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European Bank

lends Kazakhstan

$54m for

Caspian port

SOFIA: The European Bank for Reconstruction and Development said on Tuesday it is lending $54 million to Kazakhstan to rehabilitate its main port, Aktau, which has suffered flooding from the Caspian Sea.

The loan, the EBRD's first long-term credit to Kazakhstan, runs for 15 years, with 3-1/2 years grace. It is in two tranches, $44 million and $10 million in marks. A $1.9 million technical cooperation component will be used to develop management and privatisation strategies.

"EBRD financing will keep the port operational by raising the level of cargo berths to protect them from the sea," Vice-President Ron Freeman said.

"The port is an extremely important asset for the country, especially for Western Kazakhstan which is rich in agricultural production and in oil and gas. It is Kazakhastan's only port and provides a low-cost distribution outlet for grain and general cargo."

The loan will increase trade flows between Kazakhstan and its neigbours by improving port handling, the EBRD said.

The project includes a new 400 meter quay wall. Apart from rebuilding work, the loan will be used to rehabilitate flooded port utilities. Modern equipment for bulk cargo handling and other mobile equipment will be installed to allow existing cargo berths to increase the port's capacity.-Reuter