DM Monitoring
Bishkek: President of Kyrgyzstan Sooronbay Jeenbekov signed the Law “On the ratification of the Loan Agreement between the Kyrgyz Republic and the Saudi Fund for Development (SFD) on the reconstruction and rehabilitation of the Issyk-Kul ring road, signed on Dec. 16, 2019 in the city of Riyadh, Kingdom of Saudi Arabia.” The press service of the Kyrgyz president reported that law was adopted by the Parliament on June 25, 2020. In accordance with the adopted law, the Saudi Fund for Development provides loans in the amount of 131.25 million Saudi riyals (equivalent – 35.00 million USD) for a period of 25 years, with a 5-year grace period, with an interest rate of 1% annual. The funds will be used to finance a part of the project for the reconstruction and rehabilitation of the Balykchy-Karakol road section from the village Korumdu – to the village of Balbay Baatyr, length 80.5 km. According to the results of rehabilitation, the section from Korumdu village to Balbay Baatyr village will become a road of international importance with a 4-lane carriageway along the entire section (II-nd technical category). It also provides for the construction of sidewalks, stops, bicycle roads, the installation of ditches, lighting lamps. Completion of the project is scheduled for the end of 2025. To finance the remaining part of the project in the amount of USD 93.0 million, credit funds will be attracted from the following sources:
1. Kuwait Fund for Arab Economic Development – 28.9 million;
2. Abu Dhabi Development Fund – 22.0 million;
3. Islamic Development Bank – 20.0 million;
4. OPEC Fund for International Development – 10.0 mln.
In addition, co-financing of the government of the Kyrgyz Republic is provided in the amount of 12.1 million.
The law comes into force on the day of its official publication.
