Kazakhstan : Eurasian Development Bank To Allocate Rub 10 Billion As Senior Creditor Under Central Ring
Eurasian Development Bank (EDB), acting as a senior creditor, is to allocate RUB 10 billion to implement a PPP project of building Central Ring Road 3. EDB, being part of the lending syndicate that includes major Russian banks, and Avtodorozhnaya Stroitelnaya Korporatsiya (Road Construction Corporation; ASK) have signed a package of documents related to financing this project. The maturity of EDBs loan is up to 16 years. The total project cost is estimated at over RUB 80 billion.
EDB experts stress that construction of this road is of key importance for the transport sector as it would bring down freight and logistics costs. From the Banks perspective, this project is characterised by a large integration component as its implementation will help develop a range of major international transport corridors within the framework of the Europe-Western China route. It will link new 11 expressway Moscow-Saint-Petersburg and M-7 Volga road running to Kazakhstan. If implemented, this large-scale, capital intensive project will offer a global solution to several issues at a time: first, it involves mobilisation of private capital to finance infrastructure projects using the PPP mechanism in the Russian Federation; secondly, it promotes economic growth of certain regions and countries, as transport infrastructure enables flows of goods and services and, thus, is one of the Banks priority areas of activity, said Timur Abdullakhanov, Managing Director, Head of EDB Directorate for Transport and Infrastructure, during the signing ceremony.
It should be noted that earlier EDB signed a few agreements to acquire a 25-percent equity stake in Avtodorozhnaya Stroitelnaya Korporatsiya.