The European Bank for Reconstruction and Development (EBRD) will provide Kyrgyzstan with €47.7 million for reconstruction of Balbai Batyr — Karakol section of Issyk-Kul ring road. The bill on ratification of the agreement between the Kyrgyz Republic and the EBRD was approved by the Committee on International Affairs, Defense, Security and Migration of the Parliament in the second reading.
It should be noted that the EBRD provides €3.2 million as a grant. Other €44.2 million is a 20-year loan with a five-year grace period. Under the terms of the loan agreement, Kyrgyzstan have to pay 1 percent of the amount as a fee for the loan, the interest rate on the loan is 1 percent + EURIBOR rate.
- EURIBOR is a floating rate at which banks borrow funds on the interbank market of the European Union. Currently, the rate is 3.7 percent. In addition, the fee for the unused amount will be 0.5 percent.
«The existing road belongs to III technical category of international importance with a two-lane roadway and is in poor condition. The project section in terms of parameters belongs to the II technical category of the road of international importance with a four-lane roadway. The project provides for sidewalks, bus stops, laying of pipes and irrigation trays, installation of lighting lamps, reconstruction and expansion of bridges,» the background statement to the bill says.
