A financing agreement worth $US 4.7bn has been signed between the China-Kyrgyzstan-Uzbekistan Railway Company, the joint venture set up to build a 486km railway connecting the three countries, and a consortium of Chinese banks, including the China Development Bank and Exim Bank of China.
Around $US 2.3bn will be provided by the Chinese banks as a 35-year loan. The remainder will be injected as equity into the project company with China investing 51% and Kyrgyzstan and Uzbekistan 24.5% each.
Construction of the new 120km/h railway officially began on December 27 2024. The single-track line will run from Kashgar in China to the border with Kyrgyzstan at Torugart, then via Makmal and Jalalabad to Andijan in Uzbekistan. The railway will have 50 bridges and 29 tunnels totalling 120km and will include provision for future electrification.
The line will create a new transit route for freight between China and Europe and will have capacity to carry up to 12 million tonnes of freight per year.
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