BISHKEK, Kyrgyzstan, April 19. The Kyrgyzstan Parliament has approved the ratification of credit and grant agreements with the European Bank for Reconstruction and Development (EBRD) for the improvement project of the Issyk-Kul ring road in the first reading, Trend reports.
According to the parliament, the EBRD will provide the Kyrgyz government with a 44.2 million euro loan for 20 years with a five-year grace period for the reconstruction of the Balbay Baatyr - Karakol section. The interest rate will be 1 percent. Additionally, the country will receive 3.2 million euros in grant form.
It is noted that negotiations with the Asian Development Bank (ADB) are underway for the section from Bokonbayevo to Karakol.
The 440-kilometer-long Issyk-Kul ring road forms a segment of the CAREC 1 corridor and represents one of Kyrgyzstan's six prioritized transport connections outlined in its National Road Sector Development Strategy 2025. This initiative aims to stimulate economic growth, enhance connectivity, and bolster the country's participation in regional markets.
According to the EBRD, the loan portfolio of the bank's projects in Kyrgyzstan was estimated at 232 million euros as of February 29, 2024, designed for the implementation of 81 active projects. Overall, the bank has invested 970 million euros in Kyrgyzstan for 242 projects.