nCa Report
Jogorku Kenesh, the parliament of Kyrgyzstan, passed on 19 June 2024 the bill to approve the construction of the CKU (China-Kyrgyzstan-Uzbekistan railway line project). The adoption of the bill clears the way for the start of construction of the railway line.
The Deputy Minister of Transport and Communications, Yrysbek Bariev, said, “This route will be able to ensure the delivery of goods from China to Kyrgyzstan, as well as to the countries of Central Asia and the Middle East, including Turkey and further to the European Union. The project will ensure increased competitiveness in the international transit transportation market by reducing the distance and time of cargo delivery.”
Speaking about the mechanism for implementing the project, it was noted that it is expected to be implemented according to the BOT (construction – operation – transfer) model, through the creation of a joint project company (JPC) by the three railway administrations of the parties (China Railway International under the State Corporation “Chinese Railways”, State enterprise “National Company “Kyrgyz Temir ” Zholu ” under the Ministry of Transport and Communications of the Kyrgyz Republic, Joint Stock Company “Uzbekistan Temir Yollari”).
During the debate, some MPs raised concerns and voiced objections to the project. Mainly there were two objections:
- The local companies of Kyrgyzstan have not been given any part of the contract
- About 95% of the track would pass through the pastures and agricultural lands
Both the objections were satisfactorily answered by the government MPs.
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Meanwhile, some more information has become available through the media and the open sources.
The Kyrgyz side will provide security for the railway workers and track. The paramilitary personnel of the Kyrgyz Railway perform this duty.
A tripartite joint company of the railway authorities of the three participating countries, with headquarters in Bishkek, will be responsible for the management of the CKU railway system.
After 31 years, the railway will be completely transferred to Kyrgyzstan.
The construction of the project may take up to 6 years. The roadmap for the construction work has been defined.
Akylbek Japarov, the chairman of the cabinet of Kyrgyzstan, thanking the MPs for the passage of the bill, said, “This is a very important historical event. The issue has been discussed since 1996, and the first memorandum was signed in 1997 and has not been resolved since then. The solution to this problem is up to us. It would be an understatement to say that we were lucky, but we must take into account the fact that this issue is complex and requires great responsibility from each of us.”
According to Tazabek news service, Japarov said that with the construction of the railway, Kyrgyzstan will turn from a dead-end country into a transit country.
“Thanks to transit, there will be profit from goods that pass through our land. Every year, this railway will transport from 7 to 15 million tons of cargo. But our victory is not limited to this. Our victory is a short path to the ocean and the establishment of trade relations with the countries of the Middle East and European countries. The European Union’s GDP exceeds $25 trillion; China’s GDP is $18 trillion. In other words, the capacity of the Chinese market is as limitless for us as the ocean, and allows us to remove the limit on the development of our economy,” the head of the Cabinet added.
As he said, the cost of goods during road transport has increased sharply, and mass production has not yet intensified.
“Now the situation will change dramatically. Conditions will be created to increase exports and bring the trade balance into a positive state. At the same time, real conditions are being created to achieve our goal – a GDP of $200 billion by 2050,” says A. Zhaparov.
The President of Kyrgyzstan, Sadyr Japarov told Kabar news agency that the China-Kyrgyzstan-Uzbekistan railway construction project will not increase Kyrgyzstan’s external debt.
“The three countries have created a joint company with an office in Bishkek. The chief director is a Kyrgyzstani, his deputies are representatives of China and Uzbekistan. China finances 51% of the project, Kyrgyzstan and Uzbekistan – 24.5% each. After the investment is recouped, the companies will leave the project, and the railway will be completely at our disposal. This project is necessary to break out of the country’s isolation and will turn us into a transit corridor between Europe and China, which will bring significant economic benefits,” the president said. /// nCa, 2 July 2024