The China-Kyrgyzstan-Uzbekistan Railway Joint Project Company and a syndicate of banks from the People’s Republic of China signed an agreement to finance the construction of a new international railway line connecting the three countries. According to the Kyrgyz government, the total budget for this strategic infrastructure project is estimated at $4.7 billion.
According to the agreement, approximately $2.3 billion will be provided by China in the form of a long-term loan for a term of 35 years. The funds will go directly to the joint project company established by China, Kyrgyzstan, and Uzbekistan, which will assume the obligations for servicing and repaying the loan. The remaining $2.3 billion in financing will be contributed by the countries to the company’s authorized capital: China will provide 51%, while Kyrgyzstan and Uzbekistan will each hold 24.5%.
The project was officially launched in late 2024 and envisions the construction of a 454-kilometer railway line. Construction is scheduled to begin soon. Due to differences in track gauge standards between the CIS countries and China, a specialized station for changing wheelsets will be established in Kyrgyzstan. The new line will become a key element of the Eurasian transport corridor and form the southern route of the “land bridge” between Asia and Europe, ensuring direct freight shipments from China to Central Asia, the Middle East, and Turkey.