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Monday, September 24th, 2018

Zhenis Kassymbek speaks about the prospects for BAKAD construction

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Minister of Investments and Development Zhenis Kassymbek spoke about the prospects for the construction of the Big Almaty Ring Road (BAKAD).

At today’s plenary session of the Senate, the Minister answered questions of deputies regarding the construction of BAKAD.

The construction of a large ring road around Almaty is a big project, and we planned to implement it as the first pilot PPP project, as a concession project. Its length is a little over 60km; it significantly unloads the transport system of Almaty city – Tashkent Street, Ryskulov Street. The problem is that when we first approached this issue, the cost of land was very high, this was back in 2009-2010, and after that the project was frozen. After the cost of land fell, we were able to negotiate with the owners, and Akimat bought this land 8 times cheaper than the original price, � Zhenis Kassymbek said.

The Minister noted that the law on concessions was amended shortly after, and bidding procedure for determining the concessionaire was launched in late 2015, early 2016.

That is, the concessionaire had to build the road himself and return his investment in 20 years via tolls. The seventh round of negotiations is underway � initially there were about 10 consortiums, now 3 remain. We happened to land in the period when there was a change in the tenge’s rate, and that led to certain difficulties in recalculating the cost of the project. The Government was not satisfied with the initial cost, voiced by all concessionaires. Now, during negotiations, we managed to achieve a significant reduction together with the consultants. We are at the last stage of negotiations, and hope that in the following two months we will be able to determine and start preparing the draft agreement, � Zhenis Kassymbek clarified.

The Minister added that it is planned before the end of the year to decide on a consortium that will build this road.

We assume that this will be a large international consortium, which uses its funds and borrowed funds for the construction of the road, � Zhenis Kassymbek said.

It should be noted that BAKAD is one of the most anticipated and complex projects, the first general plan of which was adopted in 2002. The length of the future route is 66 km; it will pass through three districts of Almaty region: Karasai, Ili and Talgar. It was assumed that it would be a six-lane autobahn with a speed limit of 140 km/h, its route would cross 19 automobile roads and 2 railways. It is planned to build 7 traffic junctions, 13 overpass bridges throughout BAKAD.

According to experts, commissioning this road will significantly improve the ecological situation in Almaty, freeing the city from major traffic jams. It is assumed that all transit cargo and passenger transport entering the metropolis (about 50 thousand cars per day) will bypass the city via this ring road.

Meanwhile, due to the lack of budget funds, the construction of this important infrastructure facility was postponed again and again. In 2006 the Government included BAKAD in the list of projects proposed for implementation under the concession mechanism. Since then, several tenders have taken place without identifying a company-concessionaire.

Source: Government of the Republic of Kazakhstan

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Zhenis Kassymbek speaks about the prospects for BAKAD construction

Closed

Minister of Investments and Development Zhenis Kassymbek spoke about the prospects for the construction of the Big Almaty Ring Road (BAKAD).

At today’s plenary session of the Senate, the Minister answered questions of deputies regarding the construction of BAKAD.

The construction of a large ring road around Almaty is a big project, and we planned to implement it as the first pilot PPP project, as a concession project. Its length is a little over 60km; it significantly unloads the transport system of Almaty city – Tashkent Street, Ryskulov Street. The problem is that when we first approached this issue, the cost of land was very high, this was back in 2009-2010, and after that the project was frozen. After the cost of land fell, we were able to negotiate with the owners, and Akimat bought this land 8 times cheaper than the original price, � Zhenis Kassymbek said.

The Minister noted that the law on concessions was amended shortly after, and bidding procedure for determining the concessionaire was launched in late 2015, early 2016.

That is, the concessionaire had to build the road himself and return his investment in 20 years via tolls. The seventh round of negotiations is underway � initially there were about 10 consortiums, now 3 remain. We happened to land in the period when there was a change in the tenge’s rate, and that led to certain difficulties in recalculating the cost of the project. The Government was not satisfied with the initial cost, voiced by all concessionaires. Now, during negotiations, we managed to achieve a significant reduction together with the consultants. We are at the last stage of negotiations, and hope that in the following two months we will be able to determine and start preparing the draft agreement, � Zhenis Kassymbek clarified.

The Minister added that it is planned before the end of the year to decide on a consortium that will build this road.

We assume that this will be a large international consortium, which uses its funds and borrowed funds for the construction of the road, � Zhenis Kassymbek said.

It should be noted that BAKAD is one of the most anticipated and complex projects, the first general plan of which was adopted in 2002. The length of the future route is 66 km; it will pass through three districts of Almaty region: Karasai, Ili and Talgar. It was assumed that it would be a six-lane autobahn with a speed limit of 140 km/h, its route would cross 19 automobile roads and 2 railways. It is planned to build 7 traffic junctions, 13 overpass bridges throughout BAKAD.

According to experts, commissioning this road will significantly improve the ecological situation in Almaty, freeing the city from major traffic jams. It is assumed that all transit cargo and passenger transport entering the metropolis (about 50 thousand cars per day) will bypass the city via this ring road.

Meanwhile, due to the lack of budget funds, the construction of this important infrastructure facility was postponed again and again. In 2006 the Government included BAKAD in the list of projects proposed for implementation under the concession mechanism. Since then, several tenders have taken place without identifying a company-concessionaire.

Source: Government of the Republic of Kazakhstan

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