Asian Development Bank to provide Turkmenistan with loan for North-South project

The Asian Development Bank will provide Turkmenistan with the first loan, equal to $125 million, for realization of an international railway project to expand trade opportunities in Central Asia, Trend cites the bank as saying.

Financing the North-South project will connect Turkmenistan with Kazakhstan, the states of the Persian Gulf, Russia and South Asia, spokesman of the bank Shakeel Khan said. He added that the main transport goods are oil, agricultural products and textiles.

Turkmenistan borders Afghanistan, Kazakhstan, Uzbekistan and Iran. It has very large oil and gas deposits. The new railway line will reduce transport of goods from Central Asia to the Persian Gulf by 680 km. New employment will be created for the local population. Small business will have new opportunities. Explorations for coal, gold and other resources will be organized.

The loan covers 75% of the projected expenses. The project will cost $166.7 million. The loan is granted for 25 years with a beneficial period of 5 years.

The government of Turkmenistan and the Asian Development Bank signed a memorandum on mutual understanding on financing part of the North-South corridor on the Berekt-Gyzylgaya (Turkmenistan)-Uzen (Kazakhstan) route.