Kyrgyzstan Parliament Approves ADB Loan and Grant for Road Reconstruction

The Parliament of Kyrgyzstan approved in the third reading the receipt of $109.5 million from the Asian Development Bank (ADB) for the reconstruction of Issyk-Kul ring road from Barskoon to Karakol.

The background statement to the bill says that ADB will provide $87 million as a loan for 32 years with an 8-year grace period. The interest rate on the loan during the grace period will be 1 percent, then - 1.5 percent per annum. The remaining amount is a grant, The Caspian Post reports, citing Kyrgyz media.

According to the Cabinet of Ministers, the total funding for the project is $137.04 million, of which $27.54 million is co-financing by the Cabinet, or exemption from taxes and fees.

The document says that a four-lane road with a width of 3.5 meters each will be built. The project also includes construction of sidewalks, bus stops, street lighting, irrigation ditch trays, and reconstruction of bridges.

"The project also includes the creation of rest areas, including charging stations for electric vehicles, implementation of a business accelerator program for women, strengthening institutional capacity in the field of road asset management, road safety and decarbonization," the statement says.