Tyup-Karakol Road (EBRD-52367)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kyrgyzstan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
U
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."
Voting Date
Dec 15, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Loan Amount (USD)
$ 47.80 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)
$ 47.80 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.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Dec 9, 2022

Disclosed by Bank Oct 12, 2022


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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.

PROJECT DESCRIPTION

The provision of a sovereign loan of up to EUR 46.2 million ("Loan") to the Kyrgyz Republic ("KR"), for the benefit of the Ministry of Transport and Communications of the Kyrgyz Republic (MoTC), for the rehabilitation of the 32 km section of Tyup-Karakol road, located in the eastern part of KR along the northern shore of Issyk-Kul Lake.

PROJECT OBJECTIVES

The proposed project is an integral part of a longer 216.7 km Balykchy - Karakol Road rehabilitation programme, which in turn is the northern part of the Issyk-Kul Ring Road. Remaining 184.7 km were financed by the KR and Islamic development financial institutions.

The EBRD Loan will include financing of the road rehabilitation works and contract supervision services. After the Project completion, the whole Balykchy-Karakol Road should comply with the Category II international technical standard.

The Project will close the remaining infrastructure gap on 440 km long Issyk-Kul ring road which is part of CAREC 1 corridor and is one of the six priority transport links identified in the national Road Sector Development Strategy 2025, to foster economic development and connectivity as well as strengthen the KR's integration into regional markets.

TRANSITION IMPACT

Inclusion (primary):The Project will promote gender equality in transport and labour policies through concerted policy dialogue. EBRD's policy support will focus on (1) removing restrictions on women's employment in the transport and construction sectors; and (2) supporting the MoTC with the preparation of an inclusive transport strategy.Resilient (secondary): The Project will improve the quality of road maintenance operations by the MoTC through the increased road maintenance funding, enhancing necessary institutional capacity and strengthening associated procedures in KR.

Inclusion (primary):The Project will promote gender equality in transport and labour policies through concerted policy dialogue. EBRD's policy support will focus on (1) removing restrictions on women's employment in the transport and construction sectors; and (2) supporting the MoTC with the preparation of an inclusive transport strategy.Resilient (secondary): The Project will improve the quality of road maintenance operations by the MoTC through the increased road maintenance funding, enhancing necessary institutional capacity and strengthening associated procedures in KR.

Inclusion (primary):The Project will promote gender equality in transport and labour policies through concerted policy dialogue. EBRD's policy support will focus on (1) removing restrictions on women's employment in the transport and construction sectors; and (2) supporting the MoTC with the preparation of an inclusive transport strategy.Resilient (secondary): The Project will improve the quality of road maintenance operations by the MoTC through the increased road maintenance funding, enhancing necessary institutional capacity and strengthening associated procedures in KR.

Inclusion (primary):The Project will promote gender equality in transport and labour policies through concerted policy dialogue. EBRD's policy support will focus on (1) removing restrictions on women's employment in the transport and construction sectors; and (2) supporting the MoTC with the preparation of an inclusive transport strategy.Resilient (secondary): The Project will improve the quality of road maintenance operations by the MoTC through the increased road maintenance funding, enhancing necessary institutional capacity and strengthening associated procedures in KR.

Inclusion (primary):The Project will promote gender equality in transport and labour policies through concerted policy dialogue. EBRD's policy support will focus on (1) removing restrictions on women's employment in the transport and construction sectors; and (2) supporting the MoTC with the preparation of an inclusive transport strategy.

CLIENT INFORMATION

KYRGYZ REPUBLIC SOVEREIGN

Client is the Kyrgyz Republic. MoTC is the direct beneficiary of the project. The established Project Implementation Unit (PIU) within the MoTC will be responsible for the preparation and implementation of the project.

EBRD FINANCE SUMMARY

EUR 46,200,000.00

A sovereign loan of up to EUR 46.2 million.

TOTAL PROJECT COST

EUR 46,200,000.00

Total Project cost amounts to EUR 46.2 million.

ADDITIONALITY

The Bank will provide long-term financing, which is presently not available from local commercial banks. The Bank will support the client to achieve higher standards through its conditionalities (e.g. PP&R and ESAP). The Bank will also support institutional and regulatory changes in the sector.

ENVIRONMENTAL AND SOCIAL SUMMARY

Category A (ESP 2019). The Project comprises the rehabilitation of 32 km section of the Balykchy-Karakol road, namely Tyup-Karakol road, located in the eastern part of KR along the northern shore of Issyk-Kul Lake. The project proposes the widening of Tyup-Karakol road from a 2-lane to 4-lane carriageway, and also considers a possible ring road around Tyup.

