Thursday, 13 November 2008

Major roadbuilding through Kazakhstan

The Asian Development Bank is extending 700 million U.S. dollars to Kazakhstan to help build a "new Silk Road" that will transform the country's economy.

The "Central Asian Regional Economic Cooperation Transport Corridor I" will run 2,715 kilometers, from the city of Khorgos on Kazakhstan's border with China to the western border with Russia

This new silk road will boost trade between Beijing and Brussels, and create extraordinary economic opportunities for the people of Kazakhstan and their neighbors. The improved road will increase travel speed, and reducing freight transport costs by 50 %.

The new road, spanning the world's largest landlocked country, is expected to be comparably transformative by 2020, the road is expected to increase domestic product in Kazakhstan, and to increase the GDP of neighboring Central Asian countries.

The overall investment for the road project is approximately 6.7 billion dollars. Other financiers behind the overall corridor development plan include the government of Kazakhstan, the private sector, the World Bank, and European Bank for Reconstruction and Development.

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