China's Mega Projects in Central Asia Are Back in Fashion

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China News

Central Asia,Kyrgyzstan,Tajikistan

China's renewed interest in mega projects in Central Asia sparks discussions on potential benefits and the risk of debt traps for Kyrgyzstan and Tajikistan.

For most of the last two decades, China has been the most obvious source of foreign direct investment for the countries of Central Asia. But for the two poorest countries of the region -- Kyrgyzstan and Tajikistan -- truly strategic investment from Beijing appeared to peak in the middle of that period.

And those could well increase further, given that the project will involve building around 50 tunnels and 90 bridges, in some cases at altitudes of 3,000 meters. Kyrgyz President Sadyr Japarov no relation to Akylbek Japarov said at the June 6 event that transit could bring $200 million annually into his country's coffers. Official estimates for Kyrgyzstan’s contribution begin at almost $600 million. That is most likely to be met in the form of a Chinese loan, whose conditions are unknown.

 

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