EBRD may finance China-Kyrgyzstan-Uzbekistan railway project

The European Bank for Reconstruction and Development (EBRD) may provide funding for the construction of a major railway linking China, Kyrgyzstan, and Uzbekistan, according to Uzbekistan's Ministry of Transport.

On November 12, Mamanbiy Omarov, Uzbekistan’s First Deputy Minister of Transport, held a meeting with an EBRD delegation led by Ekaterina Miroshnik, Director of Eurasian Infrastructure at the EBRD. The discussions centered on financing options for the ambitious China-Kyrgyzstan-Uzbekistan railway project, as well as ongoing initiatives to enhance Uzbekistan's green transport sector.

The long-planned 454-kilometer railway line, which was agreed upon in September 2022, will connect China with Central Asia, providing an alternative trade route. The project is estimated to cost between $4.7 billion and $8 billion, with funding to be split among the participating countries. Under a joint project company, Uzbekistan and Kyrgyzstan hold 24.5% each, while China holds a 51% stake. Half of the funding is expected to come from participating countries, with China contributing $2.35 billion as an interest-free loan.

As part of Uzbekistan’s commitment, President Shavkat Mirziyoyev approved a $255 million investment from Uzbekistan Railways in July. Initial funding of $14 million will be allocated before the year’s end.

In addition to the railway project, the EBRD and Uzbekistan's Ministry of Transport reviewed the expansion of Uzbekistan's electric bus fleet in Samarkand. After an initial phase, 250 new electric buses are set to arrive in 2025 as part of a second phase, with plans to extend the green transport project to Namangan and Nukus.