Uzbekistan has proposed a joint venture with China and Kyrgyzstan for the construction of the China-Kyrgyzstan-Uzbekistan (CKU) line. The joint venture, which can also count on the support of China and Kyrgyzstan, would also become the manager of the line. Work on the line is supposed to start this year.
The China-Kyrgyzstan-Uzbekistan line is one of many planned or ongoing infrastructure projects in Central Asia that are aimed at improving connectivity along the so-called ‘Middle Corridor’. This corridor is supposed to provide better infrastructure connections between China and Europe and functions as an alternative to the ‘North Corridor’ through Russia.
During a meeting with representatives from all three countries, the Uzbek delegation put forward the idea for a joint venture to build the CKU line. China and Kyrgyzstan came out in support of the idea, and works on the line are supposed to start this year.
Kyrgyz obstacles
The proposal for a joint venture comes after doubts about whether or not construction would start at all. Earlier, Kyrgyzstan announced that it is still looking for money to finance its part of the railway. Infrastructure projects in the country are particularly costly due to its mountainous landscape.
At the same time, the country is hesitant to take on more debt. Kyrgyzstan is not legally allowed to owe more than 45 per cent of its external debt to a single debtor, but already owes 42 per cent of its debt to China alone. If the country were to borrow money for the CKU line, it would likely have to borrow from China, which it is reluctant to do.
Apart from financing and landscape difficulties, the three countries have also not yet settled on the final route for the line. While Kyrgyzstan wants the route to be longer and pass through its major urban centres, Uzbekistan and China want to cut travel times and settle on the most time-efficient route.
Also read:
- Kyrgyzstan struggles to find money for CKU line construction
- Kazakhstan and Kyrgyzstan push for more rail along INSTC
- EU to invest 10 billion euros in Middle Corridor
