Kyrgyzstan Features - The Times Of Central Asia

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Railway Infrastructure

Kyrgyzstan Opens New Railway as Japarov Alleges North-South Highway Embezzlement

Kyrgyzstan has opened a 63-kilometer railway between Balykchy and Kochkor, completing the first stage of a domestic route intended to reach the Kara-Keche coalfield and eventually connect the country’s divided rail network. President Sadyr Japarov travelled to the new Kochkor station by train on July 25. The line extends rail service from the western edge of Lake Issyk-Kul into Naryn Region, where difficult mountain terrain has long limited transport links. “We have revived the culture of railway construction, our engineering potential, and professional experience,” Japarov said. “This historic achievement proves that our country can independently carry out large infrastructure projects.” For the first three decades after independence, Kyrgyzstan laid no new railway track. Construction of the planned 186-kilometer Balykchy-Kochkor-Kara-Keche line began in March 2022. Japarov said crews carried out about one million cubic meters of blasting work and cleared eight kilometers through mountainous ground. The route also crosses wetland and rocky areas near the Orto-Tokoy reservoir, existing roads, and utility lines. According to Japarov, construction of the track cost $955,000 per kilometer, which he compared with offers from foreign companies ranging from $4.8 million to $6.8 million per kilometer. “We understood that this was too expensive, so we decided to take the risk and do the work ourselves,” he said. The $955,000 figure appears to cover the track itself rather than the full cost of the line. In June 2025, Kyrgyz Temir Jolu estimated the 63-kilometer project at 9.472 billion som, or about $108 million at the official exchange rate, roughly $1.72 million per kilometer. Japarov’s speech did not set out what work was included in the foreign proposals. The state railway financed the first stage from its own resources. An October 2025 cabinet decree allows Kyrgyz Temir Jolu to retain half the net profit it would otherwise pay into the state budget from 2026 through 2030, which can be used to fund the route to Makmal and the company’s wider development. Turning to the alternative North-South highway between Balykchy and Jalal-Abad, Japarov said its projected cost was $2.5 million per kilometer and alleged that “more than half” of this sum had been embezzled. He did not identify any company, official, or investigation supporting the claim. Questions over the highway’s costs predate Japarov’s accusation. A January 2023 Audit Chamber review found overstated work on the Aral-Kazarman section and said credit savings had been redirected contrary to the loan agreement. Three months later, local outlets cited security-service sources saying the GKNB had opened a case into suspected $123 million price inflation on the same section. No public outcome has been announced. Construction of the 433-kilometer highway began in 2014 and has suffered repeated delays. The route opened for seasonal traffic from June to November 2026, but the Transport Ministry expects year-round operation only in 2028 after further safety work. The new railway gives Kochkor a direct connection to Kyrgyzstan’s northern rail system. It does not yet join the country’s northern and southern lines. Before the opening, Kyrgyzstan’s railway network covered 425...

