Kazakhstan : CAREC Corridors 1 and 6 Connector Road (Aktobe–Makat) Reconstruction Project
The proposed project will reconstruct a road section of about 299 kilometers (km) between the capitals and administration centers of Aktobe and Atyrau provinces in western Kazakhstan, and introduce key features of a transport information system. It will upgrade part of a strategic transport corridor and improve transport system operation. The project will thus strengthen overall road sector efficiency, boost connectivity, and promote regional trade and inclusive economic growth, particularly in the western part of Kazakhstan.
Central and West Asia Department
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|Project Name||CAREC Corridors 1 and 6 Connector Road (Aktobe–Makat) Reconstruction Project|
|Country / Economy||Kazakhstan
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Transport / Road transport (non-urban)
|Gender||Some gender elements|
|Description||The proposed project will reconstruct a road section of about 299 kilometers (km) between the capitals and administration centers of Aktobe and Atyrau provinces in western Kazakhstan, and introduce key features of a transport information system. It will upgrade part of a strategic transport corridor and improve transport system operation. The project will thus strengthen overall road sector efficiency, boost connectivity, and promote regional trade and inclusive economic growth, particularly in the western part of Kazakhstan.|
|Project Rationale and Linkage to Country/Regional Strategy||
Roads enable connectivity and mobility, which are essential conditions for economic growth and development. This is particularly relevant for Kazakhstan---the world's largest landlocked country with a resource-rich economy and, at about six persons per square kilometer, a population density among the lowest in the world. Kazakhstan's main natural resources---hydrocarbons, oil, gas, ferrous, and nonferrous metals---are unevenly spread over the country and remain largely untapped because of infrastructure constraints. Landlocked countries suffer most from high transport costs, which can be much higher than the tariffs on imported and exported goods. A World Bank study estimated that transport costs account for 8%-11% of the final cost of goods---almost double the cost for most industrialized countries. As such, the development of transport infrastructure, together with sector efficiency improvements, can play a catalytic role in the sustainable social and economic development of the country. Continued public sector investments are needed to modernize the infrastructure base, which strongly correlates with economic diversification and more robust growth.
The Government of Kazakhstan has been upgrading its national transport system since 2007, to better integrate Kazakhstan into the world economy. This includes the reconstruction of the 2,787 km Western Europe-Western People's Republic of China (PRC) international transit corridor (also known as the Central Asia Regional Economic Cooperation [CAREC] corridors 1b and 6b,c) to improve its efficiency and effectiveness. The country is already capturing a significant volume of transit traffic through roads and railways. Strategically, Kazakhstan has much potential to link the East Asia countries with Europe by road and rail, and through inland shipping along the Caspian Sea.
With oil prices tumbling since 2014 and lower external demand slowing the economy, Kazakhstan responded with a new economic anti-crisis program. The President, in his address to the nation on 11 November 2014, announced Kazakhstan's Infrastructure Development State Program (IDSP)---Nurly Zhol---for 2015-2019. To enable a favorable environment for business-driven regional economic integration, among others, the IDSP prioritizes domestic transport links of strategic importance and regional impact, and connects the national capital, Astana, with other 'urban agglomerations and/or 'second-tier cities in the eastern, western, and southern parts of the country. Accordingly, the government, aided by development partners, is accelerating the development of the Center South (Astana-Almaty), Center East (Astana-Ust'-Kamenogorsk), and Center West (Astana-Aktau) corridors. The program will be implemented from 2016 to 2020. The overall IDSP is expected to generate a significant number of new jobs and incomes through public investments.
The existing Aktobe-Makat road is a two-lane national road originally designed to categories III and IV standard, and connects the CAREC corridors 1b and 6a, as well as the capitals and administrative centers of the oil- and mineral-rich provinces of Aktobe and Atyrau, where approximately 1.7 million people live. Most of the existing road pavement is either non-existent or damaged to the extent that ordinary passenger cars cannot move faster than 30 km/hour. As a result, many vehicles divert off the road and travel on parallel dirt paths. This largely deters both passenger and freight operation from using the road. Many passengers traveling between Aktobe and Atyrau have to use infrequent railway services instead, and much goods traffic is diverted to the northern Aktobe-Oral-Atyrau route, but the detour takes more time needed with an additional distance of 360 km. Poor road connectivity has also become a key social issue contributing to the growing income disparity between rural and urban areas.
Modernized transport system with increased freight transit, improved network connectivity and creation of infrastructure centers.
|Description of Outcome||
Improved network operational performance, increased transit potential and improved social and economic development of the western region of Kazakhstan in particular
|Progress Toward Outcome||Civil works - 7 packages for a total of 299 km are in various stages of implementation. Lot 1 and 3 is likely to be completed by September 2021. Lot 4-7 improved significantly. The main carriageway will likely be completed by November 2021, with some road maintenance depots to be completed by April 2022 due to design changes. Lot 2 contract terminated, expected to be covered by the contractor of lot 1 and 3. Consulting services - Two construction supervision consultants and the project management consultant mobilized.|
|Description of Project Outputs||
299 km of two-lane highway connecting Aktobe and Makat reconstructed to category II standard and operational
Improved transport system operation with better provision of road traffic safety and logistics effectiveness
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Seven civil works contracts have been awarded.
