Asian Development Bank to Finance Road Reconstruction in Kyrgyzstan

The Asian Development Bank (ADB) will allocate $109.5 million for reconstruction of the section of Issyk-Kul ring road from Barskoon to Karakol in Kyrgyzstan.

The bill was approved in the first reading by the Committee on Budget, Economic and Fiscal Policy of the Parliament of Kyrgyzstan, The Caspian Post reports, citing Kyrgyz media.

The background statement to the bill says that $87 million of these funds will be provided to Kyrgyzstan as a 32-year loan with an eight-year grace period. The rate during the grace period will be 1 percent, after eight years - 1.5 percent.

The remaining $22.5 million will be provided by ADB as a grant.

The total length of Issyk-Kul ring road is 440 kilometers. The Ministry of Finance has found funding for the reconstruction of 365 kilometers. Work is currently underway on the 303rd kilometer.