One more loan in Kyrgyzstan will be spent on road repairs and construction of protective structures against natural disasters. Its details were discussed today at a meeting of the Committee on Budget and Finance of Parliament, the loan is provided by the Japan International Cooperation Agency (JICA).
According to the Ministry of Transport, 11 billion yen ($ 116 million) will be spent on rehabilitation of Osh - Batken - Isfana (from 28 to 75 km) road and a number of activities on Osh - Bishkek road, in particular, construction of a tunnel (from 400.1 to 400.8 km), the erection of protective structures against rock falls (409th km) and installation of a retaining wall against landslides (451st km).
Justifying the need for the approval of this agreement, the Government noted that the purpose of the project is to attract investments for the development of infrastructure, ensuring continuous transport connection between the country's territories and the people's access to services and works market. In addition, the Cabinet stressed that, according to preliminary calculations made on the basis of financial conditions, the current value of the grant element of the loan is more than 35 percent, which corresponds to the minimum level of concessionality for new external borrowings.
Under the terms of the agreement, the loan is given for 40 years with 10-year grace period at 0.1 percent per annum. By the way, about 1.16 million of Japanese yen will be spent on consulting services.