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Islamic Bank to assist in construction of 8 water pipelines of Kazakhstan

by April 15, 2017 Key Issues

Within the framework of the state program for the development of the agro-industrial complex regarding restoration of irrigations and drainage on an area of 600 000 hectares, the Committee on Water Resources of the Ministry of Agriculture will search for sources of financing. At the first stage, it is planned to attract loans from two international banks of Islamic and European development banks. Due to these banks 135 thousand hectares will be restored in Almaty and South Kazakhstan regions and a condition of the land on the area of 101 thousand hectares of South Kazakhstan region is improved.

Thus, it is reported that in the period from April 17 to 23, the Commission of Islamic Bank will arrive to Kazakhstan, which should complete the work on the first loan for irrigations and drainage, finalize the documents before signing.

Further, due to Islamic Bank loans, it is also planned to complete the construction of 8 group drinking water conduits in Kyzylorda and North Kazakhstan regions, as well as irrigation canal system in Kyzylorda.

As a part of the implementation of this project, it is planned to connect to water sources, provide 24 hours of high-quality drinking water to 200 thousand people, (including Kyzylorda region -115 thousand people and North Kazakhstan region of 85 thousand people) to improve the water supply of 103 rural settlements.

It should be noted that the repayment of loans attracted by “Kazvodkhoz” RSE will be carried out at the expense of the main activity: charging a tariff without raise of tariff and increase of subsidies.

Source: Kazakhstan 2050