The provision of a sovereign guaranteed loan of up to US$ 250 million equvalent to JSC KazAvtoZhol, the state-owned national road operator in Kazakhstan. The loan will be used to finance the reconstruction of a 218 km long road section between the cities of Kyzylorda and Zhezkazgan, including the 14 km bypass around Kyzyolrda, adjucent to the motorway.
- Reconstruction of the 204 km long Kyzylorda-Zhezkazgan road in Kazakhstan.
Construction of a 14 km bypass around the city of Kyzylorda.
Contribution to the improved inter-regional connectivity, safety standards, increased road capacity and reduced travel time.
ETI score: 62
The Project supports Integrated quality through improvements of the current infrastructure and the road safety management. It also contributes to Competitive quality through enhanced private sector involvement, driven by the introduction of tolling system and performance based maintenance contracts to ensure better maintenance of rehabilitated roads.
JSC KazAvtoZhol - the state-owned national road operator in Kazakhstan
EBRD Finance Summary
Total Project Cost
The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer tenor/grace period that is rarely available in the market.
Environmental and Social Summary
The proposed project has been categorised B in accordance with the 2019 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.
The environmental and social due diligence for the Project, which is ongoing, includes an independent third party environmental and social audit to assess the Client's management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client's ability to carry out the Project in compliance with the Bank's Performance Requirements.
An Environmental and Social Action Plan (ESAP) will be prepared for the Project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism, and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.
This PSD will be updated when the results of due diligence are known.
Technical Cooperation and Grant Financing
Pre-signing. Funded by the Bank:
- Environmental/social due diligence and Road Safety Audit.
- Technical due diligence of the project, including the calculation of Economic IRR.
Post-signing. Funded from the loan:
- Supervision of civil works
- Support for instituitional improvements (to be confirmed).
Company Contact Information
PSD last updated
25 Sep 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.