Kazakhstan: CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1

Sovereign Project | 43439-023 Status: Closed

Summary

ADB is helping Kazakhstan upgrade roads and boost transit trade along a key Central Asia transport corridor. The first project of the investment program will reconstruct around 200 kilometers of the road linking Manasha to Beki, and improve bridges, culverts and other infrastructure in Mangystau Oblast (province). It will also strengthen capacity for project and road asset management.

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Project Name CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1
Project Number 43439-023
Country Kazakhstan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2728-KAZ: Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program - Project 1
Ordinary capital resources US$ 283.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The Project comprised civil works, and project management and institutional support. The civil works were on the reconstruction of the 200-km road sections at km 372.6-km 514.3 and km 574-km 632.3, including culverts and bridges, overpass, and road signs and signal posts along accident prone spots. The capacity development component supported program management and institutional strengthening. It included (i) construction supervision and project management; (ii) feasibility studies and detailed designs of subsequent tranche projects; and (iii) capacity development for road construction and maintenance, procurement design, management of contracts, enforcement of environmental and resettlement safeguards, and border crossing activities.
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 is aligned 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.

Impact Efficient transport network in Mangystau Oblast connecting Aktau to Manasha, Beineu to Akzhigit (Uzbekistan border), and Zhetybai to Fetisovo

Project Outcome

Description of Outcome Efficient transport network connecting Aktau to Manasha
Progress Toward Outcome Initial performance outcome shows 50% reduction in travel time. Other performance indicators (traffic volume, VOC savings, road crashes rate) are being monitored.
Implementation Progress
Description of Project Outputs

Two road sections reconstructed and open to traffic

MOTC's capacity for project and asset management strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

Construction in 200-km road sections (Km 372.6 514.4 and Km 574 632.3) was substantially completed in December 2014. All roads are open to traffic. Defects notification period is ongoing until November 2016.

EA's project management strengthened. The recent organizational changes introduced Kazavtozhol for the asset management.

Geographical Location Mangystau Oblast

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The Project had no major environmental impacts. The EA prepared the initial environmental examination (IEE) following ADB''s Safeguard Policy Statement (SPS), Kazakhstan laws and regulations, and EARF. The IEE assessed the environmental impacts of the project road and prescribed environmental protection and mitigation measures.
Involuntary Resettlement The Project does not involve any major land acquisition, or involuntary resettlement. The EA prepared a land acquisition and resettlement plan (LARP) following ADB''s SPS, Kazakhstan laws and regulations, and LARF.
Indigenous Peoples The Project does not trigger safeguards for and requirements from indigenous peoples under ADB's SPS and no indigenous development plan is required.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations were conducted during project preparation (LARP, IEE and detailed design).
During Project Implementation Public consultations were held during implementation, as needed, to address stakeholder concerns.

Business Opportunities

Consulting Services Recruitment of all consultants followed ADB's Guidelines on the Use of Consultants. Consulting firms for project management and construction supervision were selected and engaged using ADB's quality- and cost-based selection (QCBS) method with quality-cost ratio of 90:10 and full technical proposal. Individual consultants on social development/resettlement, environment and economics were also recruited.
Procurement Procurement of civil works followed ADB's Procurement Guidelines. Four civil works contracts over $3 million were procured through international competitive bidding (ICB) procedure without pre-qualification of bidders. ADB's prior review procedures were followed. Safeguards requirements and relevant sections of ADB's Anticorruption Policy were included in the bidding document and contracts.

Responsible Staff

Responsible ADB Officer Ma. Virginita Capulong
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Investment and Development
[email protected]
Transport Tower, 47 Kabanbay Batyr Ave.
Astana 010000
Kazakhstan

Timetable

Concept Clearance 23 Jun 2010
Fact Finding 16 Jun 2010 to 25 Jun 2010
MRM 11 Aug 2010
Approval 20 Dec 2010
Last Review Mission -
PDS Creation Date 23 Jul 2010
Last PDS Update 20 Sep 2016

Loan 2728-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2010 22 Aug 2011 18 May 2012 31 Jan 2016 - 29 Feb 2016
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 333.00 Cumulative Contract Awards
ADB 283.00 20 Dec 2010 151.11 0.00 100%
Counterpart 50.00 Cumulative Disbursements
Cofinancing 0.00 20 Dec 2010 151.11 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

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
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Biannual Social Monitoring Report (July-December 2014) Social Monitoring Reports Jan 2015
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Sep 2014
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Feb 2014
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Biannual Social Monitoring Report No. 2 Social Monitoring Reports Feb 2014
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Resettlement Completion Report (Русский) Social Monitoring Reports Nov 2013
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Resettlement Completion Report Social Monitoring Reports Nov 2013
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jul 2013
CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1: Bi-Annual Report No. 1 Social Monitoring Reports Jul 2013
Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program: Initial Environmental Examination Initial Environmental Examination Aug 2010
Proposed Multitranche Financing Facility for the CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program: Manashy River (Km 372.6)–Sai-Utes (Km 514.3); Km 574–Shetpe (Km 632.3) Road Section Resettlement Plans Aug 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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