Construction and operation of the bridge crossing through the Bukhtarma water-storage basin in Kurchum district of the East Kazakhstan Region

Project objective:

• Providing of the safety crossing, reduction of the people’s fatal cases;

• Improvement of the conditions of traffic organization at any season and increase of the transportation volumes, decrease of self-costs of the transported goods of national consumption.

Place of the project implementation:

East Kazakhstan Region, Kurchum and Kokpekty districts

Type of the Contract:

Scheme of BTO concession (build-transfer-operation).

Project implementation period:

• Construction period: 2017-2019;

• Operation period: 2019-2045;

• Concession period: 30 years.

Type of activity:

Operation of the bridge crossing.

Financial and economic indicators of a project:

• Cost of a project: 21,016 billion KZT;

• Project capacity: Main characteristics of the scheduled automobile two-lane bridge with the access roads: length – 1300 meters, width – 13 meters, stretch of the access roads – 20,5 km on either sides;

• Services sales markets: Population of Kurchum, Kokpekty, Katon-Karagay districts.

Indicators of the project efficiency:

• Net Present Value (NPV): 2 101 million KZT;

• Internal Rate of Return (IRR): 10,71 %.

Measures of the state support:

• recovery (compensation) of the Concessioner’s investment expenses at the rate of 100% against the cost of concession project during 8 years in equal shares;

• granting of the plot of land with the right of temporary gratuitous use and connection of the necessary utility facilities;

• state support will be provided in terms of nature grants – plots of ground for the construction of approach roads to the bridge crossing.

Form of the Investor’s participation in the project:

Investments to the project should be at the rate of 10% of own funds and 90% of borrowed funds in relation to the cost of concession project, or 100% of own funds.

Initiator of the project:

Akimat of the East Kazakhstan Region (Akimat – is a regional body of the executive power in the Republic of Kazakhstan).

Requirements to the Investor:

For the participation in the tender for selection of Concessioner, the potential Concessioner shall conform to the following qualifying requirements:

1) Potential Concessioner shall have financial and material resources for fulfillment of obligations under the concession contract;

2) Potential Concessioner shall be payable, not to be subject to the liquidation, his property shall not to be arrested, his financial and economic activities shall not to be stopped in accordance with the legislation of the Republic of Kazakhstan;

3) Potential Concessioner shall not to be brought to responsibility for non-fulfillment or improper fulfillment of his obligations under concession contracts concluded during the last three years on the basis of decision of the court entered to the legal force;

4) Potential Concessioner shall have owned capital equal to not less than 10 (ten) percent against cost of the offered concession project, or to provide bank guarantee to the amount equal to not less than 10 (ten) percent against cost of the offered concession project;

5) Potential Concessioner shall have financial reporting for the previous two comprehensive financial years, confirmed by the audit report.