The Cabinet of Ministers of Kyrgyzstan allocated $14 million to China-Kyrgyzstan-Uzbekistan Railway Company. The head of the Cabinet of Ministers Akylbek Japarov signed the relevant order.
As the background statement says, this is a contribution of the Kyrgyz side to the authorized capital of the company on behalf of the state.
The Ministry of Finance was instructed, in agreement with the Committee on Budget, Economic and Fiscal Policy of the Parliament, to allocate funds in the amount of $14 million (at the National Bank’s exchange rate on the day of the transaction) to China-Kyrgyzstan-Uzbekistan LLC as a contribution of the Kyrgyz side to its authorized capital on behalf of the state enterprise Kyrgyz Temir Zholu National Company.
The company was opened on September 28, 2024. According to the Ministry of Justice, the head of the LLC is Zhou Xing. The founders are the state enterprise Kyrgyz Temir Zholu National Company, Uzbekistan Temir Yollari (Uzbek Railways) JSC and Beijing China — Kyrgyzstan — Uzbekistan Railway Company Limited.
It was previously reported that Kyrgyzstan will invest 11 billion soms in the construction of China — Kyrgyzstan — Uzbekistan railway.
According to the draft state budget, the contribution of the Kyrgyz side to the authorized capital of the joint project company for 2025-2027 is distributed as follows: 2,418 billion soms will be allocated in 2025, 4,291 billion in 2026, and 4,374 billion in 2027.
Converted into dollars at the exchange rate of the National Bank of the Kyrgyz Republic to date, this will amount to $28.67 million, $50.87 million and $51.85 million, respectively. The total investment is $131.39 million.
Recall, an agreement was signed on June 6, 2024 between China, Kyrgyzstan and Uzbekistan to facilitate the implementation of the railway project, and the issue of financing was also resolved. The Parliament ratified the agreement on June 19, and President Sadyr Japarov signed it on June 27.
Construction of the road began in October 2024.
