The authors of the study emphasize that different countries have restrictions on attracting funds from a single source, which helps maintain financial stability and control the level of public debt.
At the same time, the implementation of the infrastructure project may require investments comparable to the economic volume of an entire state.
“For example, the cost of constructing a section of the railway in Kyrgyzstan is $4.7 billion, which is equivalent to about one-third of the gross domestic product of the Kyrgyz Republic for 2023,” the report notes.
“Cooperation among multilateral development banks could be an effective solution for financing such large-scale infrastructure projects,” EDB specialists believe.
Additional information:
The loan agreement for the implementation of the China-Kyrgyzstan-Uzbekistan railway project was signed between the LLC "China-Kyrgyzstan-Uzbekistan Railway Company" (Joint Project Company) and a group of banks from China, including the State Development Bank and Exim Bank.
The total cost of the project is $4.7 billion. Of this amount, about $2.3 billion will be allocated by China in the form of a 35-year loan to the Joint Project Company established by the three states.
The repayment of this loan will be carried out directly by the Joint Project Company. The remaining part of $2.3 billion will be invested by the three states in the authorized capital of the Joint Project Company in the following percentage ratio: China – 51%, Kyrgyzstan and Uzbekistan – 24.5% each.
