SK E&C together with Korea Highway Corporation landed an US$737 million worth investment project to build roads in Kazakhstan.
SK Construction announced that the company signed a project implementation agreement on February 7 after landing the Almaty Circular Road Construction project from the Kazakhstan government by forming a consortium with Korean and foreign construction companies.
The first PPP project in Kazakhstan will cost approximately US$730 million as the largest one in Central Asia. It also is an AP-type private investment project in which the client will pay a fee if the road maintains a proper level regardless of traffic volume.
Almati Circular Road in Kazakhstan is designed to solve traffic congestions caused by an increase in the population of Almaty. The 66-kilometer road is designed to let cars run at a speed of 150 km/h and has four or six lanes. The road is also part of the “One Belt, One Road (New Silk Road) project that links China with Europe.
A consortium consisting of Korea Highway Corporation, SK E&C and two Turkish construction companies -- Alarko and Makyo -- will build this road for four years staring this April and operate the road for 16 years. Korea Highway Corporation will be responsible for the maintenance and management of the road.
"We are very pleased to enter the CIS market with big business opportunities for the first time through this project," said Ahn Jae-hyun, president of SK E&C. “We will create various business opportunities by harnessing our strengths in the construction of roads, tunnels and underground space and development-type projects."