The EDB to Provide Technical Assistance in the Development of a Feasibility Study for the Construction of a Highway in the Kyrgyz Republic
Almaty, December 5, 2024. The Eurasian Development Bank (EDB) and the Cabinet of Ministers of the Kyrgyz Republic have signed an agreement on the provision of technical assistance for the Bishkek—Kuntuu—Belogorka—Suusamyr Highway Construction project.
The technical assistance project includes the development of a preliminary feasibility study for the construction of an alternative highway that will connect Bishkek with the southern and western regions of the country. The Bank will finance the study by allocating up to $200.000 out of EDB's Technical Assistance Fund (TAF).
"Implementing its Development Strategy and the Bank's country strategy in the Kyrgyz Republic, the EDB shall finance the development of a preliminary feasibility study for the Bishkek—Kuntuu—Belogorka—Suusamyr Highway Construction project via its Technical Assistance Fund. This project is part of the Eurasian Transport Framework key investment mega-project; it also provides for strengthening the transport connectivity of the economic centres in the Kyrgyz Republic and increasing the transit potential of Kyrgyz highways and heightening the neighboring countries' interest in the road transportation via Kyrgyzstan. To develop the Eurasian transport framework, the Bank uses all the tools that modern development institutions have to offer. The concluded technical assistance agreement is a vivid example of the initiation of projects and their nurturing throughout the entire life cycle — from generating ideas and elaborating on project initiatives to the actual project implementation," said Nikolai Podguzov, Chairman of the EDB's Management Board.
The new automobile route is of great strategic, economic and social importance for the Kyrgyz Republic. In addition to the positive impact it will have on the development of transport infrastructure, the project will help increase the availability of mineral deposits and create new jobs both during the construction of the highway and its operation.
"The existing Bishkek—Osh highway is the main arterial road of the Republic. Its traffic intensity averages from 5 to 18 thousand vehicles per day, and the highway can no longer cope with the growing flow. This public-private partnership project is designed to unclog the major traffic artery connecting Bishkek and Osh, the two largest cities in the country. In addition, it is of strategic importance for the development of the economy and social sphere of the Kyrgyz Republic: the new road will be 164 km shorter than the current route, there will be an alternative route to the southern regions, and the mined deposits will be much more accessible. Also, the construction of the new highway will contribute to the development of international and domestic tourism and trade. A bus service can be launched, and new jobs will appear both during the highway construction and its operation," noted Bekzhan Rysmendeev, Deputy Minister of Transport and Communications of the Kyrgyz Republic.
The project is an important element of the EDB's large-scale Eurasian Transport Framework initiative aimed at developing a network of international transport corridors in Eurasia along its East-West and North-South axes.
Read more about the Eurasian Transport Framework project in the Report prepared by the EDB's Analytics Department.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals $7 bln. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
The EDB Technical Assistance Fund (TAF) is a specialized fund aimed at creating favourable conditions for the implementation of investment projects in the member countries, as well as for the countries overall development. The Fund allocates funding, thus expanding the Bank's ability to finance those investment projects that meet the objectives of the EDB mission. The TAF provides financial support both to potential borrowers that are still preparing their projects and to governments or organizations whose projects are aimed at developing the institutional environment and promoting economic development and growth. The Fund's resources come out of the Bank's net profit and donors' funds.
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