A consortium led by Turkey's TAV Airports has signed a US$450 million debt package to support the construction of a new international airport in Almaty, Kazakhstan's largest metropolis. The consortium took over operations at the airport in April 2021.
World Bank Group unit IFC is providing US$150 million from its own account, as well as US$72.2 million from its managed co-lending portfolio programme. The European Bank for Reconstruction and Development (EBRD) is also providing a US$150 million loan. In addition, IFC and EBRD jointly mobilized parallel loans by DEG, the German development finance institution, and the Eurasian Development Bank (EDB) for a total of US$77.8 million.
The project represents the largest private investment in an airport in Central Asia. It is expected to bolster Kazakhstan's links to the world and, in doing so, create thousands of jobs across the Kazakh economy.
"One 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," says Burcu Geriş, chief financial officer of TAV Airports, a member of Groupe ADP. "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."
"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," he adds.
Almaty International Airport served 6.4 million passengers and carried more than 69,000 tonnes 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.
"Kazakhstan's 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," says 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."
TAV Airports provides integrated services in all areas of airport operations, with a global footprint at 92 airports in 26 countries. A member of Groupe ADP, TAV Airports is part of the leading airport management platform globally. Through its subsidiaries, TAV is active in airport service businesses, including duty-free, food and beverage, ground handling, IT, private security and commercial area management. The company's shares are traded on the Istanbul Stock Exchange.
