The European Bank for Reconstruction and Development will provide Kyrgyzstan with 47.7 million euros for the reconstruction of the section of the Balbay Batyr - Karakol Issyk-Kul ring road. The bill on the ratification of the agreement between the Kyrgyz Republic and the EBRD was approved by the committee of the Jogorku Kenesh on international affairs, defense, security, and migration in the second reading.
Of the total amount, 3.2 million euros will be provided by the EBRD as a grant, while the remaining 44.2 million euros will be in the form of a 20-year loan with a five-year grace period. According to the loan conditions, Kyrgyzstan is required to pay a 1 percent commission on the loan amount, and the interest rate on the loan will be 1 percent + the EURIBOR rate.
EURIBOR is a floating rate at which banks lend funds on the interbank market of the European Union. Currently, the rate stands at 3.7 percent. Additionally, a fee of 0.5 percent will be charged for any undisbursed amount.
The existing road is classified as a III technical category of international significance with a two-lane roadway and is in unsatisfactory condition. The project section is classified as a II technical category of a road of international significance with a four-lane roadway. The project includes sidewalks, bus stops, laying of pipes and drainage channels, installation of street lights, and the reconstruction and expansion of bridges, as stated in the project rationale for the bill.
This initiative aims to improve the transportation infrastructure in Kyrgyzstan and enhance connectivity within the region, ultimately contributing to the country's economic development and growth. The funding provided by the EBRD signifies a step towards achieving these goals and addressing the infrastructure challenges faced by Kyrgyzstan.
Overall, the partnership between Kyrgyzstan and the EBRD in this project highlights the importance of international cooperation and investment in sustainable development efforts. The reconstruction of the Balbay Batyr - Karakol Issyk-Kul road section is expected to have a positive impact on the local communities and facilitate smoother transportation across the region.
