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Two agreements on financing Western Europe-Western China international transit corridor presented for ratification by Parliament of Kazakhstan

Business Materials 8 June 2009 20:01 (UTC +04:00)

Kazakhstan, Astana, June 8 / Trend , K.Konyrova /

Two papers regarding financing of the Western Europe-Western China International Transit Corridor project will be submitted to the plenary meeting of the Parliament in the form of bills, the press service of the lower house of parliament said.

Both papers were discussed at a meeting of committee on foreign affairs, defense and security on June 8. The first paper - agreement on loan for the project on construction road corridor south-west (Western Europe-Western China International Transit Corridor).

It was signed between the Government of Kazakhstan and the European Bank for Reconstruction and Development on March 30, 2009 in Astana. The purpose of the agreement is to implement a project on reconstruction and development of road networks, as well as improve the system of the roads through the $180 million loan attracted from the bank.

The loan is granted for 19 years, including a four-year grace period. Servicing and repayment of the loan will be made at the expense of the Republic budget in accordance with the financial conditions stipulated in the agreement.

The second paper, which was also discussed at today's meeting of the committee, is a loan agreement for the construction of the CAREC Transport Corridor 1 (Western Europe-Western China International Transit Corridor).

The paper was signed between the Government of Kazakhstan and the Asian Development Bank to develop an efficient transport system in the Republic.

The purpose of the agreement is to implement the project on reconstruction and development of road networks, as well as improve the road system through $340 million loan attracted from ADB. The loan is provided for 25 years, including a five-year grace period.
Servicing and repayment of the loan will be made at the expense of the Republic budget in accordance with the financial conditions stipulated in the agreement.

"The committee positively assesses both agreements and proposes to ratify them," the same source said.

Reporters on both bills are the Minister of Transport and Communications Abilgazi Kusainov and member of the committee Turarbek Asanov.

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