Kazakhstan: Strategic Road Connectivity and Sector Modernization Project (AIIB-000914)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kazakhstan
Geographic location where the impacts of the investment may be experienced.
Specific Location
Karagandy, Zhezkazgan
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
National Company KazAvtoZhol JSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 650.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 650.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,530.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Sep 11, 2024

Disclosed by Bank Aug 26, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the AIIB, the project development objective is to provide safe, efficient and climate resilient connectivity along the Karagandy-Zhezkazgan corridor and improve road sector management practices.

The Project aims to upgrade a selected section of the Middle Corridor between Jezkazgan and Karagandy, focusing on improving road conditions and implementing climate-resilient standards. It will pioneer the use of integrated design, build, and maintenance contracts through the Output and Performance-Based Road Contracts (OPBRC) format to optimize value for money and encourage private sector participation. Additionally, the Project will enhance last mile connectivity with rural areas along the road corridor, improve road sustainability and safety measures, review national road design standards with a focus on climate resilience and road safety, and provide institutional capacity building support.

The estimated total Project cost is USD1.53 billion and will be co-financed by the World Bank Group (WB) and AIIB. Both financiers plan to contribute USD650 million each. The remaining 15 percent of the Project cost will be covered by counterpart funding.

The Project comprises three components:

Component 1. Resilient and Safe Road Connectivity. This component accounts for 99 percent of the total Project cost. It involves (i) reconstruction and upgrading of an existing 498km third category highway between Jezkazgan - Karagandy to a first category dual-carriageway highway, following national road classification standards with the improved climate resilient and road safety measures. It will pioneer the use of integrated design, build and maintenance contracts; (ii) improvement of around 40km all-weather Last Mile Connectivity roads to the rural areas along the corridor; and (iii) implementation of road sustainability and road safety features, including electronic tolling facilities, rapid electric charging stations, and axle load management systems and road safety audit.

Component 2. Transport System Development. It includes (i) review of national road design standards to incorporate climate resilience and road safety measures; and (ii) identify actions to improve the sustainability and efficiency in supporting the middle corridor development.

Component 3. Project Management and Implementation Support. This component includes experts to assist "KazAvtoZhol" NC" JSC (the Implementation Entity, QAJ) in designing and implementing the performance-based contracts for the Project.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the AIIB, the project financing plan is the following:

Total Project Cost: USD1,625mn
Proposed AIIB Financing: USD650mn
World Bank (Lead MDB Financier) Financing Amount: USD650mn
Gov. of Kazakhstan: USD325mn

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by DevEx, in accordance with the Resolution of the Government of the Republic of Kazakhstan dated July 30, 2013 No. 744, the joint-stock company “KazAvtoZhol” was defined as the National Highway Management Operator (hereinafter referred to as the Company).

The founder of the Company is the Government of the Republic of Kazakhstan represented by the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan.

The bodies of the Company are:

  1. the supreme body is the Sole Shareholder;
  2. management body - the Board of Directors of the Company;
  3. collegial executive body - the Management Board of the Company;
  4. The body supervising the Company's financial and business activities is the Internal Audit Service.

The management of the Company's current activities is carried out by the executive body - the Management Board of the Company.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - KazAvtoZhol JSC NC Client Transport

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leader:

Anzheng Wei - Senior Investment Officer
Email: awei@aiib.org

World Bank Team Leader:

Nijat Valiyev - Senior Transport Economistr
Email: nvaliyev@worldbank.org

Borrower and Implementing Agency - National Company KazAvtoZhol JSC:

Raikhan Sagindykova - Deputy Chairman
Email: Raikhan.sagindikova@qaj.kz

Serik Imashev - Chief Engineer
Email: qajchief.engineer@gmail.com

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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