ADB Allocates $95 Million to Help Rehabilitate North-South Corridor | Asian Development Bank

ADB Allocates $95 Million to Help Rehabilitate North-South Corridor

News from Country Offices | 27 September 2016

BISHKEK, KYRGYZ REPUBLIC – The Asian Development Bank (ADB) has approved a loan and grant amounting to $95.1 million to rehabilitate a section of the North–South Alternate Road Corridor in the Kyrgyz Republic.

Once rehabilitated, the section will join two major Central Asia Regional Economic Cooperation (CAREC) corridors, providing a faster and safer alternative route to facilitate access to international markets.

“Having 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, to boost domestic and international trade and reduce poverty,” said Susan Lim, Transport Specialist with ADB’s Central and West Asia Regional Department. “Rehabilitating 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.”

The ADB project will rehabilitate an estimated 70-kilometer section connecting CAREC Corridors 1 and 3 in the center of the Kyrgyz Republic. 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 rehabilitation of other sections of the North-South Alternate Road Corridor is ongoing under the China Export-Import Bank financing.

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, 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.

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.