Lenders to start funding Kazakhstan's Big Almaty Ring Road project
BAKU, Azerbaijan, Aug. 7
By Nargiz Sadikhova - Trend:
Eurasian Development Bank (EDB) along with a syndicate of lenders has signed a Financial Close Agreement) on the Construction of the Big Almaty Ring Road (BAKAD) project, Trend reports with reference to the EDB.
The signing of this final document means that lenders will start funding the project. The disbursement of the first tranche is scheduled for the second decade of August. The amount of EDB financing is $135 million.
EDB signed an Agreement on General Terms and Conditions for Project Financing in Feb. 2020. The syndicate of creditors is represented by the Eurasian Development Bank, the European Bank for Reconstruction and Development and the Islamic Development Bank.
The BAKAD project is being implemented on concession agreement between Kazakhstan’s Ministry of Industry and Infrastructural Development and a consortium of four companies: Alsim Alarko Sanayi Tesisleri ve Ticaret A.Ş., Makyol İnşaat Sanayi Turizm ve Ticaret A.Ş., SK Engineering & Construction Co., Ltd. и Korea Expressway Corporation.
Construction of BAKAD is expected to redistribute traffic load of Almaty road network and the suburban area, provide that transit cars do not enter the city, improve the transport service, decrease the negative environmental impact of road transport, increase operational speed and improve safety of transport vehicles.
The road will be 66 kilometers long. Within the framework of the project’s implementation, bridges, interchanges, toll booths, and other necessary infrastructure will be constructed.
The Eurasian Development Bank is an international financial institution established to promote economic growth in its member states, extend trade and economic ties among them, and support integration in Eurasia through investment.
The Bank was founded by an international treaty – the Agreement Establishing the Eurasian Development Bank- signed by the authorized representatives of the Governments of the Russia and Kazakhstan.
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