The Cabinet of Ministers of Kyrgyzstan submitted to the Parliament a bill on ratification of the agreement between the governments of the PRC, the Kyrgyz Republic and the Republic of Uzbekistan on cooperation in joint promotion of China — Kyrgyzstan — Uzbekistan railway project, signed on June 6 in Beijing.
The package of documents provided by the Cabinet of Ministers also includes an agreement signed by the parties on June 6.
The parties will implement a project on a combined version of the route Kashgar — Torugart — Makmal — Jalal-Abad — Andijan.
This route is confirmed by a memorandum dated May 18, 2023. But it should not be considered final. The agreement stipulates that the parties are ready to optimize the combined route option and increase the economic efficiency of the project after in-depth research and justification in order to reduce construction costs and increase the efficiency of investment and operation.
To implement the project on the territory of the republic, a joint project company will be created. Shares in its authorized capital will be distributed as follows: 51 percent — to an authorized company of the People’s Republic of China (now China Railway International) or its subsidiary, 24.5 percent — to authorized organizations of the Kyrgyz Republic (Kyrgyz Temir Zholu) and the Republic of Uzbekistan (Uzbekistan Temir Yollari. The parties will contribute capital for the implementation of the project based on these shares.
The Cabinet of Ministers will conclude an investment agreement with a joint project company (JPC) and provide it with special rights to implement the project on the territory of the Kyrgyz Republic according to the construction, operation and transfer model and receive the corresponding benefits.
Kyrgyzstan have to also assist the JPC in obtaining all necessary documents, licenses and permits and is responsible for all preparatory work on its territory.
China and Uzbekistan will build their part of the road themselves.
The new railway corridor will become the southern branch of the Eurasian continental bridge and will open access to the markets of Southeast, Western Asia and the Middle East.
It is noted that the route will be able to ensure the delivery of goods from China to the Kyrgyz Republic, 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.
