Kazakhstan : MFF - Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program (Facility)
The investment program will (i) reconstruct 790 km roads of CAREC Corridor 2 in Mangystau--this includes the 430 km Aktau-Manasha section, the 84 km Beineu-Akzhigit (Uzbekistan border) section, and the 237 km Zhetybai-Fetisovo section; (ii) strengthened capacity for planning, project management, and asset management; and (iii) improved cross-border infrastructure and facilities. These outputs will be achieved through two components: road development and capacity development.
Central and West Asia Department
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|Project Name||MFF - Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program (Facility)|
|Country / Economy||Kazakhstan
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
|Sector / Subsector||
|Gender||Some gender elements|
|Description||The investment program will (i) reconstruct 790 km roads of CAREC Corridor 2 in Mangystau--this includes the 430 km Aktau-Manasha section, the 84 km Beineu-Akzhigit (Uzbekistan border) section, and the 237 km Zhetybai-Fetisovo section; (ii) strengthened capacity for planning, project management, and asset management; and (iii) improved cross-border infrastructure and facilities. These outputs will be achieved through two components: road development and capacity development.|
|Project Rationale and Linkage to Country/Regional Strategy||
Mangystau Oblast is Kazakhstan's major oil- and mineral-producing region on the eastern shore of the Caspian Sea. Aktau, Mangystau's capital, is a regional hub for transporting the Caspian's bulky cargoes of oil and oil products to European and Asian countries, and for transit traffic connecting the surrounding oilfield developers to other countries. Aktau is an integral part of three international transport corridors-- Transport Corridor Europe-Caucasus-Asia, North-South, and Inogate. Cargo transported across the Caspian Sea amounts to 30 million tons, of which 38% is via Aktau port. Consequently, investments have been poured in pipelines, shipping services, and Aktau port. As spillover traffic from the pipeline and the transport of goods increase, roads become indispensable.
More than half of the road surface in Mangystau Oblast is gravel or earth, and most of the paved sections are severely deteriorated and impassable. Traffic on the Akau-Beineu road has grown by 7% annually. Despite its strategic role as an arterial route, most of the road is in bad shape, as steep slopes and sharp turns limit the allowable speed. Congestion occurs daily, and the actual axle load of vehicles exceeds the road's design capacity. The road's inadequate serviceability and the consequent 12-hour travel time between Aktau and Beineu bloat transport costs and restrict trade.
The investment program will reconstruct the 790 km of CAREC Corridor 2 roads in Mangystau Oblast. The investment program roads connect Kazakhstan to Azerbaijan, and Europe through the Caspian Sea to the west; to the Russian Federation to the north; to Uzbekistan to the southeast; and to Turkmenistan to the south. The investment program effectively responds to bottlenecks, risks, and mitigation measures, which were assessed in the road map.
The investment program aligns with ADB's Strategy 2020 and its country operations business plan for 2010-2011, as well as CAREC's Transport and Trade Facilitation Strategy and Action Plan. It also aligns with the Kazakhstan's 2020 Strategy, SPAID, and TSP.
Increased national economic growth and regional trade
|Description of Outcome||
Efficient transport network in Mangystau Oblast connecting Aktau to Manasha, Beineu to Akzhigit (Uzbekistan border), and Zhetybai to Fetisovo
|Progress Toward Outcome||Transport efficiency can be measured after road construction.|
|Description of Project Outputs||
Mangystau Oblast sections of CAREC Corridor 2 reconstructed
MOTC's capacity for project and asset management strengthened
Cross-border infrastructure and facilities improved
|Status of Implementation Progress (Outputs, Activities, and Issues)||Two tranches have been approved under the MFF. Tranche 1 (L2728) was closed in February 2016 while Tranche 2 (L2967) is still under implementation. Loan savings of $140 million was reallocated to finance the reconstruction of 73-km Zhetybay-Zhanaozen road section of the "Zhetybay-Zhanaozen-Fetisovo border of Turkmenistan (to Turkmenbashi)" Road. MFF availability period extension with corresponding FFA amendment and loan closing date extension is expected.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||MOTC prepared an environmental assessment and review framework for the investment program following ADB's Safeguard Policy Statement, and Kazakhstan laws.|
|Involuntary Resettlement||MOTC prepared a land acquisition and resettlement framework for the investment program following ADB's Safeguard Policy Statement, and Kazakhstan laws.|
|Indigenous Peoples||No indigenous peoples will be affected by the investment program.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||
Public consultations were conducted during project preparation (LARP, IEE and detailed design), and will continue to be held to reflect local concerns in the project design.
|During Project Implementation||Public consultations will continue to be held to reflect local concerns in the project design.|
|Consulting Services||Recruitment of all consultants financed from ADB will follow ADB's Guidelines on the Use of Consultants and the procurement plans for each of the tranche projects under the investment program. Consulting firms will be 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 will follow ADB's Procurement Guidelines and the procurement plans to be developed for each tranche project under the investment program. Civil works contracts over $3 million will be procured through international competitive bidding (ICB) without pre-qualification of bidders. National competitive bidding (NCB) for civil works could be conducted for contracts not exceeding $3 million. ADB's prior review procedures will be followed. MOTC agreed to include the relevant sections of ADB's Anticorruption Policy in all bidding and contractual documents.|
|Responsible ADB Officer||Mishra, Ritu|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Transport and Communications Division, CWRD|
|Concept Clearance||18 Jun 2010|
|Fact Finding||17 Jun 2010 to 12 Apr 2011|
|MRM||11 Aug 2010|
|Approval||28 Sep 2010|
|Last Review Mission||-|
|PDS Creation Date||23 Jul 2010|
|Last PDS Update||29 Mar 2017|
MFF Facility Concept 0047-KAZ
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||1,212.00||Cumulative Contract Awards|
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
|Title||Document Type||Document Date|
|Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program||Environmental Assessment and Review Framework||Aug 2010|
|Proposed Multitranche Financing Facility for the CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program||Resettlement Frameworks||Aug 2010|
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|Kazakhstan: Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program (Multitranche Financing Facility and Project 2)||Validations of Project Completion Reports||Nov 2022|
None currently available.
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