[THE INVESTOR] The Asian Infrastructure Investment Bank plans to finance a SK Engineering and Construction-led infrastructure project, the Ministry of Land, Infrastructure and Transport said on July 5.

The AIIB is considering lending US$ 75 million to the South Korean consortium to build a peripheral ring road in Almaty, Kazakhstan. During the AIIB’s first annual meeting held in Beijing in June, the bank announced its plan to finance the Almaty highway, along with four other projects The bank will make a final decision at the board meeting in September. 

The consortium, which includes SK E&C and the state-run Korea Expressway Corporation, has been selected as the preferred bidder for the $900 million project of constructing a 66-kilometer-long highway, with 21 bridges and eight intersections, as part of Kazakhstan’s effort to accommodate increased population in the country’s largest city. The Kazakhstan government will likely make the final decision by end of this year. 

SK E&C is responsible for the construction and Korea Expressway will take on the operation and management. Other financial institutions, including European Bank for Reconstruction and Development, International Finance Corporation and Islamic Development Bank, have decided to lend the consortium as well.

Once the consortium inks the deal, SK E&C will become the first company in Korea to receive funds from the newly launched AIIB.

By Ahn Sung-mi (sahn@heraldcorp.com)