The EDB will allocate a grant for the development of a feasibility study for the construction of the Balykchy–Cholpon-Ata railway

The Eurasian Development Bank (EDB) will provide grant support to the State Enterprise National Company Kyrgyz Temir Zholu in preparation of a preliminary feasibility study for the investment project ‘Construction of a new railway line between Balykchy and Cholpon-Ata.’

Funding will come from the EDB's Technical Assistance Fund. The total budget for the support will be $275,000, with the final amount to be determined based on the results of the selection of an external consultant in accordance with established procedures.

On 14 August, within the framework of the VII Kyrgyz-Russian Economic Forum, Azamat Sakiiev, Director General of the State Enterprise ‘NC ’Kyrgyz Temir Zholu", and Yaroslav Mandron, Deputy Chairman of the Board of the EDB, signed a technical assistance agreement for the preparation of a preliminary feasibility study.

‘The EDB is actively cooperating with the Ministry of Transport and Communications of Kyrgyzstan, as well as with the State Joint-Stock Company ’Kyrgyz Temir Zholu" to expand its participation in the transport sector of the republic. To date, an agreement has been reached on the bank's participation in three priority projects. The new Balykchy-Cholpon-Ata railway section is important both for the formation of a sustainable transport system within the country and for the development of international logistics. The project creates the basis for the integration of the railway with Tamchi Airport and contributes to an increase in passenger and freight traffic. The development of a preliminary feasibility study is an important strategic step that will allow the parties to move from intentions to concrete mechanisms for implementing the project. The estimated cost is approximately $500 million," said Yaroslav Mandron.

The development of a preliminary feasibility study will allow for a technical and economic comparison of various project implementation options, the determination of the optimal construction scenario, the preparation of a consolidated financial and economic model for the project, and the formulation of recommendations for implementation and further financing.

The initiative is aimed at developing tourist and freight rail transport in the Issyk-Kul region and is designed to connect the region's traditional resort areas with the rail networks of Kazakhstan and Uzbekistan. In addition, the implementation of the project will create additional conditions for the development of mineral deposits and the expansion of freight transport through the formation of sustainable logistics routes.

The project is in line with the EDB's strategic priorities in the Kyrgyz Republic for 2022-2026, including the development of sustainable transport infrastructure, improving the country's internal and external connectivity, and promoting regional economic growth.