Plans for the construction of the China-Kyrgyzstan-Uzbekistan railway are moving forward, with the establishment of a joint project company between three railway enterprises on the horizon. The project aims to create new transportation routes linking European and Persian Gulf countries, bolstering trade and economic ties across the region, press service of the president of Kyrgyzstan reported.
The initiative received a boost following discussions between President of Kyrgyzstan, Sadyr Japarov, and Wang Tongjun, deputy head of China State Railway Group Co., a state-owned enterprise. Both parties expressed their commitment to advancing the construction project, which holds strategic importance for enhancing regional connectivity.
Project Implementation Mechanism
President Japarov revealed that the project will be executed under the construction-operate-transfer model, ensuring efficiency and sustainability in its implementation. This mechanism aligns with the shared vision of the participating countries to facilitate seamless movement of goods and passengers along the proposed railway route.
Accelerating Project Development
Wang Tongjun reiterated the readiness of all parties involved to expedite the development and approval of the project's feasibility study, a crucial step towards advancing the construction process. The signing of the corresponding agreement is also on the agenda, underscoring the collective efforts to propel the project forward in a timely manner.
Timeline and Financing
Preparations for the China-Kyrgyzstan-Uzbekistan railway project commenced in 2022, with the three countries agreeing on the route and initiating the feasibility study. Despite initial challenges related to financing, stakeholders remain optimistic about the project's prospects.
While rumors of project suspension surfaced due to financing concerns, officials from Kyrgyzstan and Uzbekistan have reaffirmed their commitment to the initiative. Options for financing, including public-private partnerships (PPP) and consortium formation, are being explored to ensure the project's viability.
Statements from Kyrgyz officials in November, 2023 indicate that fieldwork for the railway project is expected to commence in 2024, with the republic allocating initial funding of $500 mn.
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