Extreme Heat

Extreme Heat Buckles Roads and Strains Power Grids Across Central Asia

Extreme heat across Central Asia in mid-July has buckled concrete highways, pushed electricity demand to record levels, and increased pressure on power grids and ambulance services. Kazakhstan reported road deformation and repeated failures in Almaty, Uzbekistan set consumption and generation records, Kyrgyzstan introduced temporary cuts to protect equipment, and residents in Tajikistan reported local disruptions. Temperatures above 40°C are common in parts of the region, but prolonged heat can strain several systems at once. Demand for cooling rises, road surfaces reach damaging temperatures, and health risks increase. The World Bank says much of Central Asia’s infrastructure was built in the mid-20th century and is overdue for renewal. Kazakhstan’s Roads and Power Networks Struggle Almaty recorded daily temperature highs on three consecutive days. The temperature reached 38°C on July 16, 39.2°C on July 17, and 40°C on July 18. The city’s July record remains 43.4°C, set in 1983. The heat also damaged Kazakhstan’s road network. KazAvtoZhol found temperature-related deformation on six highway sections in the Zhambyl, Pavlodar, and Turkestan regions. The national road operator said concrete surfaces can reach 60 to 70°C, and sometimes higher, during extreme weather. The resulting internal stress can deform concrete slabs. More than 50 workers repaired the affected sections, and traffic continued without restrictions. Road crews were monitoring more than 1,600 kilometers of concrete highway. Almaty’s ambulance service received more than 33,600 calls during the first two weeks of July. Medical officials said many involved sudden spikes in blood pressure and cardiovascular conditions, including coronary heart disease and acute heart attacks. Stroke patients were taken to hospital. Officials advised residents to avoid direct sunlight between 11 a.m. and 5 p.m., drink sufficient fluids, and seek medical help if their condition deteriorated. The city’s electricity network has faced record electricity demand between July 17 and 20 as residents increased their use of air conditioners and other appliances. The Alatau Zharyk Company said technical failures occurred in several districts, sometimes followed by faults on neighboring sections of the network. Thirty-five repair crews were deployed around the clock. The pressure extended beyond Almaty. Kazakhstan consumed 338.66 million kilowatt-hours of electricity on July 14, while domestic generation totaled 314.27 million kilowatt-hours, according to KOREM electricity data. Consumption also exceeded generation on each of the previous three days. Kazakhstan has historically covered such shortfalls through electricity imports, principally from Russia. Record Electricity Demand in Uzbekistan Uzbekistan’s Ministry of Energy warned on July 13 that daily electricity consumption could reach a summer record of 280 million kilowatt-hours, with peak demand rising to between 13 and 13.3 gigawatts. Demand subsequently exceeded that forecast. On July 18, consumption reached 294.4 million kilowatt-hours, 8% above the previous summer record. Peak evening demand rose to 13.7 gigawatts. Power plants produced a record 297.1 million kilowatt-hours on the same day. Despite the increase in production, technical faults caused temporary outages in several districts of Tashkent. At different times, the disruptions affected between several hundred and 2,700 consumers, according to the Ministry of Energy. Supplies were later restored....

Podcast

Pannier and Hillard’s Spotlight on Central Asia: New Episode Out Now

As Managing Editor of The Times of Central Asia, I’m delighted that, in partnership with the Oxus Society for Central Asian Affairs, from October 19, we are the home of the Spotlight on Central Asia podcast. Chaired by seasoned broadcasters Bruce Pannier of RFE/RL’s long-running Majlis podcast and Michael Hillard of The Red Line, each fortnightly instalment will take you on a deep dive into the latest news, developments, security issues, and social trends across an increasingly pivotal region. This week, the team covers a heatwave sweeping across Central Asia, anti-Taliban forces briefly seizing a district headquarters in a worrying sign of cracks in the Taliban's control, a shootout between different branches of Kyrgyzstan's security forces near the Uzbek border, promising new talks between Turkmenistan and Georgia, and a major shake-up inside Uzbekistan's presidential security services. Before then turning to our main story this week, where a growing number of countries are working with Central Asian governments to forcibly return Central Asian nationals, often into incredibly dangerous situations. - Steve Swedlow (Associate Professor of the Practice of Human Rights) - Bakhtiyor "Bakh" Safarov (Central Asia Consulting)

