EDB to invest over US $1 billion in Kazakhstan in 2016
Almaty, 11 February 2016. Eurasian Development Bank (EDB) intends to invest over US $1 billion in Kazakhstan before the end of 2016.
The Management Board of EDB approved the project to finance KazTransGasAimak's gasification and upgrade programme in Aktobe and Mangistau Regions of Kazakhstan. The loan will total US $128.2 million, in the tenge equivalent, and will be provided for ten years. Taxes and other compulsory payments over the lending period are estimated to approximate US $200 million. The project is expected to create 236 jobs.
In addition, EDB approved a blueprint for the project to construct the Almaty Big Ring Road (BAKAD) proposed by the Ministry of Investments and Development of Kazakhstan. BAKAD is a public-private partnership project in the road sector piloted by the ministry. It will help to ensure sustainable economic growth in Kazakhstan through the development of Almaty's transport infrastructure and to significantly improve environmental situation in the region by relieving traffic congestions. The project is in the sector of transport infrastructure, one of Bank's investment priorities, and has significant multiplicative effects in related sectors. The amount of investment considered by the Bank is US $100 million.
EDB also approved a blueprint for the project to construct a full-cycle automobile factory and a technology park to produce car components in Oskemen by Asia Auto Kazakhstan. An eleven-year loan is expected to amount US $181.89 million. The project will help to promote sustainable economic growth and is of significant socioeconomic importance. Preliminary estimates suggest it will create 4,000 jobs at the factory and over 8,000 jobs at related enterprises.
Two other blueprints were approved in the metallurgy and mining sectors. The proposed ten-year loan will total US $100 million. The projects intend to improve environmental situation in regions by reducing pollutant emissions and to raise energy efficiency in the country by reducing energy consumption at enterprises and improving resource saving, which is one of the Bank’s investment priorities. They are expected to half energy consumption by over 15% per tonne of production. This will help to cut the prime cost and improve the companies' competitiveness. The projects will create 85 new jobs. Annual tax payments are estimated to total US $62.5 million. The projects will help to develop single metallurgy markets and strengthen trade and economic ties between the Bank's member states.
EDB has eight other projects in the transport and municipal infrastructure sectors, worth over US $600 million, to consider in 2016.
Additional Information: As of 29 December 2015, EDB's investments in Kazakhstan made up 39.4% of its investment portfolio. The Bank’s strategic and important projects in the country include the construction of the North Kazakhstan–Aktobe Region inter-regional power transmission line, investments in Bogatyr Komir, the manufacture of electric locomotives, and the construction of Kazakhstan's first large wind farm.
Additional Information about the Bank:
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. 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.
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