Project Description
The provision of a sovereign loan of up to € 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
ETI score: 70
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- 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.
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 € 46.2 million.
Total Project Cost
EUR 46,200,000.00
Total Project cost amounts to € 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.
The key social risks include land acquisition and resettlement, labour influx and workforce management, preservation of the heritage sites, and prevention of the gender-based violence and harassment ("GBVH") concerns during the construction stage. The LARF was adopted by the Client as the basis for quantifying and compensating affected houses, businesses, land plots and other assets, as well as addressing the livelihoods impacts of the affected families. The Client will prepare and implement the Resettlement Plan ("RP") as per LARF and PR5 requirements prior to the displacement impacts taking place, which will be verified and approved by the Bank. To avoid impacts on heritage sites along the road alignment, the Contractor will develop a site specific cultural heritage management plan that will include an adoption of the chance find procedure and induction of the project workforce.
The MoTC will ensure that the Contractor will adopt PR2-aligned HR policy and procedures including a worker grievance mechanism including an anonymous grievance mechanism for GBVH. All temporary accommodation facilities for Contractor's and its sub-contractors' workers will be designed and provided in line with the requirements of the national sanitary norms and IFC/EBRD guidelines for worker accommodation. Equally, the Contractor will be required to introduce a CoC on GBVH and providing induction training to all workers, indicating the behaviour not permissible under the adopted CoC. Focused training will be also delivered on how to respond to GBVH allegations associated with the project workforce.
The Project will aim to improve road safety as the current road has not been maintained with limited road markings, safety barriers or traffic signs. The Client will be required to appoint an independent road safety auditor to review the road design and will incorporate technically and economical feasible road safety recommendations made by the auditor into the design. The road will require further periodical road safety reviews to ensure ongoing safety for all road users. Temporary traffic management arrangements will need to be implemented and periodically updated in consultation with affected communities to ensure minimal impact and maximum safety to project affected communities and local businesses.
The SEP includes a summary of information disclosure and community meetings conducted to date, as well as an outline of the upcoming consultation activities. The MoTC will monitor the delivery of mitigation measures by the contractors via the Supervision Engineer. Lenders' E&S Monitoring Consultant will be also retained to oversee the implementation of E&S management plans and report regularly to the Bank.
Technical Cooperation and Grant Financing
Pre-signing:
TC1: Technical and economic due diligence, €75,000, financed by the Turkey EBRD Cooperation Fund;
TC2: Environmental and social impact assessment, € 289,000 financed by the EBRD Shareholder Special Fund ("SSF");
TC3: Detailed design, EUR 75,000, proposed to be financed by the Turkey EBRD Cooperation Fund.
TC4: Advanced procurement, €75,000, proposed to be financed by the Turkey EBRD Cooperation Fund.
Post-signing:
TC5: Project Implementation Support, € 300,000, proposed to be financed by international donors or the SSF;
TC6: Regulatory Improvement Support, € 400,000, proposed to be financed by international donors or the SSF;
TC7: Lender's Monitoring Consultant, € 75,000, proposed to be financed by international donors or the SSF;
TC8: Gender Advisory Services, € 200,000, proposed to be financed by the SSF under the Gender Advisory Services Programme.
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
Implementation summary
PSD last updated
12 Oct 2022
Understanding Transition
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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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
