41121-053: CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 4

Project Data Sheet (PDS): Details


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, the third tranche of $173 million in 15 November 2010, and the fourth tranche on 21 February 2011.

Impact

Efficient transport network in Zhambyl Oblast connecting Almaty and Shymkent

Project Outcome

Description of Outcome

Efficient transport network in Almaty-Korday-Blagoveshchenka-Merke-Tashkent-Terment road section

Progress Towards Outcome

The project implementation progress of 95% (as of end of Q2 2014) is ahead of schedule.

Implementation Progress

Description of Project Outputs

Almaty-Korday-Blagoveshchenka-Merke-Tashkent-Terment road section improved and open to traffic

Status of Operation/Construction or Implementation Progress

All pavement works were completed for 49 km. Remaining works include road furniture, lighting, and road traffic markings

Safeguard Categories

Environment: B
Involuntary Resettlement: B
Indigenous Peoples: C

Summary of Environmental and Social Aspects

Environmental Aspect
No major negative impacts are expected, and the effective implementation of the EMP will minimize and mitigate any adverse impacts during construction. The tender and contract documents will contain details of the environmental management and monitoring requirements. The contractors will be responsible for implementing the EMP. With CSC help, MOTC will monitor the contractors' effective compliance to the requirements.

Involuntary Resettlement
The civil works will require additional land because the right-of-way needs to be expanded from the existing 40 meters to 70 meters and acquisition of land in two places to bypass the territory of the Kyrgyz Republic. Some 54 households and six legal entities will lose their lands. Of these, one leaseholder will lose more than 10% of its productive land. About 171.7 ha of lands will be acquired, of which about 171.6 ha are agricultural lands and 0.1 ha are used for commercial purposes. Most of the affected lands (109.7 ha) are leased for 49 years; 16.1 ha leased for 5-12 years; and 0.1 ha are privately owned. About 34 ha of land temporarily used for construction will be rented at current rental rates. Contractors, who will identify such land and rent land from landowners/leaseholders, will be responsible for restoring the rented land to its original condition at completion of civil works. A land acquisition and resettlement plan (LARP) was prepared based on the detailed engineering design, local government statistics, and public consultations with local stakeholders including affected persons. The implementation is expected to cost about 26.2 million Tenge. The LARP will be updated to reflect the results of the supplementary evaluations (of loss due to loss of long-leased government land) for 57 leased agricultural plots, confirmation of existence or otherwise of any affected people left with small uneconomic portions of leased land, and validation of the vulnerable status of 13 households. The government will complete acquiring land by May 2011 and pay compensations to affected persons prior to their displacement or loss of land. The LARP implementation, which will be subject to internal and third-party validation and reported to ADB for review, will be completed before civil works start.

Indigenous Peoples
No people fitting ADB s definition of indigenous peoples are expected to be negatively affected by the project.

Stakeholder Participation and Consultation

During Project Design
Intensive consultations were held during project preparation with various stakeholders, including representatives of the government, civil society, local communities, and the private sector. The consultations covered major project issues such as project alternatives, potential benefits, and social and environmental impacts. Consultations reveal a high degree of public support for Project 4. The design has incorporated the views of stakeholders. Special attention was given to the needs and constraints faced by women, internally displaced people, refugees, and other vulnerable groups. The consultations also helped identify the role of each stakeholder. 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.

During Project Implementation
Stakeholder participation and consultation will continue during project implementation.



Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

Project Data Sheets (PDS)

Timetable

Concept Clearance
19 Feb 2008

Fact-finding
13 Jul 2011 to 19 Jul 2011

Approval
21 Feb 2011

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