27.09.24
Both Uzbekistan and Kyrgyzstan have now committed to starting construction work on the China-Kyrgyzstan-Uzbekistan (CKU) railway—mega infrastructure that was first conceptualised three decades ago—in October.
However, restrained enthusiasm for the project from economically-pressured Beijing and continuing questions over finalising the financing plan for the investment—particularly if costs as compared to current estimates start to mount as is typical with such challenging projects—mean scepticism over prospects for the delivery of the CKU will not be easily dissolved.
Uzbekistan’s plan to start construction was outlined by Minister of Transport Jasurbek Choriyev during this week’s annual meeting of the board of governors of the Beijing-based Asian Infrastructure Investment Bank (AIIB) held in the Central Asian country. Kyrgyzstan made its commitment to an October construction launch during the summer.
A trilateral project company has been established to oversee the construction of the CKU, with Beijing to cover 51% of construction costs and Kyrgyzstan and Uzbekistan 24.5% each.
Uzbekistan’s share in the company’s authorised capital is set at $225mn. Kyrgyzstan lately announced it will allocate Kyrgyzstani som 11bn (roughly $130mn) from its state budget for the construction of the CKU. When it will commit the remaining part of the $573mn that Bishkek is expected to contribute toward its share of construction outlay is unknown.
The entire CKU project is expected to cost $8bn and traverse more than 450 kilometres (280 miles). The most demanding stretch of the rail corridor for engineers will be in Kyrgyzstan where scores of tunnels and bridges must be built across mountainous territory.
It is anticipated that the railway will transport 15mn tonnes/year of freight.
Choriyev also spoke of Uzbekistan’s efforts to finalise agreements with Afghanistan on the financing of the project for the Trans-Afghan Railway, which would enable freight to be sent from Termez in Uzbekistan to Peshawar in Pakistan, via Afghanistan, and vice versa.
He noted the route would complement the China-Pakistan Economic Corridor (CPEC). “The loop through Central Asia [linking to CPEC] will provide new opportunities for trade and economic relations,” Choriyev said.
“With the rapid growth of the economy, tourism and investments in Uzbekistan, logistics remains the most expensive element," he added.
Uzbek officials have projected that the railway can be completed within five years from now. However, the security situation in Afghanistan means serious doubts continue to hang over hopes for progress in rolling out the Trans-Afghan route.