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Background

Roads are a key element of Kazakhstan’s transport system: they provide access to rural areas and facilitate transit traffic and in-country movement. Despite this, much of the country’s road network was for a long time in poor condition. As of 2008, about 40% of the republican (national) roads required major rehabilitation; the feeder road network was not fully developed and largely unserviceable especially at wintertime.

To address the situation, the government of Kazakhstan came up with the Road Development Program (RDP) for 2006-2012. The RDP identified priority projects including physical investments that aimed to have 86% of the republican roads free from defects in 2013. Most prioritized were projects to construct or reconstruct 2,715 kilometers of the western Europe–western People’s Republic of China international transit corridor, which runs from Khorgos through Almaty and Shymkent to the western border with the Russian Federation. Within Kazakhstan, this transit corridor overlaps with the Central Asia Regional Economic Cooperation (CAREC) transport corridor 1 which, along with 5 other corridors, was endorsed by CAREC member countries in 2007. With a total cost estimate of $6.7 billion, the government sought the assistance of development partners to fund parts of the corridor improvements.

In response, the Asian Development Bank (ADB), along with the Islamic Development Bank (IDB) and the Japan International Cooperation Agency (JICA), committed to finance the reconstruction and upgrading of 480 kilometers of the corridor’s Zhambyl oblast section. ADB’s commitment initially covered approximately 301 kilometers, while those of IDB and JICA covered 159 kilometers and 20 kilometers, respectively. To fulfill its commitment, ADB approved a 3-tranche, $700 million first-of-its-kind multitranche financing facility (MFF) for Kazakhstan in November 2008. After IDB withdrew its second loan for the program, however, ADB agreed to to use tranche 1 savings to finance a fourth tranche that would cover an additional 49 kilometers of the 114-kilometer IDB balance.

Including a 65-kilometer bypass financed by a separate ADB stand-alone loan, total road output in Zhambyl oblast was 492.6 kilometers, 350.6 kilometers of which were financed by ADB. Road safety and structural soundness were ensured by removing dangerous curves; improving road geometrics and roughness; and installing traffic signs, streetlights, cattle and machinery crossings, and rest areas and bus stops with gender-sensitive toilets. The program also reconstructed road maintenance depots, and based on studies, recommended several measures to ensure sustainable operations and maintenance, including an automated asset management system and intelligent transport system.

Successful delivery of the planned outputs resulted in increased traffic volume, shorter travel time, lower freight costs, and reduced road accident rate. Over time, these results are expected to contribute to fostering sustainable development and strengthening regional cooperation among CAREC countries.

The program was completed on time and within budget. Kazakhstan’s Ministry of Investment and Development (MID) succeeded the Ministry of Transportation and Communications (MID) as executing agency (EA), following government reorganization in August 2014. The Committee of Roads, within the MOTC and later the MID, was the implementing agency (IA).

Project Information
Project Name: 
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program
Report Date: 
August, 2017
Main Sector: 
Country: 
Project/Modality: 
MFF
Loan Number: 
2503, 2562, 2697, 2735
Source of Funding: 
OCR
Date Approved: 
Loan 2503–Tranche 1: 30 December 2008 Loan 2562–Tranche 2: 7 October 2009 Loan 2697–Tranche 3: 15 November 2010 Loan 2735–Tranche 4: 21 February 2011 Loan 8251–Cofinance: 31 May 2010
Report Rating: 
Successful

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