A syndicate of lenders with the participation of the EDB to provide the first tranche for the construction of BAKAD
Moscow, 7 August 2020. A syndicate of lenders with the participation of the Eurasian Development Bank (EDB) signed a Financial Close Agreement for the construction of the Big Almaty Ring Road (BAKAD). The signing of this final document signifies that the lenders start financing. The disbursement of the first tranche is scheduled for the second decade of August. The EDB will extend US $135 million.
In February 2020, the EDB signed an Agreement on the General Terms and Conditions of Project Financing. The syndicate of lenders comprises the Eurasian Development Bank, the European Bank for Reconstruction and Development, and the Islamic Development Bank.
The BAKAD toll road is expected to redistribute the projected traffic in and around Almaty, direct transit traffic to go beyond the urban area, improve transport services, reduce environmental impacts from the traffic, 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 is being implemented under a concession agreement between the Ministry of Industry and Infrastructure Development of Kazakhstan and a consortium comprising 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 agreement is a 20-year build-operate-transfer contract.
Additional Information:
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.
The EDB Media Centre:
Alexander Savelyev +7 (985) 765 23 59 (Moscow)
Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)
Sergey Gorbachev +7 (916) 727 22 00 (Moscow)