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- Kyrgyzstan to upgrade key road with US$10m OPEC Fund loan
Kyrgyzstan to upgrade key road with US$10m OPEC Fund loan
March 31, 2021: The OPEC Fund for International Development (the OPEC Fund) has signed a US$10 million public sector loan agreement with Kyrgyzstan to co-finance the ‘Reconstruction of Issyk-Kul Road at a Section of Korumdu-Balbay Project’, to enhance connectivity, which is essential for increased economic opportunities, particularly in tourism, and to improve living conditions.
Lake Issyk–Kul is the world’s second-largest saline lake, and has been designated a biosphere reserve by the United Nations Educational, Scientific and Cultural Organization (UNESCO). It attracts about 1 million tourists annually, 70 percent of the country’s annual tourist visits, and is a major economic driver in the region. The project will upgrade and widen an 80km section 2N of the Balykchy-Karakol-Balykchy Ring Road, which serves 17 urban and semi-urban settlements populated by some 700,000 people. Other works include the construction of 12 bridges and 212 culverts, which will help divert mountain run-off for use in crop irrigation and raising livestock.
The project is being co-financed by the Kyrgyz government, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development and the Saudi Fund for Development.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said: “This project aligns with Kyrgyzstan’s development strategy and will provide its population with reliable and less expensive road transport. The improved stretch will help increase connectivity, improve safety in the mountainous Issyk–Kul region, and foster national and regional connectivity. The OPEC Fund is pleased to grow its commitment to Kyrgyzstan and we look forward to partnering on future projects.”
The OPEC Fund has supported development operations in Kyrgyzstan since 1997, through the extension of loans and grants in transportation, education, health and agriculture.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct mandate: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, we have approved more than US$25 billion for operations in 135 partner countries. Our vision is a world where sustainable development is a reality for all.