Infrastructure Development - The Times Of Central Asia

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Issyk-Kul Economy Air Transport Infrastructure Development Airports international tourism

Kyrgyzstan Opens Airport in Karakol – More New Routes Coming Soon

On December 11, Kyrgyzstan’s President Sadyr Japarov inaugurated the reconstructed international airport in Karakol, the main city of the Issyk-Kul region. Situated southeast of Lake Issyk-Kul, Karakol is Kyrgyzstan’s winter tourism hub and home to the nation’s largest and most popular mountain ski resort. President Japarov highlighted the reopening of the Karakol International Airport as a pivotal move toward strengthening regional connectivity, boosting tourism, and enhancing Kyrgyzstan’s international profile. “This is just the beginning,” Japarov remarked, announcing plans for a major new development: a “Kyrgyz Courchevel,” envisioned as Central Asia’s largest and most modern ski resort. Located 70 kilometers from the airport, the year-round facility is planned to accommodate up to a million tourists per season. Kyrgyzstan’s government is also prioritizing the modernization of regional airports to improve domestic air connectivity. Renovation projects are underway in Naryn, Kazarman, Kerben, and Batken, while construction of a new airport in the southern city of Jalal-Abad is set to begin soon. Starting in May, the government plans to launch domestic flights on routes including Kazarman-Bishkek, Naryn-Bishkek, Kerben-Bishkek, Karakol-Osh, and Talas-Osh. These flights will be operated by the state-owned Asman Airlines. This follows the reopening of the Talas airport in May, as previously reported by The Times of Central Asia, marking its return to operation after decades of inactivity since the Soviet-era. Originally built in 1979 to accommodate planes and helicopters, the airport had long been out of service until its recent renovation. To support the enhanced domestic air network, Kyrgyzstan’s Manas International Airport Open Joint Stock Company has procured two Bombardier Dash 8 Q400 aircraft for Asman Airlines. Manufactured in Canada, the Dash 8 Q400 is a short-haul plane capable of carrying up to 80 passengers over distances of up to 2,000 kilometers.

multimodal transportation International Transit TITR Transportation Infrastructure Development Logistics

Kazakhstan Building Five Cross-Border Trade Hubs

Kazakhstan is advancing plans to establish five cross-border trade and economic hubs, aiming to position the country as a key global transport and logistics center. The initiative was reviewed at a government meeting on December 10. Strategic Hub Development Minister of Trade and Integration Arman Shakkaliyev reported that significant progress has been made on the hubs, with rail and road links already in place. The planned hubs are: The Khorgos Hub: Located on the border with China. The Caspian Hub: Situated along the Trans-Caspian International Transport Route (TITR). The Eurasia Center for Cross-Border Trade: Positioned at the border with Russia. The “Central Asia” International Center for Industrial Cooperation: At the border with Uzbekistan. The Industrial Trade and Logistics Complex: At the border with Kyrgyzstan. Additionally, container hubs are planned for the ports of Aktau and Kuryk in the Mangistau region. Multimodal air hubs are also under development at airports in the cities of Astana, Almaty, Shymkent, and Aktobe. Broader Economic Goals Prime Minister Olzhas Bektenov underscored the strategic importance of these projects, emphasizing their potential to reduce transit times, boost industrial production, increase tax revenues, and create new jobs. Bektenov highlighted that the network of hubs will form a unified trade and transport space with Kazakhstan’s key trading partners. “This will significantly increase trade turnover between the countries and strengthen strategic relations with neighboring states,” he said. The prime minister also stressed the importance of leveraging major transport corridors such as the East-West, North-South, and Trans-Caspian International Transport Route corridors to enhance access to the markets of China, the Persian Gulf, the Caucasus, and Europe.

Infrastructure Development roads Infrastructure Projects Investment Projects economic

Strategic Bypass Route Opens in Southern Kyrgyzstan

On December 6, Kyrgyzstan’s President Sadyr Japarov inaugurated a new bypass road around Uzgen, a historic city located 56 kilometers northeast of Osh, the largest city in southern Kyrgyzstan. The bypass is designed to alleviate traffic congestion in Uzgen by redirecting vehicles away from the city center. This development is expected to improve traffic flow, reduce travel times, and lower the risk of accidents on the former main route through the city. Construction of the bypass began in January 2024. The project includes two significant bridges: a 197-meter-long bridge spanning the Kara-Darya River and a 77-meter-long bridge over the Jazy River. To address the needs of residents, the project also features underground crossings for pedestrians and livestock and access roads connecting nearby villages. Speaking at the opening ceremony, Japarov emphasized that the Uzgen bypass is Kyrgyzstan’s first infrastructure project completed through a public-private partnership model. He reiterated the government’s dedication to expanding the country’s road network to enhance connectivity and boost logistics capabilities. Japarov also outlined plans for additional road projects, including a proposed 150-kilometer route linking Almaty, Kazakhstan’s largest city, to Kyrgyzstan’s Lake Issyk-Kul. This new route would significantly shorten the current travel distance, providing a faster and more efficient connection between the two destinations. While acknowledging the long-term nature of infrastructure investments, Japarov highlighted their critical importance for national and international development. He encouraged private investors, particularly domestic ones, to participate in upcoming road construction projects. If sufficient local investment is not secured, the government plans to seek foreign partnerships. In his closing remarks, Japarov likened road infrastructure to the "circulatory system" of the state, underlining its fundamental role in driving economic growth. He noted that improved roads enhance regional logistics, foster trade, and promote tourism, all of which are vital for Kyrgyzstan’s development.

