Kazakhstan: Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program, Project 1 | Asian Development Bank

Kazakhstan: Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program, Project 1

Evaluation Document | 16 October 2018

Mangystau is the center of Kazakhstan’s oil and mineral extraction industries. Its capital, Aktau, is not only a regional hub for transporting Caspian’s oil and related products to European and Asian countries, but also serves as transit traffic—linking the nearby oilfield developers to other countries. Hence, having an improved and international standard-approved road network in Aktau will transform it into a key part of international transport corridors (Europe–Caucasus–Asia, North–South, and Inogate). Despite Mangystau’s strategic role as an arterial route and its increasing traffic at an annual rate of 7%, most of its roads were in bad condition, requiring major rehabilitation. Travel along these gravel or partially paved roads with almost impassable sections is slow, dangerous, and expensive.

The total investment program amounted to $1.2 billion. It is to be financed through a multitranche financing facility (MFF) of as much as $800 million from the ordinary capital resources of the Asian Development Bank (ADB) and government counterpart funds of $412 million. The program aimed to assist the government improve roads and border infrastructure and facilities, and enhance the institutional capacity for road planning and asset management. The MFF included covenants intended to bring about sector-wide institutional and procedural reforms and sustain the benefits gained from road reconstruction.

This report validates the completion report of the program. IED overall assessment: Less than successful.