Kazakhstan: Reconstruction of M-32 Highway Aktobe-Karabutak-Ulgaisyn Section Project (AIIB-000923)

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
Aktobe, Karabutak, Ulgaisyn
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
A
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
  • 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)
$ 502.00 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)
$ 502.00 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)
$ 1,124.00 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
Other Related Projects
Primary Source

Original disclosure @ AIIB website

Updated in EWS Mar 26, 2025

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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 objective is to provide safe, efficient and climate resilient connectivity along the Aktobe-Karabutak-Ulgaisyn section of the M-32 Highway in the northwest of Kazakhstan.

The Project entails reconstruction and upgrade (from two- to four-lanes) a 234 kilometers (km) road section of the M-32 Highway, starting from the city of Aktobe, through Karabutak to Ulgaysyn in the Aktobe region of Kazakhstan.

The subject road section runs through the western part of Kazakhstan and forms a key segment of the Western Europe-Western China transport corridor. It is one of the largest transportations routes traversing through Kazakhstan, linking the East with the West. The Project will focus on improving the road conditions and implementing road safety measures and climate resilient standards. The Project will also support the toll system of the road to enhance its self-sustainability. It is among the pioneers in using an integrated Design Build and Maintain (DBM) contract model using an Output Performance- Based Road Contract (OPBRC) format. This integrated contract model allows mobilizing private sector expertise to develop project design and long-term maintenance program up-front to suit specific project features, therefore facilitating a lifecycle approach to road infrastructure planning. It will also reduce the risk of cost overruns and implementation delays faced in the conventional input-based contract model.

The Project comprises two components:

  • Component 1. Resilient and Safe Road Connectivity
  • Component 2. Capacity Building and Implementation Support
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the AIIB, the total Project cost is estimated at USD1,124 million. The Project will be co-financed by AIIB and the European Bank for Reconstruction and Development (EBRD). Each Bank is expected to provide its sovereign backed loan of USD502 million respectively. The remaining USD120 million of total project cost, including taxes, will be covered by counterpart funding.

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.

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

EBRD Team Leader:

Sholpan Dikhanbayeva - Principal Banker, Infrastructure Eurasia
Email: dikhanbS@ebrd.com

Borrower & 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

How it works

How it works