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

Transport / Road transport (non-urban)

The Project will reconstruct 125 km of highway sections between Taraz and Korday in Zhambyl Oblast; and improve road operation and maintenance system. This will contribute in sustaining economic development and increasing domestic and international trade growth within Kazakhstan and between Kazakhstan and its trading partners.

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 experienced 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, totaling 2,715 km running from Khorgos through Almaty and Shymkent to the Russian Federation's western border. The Corridor Development Program is expected to improve the existing road and construct bypasses and new alignments to make the Corridor suitable for international traffic.

Teaming up with IDB and JICA, ADB committed to improve around 470 km in the Zhambyl Oblast through the multitranche financing facility (MFF). ADB approved the MFF on 12 November 2008, and subsequently approved the first tranche for $340 million on 30 December 2008. The project 1 had two components: (i) a road development component of 79km of the Taraz-Kulan section and 46km of the Blagoveschenka-Korday section, and (ii) a road operation and maintenance component of (a) road maintenance system development and (b) intelligent transport system improvement. On 13 January 2009, the government and ADB entered into a framework financing agreement for the MFF, with an aggregate principal amount not exceeding the equivalent of $700 million.

Efficient transport network in Zhambyl Oblast connecting Almaty and Shymkent

Efficient transport network in Taraz-Kulan and Blagoveschenka-Korday road sections

Taraz-Kulan and Blagoveschenka-Korday road sections improved and open to traffic

Reports on road O&M system improvement and intelligent transport system development accepted

46-km Blagoveschenka-Korday road reconstruction was completed in June 2013, and now open to traffic.

79-km Taraz-Kulan road reconstruction completed in November 2012, and now open to traffic.

Final report was submitted in December 2012 and accepted by MOTC. ADB endorsed it on 6 March 2013.

Final Report was completed and accepted by MOTC. ADB endorsed it on 22 November 2012.

LARPs were prepared in consultation with, and disclosed to, the affected persons, following provisions stated in the investment program's land acquisition and resettlement framework. Consultations with akimats of raion (district's heads) and the project's affected persons were conducted by the Committee for Roads since 2007 till end of the project.