Kyrgyzstan plans to borrow $304 million for new railway project

Kyrgyzstan is seeking to secure a concessional loan of approximately $304.5 million from the Export-Import Bank of China to finance its portion of the China-Kyrgyzstan-Uzbekistan railway project. The Cabinet of Ministers has submitted a draft law to the Zhogorku Kenesh for expedited consideration regarding the ratification of this agreement.

The loan will cover 50% of Kyrgyzstan's 24.5% share in the joint project, which amounts to roughly $609 million. The remaining half of Kyrgyzstan's contribution is expected to be financed through state funds. The loan terms include a 25-year repayment period with a five-year grace period and an annual interest rate of 1.5%. The grant element of the loan is estimated at 35.46%.

The funds are earmarked exclusively for capital investments by the Kyrgyz shareholder in the joint railway company and for construction work on the railway line. The China-Kyrgyzstan-Uzbekistan railway is considered one of the most significant infrastructure undertakings in Central Asia, with an estimated total project cost of $4.7 billion.

Under the project's structure, China will provide approximately $2.3 billion as a loan to the joint project company for 35 years. The remaining funds will be contributed by the founders as charter capital, with China holding a 51% stake, and Kyrgyzstan and Uzbekistan each holding 24.5%. As of January 31, 2026, Kyrgyzstan's debt to the Export-Import Bank of China stood at about $1.5 billion, making it the country's largest external creditor.