Almaty plans to raise $1 billion for metro development
The city of Almaty plans to borrow approximately $1 billion from international institutions to expand its metro system. This will involve extending the existing line to the Barlyk market and constructing a new line to connect the subway to the airport, according to Mayor Yerbolat Dosaev, who spoke to the media at the Central Communication Service.
«A preliminary confirmed loan of $1 billion is in place. We are negotiating with various creditors, including well-known international institutions such as the International Finance Corporation, Eximbank [a Chinese state-owned bank focused on large public projects], the European Bank for Reconstruction and Development, and the Asian Development Bank. We are also considering the option of a consortium of financial donors,» Dosaev said.
The funds will be used to construct two metro lines totaling 19.5 kilometers. The first line, already under construction, will span 5.3 kilometers from the future Kalkaman station to the Barlyk bazaar. The second line will connect Zhibek Zholy station to the airport, covering 14 kilometers. As the mayor noted, President Kassym-Jomart Tokayev has approved the city’s plan to raise the loan. City authorities are now working with the cabinet on the details of the borrowing.
«The president has supported our proposal to the cabinet to issue special payment security for the project. Budget legislation is already being amended, and the Mazhilis has supported us. We are awaiting final approval from the Senate. Once the decision is enacted, we will continue negotiations for the loan,» the Almaty mayor added.
He further explained that the city administration is looking for the most favorable loan conditions and will select a contractor after the bidding process. Once these steps are completed, the city administration and the Ministry of Finance will issue a formal decision.
«No decision has been made yet, but we aim to understand the most favorable financial conditions by the end of the first quarter of 2025,» Dosaev said.
The mayor also emphasized that the authorities are committed to meeting construction deadlines by utilizing new technologies to avoid delays like those experienced in the past, where a couple of stations took longer to build than the planned 3.5 years. The Kalkaman station, for example, has been under construction since 2020.
«We will only partner with companies capable of fast construction. There is no room for delays of 5 to 7 years. We expect construction to be completed within 3 to 3.5 years if both lines are built simultaneously,» he stated.
Dosaev also mentioned that the city has already begun purchasing land near the Barlyk marketplace to begin construction of the new metro lines. A similar project will take place along Kulja Road. Local authorities have allocated funds for land acquisition in the next year. Utility installations near the Zhibek Zholy station are nearing completion, and land purchases will begin in January 2025. The mayor emphasized that the Barlyk area is the top priority for the project, followed by land acquisition along the Eastern Bypass Road (VOAD).
