Infrastructure Development - The Times Of Central Asia

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Middle Corridor

How the Shrinking Caspian Sea Affects the Middle Corridor’s Potential

Paradoxically, the Caspian Sea is becoming one of Eurasia’s most important transport hubs at a time when its falling water level is creating growing constraints on navigation. As sanctions disrupt traditional trade routes through Russia, countries are investing in the Middle Corridor as an alternative link between Asia and Europe. Yet the continuing decline in sea level is limiting shipping capacity and increasing the risks and costs associated with long-term infrastructure projects. The first Caspian Environmental Summit, held in Turkmenistan on October 9, 2026, drew attention to the scale of these changes. Between 2000 and 2025, the Caspian Sea shrank by more than 16,000 square kilometers, while in some areas the shoreline receded by tens of kilometers. How the Caspian’s Falling Water Level Affects Freight The Middle Corridor, linking China, Central Asia, the Caspian Sea, the South Caucasus, Turkey, and Europe, is seen as a promising route for diversifying international trade. Its development can reduce shippers’ dependence on individual transport routes and improve economic ties among countries in the region. According to the World Bank’s latest study, more than $25 billion in investment in the corridor’s core physical infrastructure will be needed through 2040. An additional $30 billion could be required for enabling infrastructure and services. The bank estimates that if infrastructure investment is combined with institutional reforms, freight volumes along the corridor could quadruple and travel times could fall by about two-thirds by 2040. A study by the Organisation for Economic Co-operation and Development (OECD) notes that insufficient depths are already preventing vessels from being fully loaded, reducing transport efficiency and increasing costs. Large-scale dredging was carried out at the Port of Kuryk in 2024. Over four months, around one million cubic meters of material were removed, and the depth of the operational port area was increased to 7–8 meters, according to the port operator. This made it possible to load vessels to full capacity. Meanwhile, major dredging work is underway at Aktau, where 1.3 million cubic meters of material are to be removed to increase water depths to 6–7 meters. The work is expected to be completed by the end of 2026. Dredging, however, can only maintain the operation of individual port facilities, while further declines in the sea level may require repeated work or the reconstruction of berths. Where draft restrictions prevent full loading, transport companies may need to make more voyages to carry the same volume of cargo, increasing spending on fuel, crews, maintenance, and port operations. Constraints on the maritime section can also lead to delays for railcars and containers and disrupt transshipment schedules. These disruptions reduce the predictability of deliveries along the entire route. Similar problems are emerging on the western coast of the Caspian. Falling water levels are reducing vessel cargo capacity at Azerbaijani ports and oil terminals and requiring additional dredging. Infrastructure for Decades Ahead According to the OECD study, which cites World Bank climate projections, under a high-emissions scenario in which the Caspian water level falls by about five meters between...

Middle Corridor

Kyrgyzstan and Georgia Seek Black Sea Link for CKU Railway

Kyrgyzstan and Georgia placed Black Sea access at the center of their transport agenda during Georgian Prime Minister Irakli Kobakhidze's official visit to Bishkek on June 11-13. In talks with President Sadyr Japarov at Yntymak Ordo, the new presidential palace complex, on June 12, the two sides linked their cooperation to the China-Kyrgyzstan-Uzbekistan railway, known as CKU, and to Georgia's role in the Trans-Caspian route between Central Asia and Europe. The visit was the first official trip to Kyrgyzstan by a Georgian head of government since the two states established diplomatic relations 34 years ago. "Special attention was paid to linking the China-Kyrgyzstan-Uzbekistan railway with Georgia's port infrastructure," Japarov said after the talks. He called cooperation in this sector "one of the priority areas" in relations between the countries. That focus gave the visit a wider regional dimension, as landlocked Kyrgyzstan still lacks a direct rail link with China. Georgia offers access to Black Sea ports and sits on the South Caucasus section of the Middle Corridor. If the CKU line becomes operational, Bishkek wants cargo moving from China through Kyrgyzstan and Uzbekistan to connect with routes across the Caspian Sea, Azerbaijan, and Georgia. Kobakhidze linked the same issue to Tbilisi's transit goals. "We emphasized the importance of developing the Middle Corridor," he said, adding that the route needs more cargo flows. He said Georgia was closely following the CKU and was pleased that the project was "progressing rapidly," because it would strengthen links between Central Asia and the South Caucasus. The two sides signed a joint statement and a package of bilateral documents after the talks. The agreements covered aviation authorities, state property management, veterinary cooperation, education, justice, sport, radiation safety, foreign ministry cooperation for 2027-2028, and customs cooperation. The customs document provides for advance exchanges of information about goods and vehicles moving between the two countries. That aspect may prove the most practical for freight, since cargo routes depend on data exchange, border processing, and predictable clearance times. The CKU railway has moved from a decades-long plan to active construction. The financing agreement signed in Bishkek set the project cost at $4.7 billion. About half will be financed through a 35-year Chinese loan to the joint project company. China holds a 51% stake in the company, while Kyrgyzstan and Uzbekistan each hold 24.5%. The planned line runs from Kashgar in China through Kyrgyzstan to Andijan in Uzbekistan. The Kyrgyz section represents the most difficult part of the route. It is about 305 kilometers long, with 50 bridges and 29 tunnels planned. More than 5,000 people and about 5,600 pieces of specialized equipment were involved by late March, with tunnel excavation, earthworks, and bridge construction already under way. Transport Minister Talantbek Soltobaev said on June 10 that work was in progress on sections totaling up to ten kilometers. Japarov has outlined 2030 as a target for the launch. The project would give Bishkek a rail role it has never had. Kyrgyzstan has no through rail route linking China with...

