Kyrgyzstan signs historic $3 billion agreement for Makmal-Karakol railway

Kyrgyzstan is set to build the Makmal-Karakol railroad with an estimated investment of around $3 billion.

The project was formalized through a public-private partnership agreement signed by the National Investment Agency under the President, the state-owned Kyrgyz Temir Zholu National Company, and the All American Rail Group Global Infrastructure Partner LLC consortium, Caliber.Az reports, citing Kyrgyz media.

The partnership, titled “Trans-Eurasian Route,” operates under the “project sandbox” model.

Talantbek Imanov, Director of the National Investment Agency, emphasized that this marks the first public-private partnership in Kyrgyzstan's railroad sector. He highlighted that the $3 billion investment would not only create jobs but also significantly improve the country’s transportation network, offering long-term economic benefits.

“This project will open new horizons for Kyrgyzstan's transport system, strengthen regional ties, and enhance the country’s competitiveness on the global stage,” Imanov added.

All American Rail Group Global Infrastructure Partner LLC (AARG) is an international consortium formed in November 2022, combining top companies specializing in the design, engineering, construction, and management of rail infrastructure.

AARG’s track record includes over 3,000 railway projects across the globe, designing around 2,000 kilometres of track and participating in more than 200 major capital projects. Their projects span Africa, the USA, Canada, Europe, and Australia.

In the past five years, AARG’s turnover has surpassed $19.7 billion, with operating cash flow reaching approximately $2 billion.

By Tamilla Hasanova