Kazakhstan: CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2

Sovereign Project | 41121-033

Summary

The Project will reconstruct 79 km of highway sections km 310.5 - 389.4, and construct road maintenance facilities in 4 sites along the corridor. This will contribute in sustaining economic development and increaseing domestic and international trade growth within Kazakhstan and between Kazakhstan and its trading partners.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2
Project Number 41121-033
Country Kazakhstan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2562-KAZ: MFF CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 2
Ordinary capital resources US$ 187.00 million
Loan: MFF CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 2
Islamic Development Bank US$ 170.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The Project will reconstruct 79 km of highway sections km 310.5 - 389.4, and construct road maintenance facilities in 4 sites along the corridor. This will contribute in sustaining economic development and increaseing domestic and international trade growth within Kazakhstan and between Kazakhstan and its trading partners.
Project Rationale and Linkage to Country/Regional Strategy

Roads are a key element of Kazakhstan's transport system. They play an important role in providing access to rural areas, and facilitating transit traffic and in-country transport movement. However, much of the road network is in poor condition-about 60% of the national roads require major rehabilitation and proper maintenance. Moreover, the feeder road network serving the rural population is not fully developed; and is characterized by poor conditions and a low service level, especially during wintertime. This results in high transport costs.

The road sector has long-standing bottlenecks: (i) the network is incomplete, and in some sections in bad condition; (ii) truck overloading is frequent, cutting into the economic life of road assets; (iii) revenues from transit are low, affecting cost recovery and reinvestment capabilities; (iv) inefficient cross-border procedures increase the burden on trade and traders, and raise the cost of doing business; (v) weak road sector planning affects sound investment sequencing; and (vi) project development and project management shortcomings create inefficiencies, high costs, and bad governance. These gaps translate into higher-than-average transport costs. They also hamper regional cooperation and integration opportunities, and ultimately the country's competitiveness.

The Government of Kazakhstan's Western Europe-Western PRC Corridor (the Corridor) Development Program intends to remove these constraints to improve the road sections in the Kazakhstan territory of CAREC Transport Corridor I, which total 2,715 km running from Khorgos through Almaty and Shymkent to the Russian Federation's western border. The Corridor Development Program will improve the existing road and construct bypasses and new alignments to make the Corridor suitable for international traffic.

The Government sought assistance from the international financial institutions to finance sections along the Corridor. ADB, with the Japan International Cooperation Agency (JICA) and the Islamic Development Bank (IDB) finance 470 km in Zhambyl Oblast. The European Bank for Reconstruction and Development, and the World Bank finance 102 km and 1,062 km, respectively.

Teaming up with IDB and JICA, ADB committed to improve 470 km in Zhambyl Oblast through the multitranche financing facility (MFF). On 13 January 2009, the Government and ADB entered into a framework financing agreement (FFA) for the MFF, with an aggregate principal amount not exceeding the equivalent of $700 million. ADB approved the MFF on 12 November 2008. ADB approved the first tranche for $340 million on 30 December 2008, and this second tranche of $187 million on 7 October 2009.

Impact Efficient transport network in Zhambyl Oblast connecting Almaty and Shymkent
Project Outcome
Description of Outcome Efficient transport network in Kulan-Blagoveshchenka road section
Progress Toward Outcome Road users benefit from the completed road sections (Km 358.6-389.4, Km 310.5-358.6 and Km 536-593).
Implementation Progress
Description of Project Outputs

Kulan-Blagoveshchenka and Zhambyl Border-Taraz road sections improved and open to traffic

Road maintenance facilities constructed and operational in 4 sites

Status of Implementation Progress (Outputs, Activities, and Issues)

Works in all road sections (Km 358.6-389.4, Km 310.5-358.6 and Km 536-593) were completed in 2013, and the road sections were opened to traffic.

The construction progress of the depots as of end of February 2015 is as follows: Korday (94%), Otar (57%), Akyrtobe (63%) and Merke (100%).

Geographical Location Zhambyl Oblast
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects There are no expected major negative impacts. The environmental impacts of the project road and prescribed environmental protection and mitigation measures cost about $1.0 million. The EA paid attention to potential impacts during construction, which include mismanagement of earthwork and aggregate site operations, mismanagement of lead contaminated soils, mismanagement of construction camp wastes and fuels, mismanagement of asphalt and concrete production, air pollution during construction, and bridge and culvert replacement and repair; implemented immediate remediation for any non-compliance with the EMP; and ensured that contractors take full responsibility for implementing the EMP.
Involuntary Resettlement

The civil works for the km 310.5-389.4 road section require additional 151.8 hectares of land, and resettlement of 178 affected land users. The preliminary estimate for resettlement costs is $0.73 million. The EA completed relocating or reconstructing the affected structures/businesses before civil works start, and paying appropriate compensation before displacing affected persons; ensured that contractors take full responsibility for implementing the LARP; implemented immediate remediation for any non-compliance with the LARP; and ensured that they have regular consultation to resolve and follow up on matters raised by the public.

Supplemental LARP was prepared for newly identified APs.