External Debt

The Central Asia Debt Divide: Why the Region’s Borrowing Risks Are Not the Same

Central Asia’s biggest debtor is not necessarily its most vulnerable. Kazakhstan accounts for roughly two-thirds of the region’s external liabilities, but much of that debt sits on corporate balance sheets rather than the government’s. Tajikistan owes a fraction of the amount, yet remains at high risk of debt distress. The contrast highlights the Central Asia debt divide. Kyrgyzstan and Tajikistan rely more heavily on sovereign and concessional borrowing, while Uzbekistan’s external liabilities are now split almost evenly between the public and corporate sectors. Based on the latest available figures from national authorities and international financial institutions, the combined external debt of Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan approached $275 billion in early 2026. Turkmenistan has not been included in the estimate because the country does not publish comprehensive official external debt statistics that can be directly compared with those of its regional neighbors. The total is an approximate calculation compiled from national statistics rather than a regional aggregate published by a single institution. The countries also release their debt data for different reporting dates and use different classifications, requiring caution when making direct comparisons. Total external debt includes obligations owed to non-residents by governments, central banks, commercial banks, private companies, and, in some countries, local subsidiaries of foreign corporations. Government external debt is a narrower measure covering liabilities that are directly serviced or guaranteed by the state. China remains an important bilateral creditor, particularly in Kyrgyzstan and Tajikistan, while multilateral institutions provide much of the region’s infrastructure and public-sector financing. Kyrgyzstan: Rising Debt, but a Broader Creditor Base Kyrgyzstan’s public debt has risen alongside increased infrastructure spending and domestic borrowing, although its creditor base has become more diversified. A smaller share is now owed to a single bilateral lender, while multilateral financing and the domestic securities market have grown in importance. According to the Kyrgyz Ministry of Finance’s public debt data, the country’s total public debt stood at approximately $8.94 billion as of May 31, 2026, including around $6.1 billion in external obligations. The debt debate has also become part of President Sadyr Japarov’s broader economic narrative. In an interview with the Kabar national news agency published on October 8, 2025, Japarov said his government was continuing to borrow but argued that new loans were being directed toward commercial projects expected to repay their own financing rather than place an additional burden on the state budget. He also said Kyrgyzstan intended to repay its older debts by 2035. The International Monetary Fund said in its 2026 Article IV consultation that Kyrgyzstan had recorded strong economic growth for a fourth consecutive year, giving the authorities an opportunity to strengthen fiscal buffers and accelerate structural reforms. It also warned that the outlook remained exposed to significant downside risks. Kazakhstan: A Large External Debt, but a Different Risk Profile Kazakhstan accounts for the largest share of Central Asia’s external debt, but its headline figure can be misleading. Unlike several of its neighbors, the country’s external liabilities are dominated by corporate and intercompany borrowing rather...

Climate Policy

Kyrgyzstan Adopts Central Asia’s First Framework Climate Law

President Sadyr Japarov signed Kyrgyzstan’s Law on Climate Activity on July 7, giving the country Central Asia’s first framework statute devoted to climate policy. The Jogorku Kenesh (parliament) approved the measure on May 20, and it takes effect on January 1, 2027. The Cabinet has six months from official publication to bring existing regulations into line. The law puts emissions policy and climate adaptation under one legal structure. It covers climate finance, carbon neutrality, research, professional training and technology transfer. It also provides a legal base for carbon units and a national registry. Separate rules will govern how emission cuts are recorded and verified. UNDP gave technical and expert support during its preparation. The regional first refers to the breadth of the framework. Uzbekistan passed a law on limiting greenhouse gas emissions in July 2025, and Kazakhstan already regulates carbon inventories, quotas and emissions trading through its Environmental Code. Kyrgyzstan has now put mitigation and adaptation in one dedicated statute, with provisions for finance and institutional duties. The law replaces a narrower statute adopted in 2007. That measure governed greenhouse gas emissions and removals, with a focus on state regulation, inventories and monitoring. It did not create a full legal base for adaptation or climate finance, and lacked the new law’s provisions on climate technology and education. MP Zhyldyz Egenberdieva set out the case for reform at a parliamentary committee meeting in April. The existing law “does not reflect current realities or practice,” she said. The new statute gives public bodies a basis for climate policy and low-carbon development plans. It also brings resilience measures into the same system. Kyrgyzstan signed the Paris Agreement in September 2016 and ratified it on February 18, 2020. Japarov announced a 2050 carbon-neutrality goal at COP26 in Glasgow in 2021. The Cabinet approved a national carbon-neutrality concept in July 2025. The Coordination Council then approved updated climate targets and the country’s first biennial transparency report in September 2025. The law turns those international pledges and policy documents into a domestic framework. It defines state responsibilities and creates a base for climate finance. The practical detail will come through regulations, including standards for carbon accounting and the operation of a registry. The statute arrives as glacier loss puts pressure on water, farming and electricity supply. Mountain ice feeds rivers used for drinking water and irrigation. The same flows feed the country’s hydropower plants. At COP29 in Baku in November 2024, Japarov gave a stark figure. “Over the past 70 years, the area of glaciers in Kyrgyzstan has shrunk by 16%,” he said. TCA has previously reported on how continued glacier retreat could reduce river flows and deepen water shortages. Hydropower provides about 90% of Kyrgyzstan’s electricity, meaning drought and erratic runoff can cut generation when demand peaks. Floods and mudslides can damage roads and canals, as well as homes and crops. The law now makes adaptation a formal part of national climate policy. Coal-fired heating and traffic drive much of Bishkek’s severe winter smog. Vehicles...

