Eurasian Development Bank to provide 102 billion tenge to build Saryarka gas pipeline

NUR-SULTAN – Eurasian Development Bank will be included in the list of Saryarka gas pipeline investors with a commitment to provide 102 billion tenge (US$267 million) for the project.

Photo credit: Samruk Kazyna press-centre.

“We are now working on our construction of the Astana gas pipeline (Saryarka gas pipeline) project. We talked about this here last year. Our credit committee has already approved this transaction, so we are proceeding to the practical implementation. For us, the sum of our transaction is very significant because it was made using tenge – 102 billion tenge (US$267 million). There is a tranche to finish and the terms of the transaction are not simple, but we are there (with the Development Bank of Kazakhstan) working on the project for the construction of the main gas pipeline,” said Bank Board Chairperson Andrei Belianinov at the second Congress of Eurasian Media April 24-26 in Konakovo, the Tver Region, Russia.

The investment is part of Eurasian Development Bank growing its loan portfolio.

“Last year, contracts were signed for 29 new projects. The loan portfolio for 2018 increased by 48 percent and reached $3.4 billion; today, it is already $3.6 billion,” he added.

The pipeline is planned to be built in four stages, reported Inform.kz. The first involves constructing the main gas pipeline along the Kyzylorda-Zhezkazgan-Karaganda-Nur-Sultan route. The pipeline is expected to extend from the capital to Kokshetau and then to Petropavlovsk. The final stage involves building compressor stations in Temirtau and Zhezkazgan.

The gas pipeline measures 1,061.3 km and the cost is 267.3 billion tenge (US$698 million). The project involves local companies and labour resources.

A financing scheme has been developed for the project. AstanaGaz is to provide 80.3 billion tenge (US$210 million) via the Samruk Kazyna Sovereign Wealth Fund and Baiterek National Management Holding, with each providing 40.15 billion tenge (US$105 million). Funds will also be borrowed from banks, particularly the Development Bank of Kazakhstan and Eurasian Development Bank. United Accumulative Pension Fund is slated to invest 85 billion tenge (US$222 million) from pension assets into AstanaGaz bonds.

Construction of the Saryarka gas pipeline is expected to be completed by December, according to the planned schedule.