European Bank for Reconstruction and Development is considering providing a senior loan of up to US$225 million for the construction of the Almaty ring road PPP project (BAKAD). The balance of the senior debt financing is expected to be provided by other International Financial Institutions. The total project cost is estimated at approximately US$750 million.

The loan will be provided to Bakad Investment and Operations LLP. This is a joint venture of Alsim Alarko Sanayi Tesisleri ve Ticaret A.S. (33.3% of the shares), Makyol Insaat Sanayi Turizm ve Ticaret A.S. (33.3%), SK Engineering and Construction (33.3%) and Korea Expressway Corporation (0.10%). The decision on granting a loan is scheduled for June 2019.

BAKAD was tendered on January 2015 by the Ministry for Investment and Development of the Republic of Kazakhstan under the new PPP legislation. The project consists of the construction of a 66km long half-ring road in the north of Almaty. The route runs through the territory of Almaty Oblast in three districts: Karasay district in the west (27.5 km), Iliy district in the north (19.3 km) and Talgar district in the east (19.2 km). The road will comprise of a 51.5 km long 6-lane section and a 14.5 km long 4-lane section. The Project includes the construction of 8 junctions, 21 bridges, 18 viaducts and 1 railway truss.

The project is being developed under a 20-year concession agreement signed on February 8, 2018. The construction is expected to be complete in the 50-month period. 

BAKAD is the first PPP structure of its type in the whole of Central Asia, it is also the first significant privately financed project outside of the oil and gas sector in Kazakhstan. The project is a pivotal part of the Western China – Western Europe Transit Corridor, a global infrastructure initiative backed by reputable global institutions. Acting as a crossroad that connects South East Asia and Europe and the Middle East, the project will allow ease of trade and land transportation on various economic activities.