Agreement on Financing Bishkek-Osh Road Section Rehabilitation Project Comes into Force
Moscow, 16 September 2014. The Agreement between Eurasian Development Bank (EDB) and the Kyrgyz Republic (KR) on financing the Bishkek-Osh Road Section Rehabilitation Project came into force on 15 September 2014.
The Project is financed with the resources of the EurAsEC Anti-Crisis Fund (ACF) that are managed by EDB.
Under the Agreement, US $60 million will be provided to finance the rehabilitation of the Jalal-Abad to Madaniyat section of Bishkek-Osh automobile road connecting the northern and the southern parts of the KR. The section is 67 km long. This road section was not rehabilitated during the implementation of the first three phases of the Bishkek-Osh Road Rehabilitation Project financed by Asian Development Bank (ADB).
EDB will be financing the project parallel to ADB, which resources will be used to finance the rehabilitation of the Bishkek to Kara-Balta section. In addition, ADB’s policies and expertise on environmental and social safeguards will be used for the Project preparation and implementation. The resources are to be provided for 20 years on concessional terms – at 1% annual with a grace period of eight years.
Eurasian Development Bank is international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of he Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at http://www.eabr.org.
The EurAsEC Anti-Crisis Fund (ACF) amounting to US$8.513 billion was formed on 9 June 2009 by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The objectives of the ACF are to assist the member countries in overcoming the consequences of global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The ACF member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the ACF Resources Manager. Read more at http://efsd.eabr.org.
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