Almaty. September 28. Information Center - IFC
is helping to boost international air connectivity in Kazakhstan and spur
economic growth by supporting the modernization of Almaty International Airport,
Market Screener reports.
spearheading a $450 million financing package for the airport's owners, a
consortium led by Turkey's TAV Airports. The funding will support the
construction of a new international terminal at the airport, the busiest air
transportation hub in Central Asia.
is expected to bolster Kazakhstan's links to the world and, in doing so, create
thousands of jobs across the Kazakh economy. It will also set a new standard
for environmentally friendly airport construction in Kazakhstan. The project
represents the largest private investment in an airport in Central Asia.
of the main transit hubs between Asia and Europe, Almaty Airport is
strategically located on 'the modern Silk Road', established from China to
Europe and Africa. Kazakhstan is the largest country in the region -both
geographically and economically- and Almaty is the largest city in the country
producing 20% of Kazakhstan's GDP," said Burcu Geriş, CFO of TAV Airports,
a member of Groupe ADP. "We believe there's a significant potential for
growth in Almaty Airport, and drawing upon our extensive know-how, we'll work towards
realizing this potential to the fullest. Our aim is to contribute to the
sustainable economic and social development of Almaty region, creating
employment and facilitating a global reach for local businesses. I would like
to thank our lenders and the teams that contributed to the closing of this
significant deal amid extraordinary conditions brought by the pandemic."
IFC is providing a financing package to Almaty International Airport that
totals $222.2 million and comprises a $150 million loan from IFC's own account
and $72.2 million from IFC's Managed Co-Lending Portfolio Program. The European
Bank for Reconstruction and Development (EBRD) is also providing a $150 million
loan. As well, IFC and EBRD jointly mobilized parallel loans by DEG, the German
development finance institution, and the Eurasian Development Bank (EDB) valued
at a total of $77.8 million.
International Airport served 6.4 million passengers and carried more than
69,000 tons of cargo in 2019, making it the region's busiest airport. Despite
that, Kazakhstan's air traffic volumes and connectivity lag behind
similar-sized economies, and its airports have had only limited renovations
over the years.
financing will support significant upgrades by TAV Airports, a long-term IFC
client, and the construction of a new international terminal. That is expected
to help strengthen Kazakhstan's connectivity and economic competitiveness,
positioning the country for a stronger post-COVID recovery.
path to sustainable development lies in transitioning into a diversified,
export-led economy, which requires better connectivity, and the support of
international strategic players who bring investment, global expertise, and
international best practices," said Cassandra Colbert, IFC Regional Manager
for Central Asia. "This project - the largest ever foreign direct
investment in the country's airport sector - ticks all those boxes, while also
highlighting the great potential in the region's aviation industry."
is slated to create thousands of direct and indirect jobs by 2040. The airport
will also be the first in Central Asia certified under IFC's Excellence in
Design for Greater Efficiencies (EDGE) program, which recognizes
environmentally friendly buildings. IFC expects the upgraded airport will be
more energy efficient, produce less waste, and emit fewer greenhouse gases once
upgraded and expanded.