Kazakhstan: Road Maintenance Sustainability Project

Sovereign Project | 48399-002 Status: Proposed

The proposed project will carry out mid-term repairs and performance based road maintenance (PBM) of about 2000 kilometres (km) of the republican road network (project road assets) in Aktobe and Kostanay oblasts of Kazakhstan. Initially, the project will carry out mid-terms repairs on those sections that are in poor condition with the objective of bringing them into maintainable condition through the execution of preventative works. These sections shall then be taken over for maintenance in accordance with performance-based contracting arrangements. The actual network of roads to be covered under the PBM will be finalized during project preparation phase.

Project Details

Project Officer
Singru, Narendra Central and West Asia Department Request for information
Country
  • Kazakhstan
Modality
  • Loan
Sector
  • Transport
 
Project Name Road Maintenance Sustainability Project
Project Number 48399-002
Country Kazakhstan
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Road Maintenance Sustainability Project
Ordinary capital resources US$ 150.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The proposed project will carry out mid-term repairs and performance based road maintenance (PBM) of about 2000 kilometres (km) of the republican road network (project road assets) in Aktobe and Kostanay oblasts of Kazakhstan. Initially, the project will carry out mid-terms repairs on those sections that are in poor condition with the objective of bringing them into maintainable condition through the execution of preventative works. These sections shall then be taken over for maintenance in accordance with performance-based contracting arrangements. The actual network of roads to be covered under the PBM will be finalized during project preparation phase.
Project Rationale and Linkage to Country/Regional Strategy

Kazakhstan is a landlocked country with predominant dependence on roads for trade and movement. Recognizing this, the Government of Kazakhstan adopted several strategic policies and plans identifying strong transportation services as one of the key elements for promoting national security, political stability, economic growth and diversification, and social development. In November 2014, the President of Kazakhstan introduced a new economic policy, Nurly Zhol, which includes development of the transport infrastructure as one of the first priorities for the government. Subsequently, the government adopted a Strategic Plan 2014_2018, which identifies maintenance backlog, high capital cost of road rehabilitation, and other shortfalls amongst the main bottlenecks to be addressed in the road maintenance sector. The State Program for the Transport Infrastructure Development of Kazakhstan 2020, which has been prepared on the basis of the Strategy _ Kazakhstan 2050, necessitates introduction of performance-based and defect-free road maintenance contracting arrangements in the road maintenance sector by 2017. The Government of Kazakhstan is strongly committed to the development of the road transportation services through a combination of institutional and regulatory reforms and further liberalization of the sector.

The ownership, management, and regulatory structures relating to the development and maintenance of the republican road network in Kazakhstan are segmented. The existing road maintenance system and practices provide no incentives for innovation and value engineering and do not encourage cost reduction and improvement of the efficiency of the state budget spending for road maintenance. Planning of road maintenance is short-term,

input-based, and set-up on the basis of visual projections, with no predefined minimum service quality that shall be delivered by the republican road network. As a result, the republican road network has deteriorated with assets in poor and unsafe conditions, outside of the maintenance cycle.

In February 2013, the government established a national road operator, Joint Stock Company Kazavtozhol, which is responsible for the procurement and supervision of mid-term and capital repair works funded by the government. Republican State Enterprise Kazakhavtodor is responsible for routine maintenance. In 2014, the Ministry of Investment and Development (MID) was created as the successor of the Ministry of Transport and Communications. Under the MID, the road sector is managed by the Committee of Roads (CoR). Both Kazavtozhol and Kazakhavtodor report to the CoR.

The CoR requested Asian Development Bank (ADB) assistance for introducing performance-based maintenance contracting arrangements in the road maintenance sector. The project fits with the strategic priorities identified in ADB's Midterm Review of Strategy 2020. It also recognizes and promotes the added value of innovative knowledge products, exchanges of best practice and private sector development experience for the development agenda, as the country enters the middle-income country stage.

Impact Sustainability of efficient movement of people and goods to domestic and international markets
Outcome Improved performance of republican road network in Kazakhstan
Outputs

Mid-term repairs and performance based road maintenance

Capacity of CoR and Kazavtozhol developed

Project management support provided

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Minimal environment impacts are envisaged. Environment impact monitoring mechanism will be put in place.
Involuntary Resettlement The project does not envisage land acquisition. Hence minimal resettlement impacts are envisaged. Social impact monitoring mechanism will be put in place.
Indigenous Peoples No specific impact envisaged.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations are ongoing during the project preparation phase. Further consultations will be carried out after the scope of the project is finalized.
During Project Implementation Consultations will be carried out during implementation to ensure no negative impacts.

Business Opportunities

Consulting Services Procurement of all consultancy services financed by the ADB loan will be carried out in accordance with the ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement

Procurement of the PBM contract financed by ADB loan will be carried out in accordance with the ADB's Procurement Guidelines (2015, as amended from time to time). The Project Procurement Plan will be finalized during the implementation of the PPTA.

It is classified Category A for procurement risk since it involves relatively new form of contract.

Responsible Staff

Responsible ADB Officer Singru, Narendra
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
JSC "NC "KazAvtoZhol"
8 Amman Street, Business Center "Milano"

Timetable

Concept Clearance 14 Jul 2016
Fact Finding 21 Aug 2017 to 31 Aug 2017
MRM 05 Oct 2017
Approval -
Last Review Mission -
Last PDS Update 29 Mar 2017

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 Public Communications Policy (PCP) 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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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