CDB provides $25.3 million commodity-backed loan for Rehabilitation of the 50 km Osh-Sarytash-Irkeshtam Road Project (190 km to 240 km Section)

Project narrative

On January 15, 2008, the Government of the Kyrgyz Republic and the Chinese Government came to agreement on a ‘Resources in Exchange for Investment’ Project. This agreement facilitated the Rehabilitation of the 50 km Osh-Sarytash-Irkeshtam Road Construction Project (190 km to 240 km Section) as well as the the development of the Ishtamberdy gold field. The agreement included a China Development Bank loan of $25.3 million. A Chinese company called Full Gold Mining LLC was the entity responsible for project implementation. The proceeds from a gold mining investment by Full Gold Mining Limited Liability Company (LLC) in Ishtamberdy were to be used to repay the CDB loan. Full Gold Mining Limited Liability Company (LLC) is a subsidiary of Lingbao Gold Company Limited, which is a Chinese state-owned mining company. As of 2009, the project was undergoing implementation. This road was completed and opened for use on November 22, 2012. The Asian Development Bank later conducted an impact evaluation of the Osh-Sarytash-Irkeshtam Road Construction Project and the Sarytash–Karamyk Road Construction Project found that they "had a positive effect on poverty reduction and retail trade growth, which was especially evident in the sample of two mountainous districts."