Central Asian Media: Kyrgyzstan Approves Chinese Loan for China-Kyrgyzstan-Uzbekistan Railway Construction
The Kyrgyz Parliament has passed a bill in its first reading, approving an agreement with the Export-Import Bank of China to secure preferential loans to help the country cover its share of the construction costs for the China-Kyrgyzstan-Uzbekistan (CKU) Railway. The CKU Railway is one of the largest transportation infrastructure projects in Central Asia.
The China-Kyrgyzstan-Uzbekistan Railway is a flagship regional connectivity initiative aimed at improving trade routes between China, Central Asia, and other regions. The railway officially commenced construction on December 27, 2024, in Jalal-Abad Region, Kyrgyzstan.
Upon completion, this 523-kilometer-long railway will connect China’s Kashgar, Kyrgyzstan’s Torugart, Makmal, and Jalal-Abad, extending into Uzbekistan’s Andijan. It is expected to transport up to 15 million tons of cargo annually.
The project holds significant importance because neither Kyrgyzstan nor Uzbekistan currently has direct rail connections with China. At present, Kazakhstan is the only country in Central Asia with such rail links.
The project is being developed by the China-Kyrgyzstan-Uzbekistan Railway Company LLC, a joint venture established by the three countries.
The railway is estimated to cost $4.7 billion. Approximately half of this amount—about $2.35 billion—will be financed through a 35-year loan provided by China to the joint venture company, which will be responsible for repaying the debt. The remaining $2.3 billion will be contributed as equity, with China holding 51%, and Kyrgyzstan and Uzbekistan each holding 24.5%.
According to Almaz Turgumbayev, Deputy Minister of Transport of Kyrgyzstan, Kyrgyzstan will use a $304.5 million preferential loan from the Export-Import Bank of China to finance half of its equity contribution to the joint venture company, which will oversee the railway project.
Kyrgyzstan’s total investment in the project amounts to approximately $609 million, with half funded directly from the national budget and the other half raised through borrowing.
The loan has a 25-year term, including a 5-year grace period, with an annual interest rate of 1.5%. According to the Ministry of Finance of Kyrgyzstan, the grant component of the loan accounts for 35.46%.
Officials stated that the funds will be used exclusively to cover Kyrgyzstan’s equity contribution to the joint venture company and construction expenses.
As of January 31, 2026, Kyrgyzstan’s debt to the Export-Import Bank of China amounted to approximately $1.5 billion, making China the country’s largest external creditor.
The section of the railway within Kyrgyzstan spans over 304 kilometers and is considered the most technically challenging part of the project. This segment will include 50 bridges and 29 tunnels totaling about 120 kilometers in length, meaning approximately 40% of the route within Kyrgyzstan will consist of tunnels and bridges.
The railway is expected to open a shorter trade route connecting China and Europe through Central Asia, bypassing existing northern corridors, thereby enhancing regional logistics.
Source: Central Asian Times
Source: Sergey Guan
Original article: toutiao.com/article/1869216699463692/
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