48399-003: Road Maintenance Sustainability Project | Asian Development Bank

Kazakhstan: Road Maintenance Sustainability Project

Sovereign (Public) Project | 48399-003 Status: Active

The Government of Kazakhstan requested ADB assistance for introducing performance based road maintenance in the country. The existing road maintenance management system does not provide for systematic process of measurement of the conditions of the road infrastructure, its diagnosis and forecasting future expenditures associated with its maintenance on the long-term basis. The executing agency (EA) has no previous experience in preparation and implementation of performance based road maintenance contracts. A project preparatory technical assistance (PPTA) was approved to prepare the project and assist the EA with the bidding process up to the award of the contract.

Project Details

Project Officer
Kalliokoski, Ari Central and West Asia Department Request for information
Country
  • Kazakhstan
Modality
  • Technical Assistance
Sector
  • Transport
 
Project Name Road Maintenance Sustainability Project
Project Number 48399-003
Country Kazakhstan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9134-KAZ: Road Maintenance Sustainability Project
Technical Assistance Special Fund US$ 1.22 million
TA 9134-KAZ: Road Maintenance Sustainability Project (Supplementary)
Technical Assistance Special Fund US$ 680,000.00
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 Government of Kazakhstan requested ADB assistance for introducing performance based road maintenance in the country. The existing road maintenance management system does not provide for systematic process of measurement of the conditions of the road infrastructure, its diagnosis and forecasting future expenditures associated with its maintenance on the long-term basis. The executing agency (EA) has no previous experience in preparation and implementation of performance based road maintenance contracts. A project preparatory technical assistance (PPTA) was approved to prepare the project and assist the EA with the bidding process up to the award of the contract.
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 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 Kazakhstan s development agenda, as the country enters the middle-income country stage.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Aktobe, Kostanay
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations will be conducted during the project preparation. The main stakeholders of the project include Kazavtozhol, Kazakhavtodor, the government, road construction companies and the local community. The potential beneficiaries are road users, including local and/or transit vehicle drivers and transport operators, and local residents.
During Project Implementation Public consultations will also be conducted during the project implementation.
Business Opportunities
Consulting Services All consultants to be financed by this TA will be engaged by ADB in accordance with the 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 Guideline (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 ADB Officer Kalliokoski, Ari
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 -
Fact Finding -
MRM -
Approval 14 Jul 2016
Last Review Mission -
Last PDS Update 27 Sep 2017

TA 9134-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Jul 2016 05 Aug 2016 05 Aug 2016 30 Sep 2017 30 Sep 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,900,000.00 0.00 0.00 0.00 0.00 0.00 1,900,000.00 14 Jul 2016 518,810.91

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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Procurement Specialist (International) Individual - Consulting Active 28 Sep 2017 04 Oct 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.