2.35 billion will come from a non-commercial loan provided by China. Negotiations are currently underway with the Export-Import Bank of China and the National Bank of China.
In July, Uzbekistan's president ordered the allocation of $255 million to the charter capital of the project company. Of this, $14 million will be allocated by the end of this year.
In June, the governments of Uzbekistan, Kyrgyzstan, and China signed a trilateral agreement to jointly promote the railway project.
CentralasianLIGHT.org
December 24, 2024