Contract for the supply and delivery of equipment was awarded to THG Technik Handel Gessellschaft AG on 31 July 2019.
Indicators will be measured upon completion
|Geographical Location||Aqtobe, Maqat|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The initial environmental examination and its consultation process established that there are no significant environmental issues that cannot be either totally prevented or adequately mitigated to levels of insignificance. It is expected that the project will have site-specific, temporary environmental impacts during the construction phase, such as air and water pollution, noise, and soil erosion; cause traffic disruptions, and have occupational health and safety impacts. Adequate mitigation measures are included in, and will be implemented through, an environmental management plan.|
|Involuntary Resettlement||The draft LARP identified 17 land plots that are affected and owned by the state. Out of these, 11 plots are leased by legal entities either for short-term lease (up to 5 years) and long-term lease (5 to 49 years). The total number of affected persons was estimated to be 11 (all legal entities: 10 peasant farms and 1 limited liability company). After consultation with the affected persons all 11 leased plots were voluntarily donated (the area of the land to be taken varies from 0.04% to 1.65% of the overall area of the respective plot). These plots are used as natural pastures and not for residential or commercial purposes. A final LARP has been prepared and disclosed on ADB's website.|
|Indigenous Peoples||The project road is located in the settled areas of Aktobe and Atyrau provinces, which have no indigenous peoples as defined under ADB's Safeguard Policy Statement.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Public consultations for Atyrau Oblast were conducted in May 2015 and for Aktobe Oblast in August 2015. Issues discussed included, but were not limited to, resettlement compensation of affected persons, protection of communities from construction and environmental disturbances, and of safety hazards to workers and the public during construction, temporary employment opportunities, and how villages along and off the road can benefit from the Project.|
|During Project Implementation||Public consultations will be conducted from time to time during the project implementation.|
|Consulting Services||All consultants will be recruited according to ADB's Guidelines on the Use of Consultants.|
|Procurement||All procurement of works will follow ADB's Procurement Guidelines. Civil works contract over $10 million and goods contract over $2 million will be procured through international competitive bidding using ADB standard bidding document following pre-qualification and single-stage one-envelope procedure.|
|Responsible ADB Officer||Erdene, Oyunchimeg|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Transport and Communications Division, CWRD|
Ministry of Industry and Infrastructure Development formerly "Ministry of Investments and Developments"
|Concept Clearance||23 Apr 2015|
|Fact Finding||09 Sep 2015 to 17 Sep 2015|
|MRM||03 Dec 2015|
|Approval||26 Aug 2016|
|Last Review Mission||-|
|Last PDS Update||08 Sep 2021|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Aug 2016||07 Dec 2016||11 Jul 2017||31 Dec 2021||31 Dec 2023||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||283.00||Cumulative Contract Awards|
|ADB||240.30||13 May 2023||213.40||0.00||97%|
|Cofinancing||0.00||13 May 2023||202.32||0.00||92%|
|Status of Covenants|
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.
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.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) 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.
ADB Approves $240m to Help Kazakhstan Modernize Transport, Improve ConnectivityADB has approved a $240.3 million loan to help Kazakhstan modernize its transport system.
|Tender Title||Type||Status||Posting Date||Deadline|
|Loan No. 3416-KAZ: CAREC Corridors 1 and 6 Connector Road (Aktobe–Makat) Reconstruction Project [ICB/EQPT/02-2017]||Invitation for Bids||Closed|
|Consulting Services for Preparation of Project Development and Implementation of Road Construction Executive Model||Firm - Consulting||Closed|
