Uzbekistan and Kyrgyzstan Prepare to Launch China-Kyrgyzstan-Uzbekistan Railway Construction in October
Uzbekistan and Kyrgyzstan have confirmed their intention to start construction of the China-Kyrgyzstan-Uzbekistan railway in October, a project that has been in planning for thirty years. The initiative faces financial uncertainties and logistical challenges, particularly within mountainous regions of Kyrgyzstan.
Uzbekistan and Kyrgyzstan are poised to initiate the construction of the China-Kyrgyzstan-Uzbekistan (CKU) railway in October, a significant infrastructure endeavor that has been in the works for nearly thirty years. However, the enthusiasm for this project is tempered by economic constraints faced by Beijing and ongoing uncertainties regarding the financing arrangements. These concerns are particularly pertinent in light of typical cost escalations associated with large-scale infrastructure projects. The commitment from Uzbekistan was articulated by Minister of Transport, Jasurbek Choriyev, during the recent annual meeting of the board of governors of the Asian Infrastructure Investment Bank (AIIB), which took place in Uzbekistan. Similarly, Kyrgyzstan ratified its agreement to commence construction during the summer months. A trilateral project company has been created to manage the construction of the CKU railway, with Beijing responsible for 51% of the project costs, while Kyrgyzstan and Uzbekistan will each shoulder 24.5%. Uzbekistan’s financial commitment to the project’s authorized capital is set at approximately $225 million. Kyrgyzstan has recently earmarked 11 billion Kyrgyz som (around $130 million) from its national budget for its portion of the construction expenses; however, the timeline for the remainder of the projected $573 million contribution from Bishkek remains unspecified. The total estimated cost for the CKU project is approximately $8 billion, and it is anticipated to extend over a distance of 450 kilometers (280 miles). Notably, engineering challenges will be most significant in Kyrgyzstan due to the need for numerous tunnels and bridges to navigate its mountainous terrain. Upon completion, the railway is expected to facilitate the transportation of up to 15 million tonnes of freight per year. Minister Choriyev also addressed Uzbekistan’s ongoing negotiations with Afghanistan regarding the financial aspects of the Trans-Afghan Railway project. This initiative aims to create a freight corridor between Termez in Uzbekistan and Peshawar in Pakistan via Afghanistan, which would enhance connectivity to the China-Pakistan Economic Corridor (CPEC). Choriyev remarked, “The loop through Central Asia [linking to CPEC] will provide new opportunities for trade and economic relations.” He further highlighted, “With the rapid growth of the economy, tourism and investments in Uzbekistan, logistics remains the most expensive element.” Uzbek officials are optimistic that the railway can be completed within a five-year time frame, although security concerns in Afghanistan cast uncertainty on the progress of the Trans-Afghan route.
The China-Kyrgyzstan-Uzbekistan (CKU) railway is a major infrastructure project, conceptualized nearly thirty years ago to enhance transportation and trade connections in Central Asia. This strategic rail line is designed to link China with Kyrgyzstan and Uzbekistan, facilitating the efficient movement of goods across the region. The project has gained renewed attention as both Uzbekistan and Kyrgyzstan have recently pledged to commence construction, aiming to address logistical challenges and bolster economic relations within Central Asia. However, the project faces hurdles, particularly related to investment financing and geopolitical considerations involving Afghanistan, which complicates matters for the Trans-Afghan Railway.
In summary, the commitment from Uzbekistan and Kyrgyzstan to begin construction on the China-Kyrgyzstan-Uzbekistan railway marks a significant step forward for a project that has been anticipated for decades. While the projected benefits of enhanced trade and connectivity are notable, financial and security challenges remain critical factors that could impact the successful implementation and completion of this ambitious infrastructure initiative. As discussions continue regarding the financing of related projects such as the Trans-Afghan Railway, stakeholders must navigate the complexities presented by regional dynamics and economic realities.
Original Source: www.intellinews.com
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