railroads International transport TITR Infrastructure Development Economic Growth Multimodal Transport Corrdior China Transport

China to Transport Lithium-Ion Batteries Along TITR via Kazakhstan

This month marks a significant milestone in Kazakhstan-China transport cooperation with the test shipment of lithium-ion batteries from China via the Trans-Caspian International Transport Route (TITR). This major trade corridor links China to Europe through Kazakhstan and the Caucasus. The decision was announced following a meeting between Kazakhstan’s Minister of Transport Marat Karabayev and China’s Transport Minister Liu Wei in Beijing on December 5. Strengthening TITR Cooperation The two ministers agreed on initiatives to further develop the TITR, including the creation of a permanent working group to facilitate the seamless flow of goods. They also highlighted advancements in the digitization of transport operations. Truckers can now receive permit forms within an hour through a newly implemented digital platform, streamlining international road transportation. The TITR is seeing rapidly growing freight traffic. According to Kazakhstan’s Ministry of Transport, road freight volumes with China have more than doubled annually. Before 2023, Kazakh truckers made approximately 50,000 trips per year. In 2024, this figure is projected to reach 230,000 trips. Expanding Multimodal Transport The meeting also explored the potential for developing cargo transportation via transboundary rivers between the two nations. Both ministers noted a surge in rail and road freight volumes, as well as transit transportation through the Middle Corridor (another name for the TITR). From January to October 2024, rail freight between Kazakhstan and China increased by 13%, reaching 26.6 million tons. Road freight volumes soared by 60% in the third quarter alone, amounting to 1.9 million tons. Meanwhile, cargo transportation from China to Europe via the TITR has experienced explosive growth. In 2024, the volume surpassed 27,000 twenty-foot containers, a 25-fold increase compared to the same period in 2023.

Finance Banking Infrastructure Economic Growth Infrastructure Development EDB Investment Projects

EDB Supports Construction of Strategic Highway in Kyrgyzstan

The Eurasian Development Bank (EDB) has pledged up to $200,000 for a preliminary feasibility study for the Bishkek - Kuntuu - Belogorka - Suusamyr highway. This alternative route aims to connect Kyrgyzstan’s capital, Bishkek, with the southern and western regions of the country. An agreement for technical assistance was signed on December 5 between the EDB and Kyrgyzstan’s Cabinet of Ministers. Strategic Importance The proposed highway is expected to have significant strategic, economic, and social benefits for Kyrgyzstan. Beyond improving transport infrastructure, it will facilitate access to mineral deposits and create new employment opportunities both during construction and operation. Nikolai Podguzov, Chairman of the EDB Management Board, emphasized the project’s importance: “This initiative is part of the Eurasian Transport Framework, a key investment mega-project. It aims to strengthen transport connectivity among Kyrgyzstan’s economic centers while increasing the transit potential of Kyrgyz highways and attracting greater interest in road transportation through Kyrgyzstan from neighboring countries.” Alleviating Traffic and Economic Growth Deputy Minister of Transport and Communications Bekzhan Rysmendeev highlighted the project’s role in addressing existing infrastructure challenges. “The Bishkek—Osh highway, Kyrgyzstan’s main arterial road, currently handles 5,000 to 18,000 vehicles per day and is struggling to accommodate the growing traffic flow,” he explained. The new highway is set to reduce the travel distance by 164 kilometers compared to the existing route, providing an alternative pathway to southern regions and improving access to mining areas. “This public-private partnership project will ease congestion on the Bishkek—Osh route, contribute to economic and social development, and foster international and domestic tourism and trade,” Rysmendeev added. Regional Connectivity As part of the EDB’s broader mission to invest in Eurasia, this project aligns with the bank’s goals of enhancing regional connectivity and economic development. The EDB, a multilateral development institution, includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan as its member countries.

International transport Railways State Budget Legislation Infrastructure Development GDP

Uzbekistan Targets $200 Billion GDP by 2030 with Transport Reforms

On November 26, President Shavkat Mirziyoyev outlined transformative plans for Uzbekistan’s state-owned railway and aviation sectors, setting an ambitious goal to increase the country’s GDP to $200 billion by 2030. Significant changes are already being implemented to enhance efficiency and convenience. In the railway sector, six independent enterprises have been created under “Uzbekistan Railways.” The company added 1,200 new freight cars, halving domestic freight transportation times. The digitalization of operations has streamlined processes, cutting the ordering stage for freight cars from seven days to three and reducing processing time from 72 hours to just 12 hours. Around Tashkent, train traffic has increased by 30%, and for the first time, the previously unprofitable enterprise posted a profit of 30 billion UZS ($2.3 million) this year. In the aviation sector, Uzbekistan Airways has seen flights increase by 25%, with domestic flights surging 2.5 times. The airline now holds a 20% share of international transport in Central Asia, and annual passenger traffic is projected to exceed 6 million. “Uzbekistan Airports” has also expanded services for planes, cargo, and passengers. Greater private sector involvement in airport management has yielded notable results, with 44 airlines currently operating in Uzbekistan. Cargo transportation through airports is expected to grow by 22% this year. “The economy and trade relations in our country are developing year after year. The population’s income and the tourism potential of the regions are also increasing. By 2030, we have set a goal to increase the volume of our gross domestic product to $200 billion. Therefore, we should pay special attention to the transport arteries,” Mirziyoyev said. To support these developments, a new version of the Law “On Railway Transport” has been signed, replacing the 25-year-old legislation. The updated law aims to attract private companies and investments to further develop infrastructure and accelerate industry growth.