US$ 2.13 billion loan for Kazakhstan highway upgrade
17 June 2009
The World Bank has agreed to lend Kazakhstan US$ 2.13 billion for the Kazakhstan South-West Roads Project. The money will be used to help upgrade a 1062 km stretch highway linking China to Russia through Kazakhstan.
The World Bank loan is expected to be ratified by Kazakhstan's Parliament in September, with the first construction contracts issued later this year.The main agency responsible for project implementation is the Committee for Roads of the Ministry of Transport and Communication.
This project is part of the wider US$ 6.7 billion International Transit Corridor development programme by the Kazakhstan government to upgrade about 2800 km of the Central Asia Regional Economic Cooperation Programme (CAREC) corridors within Kazakhstan linking China (at Khorgos) to Russia (at Zhaisan).
The aim of the loan, said a World Bank statement, is to increase "transport efficiency" between Aktobe on the Ilek River and Kyzylorda oblast on the Syrdarya River, and Shymkent. The project is also designed to boost Kazakhstan's competitiveness and bring "significant economic benefits" to the country, as well as to the Kyrgyz Republic, Tajikistan and Uzbekistan.
