BAKU, Azerbaijan, Aug. 11
By Nargiz Sadikhova - Trend:
The European Bank for Reconstruction and Development (EBRD) has provided A-loan of $225 million to support construction of a 66-kilometer ring road (BAKAD) project around the city of Kazakhstan’s Almaty, Trend reports with reference to EBRD.
The bank said that this is the first and largest public-private partnership (PPP) project in the region structured with the involvement of international advisors and through an open, international competitive process.
The financing package of $585 million consists of an A-loan of $225 million from the EBRD’s own account, B-loan of $125 million syndicated to Bank of China ($100 million) and PGGM ($25 million), as well as parallel loan facilities of $135 million by the Eurasian Development Bank and of $100 million by the Islamic Development Bank.
The largest infrastructure project in Kazakhstan outside the oil and gas sector will help remove a major transport bottleneck in Almaty and increase the transit throughput capacity, while reducing local air pollution.
A Turkish-Korean consortium, formed by Alsim Alarko Sanayi Tesisleri ve Ticaret A. Ş., Makyol Inşaat Sanayi Turizm ve Ticaret A.Ş, Korea Expressway Corporation and SK Engineering & Construction Co. Ltd., was awarded a 20-year concession to construct, operate and maintain the BAKAD road. It will be responsible for the construction of 20 bridges, 8 interchanges and 22 overpasses.
Ekaterina Miroshnik, EBRD Head of Infrastructure Eurasia said: “The BAKAD project puts Kazakhstan on the global map for private investors and developers interested in infrastructure development opportunities. It also provides a solution for the environmental and transport problems Almaty has faced for a long time. I would like to express my gratitude to the government of Kazakhstan, our co-financiers and the implementing consortium for their determination to make this important project happen.”
“The implementation of this landmark project will reduce traffic congestion in Almaty and cut excess mileage and the number of traffic accidents, which will result in the decrease of air pollution, noise, and emission of greenhouse gases,” the report said
The BAKAD project will also create employment opportunities for the local population.
In Kazakhstan, the EBRD has invested 8.63 billion euros through 273 projects in the economy to date.
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 and toll booths will be constructed to create necessary infrastructure.
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