Almaty, Kazakhstan, January 14, 2015
—IFC, a member of the World Bank Group, is advising the Kazakhstani government on a landmark public-private partnership (PPP) transaction that will lead to the creation of a bypass route north of Almaty. The new motorway is expected to help improve trade links and regional integration in Kazakhstan.
The 66-kilometer toll road will be financed, built, operated and maintained by a private company, the first PPP of its kind in Kazakhstan’s road sector. IFC is advising the Ministry of Investments and Development on an international tender – launched January 14 - to select the private investor-operator. The road, which will cost an estimated $680 million, is expected to reduce travel times around Almaty and greatly improve access to markets for local businesses, stoking economic development.
The road is expected to reduce travel times by up to an hour, handling transit traffic and serving commuters from three districts neighboring greater Almaty, the country’s key administrative and commercial area. It will also be an important part of the Western China - Western Europe transport corridor, the New Silk Road creating an alternative to sea-based connections and turning Kazakhstan into an important global logistical hub.
“The toll road will help move traffic smoothly around Almaty and benefit thousands of people, increasing road safety, relieving congestion, and cutting transportation costs,” said Moazzam Mekan, IFC
Regional Manager for Central Asia. “It will also help jump-start private sector investment in Kazakhstan’s infrastructure sector, exemplifying how public-private partnerships can help meet country’s infrastructure needs.”
The project is a part of Kazakhstan’s effort to develop its transport infrastructure, which is a national priority for the government. The winning private sector company will also collect tolls on behalf of the government. The project is part of a wider IFC effort to encourage economic growth in Kazakhstan by strengthening the financial sector, improving access to infrastructure, and promoting the development of small and medium enterprises.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
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