The deputies of RK Majilis approved the ratification of the loan agreement between Kazakhstan and Asian Development Bank (ADB), Sputnik Kazakhstan reports.

The loan agreement between RK and the Asian Development Bank was signed in Astana on last December 7, as reported in the opinion of the Majilis Committee on Foreign Affairs, Defense and Security.

In accordance with the agreement, the Asian Development Bank (ADB) disburses Kazakhstan the loan, amounting to USD 240.3 million for the reconstruction of 299 km long two-lane highway between Aktobe and Makat, including the provision of equipment and technologies for the maintenance of highways and implementation of road traffic safety measures.

Finally, it is noted that the reconstruction of the section Aktobe – Makat of the highway RF Border (to Orsk) – Aktobe – Atyrau – RF Border (to Astrakhan) will create opportunities for the expansion and deepening of international and trade relationships, help the Pre-Caspian region enter the market of China, Russia and Southeast Asia, as it will be connected to the transport corridor “Western Europe - Western China”.

The estimated amount of expenses will be equal to 272 mln 65 ths dollars, including ADB’s loan – USD 240.3 million, the co-financing of the loan from the Republican budget – USD 32 mln 765 ths.

The ADB’s loan, amounting to USD 240.3 million, is disbursed to Kazakhstan with the maturity period of 18 years, including 5.5-year grace period, the interest rate – LIBOR + 0.6%, the commitment commission – 0.15% per annum for the undrawn balance of loan funds. The interests and other loan payments are subject to the payment once per half a year on November 15 and May 15 of each year.