WAM SAUDI

$4.7bn China-Kyrgyzstan-Uzbekistan Railway Development Enters Execution Phase

The China-Kyrgyzstan-Uzbekistan railway development has reached a decisive execution phase as project partners confirmed full readiness to advance one of Central Asia’s most strategically important cross-border transport corridors. The milestone was marked during a signing ceremony attended by Bakyt Torobaev, Deputy Chairman of the Cabinet of Ministers of Kyrgyzstan, where a key loan agreement was concluded between China-Kyrgyzstan-Uzbekistan Railway Company LLC and a syndicate of Chinese banks, including China Development Bank and Export-Import Bank of China. The agreement confirms that all conditions required under the project’s investment framework have been met, enabling the joint company to proceed with the construction and delivery of the railway corridor.

Designed to strengthen regional transport connectivity and improve overland trade routes between East Asia and Central Asia, the China-Kyrgyzstan-Uzbekistan railway development is being carried out through a tripartite arrangement involving China, Kyrgyzstan, and Uzbekistan. The total project cost is estimated at $4.7 billion. China is contributing approximately $2.3 billion through a 35-year loan to the joint project company, with loan repayment to be carried out directly by the company. The remaining $2.3 billion is being provided as charter capital by the three participating states. Under the agreed ownership structure, China holds a 51 percent stake, while Kyrgyzstan and Uzbekistan each own 24.5 percent. Speaking at the ceremony, Torobaev noted that the investment agreement required full financial backing for the project to be secured by December 20, 2025, a condition that has already been met. He said this milestone confirms the readiness of the joint company to deliver projects of international scale.

From an infrastructure and engineering perspective, the China-Kyrgyzstan-Uzbekistan railway development is among the most demanding transport projects in the region. The alignment includes 50 bridges and 29 tunnels, with almost 40 percent of the route running either through tunnels or over bridge structures. The tunnels alone span a combined 120 kilometers, highlighting the scale and complexity of the construction work. Of the total route, 304 kilometers will pass through Kyrgyzstan, forming a vital transit stretch linking China and Uzbekistan and strengthening the country’s position in regional rail logistics.

Operational discipline has been identified as a central delivery priority. Zhou Xing, Director General of the railway company, emphasized that priority will be given to the efficient use of funds and the timely fulfillment of all obligations. As construction progresses, the China-Kyrgyzstan-Uzbekistan railway development is positioned to reshape cross-border rail connectivity, support long-distance freight movement, and enhance regional trade integration across Central Asia.

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