The Government of Kazakhstan's Ministry of Investments and Development (MID) has awarded to a team composed of SK Engineering & Construction Co. and Korea Expressway the contract for the Almaty ring road PPP project (BAKAD) in Kazakhstan.

The winning consortium will be responsible for the development of the project under a 20 year long build, operate and transfer (BTO) contract, which comprises a 66-kilometer-long highway, 21 bridges and viaducts, and eight intersections around Almaty city. 

The total project cost is expected to reach US$900 million.

The Asian Infrastructure Investment Bank, is considering to provide a US$75 million facility to the South Korean consortium for the project financing, which would be the first investment of AIIB in a public-private partnership (PPP) project.

As we reported the EBRD, ADB and IFC are also analyzing to provide about US$650 million in financing for the project. Financial close is expected to be achieved within this year.

BAKAD is a pilot project under a PPP structure in the road sector in Kazakhstan, implemented by the Government of Kazakhstan in co-operation with EBRD and IFC as transaction advisor. Gide Loyrette Nouel, Colibri Law and Seco International are also advising the government.