The ESIA documentation was disclosed on the EBRD web site on 12 May 2022 and includes the following documents: ESIA Report and Non-technical summary ("NTS"), Environmental and Social Management Plan ("ESMP"), Environmental and Social Action Plan ("ESAP"), Stakeholder Engagement Plan ("SEP"), Land Acquisition and Resettlement Framework ("LARF") and Biodiversity Management Plan ("BMP"). The route for this Project is based on the existing road alignment. Therefore, the area required for clearance falls almost entirely within the existing road right of way and roadside, with only the footprint and temporary works areas to be cleared for the widening of the road. The ESAP stipulates the measures to develop a local EIA in line with local legislation and obtain Environmental permit and construction related permits. A multi-criteria analysis incorporating environmental and social criteria and consideration of stakeholder feedback was prepared and assessed whether or not to include a potential bypass around Tyup town. The 'Preferred Option' selected was upgrading the road on its existing alignment though with a reduced width. The project envisages to have an inclusion impact as the road reconstruction will provide an improved access for local communities living along the Tyup - Karakol road, especially of benefit to women and farmers as it will provide better access to the social facilities such as hospitals, schools, kindergarten as well as to local markets for the sale of agricultural produce and dairy products.

A key risk associated with this Project will be ensuring that the contractors are aware of their responsibilities and that they implement adequate actions to avoid, minimise, mitigate and manage these risks as identified in the ESIA and associated management plans. An Environmental and Social Management System (ESMS) is required as part of the ESAP to ensure the contractors adequately address the environmental and social impacts and risks. Contractors are required to develop construction management plans to provide management/mitigation procedures to cover air emissions, water quality, land restoration, topsoil, health and safety, waste management and emergency response, labour, worker accommodation, code of conduct ("CoC") and stakeholder engagement. MoTC will be required to have effective contractor monitoring in place. The biodiversity features have been assessed as part of ESIA report and a Critical Habitat Assessment, in line with the EBRD's PR6. The assessment noted that there are four internationally recognised biodiversity conservation sites all of which are located in the vicinity of the project: Issyk Kul Biosphere Reserve; and Issyk-Kul National Reserve; Issyk Kul Lake Ramsar site; and Eastern Issyk Kul Lake Important Bird Area ("IBA"). Extensive baseline data collection and biodiversity field surveys of both terrestrial and riverine ecosystems concluded that the majority of the habitat within the vicinity of the Project road is cultivated ground, with natural and semi-natural areas around the floodplains of the rivers crossed by the road which are often grazed by livestock. The Critical Habitat ("CH") and Priority Biodiversity Features ("PBF") assessment showed presence of CH and PBFs in the study area. Among CH, the area considered contains sensitive biodiversity features including Issyk-Kul lake and adjoining rivers for their unique ecosystems; five rivers supporting endemic fish; habitats supporting the plant species Astragalus projecturus; as a precautionary measure, habitats supporting the Asiatic frog; and Issyk-Kul lake Ramsar site and Eastern Issyk-Kul lake IBA for supporting globally significant migratory or congregatory species. Desk study and field surveys also indicate presence of PBFs. The identified project impacts on biodiversity are: vegetation clearance, habitat loss, mortality and disturbances of species; and changes in local hydrology and water quality. However, due to the temporary nature of the works and limited extent of the construction footprint, impacts are considered to be low. Adequate mitigation measures in line with PR6 requirements, EU Habitat and Birds Directives and GIP have been included in the Biodiversity Management Plan (BMP) and ESAP, including design measures to avoid impacts, such as avoidance of areas with sensitive features (particularly quadrifolious tulip Tulipa tetraphylla and Astragalus projecturus), provision of underpasses and road crossings for fauna; and measures regarding road drainage to reduce impacts on watercourses and natural habitats. The BMP stipulates the implementation of pre-construction surveys, net gain measures (habitats restoration, replantation), post-construction monitoring and update of BMP accordingly.

The Project crosses several rivers and streams, which drain into the Issyk Kul lake. Works near rivers, land clearance and uncontrolled discharges of untreated water to surface water from construction camps and abstraction of water may also occur during construction. Impacts are expected to be mitigated through the implementation of detailed Water, Wastewater and Drainage Management Plan; Spill Prevention and Response Plan; and Emergency Preparedness and Response Plans. Noise and vibration effects as a result of the use of equipment, earthworks, and the movement of construction vehicles and workers will be addressed through mitigation measures defined in a Noise and Vibration Management Plan and Traffic Management Plan. The majority of the materials for reconstruction are expected to be provided in country, from existing resources, quarries or borrow pits. The Materials Use and Waste Management Plan and Soil Management Plan will require reuse and recycling of materials to minimise waste disposal.

TECHNICAL COOPERATION AND GRANT FINANCING

Pre-signing:

TC1: Technical and economic due diligence,EUR75,000, financed by the Turkey EBRD Cooperation Fund;

TC1: Technical and economic due diligence,

TC1: Technical and economic due diligence,

COMPANY CONTACT INFORMATION

Sanjar Ibraimov, Head of Project Implementation Unit, Ministry of Transport and Communications of the Kyrgyz Republicbishkekosh@gmail.com+996 312 900 894www.piumotc.kg42 Isanova street, Bishkek 720017, Kyrgyz Republic

Investment Description
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Contact Information
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Company Contact Information

Sanjar Ibraimov, Head of Project Implementation Unit, Ministry of Transport and Communications of the Kyrgyz Republic
bishkekosh@gmail.com
+996 312 900 894
www.piumotc.kg
42 Isanova street, Bishkek 720017, Kyrgyz Republic

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

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