Big Almaty Ring Road (BAKAD) Project

Objective

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.

Description

The Big Almaty Ring Road Project, is the first public-private partnership (“PPP”) structured under the new regulatory framework for such ventures in Kazakhstan.

History

The Almaty Ring Road Project was originally conceived in 2002. The tender for the project – with advisory support from the EBRD and IFC – was transparent and met international standards. A Public-Private Partnership (PPP) tender was formally announced on January 14, 2015 to select a concessionaire using a two-stage procedure. The first stage results were announced on April 7, 2015, with the selection of 9 consortia out of 27 international and local applicants. Then, on February 7, 2018, a concession agreement for the construction and operation of the BAKAD was concluded with a Turkish-Korean consortium consisting of Alsim Alarko Sanayi Tesisleri ve Ticaret A.S. (Turkey), Makyol Insaat Sanayi Turizm ve Ticaret A.S. (Turkey), SK Engineering and Construction (Korea), and Korea Expressway Corporation (Korea). In August 2020, BAKAD Investment and Operation LLP — a special purpose vehicle and joint venture of Alsim Alarko Sanayi Tesisleri ve Ticaret A.S. (Turkey), Makyol Insaat Sanayi Turizm ve Ticaret A.S. (Turkey), SK Engineering and Construction (Korea), and Korea Expressway Corporation (Korea) — signed a set of parallel loan agreements worth $585 million with the Eurasian Development Bank, the European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (ISDB), the London and Almaty branches of Bank of China, and PGGM Vermogensbeheer B.V. (PGGM)

Finance