BEFORE THE END OF THE YEAR IN KAZAKHSTAN THE BEST CONCESSION APPLICATION FOR BIG ALMATY RING MOTORWAY (BARM) CONSTRUCTION

On November 26 of 2015 is planning an application opening of the second stage of the contest among applicants of BARM construction. During December of this year proposals assessment will be conducted, the best one will be defined and negotiation process will be started. Agreement signing and object construction planned for 2016 year. Since BARM project will be realized through concession mechanism, the investors individually divided shares in project financing.

For reference only: On January 14, 2015 open tender on concessioner choice was announced using two-staged procedure.

In accordance with the Law of RK «On concessions» selection of concession applications made by Concession Commission in relation to the objects related to republic property under the Chairmanship of the First Prime-Minister of RK B.Sagintayeva.

On the second stage of tender 5 consortiums were pre-qualified (Turkey/South Korea, Turkey/Italy/Netherlands, France/Kazakhstan, Spain/Turkey/France, China/Kazakhstan). In June of the current year in MID RK was held a conference with potential creditors. By the meeting results International Finance Institutes expressed the interest to perform as a creditor of potential concessioner.

At the moment pre-qualified participants of tender are preparing their applications (technical and finance proposals).

Due to availability of numerous transport junctions on BARM the payment system «for pass» will be foreseen, i.e. the payment will be collected for pass on toll road regardless of pass length. First year of the road launch forecasted up to 78 ths. passes and to 203 year up to 104 ths. passes in a day.

For the reference only: concession term: 20 years (4,5 years of construction + 15,5 years of operation); category: «1а», traffic lines quantity: 4 (9 km of length); 6 (57 km of length), traffic lines width: 3,75 m, road dress type: capital, hard; pavement type: cement concrete solid, asphalt concrete; consolidated quantity of bridge crossings and crossovers: 38 units.; consolidated quantity of transport junctions: 8 units.; design speed: up to 150 km/h.

For the first stage after road launched the fee in the amount of 210 tenge for light motor vehicles and 340 tenge for freight vehicles.

By the Decree if the Government BARM project designated to significantly important concession projects.

By proposed structure of project, compensation of investment and operational expenses, as well as autoroad management commission will be paid to concessioner by means of mechanism called «rate for accessibility» - it is fixed payments from the government, when all taxes from tolls payment came in republic budget. Total tax during 15,5 years of road operation composed 231 bln. tenge. Moreover, taxes from the activity of concessioner came in republic budget in accordance with concession agreement (64 bln.tenge).

Press service of RK