Majilis approved the ratification of agreement between Kazakhstan and ABD on $112 million loan

/IRBIS, October 13, 2011/ - The deputies of the Majilis of the Parliament of the Republic of Kazakhstan approved on the plenary session today the draft law "On ratification of the Loan Agreement (Ordinary Operations) (CAREC Transport Corridor 1 [part of the road in Zhambyl] [International Transit Corridor Western Europe - Western China] Investment Program - Project 4) between Kazakhstan and the Asian Development Bank". The goal of the Agreement is to raise a loan for the development of the transport capacity of the country that will significantly increase traffic on the Kazakh part of the international corridor and will increase the revenues of the budgets of all levels of the republic, can be understood from the conclusion of the Committee on Foreign Affairs, Defence and Security of the Chamber. Asian Development Bank from ordinary capital resources of Kazakhstan provides a loan of 112 million dollars. The maturity of the loan is 20 years, including a 4-year grace period. The interest rate is LIBOR +0.3% on each interest period. Commitment fee is 0.15% per year. Co-financing of the government of Kazakhstan will not exceed $18.76 million. Funds of the national budget will be spent on co- financing of construction, as well as payment of taxes. Servicing and repayment of the loan will be attracted by the national budget in accordance with the financial conditions set forth in the Agreement. The agreement covers such components of the project, as reconstruction of the corridor, passing through the territory of Zhambyl area within the site of Taraz - Kordai 49 kilometers long, starting from the village Aspara to Blagoveshchenka village, as well as consulting services for construction supervision. [2011-10-13]