bne IntelliNews – PFI Awards names Eurasian Development Bank funding for 2020 Big Almaty Ring Road transport deal
The Project Finance International (PFI) awards selected the Eurasian Development Bank (EDB) project to finance the construction of the Almaty bypass (BAKAD) in Kazakhstan as the transport deal of the year in Europe, EDB said on February 15.
The financial close agreement on the BAKAD construction project was signed by a syndicate of lenders with EDB as the main lender in early August 2020. EDB extended $ 135 million, while the total financial package amounted to $ 585 million.
“We are very happy to receive this award, which is sort of an Oscar for project funding. EDB, as the main lender, has worked in cooperation with its partners – the international development banks, ”said Nikolai Podguzov, chairman of the board of EDB.
The 66-kilometer BAKAD road is the region’s first PPP project structured through an open international competitive process and with the participation of international advisers. The infrastructure project will help remove a major transport bottleneck in Almaty, increasing public transport capacity and reducing local air pollution.
A Turkish-Korean consortium, formed by Alsim Alarko Sanayi Tesisleri, Makyol Insaat Sanayi Turizm, Korea Expressway Corporation and SK Engineering & Construction, has been awarded a 20-year concession to build, operate and maintain the BAKAD road. It will be responsible for the construction of 20 bridges, eight interchanges and 22 viaducts.
Podguzov said: “BAKAD was the first international public-private partnership project in Central Asia. For the Bank, its implementation strategically means the continued and progressive creation of the Europe-Western China transport corridor. The PFI award signifies that the foreign financial community recognizes EDB as a leading bank operating to high international standards. The road is of paramount importance for the Almaty region and the economy of Kazakhstan as a whole. Our Bank has extensive experience and unique instruments to finance cutting-edge infrastructure projects on the principles of public-private partnership.
“Today, we are participating in the construction of the fourth phase of the central ring road (Central Ring Road 4) around Moscow. We are also implementing high-speed highway projects in St. Petersburg. We plan to expand our transport infrastructure activities in all of our member countries – Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Russia and Tajikistan, using instruments that are not available to national development institutions. I mean eventual equity participation in a project vehicle, provision of equity financing, and provision of special tranches to pay interest and borrowing costs or create reserve accounts.