The European Bank for Reconstruction and Development (EBRD) will provide Kyrgyzstan with €47.7 mn ($51.4 mn) for the reconstruction of the Balbai Batyr — Karakol section of the Issyk-Kul ring road. The bill regarding 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.
The EBRD will provide €3.2 mn ($3.4 mn) as a grant, while €44.2 mn ($47.6 mn) will be a 20-year loan with a five-year grace period. Kyrgyzstan will pay a 1% fee for the loan, and the interest rate on the loan will be 1% + the EURIBOR rate, currently at 3.7%.
EURIBOR, standing for Euro Interbank Offered Rate, represents the interest rate at which European banks lend funds to one another in the interbank market. At present, this rate stands at 3.7%. Furthermore, a fee of 0.5% will be applicable for any unused amount.
The existing road is classified as belonging to the third technical category of international importance, with a two-lane roadway and in poor condition. The project aims to upgrade this section to the second technical category of road of international importance, with a four-lane roadway. It includes the construction of sidewalks, and bus stops, laying of pipes and irrigation trays, the installation of lighting lamps, as well as the reconstruction and expansion of bridges.
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