Nuclear power

Mirziyoyev, Putin to Mark Launch of Uzbekistan Nuclear Plant Project

Uzbek President Shavkat Mirziyoyev will travel to St. Petersburg on June 4-5 for talks with Russian President Vladimir Putin and a ceremony marking the launch of Uzbekistan’s first integrated nuclear power plant project. Mirziyoyev is also due to address the 29th St. Petersburg International Economic Forum, according to the Uzbek president’s press service. Russian presidential aide Yuri Ushakov said the two leaders would join the launch ceremony by video link before holding talks at the Konstantinovsky Palace on the evening of June 4. The project has become one of the main energy initiatives in Uzbek-Russian cooperation. According to Russian officials, the planned facility in the Jizzakh region will include two large-capacity power units as well as two smaller units with a capacity of 55 megawatts each. The launch ceremony is expected to involve senior international and industry officials. Ushakov said that Rafael Grossi, director general of the International Atomic Energy Agency, Alexey Likhachev, director general of Rosatom, and Azim Akhmedkhadzhaev, head of Uzbekistan’s Uzatom agency, will participate from the construction site. Following remarks by the two presidents and Grossi, Russian and Uzbek nuclear officials are expected to report on technical readiness for the first concrete pouring at the site, formally launching construction work. The Times of Central Asia previously reported that initial concrete works began at the Jizzakh site in March, when Uzatom and Rosatom signed documents moving the project into practical implementation.

Water Management

Uzbekistan Joins World Bank’s “Water Forward,” Aiming to Reach 1 Billion People by 2030

The World Bank Group has launched a new global platform aimed at improving water security, as Uzbekistan continues to expand cooperation with international financial institutions on infrastructure development. In a statement released on April 15, the World Bank announced the launch of “Water Forward,” an initiative developed in partnership with multilateral development banks and other institutions. The platform aims to improve access to reliable water services for 1 billion people by 2030 by aligning policy reforms, financing, and international partnerships. For Uzbekistan, where water management remains closely tied to agriculture and regional climate conditions, such initiatives come as the country continues to modernize its infrastructure and attract international financing. Earlier, on March 23, the World Bank’s Board of Executive Directors approved a $200 million project to upgrade transport infrastructure in Uzbekistan’s Surkhandarya region. According to the bank, the project is intended to improve connectivity, support economic activity, and enhance access to services in the southern part of the country. “Water is foundational to how economies function. When water systems work, farmers produce, businesses operate, and cities attract investment,” World Bank Group President Ajay Banga said. “Our task now is to align reform, financing, and partnerships to deliver reliable water services at scale.” According to the World Bank, around 4 billion people globally experience water scarcity, despite water supporting health systems, agriculture, energy production, and an estimated 1.7 billion jobs. Weak regulations, unclear policies, and underfunded utilities have slowed investment in many countries, particularly in developing economies. The new platform will focus on country-led “water compacts,” under which governments set priorities for reforms, strengthen institutions, and outline investment strategies for the sector. Fourteen countries have already announced such compacts, while additional agreements are expected. The initiative also brings together a wide range of financial institutions, including the Asian Development Bank, the European Bank for Reconstruction and Development, and the Islamic Development Bank, to coordinate funding and technical expertise. The World Bank said it aims to help deliver water security to 400 million people directly, with partner contributions expected to raise the total to over 1 billion.

