EBRD Kazakhstan

The European Bank for Reconstruction and Development (EBRD) has signed a memorandum of understanding (MoU) with Kazakhstan’s Ministry for Investment and Development to boost cooperation on road sector reform and investment.

Under the terms of the deal, the bank will support the national economic policy, called Nurly Zhol, which aims to bolster infrastructure investment in order to stimulate growth during economic slow-down.

Among the first projects as part of the new deal to be taken up is the modernisation of an 80km road section between the villages of Kurty and Buribaytal of the Centre-South road corridor, which connects capital city Astana and the largest city Almaty.

"We are especially hoping to attract private initiatives and financing to the road sector."

This agreement was announced during Kazakhstan President Nursultan Nazarbayev’s visit to London, UK.

The MoU was signed by EBRD first vice-president Phil Bennett and Kazakhstan Minister for Investment and Development Asset Issekeshev.

The agreement will see EBRD invest $243m in the upgrade of an 80km Kurty-Buribaytal road project.

Bennett said: "The EBRD believes that modern road infrastructure in Kazakhstan is crucial both for the country’s own economy, and for boosting regional trade.

"Given our mandate to support private sector development, we are especially hoping to attract private initiatives and financing to the road sector."

The EBRD expects to assist the Kazakh Government in arranging new road projects executed by state entities, private companies and private-public partnership (PPP) schemes.

The entire road project is valued at $688m, which will be co-financed by a $217m World Bank loan while a $228m contribution will come from the state budget.

In 2013, the EBRD invested $196.5m in the reconstruction and upgrade of a road section linking the city of Shymkent with the Uzbekistan border in Kazakhstan.

The EBRD has currently invested $7bn in Kazakhstan and is considering another $1bn investment into various sectors of the country’s economy this year.

Image: EBRD’s first vice-president, Phil Bennett, Kazakh Minister of Finance Bakhyt Sultanov, and Minister for Investment and Development Asset Issekeshev. Photo: courtesy of EBRD.