Kyrgyzstan hosts signing of $4.7 billion China–Central Asia railway deal

A $4.7 billion loan agreement to finance the China–Kyrgyzstan–Uzbekistan railway was signed in Kyrgyzstan.

The signing ceremony was held in Bishkek with the participation of Kyrgyz Deputy Prime Minister and Minister of Water Resources, Agriculture, and Processing Industry Bakyt Torobayev, Caliber.Az reports via Kyrgyz media.

The agreement was signed by the joint project company, China-Kyrgyzstan-Uzbekistan Railway, and a consortium of Chinese banks, including the China Development Bank and the Export-Import Bank of China.

The total project cost is estimated at $4.7 billion. China will provide approximately $2.3 billion as a 35-year loan, which will be repaid by the joint project company of the three countries. The remaining $2.3 billion will be jointly financed by China, Kyrgyzstan, and Uzbekistan, with China contributing 51% and Kyrgyzstan and Uzbekistan 24.5% each.

“One of the key objectives of the investment agreement was to ensure full financial stability for the project by December 20, 2025,” Torobaev said. “Today, this goal has effectively been achieved,” he added, emphasising the project company’s readiness to implement this major international infrastructure initiative.

Zhou Xin, CEO of the joint project company, highlighted that the joint structure ensures efficient use of funds and timely fulfilment of all obligations.

The railway project is considered one of the most challenging engineering undertakings in the region. It involves the construction of 50 bridges and 29 tunnels spanning a total of 120 km, meaning tunnels and bridges will account for roughly 40% of the route. The railway segment within Kyrgyzstan will exceed 304 km in length.

Construction officially began on December 27, 2024, with a ceremony attended by the presidents of Kyrgyzstan, China, and Uzbekistan, underscoring the project’s strategic significance for the region.

By Khagan Isayev