Regional connectivity: the EDB to support railway construction in the Issyk-Kul Region
Issyk-Kul, 14 August 2025 — The Eurasian Development Bank (EDB) will provide a grant to the Kyrgyz Temir Zholu National Company under the Ministry of Transport and Communications of the Kyrgyz Republic to prepare a preliminary feasibility study for the investment project to construct the Balykchy – Cholpon-Ata railway.
The funding will be provided from the EDB Technical Assistance Fund, with a total budget of US $275,000. The final amount will be determined following the selection of an external consultant in accordance with established procedures.
On 14 August 2025, during the Seventh Kyrgyz-Russian Economic Forum, Azamat Sakiev, General Director of Kyrgyz Temir Zholu, and Iaroslav Mandron, Vice Chairman of the EDB Management Board, signed a technical assistance agreement for the preparation of the preliminary feasibility study for the construction of the Balykchy – Cholpon-Ata railway in the Kyrgyz Republic.
Iaroslav Mandron, Vice Chairman of the EDB Management Board, commented: “The EDB is actively working with the Kyrgyz Republic’s Ministry of Transport and Communications and Kyrgyz Temir Zholu to expand its involvement in the country’s transport sector. To date, we have agreed to participate in three priority projects. The new Balykchy – Cholpon-Ata railway section is crucial not only for building a robust domestic transport system but also for advancing international logistics. The project will lay the groundwork for integrating the railway with Tamchy Airport, increasing tourist traffic and freight traffic. The preliminary feasibility study is a key strategic step that will enable the parties to progress from intentions to concrete implementation mechanisms for a project estimated at approximately US $500 million.”
The preliminary feasibility study will:
- conduct a technical and economic comparison of various project implementation options;
- identify the optimal construction scenario;
- develop a high-level financial and economic model for the project; and
- formulate recommendations for implementation and further financing.
The technical assistance agreement for financing the preliminary feasibility study of the Balykchy – Cholpon-Ata railway highlights the strong demand for the EDB’s instruments in the Kyrgyz Republic, where its current investment portfolio is almost US $350 million.
This initiative aims to enhance tourist and cargo rail connectivity in the Issyk-Kul Region, linking its resort areas with the railway networks of Kazakhstan and Uzbekistan. The project will also create opportunities for developing mineral deposits and expanding freight transportation by establishing reliable logistics routes.
The project aligns with the EDB’s strategic priorities for the Kyrgyz Republic for 2022–2026, which include developing sustainable transport infrastructure, enhancing domestic and international connectivity and fostering economic growth across the country.
The EDB will continue to support initiatives that promote integration and the development of key infrastructure projects across Eurasia.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 19 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By 2025, the EDB’s cumulative portfolio comprised 305 projects with a total investment of US $16,5 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB is implementing three mega-projects as part of its 2022–2026 Strategy: the Eurasian Transport Network, the Eurasian Agricultural Goods Distribution System and the Central Asian Water and Energy Complex.
The EDB Media Centre:
Yulia Kaufman +7 (717) 255 84 84, ext. 2160