BISHKEK, Kyrgyzstan, December 16. Kyrgyzstan and China sign loan agreement for construction of major China-Kyrgyzstan-Uzbekistan railway project, Trend reports via the Kyrgyz Cabinet of Ministers.
The agreement was concluded between the "China-Kyrgyzstan-Uzbekistan Railway Company" LLC (Joint Project Company) and a Syndicate of Banks from the People's Republic of China, which includes the China Development Bank and the Export-Import Bank of China.
The total cost of the railway project is estimated at $4.7 billion. Half of this amount, approximately $2.3 billion, will be provided by China as a loan for 35 years to the Joint Project Company, established by the three countries. Repayment of this loan will be carried out directly by the Joint Project Company. The remaining $2.3 billion will be contributed by the three countries to the equity capital of the Joint Project Company in the following share: China – 51%, Kyrgyzstan and Uzbekistan – 24.5% each.
Speaking at the signing ceremony, Deputy Prime Minister of Kyrgyzstan Bakyt Torobaev emphasized that, according to one of the key provisions of the investment agreement between the Government of Kyrgyzstan and the Joint Project Company, the full financial closure of the project was to be completed by December 20, 2025, a target that has already been successfully achieved.
"This achievement deserves high recognition and clearly demonstrates the readiness of the Joint Project Company, established by the three countries, to implement international-level projects," said Bakyt Torobaev.
In turn, Zhou Xin, General Director of the "China-Kyrgyzstan-Uzbekistan Railway Company," LLC noted that the Joint Project Company will focus not only on the efficient use of the attracted funds but also on ensuring the reliable and timely fulfillment of all obligations under the agreement.
The construction of the "China-Kyrgyzstan-Uzbekistan" railway is one of the most technically and engineering-complex projects in the region. The project involves the construction of 50 bridges and 29 tunnels, with a total length of 120 kilometers. This means that about 40% of the entire route will pass through tunnels and bridges. In Kyrgyzstan, the total length of the railway will be 304 km.
The official launch of the "China-Kyrgyzstan-Uzbekistan" railway project took place on December 27, 2024, when the Presidents of the three countries – President Sadyr Japarov of Kyrgyzstan, President Xi Jinping of China, and President Shavkat Mirziyoyev of Uzbekistan – delivered speeches emphasizing the strategic importance of the project.