AKIPRESS.COM - The Asian Development Bank (ADB) and the Government of the Kyrgyz Republic signed the financing agreement amounting to $95.1 million to rehabilitate a section of the North-South Alternate Road Corridor in the Kyrgyz Republic.

The agreement was signed by Adylbek Kasymaliyev, Kyrgyz Minister of Finance and Governor to ADB, and Candice McDeigan, ADB Country Director for Kyrgyz Republic.

“The road corridor rehabilitation will aid the country’s poverty reduction efforts and boost domestic and international trade by connecting two major Central Asia Regional Economic Cooperation (CAREC) corridors, while providing a faster and safer alternative route to facilitate access to international markets,” said Ms. McDeigan.

A robust road network is pivotal for a landlocked country like the Kyrgyz Republic, where road transport accounts for 95% of cargo and passenger traffic. The project will rehabilitate an estimated 70-kilometer section connecting CAREC Corridors 1 and 3 in the center of the country. Once rehabilitated the road corridor will help improve national and regional connectivity, link economically underprivileged regions with economic hubs, and enhance efficiency and safer movement of goods and people.

CAREC Corridor 1 connects the Russian Federation and Europe to the People’s Republic of China, and it is the only North-South road linking the central Kyrgyz Republic to the rest of the country and beyond. CAREC Corridor 3 connects the Russian Federation and Europe to the Middle East and South Asia. It is the only direct link between the southern and northern parts of the country, linking the capital Bishkek and the second largest city, Osh, two major economic and agricultural hubs.

Joining these two CAREC corridors will connect the southern regions of Batken, Jalal-Abad, and Osh with the northern regions of Chui, Issyk-Kul, Naryn, and Talas.

Rehabilitation of additional sections of the road will be cofinanced by the Eurasian Development Bank, Islamic Development Bank, and the Saudi Fund for Development, while the rehabilitation of other sections of the North-South Alternate Road Corridor is ongoing under the China Export-Import Bank financing.

The rehabilitation of this connector road supports the Kyrgyz government’s National Strategy of Sustainable Development 2013-2017. The Kyrgyz Republic joined ADB in 1994 and since then has received more than $1.5 billion in loans, grants, and technical assistance.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members – 48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.