Tashkent, Uzbekistan (UzDaily.com) – Uzbekistan will allocate US$255 million to form its share in the charter capital of the railway project company "China-Kyrgyzstan-Uzbekistan".

President of Uzbekistan Shavkat Mirziyoyev has signed a resolution approving an international agreement. 

According to the document, the Reconstruction and Development Fund will provide a loan of US$255 million to Uzbekistan Temir Yullari to finance Uzbekistan’s share in the charter capital of the railway project company "China-Kyrgyzstan-Uzbekistan".

It is expected that UScd$14 million of this amount will be allocated by the end of 2024. The loans are provided at 5% per annum for 15 years, including a 7-year grace period.

The cooperation agreement for the implementation of the "China-Kyrgyzstan-Uzbekistan" railway project between the Government of China, the Cabinet of Ministers of Kyrgyzstan, and the Government of Uzbekistan was signed on 6 June 2024.

The railway route will traverse mountainous terrain through the following points: Kashgar – Torugart – Makmal – Jalal-Abad – Andijan. Construction will commence in October 2024.

By 2050, it is planned that the annual transportation volume on the new railway will reach 13.5 million tons. This will reduce the delivery time of goods by 7 days. Uzbekistan expects to gain economic benefits from freight transit amounting to US$150-200 million annually.

The project will significantly improve the export-import connections for Uzbekistan, as well as for Tajikistan, Afghanistan, Turkmenistan, and other regional countries, providing substantial transit opportunities and linking China with the Indian subcontinent via railway, a route previously accessible only by sea. The new railway will provide Central Asia access to the Pacific Ocean through China, and provide China access to the Persian Gulf.

The design and construction of the railway will be undertaken by the Chinese company China Railway International. The parties will establish a joint project company in Kyrgyzstan in accordance with local legislation to optimize interaction among the participating countries. China will hold a 51% stake in the company, Kyrgyzstan – 24.5%, and Uzbekistan – 24.5%.