Loans will help fund Kazakhstan road project

The International Bank for Reconstruction and Development (IBRD) is providing an infrastructure loan that will help fund a key road project in Kazakhstan. A major portion of this funding will be used to construct a key 79.5km portion of the new international transit corridor connecting Western Europe with Western China.  The US$1.07 billion funding package is being provided by the IBRD for 19 years with a five-year grace period and the deal was agreed between the IBRD and the Kazakhstan Government. Further funding for the project will come through a co-financing package from Kazakhstan’s own budget and will be worth in the order of $188.5 million. The project involves the construction of a new road connecting Shymkent with the border of the Jambyl Province and the actual work will be financed using some $306 million from the loan.