Tajikistan

Chinese Megaprojects Resurge in Central Asia’s Struggling Nations

China has been a significant source of foreign direct investment for Central Asian countries, particularly Kyrgyzstan and Tajikistan. However, recent years have seen a lull in major investment deals from Beijing.

In Kyrgyzstan, the proposed China-Kyrgyzstan-Uzbekistan (CKU) railway project has the potential to revolutionize intercontinental trade routes. This project is crucial for Beijing as it seeks alternative routes that bypass Russia amid increased sanctions risks.

While the CKU railway project promises economic benefits for Kyrgyzstan, the funding structure raises concerns about potential debt traps. The division of financial responsibility and the use of a build-operate-transfer (BOT) model could leave Kyrgyzstan vulnerable to debt exposure.

In Tajikistan, Chinese investments have been focused on various projects including a solar power plant near the border with Afghanistan. These investments come at a time when Tajikistan is grappling with increasing debt repayments, particularly to Chinese creditors.

Despite the potential economic benefits of these projects, there are concerns about the financial implications for both Kyrgyzstan and Tajikistan. The countries must carefully evaluate the terms of the investment deals to avoid falling into unsustainable debt traps.

 

Hostinger

Pools Plus Cyprus

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