OREANDA-NEWS. June 17, 2009. The Rixos Hotel in Astana hosted signing of the agreement between the World Bank and the Kazakhstan’s Finance Ministry on financing the “South-West” motor corridor construction, reported the Official website government.kz.

The document was signed by Kazakhstan’s Finance Minister Bolat Zhamishev and World Bank Vice-President for Europe and Central Asia Region Shigeo Katsu. Under this agreement, the World Bank will provide finance to construct a 1062-km motor road linking Shymkent and the administrative border between Aktybinsk and Kzylorda oblasts. This project is a part of a broader governmental program to develop an international transit corridor totally worth USD 7.5 billion; the program seeks to improve 2800 km of motor roads from the Kazakh-China border (Khorgos) to the Russian border (Zhaisan).

“This project seeks to effectively use the nation’s transit potential. Recently we have reached respective agreements with the EBRD and the Asian Development Bank to finance construction of some segments of the West China – West Europe transit corridor. And the agreement on constructing the largest segment has been signed today with the World Bank”, said Minister Zhamishev at a press-conference following the signing.

Construction of this segment will be completed by the end of 2013. The World Bank’s loan totals USD 2 billion 125 million, with another USD 375 million being allocated out the Kazakhstan’s state budget. The loan is being extended for a 25-year period, with a 5-year grace period. The agreement is to be ratified by the Kazakh Government in September; and the first construction contracts are to be signed this fall.

Altogether, since July 1992 the World Bank has allocated Kazakhstan 33 loans totally worth over USD 4.2 billion.