International development banks have agreed to assist with the $585 million debt financing of a 66-kilometer (41-mile) ring road in Kazakhstan, according to U.K. law firm Allen & Overy, which advised on the funding.
The financing involves two debt tranches provided by the European Bank for Reconstruction and Development and Eurasian Development Bank, alongside a bespoke installment sale structure developed to meet Islamic Development Bank’s specific shariah requirements within local law and transaction constraints, said the law firm in a statement.
The project is the first road concession to be awarded and the first public private partnership (P3) project in Kazakhstan. It will be constructed by BAKAD Investment and Operation and developed under a 20-year availability-based concession agreement.
It also marks the country’s first large infrastructure project to be completed with private capital outside the commodities sector and is expected to be the prec
