Back to the blog
Economy

Kyrgyzstan ratified the agreement on the construction of the railway

Published 28. June, 2024 - 10:49 GMT+0000
Kyrgyzstan ratified the agreement on the construction of the railway

According to Kyrgyz President Sadyr Zhaparov, construction of the China-Kyrgyzstan-Uzbekistan railway will begin in October 2024.

The Kyrgyz government is seeking to break away from its dependence on Kazakh and Russian railways, without which it is virtually cut off from transnational corridors. The creation of a major logistics route from China could greatly help the state budget. However, the rail route will undoubtedly help Kyrgyz exports, which have so far had to rely on neighbouring countries, particularly the aforementioned China, Russia and Kazakhstan. Kyrgyz products could thus be better marketed abroad. For Kyrgyzstan, as a landlocked country, the railway is the only opportunity to benefit from its location (i.e. west of China). It is known that this project has long been hampered by the issue of financing.
This is also an important issue for Uzbekistan, all its neighbours are landlocked, which is a very rare location for a country.
For China, it is a question of prestige, as the process corresponds to the development of the One Belt, One Road corridor (Belt and Road Initiative).

In practice, most of the construction will be on Kyrgyz soil, as the railway infrastructure of Uzbekistan and China is largely developed.
The feasibility study for the project was prepared by the China Railway Design Corporation. In July 2023, the parties announced the completion of the work and confirmed the technical and economic feasibility of the railway construction. The Kyrgyz part accounts for approximately $4.7 billion. The total cost of the project is USD 7.7 billion, which is more than half of the total project cost of USD 8 billion. USD 2.6 BILLION. This is mainly due to the difficult terrain and the number of tunnels and bridges on Kyrgyz territory (more than 50 tunnels and 90 bridges).

The route from China to Europe is expected to be shortened by 900 km. It can be assumed that many companies would prefer to travel in the bypass of Russia because of the political situation. However, the Russian Federation has a better railway infrastructure at the moment, which the Central Asian republics cannot yet compare with. Also, President Sadyr Zhaparov did not rule out possible funding problems in the long term. There is also the possibility that the geopolitical situation, thanks to which the project has gained momentum, may turn around.

https://thediplomat.com/2024/05/china-kyrgyzstan-uzbekistan-construction-to-begin-in-october-kyrgyz-president-says

https://rus.azattyk.org/a/32871088.html

Published 28. June, 2024 - 10:49 GMT+0000
Back to the beginning
Related articles
Economy
Kazakhstan and the Eurasian Economic Union: Challenges and Opportunities

Kazakhstan, as one of the key countries within the Eurasian Economic Union (EEU), faces various challenges and opportunities that influence its position within this trade alliance. Based on an analysis of sources, we can identify…

Economy
Russians abroad: business and emigration

After the conflict in Ukraine began and mobilisation was announced, many Russian residents left the country. Some of them decided to start a business in their new place. Eurasia.sk spoke to migrants from Russia about…

Economy
Kazakhstan relies mainly on thermal power plants

It is estimated that Kazakhstan will consume an average of 3% more electricity each year. At the same time, electricity generation capacity will also grow, but production is not expected to increase in proportion to…

More news / articles
Economy
Two of Central Asia’s strongest economies have applied for funding for a regional link

The first representative of the Ministry of Transport of Uzbekistan, M. Omarov, met with representatives of the European Commission delegation within the framework of the Trans-Caspian International Transport Corridor Coordination Platform. Uzbekistan is seeking a…

June 18, 2024
Read more
Economy
Details of the China-Kyrgyzstan-Uzbekistan railway project

The project to build a rail link between China and Uzbekistan via Kyrgyzstan will reach 486 km, with the Kyrgyz part accounting for 311.8 km. This project has long been discussed and delayed, mainly due…

June 16, 2024
Read more
Economy
Russian railways towards China: A New Role Amid the Conflict in Ukraine

The adoption of new sanctions by Western countries against Russia has accelerated the reorientation of Russian trade relations towards Eastern countries, which continue to conduct business with local companies and authorities. However, a full-scale shift…

June 7, 2024
Read more
Economy
The Middle Trade and Transport Corridor: new prospects

The Middle Trade and Transport Corridor or Trans-Caspian Transport Route is an infrastructure project through which goods can be delivered from China to Europe through the territories of Kazakhstan, Azerbaijan, Georgia and Turkey, that is, bypassing Russia. The idea of the project was first expressed in 2013, and the first practical steps to create the necessary infrastructure and remove trade barriers between the participating countries began in 2015.

June 7, 2024
Read more
Economy
Assessing New Transport Corridors and Their Impact on Kazakhstan (II.)

At the beginning of 2023, Russia announced the construction of two new transport corridors from China towards Europe, bypassing Kazakhstan. The first is through Kyrgyzstan, Uzbekistan to Turkmenistan, and then through the Caspian Sea to…

June 7, 2024
Read more
Economy
From crisis to adaptation (part II. – railway industry)

In our previous article, we explored the automotive industry, which quickly found replacements from Asia. However, a different situation currently applies to trains, which we will discuss in the following text.

June 7, 2024
Read more
Economy
From Crisis to Adaptation (I. – automotive industries)

Despite statements by several Russian politicians that sanctions imposed on Russia by Western countries largely stimulate the development of the national economy, restrictive measures have led to serious problems for many sectors. In the article, you will learn how a year and a half after the introduction of new sanctions, Russian businesses are seeking a way out of the crisis.

June 7, 2024
Read more
Uncategorized
Transport routes through Kyrgyzstan (I.)

There have been several attempts to find a transport corridor that would bypass a certain country. The reasons for bypassing a country in the transportation of goods can vary, from political and security concerns to…

June 7, 2024
Read more