The Cabinet of Ministers of Kyrgyzstan has submitted to the Zhogorku Kenesh a draft law on ratification of an agreement with the Export-Import Bank of China on a concessional loan to finance Kyrgyzstan’s share in China—Kyrgyzstan—Uzbekistan railway project. The document is proposed for expedited consideration.
Kyrgyzstan plans to secure a concessional loan of 2,074 billion yuan (approximately $304.5 million) to finance 50 percent of the Kyrgyz side’s share in the joint project.
According to the explanatory note, Kyrgyzstan’s share in the project amounts to 24.5 percent, or about $609 million. Half of this amount is expected to be covered by state funds, while the remaining half will be financed through borrowing.
The loan will be provided for 25 years, including a five-year grace period. The interest rate is set at 1.5 percent per annum, while the grant element of the loan, according to the Ministry of Finance, reaches 35.46 percent.
The funds will be used exclusively to finance capital investments by the Kyrgyz shareholder in the joint railway company and to pay for construction work on the railway line.
The China—Kyrgyzstan—Uzbekistan railway is considered one of the largest infrastructure projects in Central Asia. The total project cost is estimated at $4.7 billion, of which about $2.3 billion will be provided by the Chinese side as a loan to the joint project company for a period of 35 years. The remaining funds are to be contributed by the company’s founders as charter capital: China — 51 percent, Kyrgyzstan and Uzbekistan — 24.5 percent each.
According to Kyrgyzstan’s Ministry of Finance, as of January 31, 2026, Kyrgyzstan’s debt to the Export-Import Bank of China stood at approximately $1.5 billion, making it the country’s largest external creditor.
