Kyrgyz president signs law ratifying financial agreements with China on roads
BISHKEK/OSH. July 14 (Interfax) - Kyrgyzstan President Almazbek Atambayev has signed a law on the ratification of two agreements with the government of China and the Export-Import Bank of China for financing of the second phase of the construction of an alternative road from the north to the south of the country, the president's press service told Interfax.
The agreements were signed in June 2014 and call for the allocation of a soft loan of about $297 million for the second section of the road running 95 km from Aral, Jalal-Abad Region in the south to Kazarman, Naryn Region, in the north, a spokesman said.
The country's Transport and Communications Ministry told Interfax that financing for construction of the second phase of the highway will come from the Chinese government, which is providing resources on discount terms for projects at the request of members of the Shanghai Cooperation Organization.
The financing for the second phase of the alternative north-south road is coming from two sources, with the Exim Bank of China providing 62% and the Chinese government providing 38%. The grant component of the loan amounts to 35.07%, which is the minimum level of discount accepted in the country for new foreign borrowing.
Construction of the 433-km alternative highway from Issyk-Kul to Jalal-Abad Region began in 2014 and will be carried out in three stages with a combined estimated cost of $850 million. The road is expected to ease traffic on the existing Bishkek-Osh highway.
The Chinese government also provided the $400 million for the first 154-km phase of construction. Negotiations are being held with the Asian Development Bank for the third phase of the project.