China-Kyrgyzstan-Uzbekistan Railway

China–Kyrgyzstan–Uzbekistan Railway: What It Means for Central Asia

The China–Kyrgyzstan–Uzbekistan railway (CKU railway), also known as the Kashgar–Andijan railway line, is more than an infrastructure project. It represents a geopolitical initiative that could significantly shape the future of Central Asia. In June 2024, Beijing, Bishkek, and Tashkent signed the intergovernmental agreement to move the project forward. The project’s financing—estimated at $4.7 billion—was finalized in December 2025, sparking optimism in all three nations about regional connectivity, trade, and economic growth. Once completed, the railway is expected to become a vital strategic asset in China’s Belt and Road Initiative (BRI). From China’s perspective, the CKU project is a strategic line that diversifies its trade channels and strengthens overland access to Central Asia and beyond. Construction was ceremonially launched on 27 December 2024 in Kyrgyzstan, with major works progressing through 2025, including key tunnel works. For Uzbekistan, the railway could serve as a key link for commerce and transit. Tashkent aims to integrate the China–Kyrgyzstan–Uzbekistan line with existing international transport networks, including connections through Iran and Turkey. But how important is the project for Kyrgyzstan, through which, according to recent reporting, 304 km of the line will pass? According to Nurbek Satarov, Presidential Envoy in the Naryn Region, the project is vital for Kyrgyzstan’s most mountainous region, as roughly 90% of the route through the country will run through Naryn. As he told The Times of Central Asia, construction is in full swing, and the railway is expected to be completed between 2028 and 2030, despite the challenging terrain and technical difficulties. The project includes the construction of 50 bridges and 29 tunnels, underscoring the significant engineering complexities involved. But while regional and national authorities anticipate direct economic benefits from the project, critics argue that Kyrgyzstan may end up serving primarily as a transit country, with limited gains for the local economy. They also question the financial sustainability of the project, noting that it is backed by a long-term loan package of approximately $2.3 billion from Chinese banks. The financing, structured over 35 years and to be repaid by the joint venture company implementing the railway, increases Kyrgyzstan’s exposure to China-linked debt and has raised concerns about future repayment obligations. [caption id="attachment_44216" align="aligncenter" width="1536"] Site visit at the road construction project in the Naryn Oblast; image: TCA, Nikola Mikovic[/caption] However, Edil Baisalov, Kyrgyzstan’s Deputy Prime Minister, claims that the CKU will have a positive impact on the country’s economic development. “This railroad will virtually transform Kyrgyzstan – and not just Kyrgyzstan, but the whole of Central Asia,” he told The Times of Central Asia. Baisalov believes that the CKU railway, once completed, will be part of a larger transcontinental railroad that will cut transit times by at least seven days compared to the northern routes of the Trans-Siberian Railway and maritime transport. The CKU line could indeed bypass the usual northern rail routes through Russia and Kazakhstan, taking a significant share of freight from those countries and reducing their transit revenue. Kyrgyzstan, on the other hand, hopes to see direct gains...

Infrastructure Development

Uzbekistan and Islamic Development Bank Sign $164 Million Agreements for Roads and Schools

Uzbekistan and the Islamic Development Bank (IsDB) have signed new financing agreements totaling $164 million to support major infrastructure and education initiatives, further deepening a partnership that plays a key role in the country’s long-term development strategy. The agreements were formalized on February 8 in AlUla, Saudi Arabia, during the Second AlUla Conference for Emerging Market Economies. Prior to the signing, both sides held bilateral talks focused on scaling up cooperation across transport, education, and other high-priority sectors. The discussions emphasized the importance of projects that strengthen regional connectivity and human capital. Road Infrastructure: 4R40 Project One agreement allocates $70 million under the IsDB’s broader $192 million commitment for the 4R40 road project. The funds will support the reconstruction of 143 kilometers of the Dashtabad-Zaamin-Bakhmal-Galyaaral highway, as well as the rehabilitation of 30 kilometers of local and rural roads in the Jizzakh region. The road upgrades are expected to ease transit bottlenecks, enhance safety, and improve access to markets and public services for approximately 200,000 residents. The project will also strengthen regional links to the M39 international transport corridor. Education Reform: SmartEd Project The second agreement covers $94.06 million, part of a total contribution of $160.25 million for the SmartEd project, a national initiative aimed at transforming Uzbekistan’s education system. Funds will be used to build and equip 58 new schools and expand existing institutions with an additional 2,431 classrooms. The initiative targets nearly 73,000 students annually, with provisions for specialized training for over 36,000 teachers and administrators. The project is designed to promote a competency-based, inclusive education system. A Broader Partnership These new agreements build on earlier commitments. At the first AlUla conference in February 2023, Uzbekistan and the IsDB signed $299 million in financing deals, laying the foundation for the infrastructure and education reforms now entering the implementation phase.