Uzbekistan and Kyrgyzstan to Commence CKU Railway Construction in October

Politics Nia Simpson September 28, 2024

Uzbekistan and Kyrgyzstan to Commence CKU Railway Construction in October

Uzbekistan and Kyrgyzstan have agreed to commence construction of the China-Kyrgyzstan-Uzbekistan (CKU) railway in October, a project facing financial and logistical challenges. With an estimated cost of $8 billion over 450 kilometers, the railway aims to enhance trade connectivity, despite ongoing concerns regarding funding and Afghanistan’s security situation. Minister Choriyev highlighted the intertwined nature of these transport initiatives, which could significantly benefit regional trade.

Uzbekistan and Kyrgyzstan have officially committed to beginning the construction of the China-Kyrgyzstan-Uzbekistan (CKU) railway project starting in October, a substantial infrastructure initiative that dates back three decades in conception. The project, despite gaining momentum, faces skepticism due to Beijing’s cautious economic posture and unresolved financing details, particularly given the propensity for project costs to exceed initial estimates in such complex endeavors. Uzbekistan’s Minister of Transport, Jasurbek Choriyev, highlighted this commitment during a recent meeting of the Asian Infrastructure Investment Bank (AIIB) in Uzbekistan. Kyrgyzstan had previously pledged its support for the October start. A trilateral construction company has been formed, with China funding 51% of the costs, while both Uzbekistan and Kyrgyzstan will each cover 24.5%. Uzbekistan is contributing $225 million to the capital, while Kyrgyzstan plans to allocate roughly $130 million from its state budget. The overall cost of the CKU is projected at $8 billion and will span over 450 kilometers (280 miles), particularly challenging in Kyrgyzstan where numerous tunnels and bridges are required due to the mountainous terrain. The railway aims to facilitate the transport of 15 million tonnes of freight annually. Additionally, Minister Choriyev addressed ongoing negotiations with Afghanistan regarding the financing for the Trans-Afghan Railway, which would link Termez in Uzbekistan to Peshawar in Pakistan through Afghanistan, potentially enriching trade routes further through the China-Pakistan Economic Corridor (CPEC). Choriyev emphasized the logistical importance of such projects within the rapidly growing economies of Central Asia. He stated that “the loop through Central Asia [linking to CPEC] will provide new opportunities for trade and economic relations,” while acknowledging that logistics remains a costly aspect of Uzbekistan’s economic development. Although officials are optimistic about completing the railway within five years, the security situation in Afghanistan casts uncertainty on the timelines and feasibility of the Trans-Afghan route.

The CKU railway project is a significant infrastructure undertaking aimed at enhancing connectivity between China, Kyrgyzstan, and Uzbekistan. Initiated over thirty years ago, its construction is expected to play a pivotal role in boosting trade routes and economic cooperation in Central Asia. Both Uzbekistan and Kyrgyzstan have made public commitments, with respective financing plans in place. However, financial strain on China’s economy, alongside unresolved funding issues, raises concerns regarding the timely execution and costs involved in realizing this ambitious project. The railway, extending over a challenging mountainous region, is expected to have substantial implications for regional trade and logistics, particularly in light of the Trans-Afghan Railway’s potential linking to Pakistan and beyond. The simultaneous focus on these transportation initiatives signifies a broader strategy for economic development and regional integration.

In summary, both Uzbekistan and Kyrgyzstan are poised to embark on the construction of the CKU railway, highlighting a longstanding commitment to improving regional infrastructure and trade connectivity. Despite the optimistic timelines and outlined financial contributions, significant uncertainties remain, chiefly regarding the project’s overall costs and the evolving economic landscape in China. The successful execution of the CKU and its associated initiatives, particularly the Trans-Afghan Railway, could transform trade linkages in Central Asia, fostering greater economic collaboration. However, the political and security situation in Afghanistan continues to pose challenges that must be carefully navigated.

Original Source: www.intellinews.com