- EBRD and IFC to provide senior loans of US$ 150 million each to TAV Airports
- Funds will finance upgrade of Almaty International Airport
- Parallel loan to be extended by EDB and DEG
The European Bank for Reconstruction and Development (EBRD) is facilitating better regional and international connectivity for air travellers in Kazakhstan by arranging a senior loan of US$ 150 million for the development of key infrastructure at Almaty International Airport.
The financing will be provided to a consortium of investors led by the global airport operator TAV Airports, which is listed on the Istanbul Stock Exchange. It will fund the biggest-ever private investment into airport infrastructure in Kazakhstan and Central Asia. This will help boost operations of the busiest regional airport, which before the Covid-19 pandemic used to provide services to almost seven million passengers per year and handle up to 220 flights per day.
The financing is contributing towards the total cost of the investment programme of US$ 780 million, with the International Finance Corporation (IFC) also providing a US$ 150 million loan of a similar size and structure. The EBRD and the IFC are jointly mobilising equal parallel loans by the Eurasian Development Bank (EDB) and DEG, the German development finance institution, in the total amount of US$ 78 million.
EBRD President Odile Renaud-Basso said: “We are very proud to team up with the IFC, EDB and DEG to support such an important infrastructure project for both Kazakhstan and Central Asia. It will help create a major regional transport hub and will support the post-Covid-19 recovery. Over many years, we have worked with TAV Airports in various markets and are confident that the blend of our financial resources and their experience will make this another successful joint undertaking.”
Thanks to a grant of US$ 600,000 provided by the Global Environmental Facility, the new airport terminal will become the first EDGE (Excellence in Design for Greater Efficiencies) Advanced-certified airport in Central Asia. TAV Airports will use its international experience to apply EDGE standards in resource efficiency through the use of high-grade insulation materials, water-efficient equipment and advanced practices for reducing noise, light, waste and emissions of greenhouse gases and air pollution, in line with the recommendations of the International Civil Aviation Organization ICAO.
As part of the project – and in close cooperation with Almaty’s Civil Aviation Academy and Aviation College – TAV Airports will also develop an inclusive training programme for young women and men, which will boost employment opportunities.
The EBRD is a leading institutional investor in Kazakhstan. To date, the EBRD has invested more than US$ 8.4 billion in Kazakhstan’s economy through 290 projects.