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

Sovereign Project | 41121-053

Summary

Project 4 will contribute to sustainable economic growth by spurring transit traffic, promoting trade, and strengthening regional cooperation. The outcome will be an efficient transport network in Zhambyl Oblast. The output will be a 49 km section upgraded from category-II to category-IB. Civil works will involve a km 261.5-km 310.5 section with four lanes within the existing right-of-way. It will comprise two components: road development and construction supervision consultancy.

Latest Project Documents


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Project Name CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 4
Project Number 41121-053
Country Kazakhstan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2735-KAZ: CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People`s Republic of China International Transit Corridor] Investment Program - Tranche 4
Ordinary capital resources US$ 112.00 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 No gender elements
Description Project 4 will contribute to sustainable economic growth by spurring transit traffic, promoting trade, and strengthening regional cooperation. The outcome will be an efficient transport network in Zhambyl Oblast. The output will be a 49 km section upgraded from category-II to category-IB. Civil works will involve a km 261.5-km 310.5 section with four lanes within the existing right-of-way. It will comprise two components: road development and construction supervision consultancy.
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 Toward Outcome Road users start to benefit from the 49-km completed road section.
Implementation Progress
Description of Project Outputs Almaty-Korday-Blagoveshchenka-Merke-Tashkent-Terment road section improved and open to traffic
Status of Implementation Progress (Outputs, Activities, and Issues) The concrete pavement works in 49-km Almaty-Korday-Blagoveshchenka-Merke-Tashkent-Terment road section were completed on time. The road section is open to traffic.
Geographical Location Zhambyl Oblast
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No major negative impacts were reported during the project implementation.expected, and the eEffective implementation of the EMP will minimized and mitigated any all adverse environmental impacts during construction. The tender and contract documents will contained details of the environmental management and monitoring requirements. The contractors will be responsible for implemented ing the EMP. With CSC help, MOTC will monitored the contractors' effective compliance with to the EMP requirements.
Involuntary Resettlement

The civil works required additional land because the right-of-way needed to be expanded from the existing 40 meters to 70 meters and to bypass the territory of the Kyrgyz Republic in two places.

Some 54 households and six legal entities lost their lands. Of these, one leaseholder lost more than 10% of its productive land. About 171.7 ha of lands was 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 were rented at current rental rates. Contractors restored 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 of the LARP costed about 26.2 million Tenge. The LARP was 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 had completed land acquisition by May 2011 and paid compensations to the affected persons prior to their displacement or loss of land.

Indigenous Peoples No people fitting ADB's definition of indigenous peoples are affected by the project.
Stakeholder Communication, 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, as needed.
Business Opportunities
Consulting Services Recruitment of all 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 goods, civil works, and related services financed from ADB 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 13 Jul 2011 to 19 Jul 2011
MRM -
Approval 21 Feb 2011
Last Review Mission -
Last PDS Update 18 Mar 2015

Loan 2735-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Feb 2011 07 Jun 2011 22 Dec 2011 31 Dec 2014 - 27 Apr 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 131.00 Cumulative Contract Awards
ADB 112.00 21 Feb 2011 104.25 0.00 100%
Counterpart 19.00 Cumulative Disbursements
Cofinancing 0.00 21 Feb 2011 104.25 0.00 100%
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) [Western Europe-Western PRC International Transit Corridor] Investment Program - Project 4: Biannual Monitoring Report on Implementation of LARP (January-June 2014) Social Monitoring Reports Sep 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western PRC International Transit Corridor] Investment Program - Project 4: Biannual Monitoring Report on Implementation of LARP (January-June 2014) (Russian Translation) Social Monitoring Reports Sep 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 4: Construction Supervision of the Aspara-Blagoveshenka Section Biannual Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western PRC International Transit Corridor] Investment Program - Tranche 4: Biannual Monitoring Report on Implementation of LARP (July-December 2013) Social Monitoring Reports Jul 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western PRC International Transit Corridor] Investment Program - Tranche 4: Second Biannual Monitoring Report (January-June 2013) Social Monitoring Reports Mar 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 4: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 4: Environmental Monitoring Report (July-December 2013) [Russian] Environmental Monitoring Reports Jan 2014
MFF CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People’s Republic of China International Transit Corridor] Investment Program – Project 4: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jun 2013
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 4: Internal Monitoring Report on the Land Acquisition and Resettlement Plan 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 4: Environmental Monitoring Report (October-December 2012) Environmental 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 4: First Biannual Environmental Monitoring Report Environmental Monitoring Reports Oct 2012
CAREC Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western PRC International Transit Corridor] Investment Program, Project 4 (Km 261.5–310.5) Social Monitoring Reports Jun 2012
Отчет по внешнему мониторингу внедрения Плана изъятия земли и переселения (ПИЗП) на Проекте 4 (км 261,5- км 310,5) Жамбылская область Social Monitoring Reports Jun 2012
Multitranche Financing Facility for the CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Project 4 Km 261.5-Km 310.5 Road Section Resettlement Plans Aug 2011
CAREC Transport Corridor 1 (Taraz Bypass) Project Environmental Impact Assessments May 2011
MFF: CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe-Western People's Republic of China International Transit Corridor] Investment Program - Tranche 4: Draft Initial Environmental Examination Initial Environmental Examination Feb 2011
CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe–Western People's Republic of China International Transit Corridor] Investment Program—Project 4: Road Section Km 261.5–310.5 Resettlement Plans Feb 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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