Kazakhstan: CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 3

Sovereign Project | 41121-043

Summary

Project 3 will construct/rehabilitate about 118-km road sections in total. ADB will finance (i) construction of a new 80-km Otar-Blagoveshchenka road section (Km 162-260); and (ii) rehabilitation of 13-km existing asphalt concrete road, and construction of a new 5-km asphalt concrete bypass approach road to the Kyrgyz border. JICA will jointly cofinance the construction of 20-km Kulan bypass road section (km 383-404).

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Project Name CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 3
Project Number 41121-043
Country Kazakhstan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2697-KAZ: MFF: CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Tranche 3
Ordinary capital resources US$ 173.00 million
Loan 8251-KAZ: MFF: CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Tranche 3
Japan Bank for International Cooperation US$ 68.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description Project 3 will construct/rehabilitate about 118-km road sections in total. ADB will finance (i) construction of a new 80-km Otar-Blagoveshchenka road section (Km 162-260); and (ii) rehabilitation of 13-km existing asphalt concrete road, and construction of a new 5-km asphalt concrete bypass approach road to the Kyrgyz border. JICA will jointly cofinance the construction of 20-km Kulan bypass road section (km 383-404).
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, which was reduced to $225 million, the second tranche of $187 million on 7 October 2009, and the third tranche of $173 million in 15 November 2010.

Impact Efficient transport network in Zhambyl Oblast connecting Almaty and Shymkent
Project Outcome
Description of Outcome Efficient transport network in Otar-Blagoveshchenka and Korday-Kyrgyzstan border road sections, and Kulan bypass
Progress Toward Outcome Road users start to benefit from the completed road sections.
Implementation Progress
Description of Project Outputs Kulan bypass, and Otar-Blagoveshchenka and Korday-Kyrgyz border road sections improved and open to traffic
Status of Implementation Progress (Outputs, Activities, and Issues) Works in road section Km 383-404 were completed in 2013 while works in road sections, Km 162-260 and Korday-KGZ border, were completed in 2014. The roads were open to traffic.
Geographical Location Zhambyl Oblast
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Each contractor prepared site-specific environmental management plans (EMPs) following the original EMP since the project covers three separate sections. The construcition supervision consultant monitors the EMP implementation. Bi-annual environmental monitoring reports are prepared and disclosed at ADB website.
Involuntary Resettlement

The Project involves the land acquisition and resettlement (LAR) along the project roads. The land acquisition and resettlement plan (LARP) was prepared and disclosed in 2010. Most of the LAR-related activities were completed and verified by an external monitor. The external monitoring report is also disclosed in 2012.

A supplemental LARP was prepared for the Kainar cloverleaf interchange. The works at this interchange were suspended until the supplemental LARP will be implemented.

The EA and ADB closely monitor and assess any LAR issue along the project roads during project implementation.

Indigenous Peoples There is no impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Committee for Roads of the Ministry of Transport and Communications, (Implemention Agency) conducted consultations with raion akimats and project-affected peoples (APs) since 2007 for designing the project. Consultations were again conducted in May 2009 and March 2010 in preparing the land acquisition and resettlement plan (LARP). Brochures in Kazakh and Russian were distributed to APs, and LARPs were posted in both the ADB and Committee for Roads' websites.
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 Recruitment of ADB-financed consultants followed ADB's Guidelines on the Use of Consultants. Consulting firms were selected and engaged using ADB's quality- and cost-based selection procedures and the full technical proposal method.
Procurement Procurement of civil works financed from both ADB and JICA loans followed ADB's Procurement Guidelines. Civil works contracts over $3 million were procured through international competitive bidding (ICB) without pre-qualification of bidders. ADB's prior review procedures were followed. MOTC included the relevant sections of ADB's Anticorruption Policy in all bidding and contractual documents.
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 DevelopmentMID@MID.GOV.KZTransport Tower, 47 Kabanbay Batyr Ave.
Astana 010000,Kazakhstan
Timetable
Concept Clearance 19 Feb 2008
Fact Finding -
MRM 15 Jun 2010
Approval 15 Nov 2010
Last Review Mission -
PDS Creation Date 27 Apr 2010
Last PDS Update 19 Mar 2015

Loan 2697-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Nov 2010 15 Dec 2010 15 Jun 2011 31 Dec 2013 31 Dec 2014 22 Apr 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 213.00 Cumulative Contract Awards
ADB 173.00 15 Nov 2010 164.67 0.00 100%
Counterpart 40.00 Cumulative Disbursements
Cofinancing 0.00 15 Nov 2010 164.67 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

Loan 8251-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 May 2010 23 Aug 2010 15 Jul 2011 15 Jul 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 68.00 Cumulative Contract Awards
ADB 0.00 31 May 2010 0.00 67.73 96%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 68.00 31 May 2010 0.00 67.69 96%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 3: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Feb 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Project 3: Biannual Social Monitoring Report (July-December 2013) (Russian Translation) Social Monitoring Reports Dec 2013
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Project 3: Biannual Social Monitoring Report (July-December 2013) Social Monitoring Reports Dec 2013
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 3: Compliance Monitoring Report on Land Acquisition and Resettlement Plan Social Monitoring Reports Sep 2013
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 3: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jul 2013
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 3: Compliance Monitoring Report on Land Acquisition and Resettlement Plan Social Monitoring Reports Jan 2013
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 3: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Dec 2012
CAREC Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People’s Republic of China International Transit Corridor] Investment Program–Project 3: Km 383-404 “Kulan bypass”, Km 162-260 “Korday bypass”, “Approach to Kyrgyzstan border” Social Monitoring Reports Jul 2012
ММФ ЦАРЭС Транспортный коридор 1 (участок Жамбылская область) Программа инвестирования [Западная Европа – Западный Китай Международный транзитный коридор]: Отчет по внешнему мониторингу внедрения Плана изъятия земли и переселения (ПИЗП) на Транше 3 Social Monitoring Reports Jul 2012
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 3: Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Jun 2012
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program- Project 3: Km 383-Km 404 Road Section Resettlement Planning Documents Sep 2011
CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe–Western People’s Republic of China International Transit Corridor] Investment Program—Project 3 Km 383–Km 404 Road Section, Km 162-Km 260 Road Section Resettlement Plans Oct 2010
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 3: (km 162 -260) Environmental Impact Assessments Feb 2010
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 3: (km 383-404) Environmental Impact Assessments Feb 2010
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 3: Road Section Approaching KGZ Border Environmental Impact Assessments Feb 2010

Evaluation Documents

See also: Independent Evaluation

No documents found.


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