China–Kyrgyzstan–Uzbekistan railway moves forward with financing deal

A loan agreement has been signed to finance the construction of the China–Kyrgyzstan–Uzbekistan railway, 24.kg reported, citing the Kyrgyz Cabinet of Ministers.

The agreement was concluded between China–Kyrgyzstan–Uzbekistan Railway Company LLC, the joint project company, and a syndicate of Chinese banks, including the China Development Bank and the Export-Import Bank of China.

The total cost of the railway project is estimated at $4.7 billion. Approximately half of the $2.3 billion financing package will be provided by the Chinese side as a loan to the joint project company established by the three countries, with a maturity of 35 years.

The remaining $2.3 billion will be contributed by the three countries to the company’s charter capital in the following proportions: China – 51 percent, Kyrgyzstan and Uzbekistan – 24.5 percent each.

Speaking at the signing ceremony, Kyrgyz Deputy Prime Minister Bakyt Torobaev said that, under one of the key provisions of the investment agreement, full financial closure of the project must be completed by December 20, 2025.

Zhou Xin, chief executive officer of China–Kyrgyzstan–Uzbekistan Railway Company LLC, noted that the joint project company would 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 considered one of the most technically and engineering-wise complex projects in the region. The project envisages the construction of 50 bridges and 29 tunnels with a total length of 120 kilometers. This means that nearly 40 percent of the entire route will run through tunnels and over bridges. Within Kyrgyzstan, the railway’s total length will amount to 304 kilometers.