|Loan No. 3416-KAZ: CAREC Corridors 1 and 6 Connector Road (Aktobe–Makat) Reconstruction Project [ICB/EQPT/02-2017]||Invitation for Bids||Closed|
|Loan No. 3416-KAZ: CAREC Corridors 1 and 6 Connector Road (Aktobe–Makat) Reconstruction Project [Lot 4,5,6] REBIDDING||Invitation for Bids||Closed|
|KAZ: CAREC Corridors 1 and 6 Connector Road (Aktobe–Makat) Improvement Project||Advance Notice||Archived|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|CONSULTING SERVICES FOR PREPARATION OF PROJECT DEVELOPMENT AND IMPLEMENTATION OF ROAD CONSTRUCTION EXECUTIVE MODEL||Loan 3416||17 Jan 2020||S.P.T-STUDI E PIANIFICAZIONE DEL TERRITORIO | VIA TUCOLANA 336-00181 ROMA ITALY ITALY||Ministry of Industry and Infrastructure Dev't||1,882,160.00||1,680,500.00|
|SUPPLY AND DELIVERY OF EQUIPMENT||Loan 3416||08 Aug 2019||THG TECHNIK HANDELS GESELLSCHAFT AG | NETZIBODENSTR. 33, 4133 PRATTEIN SWITZERLAND||Ministry of Industry and Infrastructure Dev't||3,064,306.67||3,027,067.36|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION 330-370 (LOT 4)||Loan 3416||06 Sep 2018||SHANGHAI CONSTRUCTION GROUP CO., LTD. | NO. 33 FUSHAN ROAD, CHINA (SHANGHAI) PILOT FREE TRADE ZONE CHINA,PEOPLE'SREP.OF||Ministry of Investments and Development||27,152,439.00||24,378,648.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION 370-418 (LOT 5)||Loan 3416||07 Sep 2018||SHANGHAI CONSTRUCTION GROUP CO., LTD. | NO. 33 FUSHAN ROAD, CHINA (SHANGHAI) PILOT FREE TRADE ZONE CHINA,PEOPLE'SREP.OF||Ministry of Investments and Development||25,983,165.00||23,331,200.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION KM 418-458 (LOT 6)||Loan 3416||23 Jul 2018||JV OJSC AKKORD & AK ZHOL KURYLYS LLP | INDUSTRIAL ZONE 9, BUILDING NO. 43 AKTAU CITY KAZAKHSTAN||Ministry of Investments and Development||21,423,658.00||21,332,229.00|
|CONSTRUCTION SUPERVISION CONSULTANT 1||Loan 3416||08 Sep 2017||DONSUNG ENGINEERING CO., LTD (KOREA) | 24 YANGJAE-DAERO 62-GIL SONGPA-GU, SEOUL, 05711 KOREA, REPUBLIC OF||Ministry of Investments and Development||4,649,642.00||4,151,466.00|
|CONSTRUCTION SUPERVISION CONSULTANT 2||Loan 3416||08 Sep 2017||DONSUNG ENGINEERING CO., LTD. (KOREA) | 24 YANGJAE-DAERO 62-GIL, SONGPA-GU, SEOUL, 05711 KOREA, REPUBLIC OF||Ministry of Investments and Development||4,851,123.00||4,331,360.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION KM 275-330 (LOT 3)||Loan 3416||18 Sep 2017||TODINI CONSTRUZIONI GENERALI S.P.A | VIA DEI DUE MACELLI 66 00187, ROME ITALY||Ministry of Investments and Development||32,504,896.00||30,466,835.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION KM 160-220 (LOT 1)||Loan 3416||18 Sep 2017||TODINI CONSTRUZIONI GENERALI S.P.A | VIA DEI DUE MACELLI 66 00187 ROME ITALY||Ministry of Investments and Development||37,504,497.00||35,152,809.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION KM 487-504 (LOT 7)||Loan 3416||19 Sep 2017||ANT INSAAT MADEN SANAYI A.S. | E-5 KARAYOLU UZERI, HASANPASA MAH, LAVANTA SOK, NO:23 D:3 34718 KADIKOY IST TURKEY||Ministry of Investments and Development||9,373,640.00||8,411,509.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION KM 418-458 (LOT 6)||Loan 3416||19 Sep 2017||TASYAPI INSAAT TAAHUT VE TICARET A.S. | KUCUK CAMLICA MAH. SEHIT ISMAIL MORAY SOKAK NO:13 ALTUNIZADE - USKUDAR TURKEY||Ministry of Investments and Development||14,697,052.00||13,188,514.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION KM 370-418 (LOT 5)||Loan 3416||19 Sep 2017||TASYAPI INSAAT TAAHUT VE TICARET A.S. | KUCUK CAMLICA MAH. SEHIT ISMAIL MORAY SOKAKNO:13 ALTUNIZADE - USKUDAR TURKEY||Ministry of Investments and Development||17,592,083.00||15,786,393.00|
|RECONSTRUCTION OF AKTOBE-MAKAT SECTION KM 330-370 (LOT 4)||Loan 3416||19 Sep 2017||TASYAPI INSAAT TAAHUT VE TICARET A.S. | KUCUK CAMLICA MAH-SEHIT ISMAIL MORAY SOKAK NO:13 ALTUNIZADE - USKUDAR TURKEY||Ministry of Investments and Development||20,906,785.00||18,760,867.00|
|RECONSTRUCITON OF AKTOBE-MAKAT SECTION KM 236-275 (LOT 2)||Loan 3416||18 Sep 2017||OJSC "AKKORD INDUSTRY CONSTRUCTION INVESTMENT | STR. AGA NEMATULLA, B/B 224 NARIMANOV DISTRICT, BAKU AZ1052 AZERBAIJAN, REP. OF||Ministry of Investments and Development||26,475,263.00||23,757,785.00|
|Title||Document Type||Document Date|
|CAREC Corridors 1 and 6 Connector Road (Aktobe-Makat) Reconstruction Project: Procurement Plan||Procurement Plans||Sep 2022|