Indigenous Peoples The Project has no impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design

A number of consultations with raion (district) akimats and affected persons in the road sections, local officials (Akims, Deputy Akims, land allocation offices), and design firms have been conducted by IA since 2007. A census of all affected households and socioeconomic surveys of a 20% sample of the affected households were undertaken in May 2009 to assess resettlement impacts. As part of the preparation of the EIA extensive public consultations were undertaken from mid-2008 to early 2009, including two public hearings in two major towns (Kulan and Merke) along the sections. Questions and concerns related to the project were noted. Compensation issues and crossings for animals were among the common concerns raised in the consultations. Such concerns were incorporated in the environmental mitigation plan and land acquisition and resettlement plan.

A second round of public hearings was held in September 2009. The results and safeguard provisions for the Project were made available to all participants through a translated version of the EMP, which is the core of the EIA.

During Project Implementation Public consultations are held during implementation, as needed. Grievance redress mechanism was set up in 2010. The establishment of Coordination Liaison Group (CLG) strengthens the grievance mechanism. A CLG Coordinator was engaged to monitor and report complaints, and facilitate resolution.
Business Opportunities
Consulting Services The Project required 77 person-months of international consulting services and 336 person-months of national consulting services for construction supervision. Recruitment of ADB-financed consultants followed ADB's Guidelines on the Use of Consultants and the procurement plan for the project. Selection method adopted ADB's quality- and cost-based selection procedures with full technical proposal requirement.
Procurement Procurement of civil works followed ADB's Procurement Guidelines, and the project procurement plans. International competitive bidding (ICB) was used for civil works over $3 million, and national competitive bidding (NCB) for civil works for contracts not exceeding $3 million. All relevant sections of ADB's Anticorruption Policy were reflected in all bidding and contractual documents. Before commencement of NCB procurement, ADB and MOTC reviewed the Government's procurement procedures to ensure consistency with ADB requirements.
Responsible ADB Officer Almazbek Galiev
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Investments and DevelopmentDulat KuterbekovTel#(7-7172) 299061 / Fax#(7-7170) 24370547 Kabanbai Batyr Ave, Transport Tower, Astana 010000, Kazakhstan
Timetable
Concept Clearance 19 Feb 2008
Fact Finding -
MRM 05 Sep 2009
Approval 07 Oct 2009
Last Review Mission -
PDS Creation Date 08 Jul 2009
Last PDS Update 18 Mar 2015

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 228.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 58.00 Cumulative Disbursements
Cofinancing 170.00 - 0.00 0.00 %

Loan 2562-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Oct 2009 03 Dec 2009 13 Apr 2010 30 Jun 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 415.00 Cumulative Contract Awards
ADB 187.00 07 Oct 2009 186.57 0.00 100%
Counterpart 58.00 Cumulative Disbursements
Cofinancing 170.00 07 Oct 2009 184.53 0.00 99%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Mar 2014
CAREC Transport Corridor I (Zhambyl Oblast Section) Investment Program - Tranche 2: Bi-Annual Social Report (July - December 2013) Social Monitoring Reports Mar 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2: LARP External Monitoring Report Social Monitoring Reports Nov 2013
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Sep 2013
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2: Biannual Social Monitoring Report (January-June 2013) Social Monitoring Reports Sep 2013
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2: (Km 310.5-Km 389.4) Resettlement Plan Resettlement Plans Jul 2013
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People’s Republic of China International Transit Corridor] Investment Program – Project 2: Biannual Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Dec 2012
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 2: Biannual Social Monitoring Report (July-December 2012) Social Monitoring Reports Dec 2012
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People’s Republic of China International Transit Corridor] Investment Program – Project 2: Biannual Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Jul 2012
Отчет по внешнему мониторингу внедрения Плана изъятия земли и переселения (ПИЗП) на Проекте 2, не перепроектированный участок (км 331 - км 389,5) Жамбылская область Social Monitoring Reports Jun 2012
Отчет по внешнему мониторингу внедрения Плана изъятия земли и переселения (ПИЗП) на Транше 2, перепроектированный участок (км 305 - км 331) Жамбылская область Social Monitoring Reports Jun 2012
Compliance Monitoring Report on the Land Acquisition and Resettlement Plan (LARP) for Tranche 2, non-redesigned section (km 331-389.5) Zhambyl Oblast Social Monitoring Reports Jun 2012
Compliance Monitoring Report on the Land Acquisition and Resettlement Plan (LARP) for Tranche 2, redesigned section (km 305-331) Zhambyl Oblast Social Monitoring Reports Jun 2012
CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 2 Social Monitoring Reports Jun 2011
MFF: CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program- Project 2: Km 305-Km 331 (Realigned Section) Resettlement Plans Mar 2011
CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe–Western People’s Republic of China International Transit Corridor] Investment Program—Tranche 2: Km 310.5–Km 389.4 Road Section Resettlement Plans Dec 2009
CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People Resettlement Plans Dec 2009
MFF CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 2 Summary Environmental Impact Assessments May 2009
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program: Tranche 2 Summary Environmental Impact Assessments May 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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