Free Economic Zones - The Times Of Central Asia

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Railway Economics

Opinion: China-Kyrgyzstan-Uzbekistan Railway: Turning Transit Into Local Benefits

At the eighth Consultative Meeting of the Heads of State of Central Asia and Azerbaijan on October 8, 2026, Azerbaijan joined the forum as a full member after three years of participation as a guest of honor. President Ilham Aliyev stated that “Transport is one of the primary areas of cooperation between Central Asia and Azerbaijan”. Uzbekistan’s President Shavkat Mirziyoyev called for comprehensive infrastructure along the routes, with logistics hubs and service centers supporting production facilities and industrial zones to generate economic activity around the transport corridors. Construction of the China-Kyrgyzstan-Uzbekistan railway is among Uzbekistan’s transport priorities and is important for Kyrgyzstan, making this “integrated transport corridor development” approach particularly relevant. Construction of the China-Kyrgyzstan-Uzbekistan railway (also known as the Kashgar-Torugart-Makmal-Jalal-Abad-Andijan railway) has been underway since December 2024. Public discussion of the project focuses mainly on shorter routes linking China and Central Asia with the Middle East and Europe, and on the line’s design carrying capacity. However, growth in transit traffic does not in itself guarantee economic benefits for the Naryn and Jalal-Abad regions of Kyrgyzstan or the Andijan region of Uzbekistan. Local economic impact depends on whether freight services and tariff policy allow small shippers to use the railway’s stations. Border delays can limit those benefits, as can a lack of storage and processing infrastructure nearby. What the Project Involves The intergovernmental agreement on the implementation of the project was signed by China, Kyrgyzstan, and Uzbekistan on June 6, 2024. The joint project company was registered in July 2024, the investment agreement was signed on December 20, 2024, and construction officially began on December 27, 2024, in Jalal-Abad. According to the Ministry of Transport of Uzbekistan, the total length of the line is 532.53 km; 20 stations are planned, including two border stations, one transshipment station, four intermediate stations, and 13 passing loops. The Makmal transshipment station will be the transfer point between China’s 1,435 mm track gauge and the 1,520 mm gauge used in Kyrgyzstan and Uzbekistan. From Torugart to Makmal, the 165.5 km section will use the Chinese gauge. The 146.26 km section from Makmal to Jalal-Abad will use the wider gauge, connecting to the existing network toward Andijan. At Makmal, containers will be sorted and transferred between trains. Wagons can instead have their wheel assemblies changed to run on the other gauge. Freight trains will be assembled or split up at the station, which will also have facilities to weigh wagons and cargo. The parties estimate the cost of the project at USD 4.7 billion. Under the loan agreement signed on December 16, 2025, about USD 2.3 billion is provided by a syndicate of Chinese banks as a 35-year loan to the project company. Another USD 2.3 billion or so forms the project company’s charter capital. China holds 51% of the shares, while Kyrgyzstan and Uzbekistan each hold 24.5%. As of October 2026, construction is underway along the entire length of the route. In September 2026, the project company reported the completion of the first tunnel...

Free Economic Zones

Tajikistan Secures $1.7 Million Grant to Digitize Free Economic Zones

Tajikistan will receive a $1.7 million grant to introduce a “Single Window” digital system in the country’s free economic zones to simplify administrative procedures and improve the investment climate. The project agreement was signed in Vienna during a meeting between representatives of Tajikistan’s government, the United Nations Industrial Development Organization, and the Russian Federation. According to Tajikistan’s Ministry of Economic Development and Trade, the talks were attended by Minister of Economic Development and Trade Abdurakhmonzoda Abdurakhmon Safarali, Tajikistan’s ambassador to Austria, Manuchehr Jobir, UNIDO Director General Gerd Müller, and Russia’s permanent representative to international organizations in Vienna, Mikhail Ulyanov. Following the meeting, Abdurakhmonzoda and Müller signed the grant agreement, with the funding to be provided by Russia through UNIDO. The new system is expected to speed up the digitalization of Tajikistan’s free economic zones by simplifying administrative procedures and making their work more transparent. Officials say the platform will also improve conditions for attracting foreign investment and supporting business development. The “Single Window” model is widely used internationally to simplify interactions between businesses and government agencies by centralizing permits, customs procedures, and regulatory approvals within one digital platform.

Access to Clean Water

Uzbekistan Wants To Produce Drinking Water From the Air

Uzbekistan has tested an innovative unit for extracting moisture from the atmosphere to create drinking water. Sergei Dorzhiev, head of the Russian company Aquagenica which developed the technology, states that it was previously utilized in Russia and African countries, but more difficult climatic conditions were required for the final test of the equipment, which is why the Kyzylkum desert was chosen. The plant, which was launched in the Navoi Free Economic Zone (FEZ) in July, has now completed its tests, and according to FEZ director Habib Abdullayev, the equipment can produce up to 1,000 liters of clean water daily. “The machine works in extreme conditions of hot-dry climate with water content from 4 g/m3 and higher in atmospheric air and in the temperature range from 10-70 degrees Celsius. At the same time, foreign analogs extract water from the air at a humidity of 8-10 g/m3 of air and above in the temperature range of 20-40 degrees Celsius. We expect our installation will help solve problems with access to good quality drinking water,” said Dorzhiev. The unusual installation is expected to begin serial production in 2025. More than 30 African and Asian countries have already expressed interest in producing equipment for extracting water from the air. In various countries, atmospheric moisture extraction technologies are becoming an important solution to freshwater scarcity. One of the most promising approaches is using atmospheric water generators (AWGs), capable of producing potable water from moisture in the air. In the United States, such plants have been successfully used to help provide clean water to communities. Similar technologies have also been implemented in the United Arab Emirates.

Transport Bilateral Relations Free Economic Zones

Leaders of Tajikistan and Iran Deliberate on Bilateral Relations in Dushanbe

The November 8th meeting between the presidents of Tajikistan and Iran marks a significant stride toward repairing the previously strained relationship between the two nations. Held in Dushanbe, Tajikistan's capital, the talks between President Emomali Rahmon and President Ebrahim Raisi covered crucial areas of mutual interest and cooperation. Among the agreements reached during this encounter, a standout is the agreement on visa-free travel for citizens of both countries, underscoring the deep linguistic and cultural bonds that unite them. Moreover, both leaders signed memorandums of understanding focusing on transportation, the establishment of free economic zones, and collaborative efforts to combat drug trafficking. This joint approach in tackling shared challenges underscores a shared dedication to bolstering the security and prosperity of both nations. President Raisi's visit is widely seen as an effort to thaw the previously frosty relations between Tajikistan and Iran. Strains emerged after Tajikistan's 2015 decision to outlaw the Islamic Renaissance Party of Tajikistan, an action that Iran did not endorse. Nonetheless, the recent discussions and agreements suggest a potential pivot in diplomatic ties between the two nations. As highlighted by by RFE/RL's Tajik Service, this development could herald the beginning of a new phase in Tajik-Iranian relations.