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    Financing strategies for the China-Kyrgyzstan-Uzbekistan Railway project revealed

    Financing strategies for the China-Kyrgyzstan-Uzbekistan Railway project revealed

    Kyrgyzstan is actively exploring financing options for the China-Kyrgyzstan-Uzbekistan railway project and is soon to present its proposals. The project is of great significance to Kyrgyzstan, as it aligns with the country's National Development Strategy until 2040 and aims to facilitate the efficient transit of goods between China, Central Asia, the Middle East, and Europe, enabling Kyrgyzstan to compete with existing railway corridors.

    Photo: The China-Kyrgyzstan-Uzbekistan railway project
    Source: Spot.uz

    Preparations for the construction of the railway began in the summer of 2022 when "Kyrgyz Temir Zholu" signed a contract with the First Design and Survey Institute of the Chinese Railway Construction Corporation (CRCC) for the development of a feasibility study. Following this, in July, the final report on the project's terms of reference was submitted.

    During negotiations held in August among the three countries involved, two financing models were proposed: the first being a public-private partnership (PPP) in the Build-Operate-Transfer format, and the second involving attracting loans. The interdepartmental working group of Kyrgyzstan will thoroughly discuss both options and subsequently present proposals for negotiations with the other two parties.

    Photo: Proposed routes of the China-Kyrgyzstan-Uzbekistan Railway
    Source: Reuters

    Furthermore, Kyrgyzstan aims to connect the transit highway with the planned internal branch of Balykchy-Kochkor-Kara-Keche, which will bridge the northern and southern segments of the railway network, facilitating the transportation of goods through the north part of the country.

    The roadmap for the construction of the China-Kyrgyzstan-Uzbekistan railway project was approved in May, and as reported by Umidulla Ibragimov, the head of the marketing and logistics department of UY, work is expected to commence this year.

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    25.09.2023, 18:06   Comments (0)   115
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