Kyrgyzstan Railways, All American Rail Group Global Infrastructure Partner consortium, and the National Investment Agency signed a public-private partnership (PPP) agreement for the construction of a new Makmal – Karakol railway, part of the Trans-Eurasian Route project.
The scope of the agreement includes the design, construction, joint operation and maintenance of the new railway line in the Kyrgyz Republic. The implementation of the project is also aimed at using modern technologies and global achievements of the railway transport system of the country.
The project is estimated at EUR 3 billion and will provide connection between the village of Makmal, where a is gold mine, and the city of Karakol, eastern Kyrgyzstan. The two cities are located over 410 km apart from each other, separated by Issyk-Kul Lake.
“This is the first PPP project in the railway sector in Kyrgyzstan, which promises to be an important step in the development of the country’s transport infrastructure. The total amount of investment is about USD 3 billion, which will not only create new jobs, but also significantly improve the transport network, providing economic benefits for the country in the long term,” the Director of the National Investment Agency, Talantbek Imanov, said at the signing ceremony.
He also stated that Makmal – Karakol railway project will “open new horizons for Kyrgyzstan’s transport system, strengthen regional ties, and enhance the country’s competitiveness on the global stage.”
In August 2024, the President of the Kyrgyzstan, Sadyr Zhaparov, has announced that the construction of the 43 Balykchy – Makmal rail line has been completed, which is a connection further to Karakol, and is part of the rail route from China to Uzbekistan, via Kyrgyzstan.
For the construction of China – Kyrgyzstan – Uzbekistan railway, in 2023 a feasibility study was completed, and a joint appraisal of the feasibility study was carried out, according to a presentation of the Kyrgyz Ministry of Transport and Communications, held in April 2024 at the CAREC 21st Transport Sector Coordinating Committee (TSCC). The parties considered various options for the route and the use of gauge. The so-called combined option on the Torugart – Arpa – Kosh-Döbö – Makmal – Jalal-Abad route is 312 km long and is the main option along which work has been carried out to prepare a feasibility study. This route provides a link between Torugart Pass, which connects Kyrgyzstan and the Xinjiang Autonomous Region of China, and Jalal-Abad region, in western Kyrgyzstan.
Kyrgyz Ministry of Transport and Communications, in the combined option of the route, it is proposed to locate a transshipment station in the area around Makmal which will play a vital role to provide capacity and smooth traffic. The standard gauge will be used on the 165.5 km Torugart – Makmal railway, and the 1,520 mm gauge will be used from Makmal to Jalal-Abad, which has a length of 146 km.
In 2024 two financing model options have been considered one consisting of the mobilization of credits and loans and the other one is the PPP scheme – BOT (Build – Operate – Transfer /Construction-Operation-Transfer).
In June 2024, the governmental representatives of China, Kyrgyzstan and Uzbekistan signed the agreement for construction and modernisation work on a more than 520 km line, of which more than 210 km crosses China, 260 km will be in Kyrgyzstan and 50 km in Uzbekistan. This new line would reduce the distance by 900 km resulting in less than 8-day train travel and is avoiding Russia.
USD 8 billion is the estimated value of the project, of which USD 5 billion is the needed investment for the construction of Torugart – Jalal-Abad railway line. According to estimations, this new rail connection will increase the freight traffic volume to up to 15 million tonnes each year.
The President of Kyrgyzstan, Sadyr Japarov, and representatives of the Chinese and Uzbek governments have launched the construction of China – Kyrgyzstan – Uzbekistan railway on December 27, 2024, in Jalal-Abad, Kyrgyzstan, to mark the beginning of the project.
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