SK Engineering & Construction - Korea Expressway Corporation team win Almaty Ring Road
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.
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