Kazakhstan : Central Asia Regional Economic Cooperation (CAREC) Corridors 3 and 6 Turkistan Oblast Highway (Saryagash Bypass) Project

Sovereign Project | 54217-001

The project will improve the capacity, safety, and sustainability of the road network in Kazakhstan's southern region of Turkistan, and enhance regional connectivity and trade with national and international markets. The project will finance (i) the design, construction, operation, and maintenance of 102 kilometers (km) of a road bypassing the city of Saryagash, providing a safe, high-capacity corridor for freight traffic presently traversing urban areas. The project will also strengthen institutional capacity in road safety and sustainability. The project road will increase capacity along the Central Asia Regional Economic Cooperation (CAREC) corridors 3 and 6 linking Europe, the Middle East, the Russian Federation, and South Asia, and the project will contribute to strengthening supply chain efficiency and diversification, and increase domestic and international transit and trade in the CAREC region.

Project Details

Project Name
Central Asia Regional Economic Cooperation (CAREC) Corridors 3 and 6 Turkistan Oblast Highway (Saryagash Bypass) Project
Project Number
54217-001
Country / Economy
  • Kazakhstan
Project Status
Proposed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan: Central Asia Regional Economic Cooperation Corridors 3 and 6 Turkistan Road Network Improvement Project
Source Amount
Ordinary capital resources US$ 350.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Transport /

Gender
Effective gender mainstreaming
Description
The project will improve the capacity, safety, and sustainability of the road network in Kazakhstan's southern region of Turkistan, and enhance regional connectivity and trade with national and international markets. The project will finance (i) the design, construction, operation, and maintenance of 102 kilometers (km) of a road bypassing the city of Saryagash, providing a safe, high-capacity corridor for freight traffic presently traversing urban areas. The project will also strengthen institutional capacity in road safety and sustainability. The project road will increase capacity along the Central Asia Regional Economic Cooperation (CAREC) corridors 3 and 6 linking Europe, the Middle East, the Russian Federation, and South Asia, and the project will contribute to strengthening supply chain efficiency and diversification, and increase domestic and international transit and trade in the CAREC region.
Project Rationale and Linkage to Country/Regional Strategy

Country and sector context. Kazakhstan's economy relies on a well-functioning road system, as evidenced by 29.0% of freight and 88.2% of passengers being transported by road in 2019. With a sparse population (7 people per km2)2, maintaining connectivity is crucial socially and economically. Given this context, addressing the current shortcomings in its transport infrastructure and enhancing regional connectivity is essential to strengthen its geostrategic advantage, stimulate trade, diversify the economy, and promote non-carbon economic growth. The project in the Turkistan Oblast, along with ADB's KyzylordaZhezkazgan Reconstruction Project, strategically strengthens the linkage between Central Asia and South Asia, especially between Kazakhstan and Uzbekistan. As part of CAREC Corridor 3 and 6, the project enhances the linkage between the region's key economic hubs (Shymkent-Tashkent-Khujand Economic Corridor) and potentially offers an alternative option to the Middle Corridor initiative.

Regional disparities. The government has demonstrated commitment to addressing the widening regional disparities that spurred protests in January 2022.5 The Turkistan oblast significantly lags economically and socially, with the highest poverty rate of 9.7% in Q2 2023, compared to the national poverty rate of 5.1% (2.5% in Astana) in the same period. The country partnership strategy (CPS) for Kazakhstan, 20232027 sets an objective to promote inclusive economic growth by reducing socioeconomic and regional disparities, improving access to services in lagging regions, and enhancing transport connectivity in the country. In this context, the project that diverts through-traffic, including Heavy Goods Vehicles (HGV), currently traversing Saryagash city, aligns with government strategy and CPS, acting as a catalyst for economic and social development, and representing the most significant public investment in this region in recent decades.

Climate and disaster resilience. With temperatures rising faster than the global average, Kazakhstan faces increased vulnerability to frequent droughts, accelerated glacier melting, and a higher risk of floods. The project incorporates measures for climate and disaster resilience, aiming to enhance the road's resilience to intensifying extreme weather conditions and disasters.

Sector experience and lessons learned. From 2008 to 2022, ADB financed six loans to improve major corridors of the national road network, totaling $1.94 billion. The project will incorporate lessons learned from previous projects, particularly integrating FIDIC conditions of contract, and continuously supporting the latest efforts in road safety by development partners.

Private sector development. Current policy directions and institutional reforms aim to liberalize the road sector to attract private investment, and enhance project delivery, road quality, and asset sustainability. Through the involvement of the private sector in the Performance-Based Maintenance Contract (PBMC), the sustainability of road assets can be strengthened. The incorporation of the Design-Build (DB) modality may also enhance the enabling environment for private sector engagement, which often includes the form of DB.

Impact

Transport efficiency and regional connectivity improved

Outcome

Mobility in the Turkistan region of Kazakhstan improved by 2031

Outputs

Climate-resilient, disaster-prepared and universally-inclusive road constructed by 2030

Institutional capacity on road safety and asset sustainability improved by 2030

Geographical Location
Nation-wide

Safeguard Categories

Environment
A
Involuntary Resettlement
A
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Kwon, Woo-Hyun
Responsible ADB Department
Sectors Group
Responsible ADB Division
Transport Sector Office (SG-TRA)
Executing Agencies
Committee of Roads
JSC "NC "KazAvtoZhol"

Timetable

Concept Clearance
19 Dec 2023
Fact Finding
15 Jul 2024 to 25 Jul 2024
MRM
16 Sep 2024
Approval
-
Last Review Mission
-
Last PDS Update
22 Dec 2023

Funding

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.

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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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.