Kyrgyzstan intends to take a loan from China to construct the China-Kyrgyzstan-Uzbekistan railroad. Azamat Sakiyev, the General Director of Kyrgyz Temir Jolu NC, stated at the Parliamentary Committee on Transport, Communications, Architecture, and Construction meeting, 24.kg has reported.
The Speaker noted that the feasibility study for the project has already been developed, and the agreement amounts to $4 billion 700 million.
“According to the agreement, 51% of the costs will be covered by the People’s Republic of China, and the Kyrgyz and Uzbek sides will assume 24.5% each,” Sakiyev said.
“Where will we find $1 billion?” MP Baktybek Sydykov asked, to which Sakiev replied that the Kyrgyz Republic intends to borrow money from Chinese banks.
Sakiyev specified that the Chinese side would lend the joint venture half of the total project cost—$2 billion 350 million—and the parties would cover the other $2 billion 350 million at their own expense. As a result, Kyrgyzstan’s share will amount to $783 million.
The China-Kyrgyzstan-Uzbekistan railroad is a projected 454-kilometer railroad designed to connect the railroads of China and Uzbekistan through the territory of Kyrgyzstan and further through Turkmenistan, Iran, and Turkey, to connect with the European railroad network within the framework of the New Silk Road transport system. Previously, Kyrgyz President Sadyr Japarov had said the construction would cost between $3 and $5 billion.
