Atyrau Astrakhan Rehabilitation Project

Location:

Kazakhstan

Project number:

50382

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Approval date:

27 Mar 2019

Status:

Disbursing

PSD disclosed:

12 Sep 2018

Translated version of this PSD: Russian

Project Description

Provision of a loan of up to USD 340 million in local currency split into two tranches under sovereign guarantee to JSC KazAvtoZhol, 100 per cent state-owned national road operator.  The first tranche in the amount equivalent to USD 260 million will finance  the reconstruction of a 217 km long Atyrau Astrakhan road section of Trans-Caspian Road Transit Corridor. The second uncommitted tranche of USD 80 million will finance construction of 26 km bypass around Atyrau city adjacent to the road.

Project Objectives

  • Reconstruction of the 217 km long Atyrau Astrakhan road in Kazakhstan.
  • Construction of 26 km bypass around Atyrau city in Kazakhstan.
  • Contribution to the improved inter-regional connectivity, safety standards, increased road capacity and reduced travel time.

Transition Impact

The Project supports improvements to the current infrastructure between regions that are inadequately integrated; introduces performance-based maintenance contracts to ensure better maintenance of rehabilitated roads as well as a network contract between JSC KazAvtoZhol and regulating authorities with clear instituitional roles and responsibilities to further support the institutional improvements.

Client Information

KAZAVTOZHOL JSC

EBRD Finance Summary

USD 301,000,000.00

Total Project Cost

USD 338,000,000.00

Environmental and Social Summary

Categorised B ( ESP 2014).

The overall project has been categorised as B. The two road sections have been split into two tranches.

ranche 1 - reconstruction of 217 km of the existing two-lane road, including reconstruction of 6 bridges and construction of two 2-lane greenfield bypasses around the villages, and uncommitted Tranche 2 - greenfield construction of a 2-lane bypass around the Atyrau city.
Environmental, Social and Road Safety Due Diligence (ESDD) for Tranche 1 undertaken by independent consultants has been completed and confirmed that the reconstruction works are expected to result in significant social benefits, such as increased mobility and connectivity of the residents along the road and that any adverse future environmental and social impacts will be temporary during the construction phase, site specific and mitigated by adequate mitigation measures. 

A national Environmental Impact Assessment (EIA) was also prepared for Tranche 1 and disclosed with public hearings organised in all Tranche 1 related settlements. The issues raised were around potential land acquisition, temporary impacts on livelihoods, cattle underpasses and possible business opportunities along the road during and after construction. These issues have been addressed in the Tranche 1 project development adding necessary cattle crossings, avoiding land acquisition and mitigating any potential disturbances to the public, and considering opportunities for engagement with the local business. The EIA for different sections of Tranche 1 was approved by the State Expertise during 2016-2017.

The ESDD for Tranche 1 has comprised an environmental and social (E&S) appraisal of the Project, which identified the potential environmental, health & safety and social risks and impacts to include, but are not limited to: ambient noise/air quality; the crossing of the waterbodies and related management of surface water run-off; the need to minimise construction related disturbance; labour, land management and stakeholder engagement. As part of the ESDD a Stakeholder Engagement Plan (SEP), Non-Technical Summary (NTS), Land Acquisition and Livelihood Restoration Framework (LARF), Environmental and Social Action Plan (ESAP), and Environmental and Social Management Plan (ESMP) have been prepared. LARF is an overarching document defining the requirements to be applied for both Tranches. It provides the principles for identifying, quantifying and addressing both land acquisition and livelihoods impacts associated with the Project implementation and the potential entitlements for those impacted by the project.

Potential impacts from the Project may be felt by affected communities resulting from the labour influx and associated construction camps to be potentially located close to villages and the city of Atyrau. Requirements for the construction camps, accommodation facilities of contractor’s workers, and labour management practices, covering the appointment and influx of foreign labour are being developed in line with PR 2 and will be included as part of the tender specifications for the contractors to implement and within the ESMP.
A Road Safety Audit has been carried out for the Tranche 1 and included a review of road safety incidents and accident blackspots, project design features and occupational road risk at the construction stage.  A number of the mitigation measures have been included into design of the Project as a result and additional measures will form part of the Road Safety Action Plan included in the ESAP.  

The ESAP for Tranche 1 has been developed to address a number of actions identified by the ESDD to structure the Project to meet EBRD PRs and has been agreed with the Company. The ESAP will require the client to implement measures, such as: enhance corporate EHSS management systems and practices;  additional EHSS provisions in tender specifications and improvements to contractors management and monitoring; improved waste management procedures and practices ; conduct monitoring of emissions in the vicinity of  residential areas; develop, implement and revise risk assessment procedures and provide relevant training to personnel;; develop procedures for public and road safety during construction, implementation of the LARF and SEP. 

The ESDD for Tranche 2 is underway following the same approach as for Tranche 1 and includes a Road Safety Audit.  It is expected that Tranche 2 will have similar impacts, however the findings will be updated and presented once the ESDD is complete.

The Client will be required to provide the Bank with annual environmental and social monitoring reports. The Bank will monitor the Project's performance and compliance with the ESAP, regulatory requirements and the EBRD's PRs by reviewing these reports and conducting periodic site visits as required.

Non-technical summary: English | Russian

Technical Cooperation

Pre-signing. Funded by the Bank

  • Environmental, Social and Climate Adaptation 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.

Company Contact Information

Arman Kairbekov
kairbekov.a@kazautozhol.kz

Business opportunities

For business opportunities or procurement, contact the client company.

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Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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