8% of the total funding will be allocated in the form of a grant.
The Committee of the Jogorku Kenesh, which deals with international affairs, defense, security, and migration, has given the green light for obtaining a loan and a grant from the Eurasian Development Bank. These funds are intended for the construction of 3.2 kilometers of road and two elevated bridges in the city of Osh.
According to Beknazar Bazaraliyev, Deputy Minister of Transport and Communications, the total cost of this project will amount to 19.3 million dollars. Of this amount, 15.39 million dollars will be allocated by the EDB, where 8% is a grant and the remaining part is a loan. An additional 3.9 million dollars will come from the republican budget.
As the deputy minister noted, the loan will be provided for a period of 15 years with a five-year grace period, and the interest rate on the loan will be 1.2%.
Deputy Shaiyrbek Tashiev expressed dissatisfaction that the EDB is allocating a relatively small grant, while other banking institutions offer larger amounts.
In response, Beknazar Bazaraliyev explained that lending conditions vary depending on the bank and added that many financial institutions are already refusing to provide grants to Kyrgyzstan.
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