Kyrgyzstan begins preparatory feasibility study for $500 mln railway around Issyk-Kul

BISHKEK. Aug 14 (Interfax) - Kyrgyzstan's railway operator, Kyrgyz Temir Jolu, is preparing a preliminary technical and economic feasibility study for constructing the Balykchy - Cholpon-Ata railway in the resort area around Lake Issyk-Kul.

The estimated project cost is approximately $500 million, the Eurasian Development Bank (EDB) said.

The bank will finance the feasibility study's development, with a technical assistance agreement signed on Thursday during the Russian-Kyrgyz Economic Forum.

Funding will come from the EDB Technical Assistance Fund, with a total grant support budget of around $275,000. The final amount will be determined after selecting an external consultant.

"The new Balykchy - Cholpon-Ata railway section is crucial for both developing Kyrgyzstan's domestic transport system and enhancing international logistics. The project will integrate the railway with Tamchy Airport and boost passenger and cargo traffic," EDB Deputy Board Chairman Yaroslav Mandron was quoted as saying.

The initiative aims to develop tourist and freight rail service in the Issyk-Kul region, connecting traditional resort areas with the railway networks of Kazakhstan and Uzbekistan. In addition, the project will facilitate mineral resource development and expand freight transportation through stable logistics routes.

Currently, the railway only reaches the town of Balykchy at the entrance to the Issyk-Kul resort area. Earlier this year, Kyrgyz Temir Jolu representatives announced plans to build a circular railway around the lake, along the northern shore from Balykchy through Tamchy to Cholpon-Ata, and along the southern shore from Balykchy through Bokonbayevo to Karakol.