Eurasian Development Bank finances US$95m for Big Almaty Ring Road in Kazakhstan
The Eurasian Development Bank (EDB) signed an agreement on the general terms and conditions for financing the construction of the Big Almaty Ring Road (BAKAD). The document was executed today by Amangeldy Issenov, Deputy Chairman of the EDB Management Board.
Financing will be provided by a syndicate of lenders comprising the European Bank for Reconstruction and Development, the Eurasian Development Bank, and the Islamic Development Bank. The EDB will provide US $95 million.
The BAKAD toll road is expected to redistribute traffic in and around Almaty, direct transit traffic to bypass the city, improve transport services, reduce environmental impacts, increase the speed of traffic, and improve road safety.
The 66 km road will have four or six lanes at various sections. The project will also build bridges, interchanges, toll booths, and other necessary infrastructure. The estimated traffic speed is up to 150 km per hour.
“The BAKAD project will not only create cutting-edge opportunities for Almaty but also improve the reliability of the existing transport corridor. Building new roads is an important area of the EDB’s work in our countries. The Bank took part in constructing the Western High-Speed Diameter road in St. Petersburg and is currently financing the construction of the Central Ring Road around the Russian capital,” Amangeldy Issenov comments.
The BAKAD project is being implemented under a 20-year build-operate-transfer concession agreement between the Ministry of Industry and Infrastructure Development of Kazakhstan 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. and Korea Expressway Corporation.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.