Fuel Imports

Fuel Squeeze Leaves Kyrgyzstan Competing for Costly Alternatives

Kyrgyzstan is moving to secure alternative fuel supplies from China and Belarus as disruptions in Russia’s refining sector expose Bishkek’s dependence on a single supplier. The new arrangements may ease immediate pressure, but they also show how costly and limited Kyrgyzstan’s options remain. First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiyev said China has confirmed a contract to supply the first 3,000 tons of jet fuel, while negotiations are under way for an additional 5,000 tons of diesel fuel. The government has also signed agreements with Belarus covering 3,000 tons of jet fuel and approximately 10,000 tons of diesel. On July 1, the Council of the Eurasian Economic Commission (EEC) extended the zero customs duty regime within the Eurasian Economic Union (EAEU) for gasoline, diesel fuel, aviation fuel, marine fuel, and other petroleum products for another year. EEC Minister of Trade Andrey Slepnev said the previous zero rates had expired on June 30 and that proposals from several member states to extend them were quickly coordinated. “The zero rates have been extended for another year,” he said. That buys time but does not remove the main risk. Russian refining disruptions, seasonal demand, and export controls could still reduce the flow of petroleum products to Kyrgyzstan. Imports from alternative suppliers are also likely to come at higher prices and on less favorable terms than those traditionally offered by Moscow. Russia has been Kyrgyzstan’s primary fuel supplier for decades. The country began receiving Russian petroleum products at preferential prices on October 10, 2000, when the prime ministers of Russia and Kyrgyzstan, Mikhail Kasyanov and Amangeldy Muraliev, signed an intergovernmental agreement in Astana governing indirect taxation in bilateral trade. Since then, Kyrgyzstan has received basic petroleum products duty-free at domestic Russian prices. In 2011, then-adviser to the Kyrgyz prime minister Farid Niyazov told the news outlet 24.kg that Russia would supply all petroleum products to Kyrgyzstan indefinitely without export duties, except aviation fuel. “At present, Russia’s export duty on these fuel products is $245 per ton. You can imagine how much we would otherwise have to pay for fuel,” he said. The 2000 bilateral agreement was terminated in 2015 after Kyrgyzstan joined the EAEU. Since then, the country has operated under the union’s common customs rules as well as bilateral agreements with Russia. This has left Kyrgyzstan heavily dependent on a single supplier. According to official statements and industry estimates, more than 90% of the country’s fuel consumption for households and agriculture is currently covered by Russian imports. Despite Russian Deputy Prime Minister Alexander Novak’s assurances that domestic fuel reserves remain sufficient, shortages began to emerge in Russia in early June. Russia has since moved to tighten exports further as refinery disruptions have continued. As a result, Kyrgyzstan’s Cabinet of Ministers has begun searching for alternative suppliers while introducing daily monitoring of existing fuel deliveries. Rising gasoline and diesel prices had already prompted the government to introduce temporary state regulation of motor fuel prices in late May. It has since rolled...