The proposed project will help the Ministry of Transport and Communications of the Republic of Kazakhstan to rehabilitate the existing 900 km road between Atyrau and Aktau in the oil-rich region of western Kazakhstan. EBRD funding is proposed to finance reconstruction of the existing pavement of some 300 km of badly deteriorated road and to pave a further 300 km of existing unpaved road. The project will improve road access between Kazakhstan’s main port of Aktau and the important regional centre of Atyrau. It will also support the existing oil production area at Tenghiz.
Over the past four years Kazakhstan has made considerable progress with tendering its road construction and maintenance works, and hence promoting the role of the private sector. Development of a well-functioning road construction market requires stable and adequate levels of funding. EBRD is working with the Ministry of Transport and Communications (MoTC) to increase road sector funding, especially through improved cost recovery from road users. A particular focus of the present project involves fees and charges for heavy goods vehicles. EBRD is also assisting MoTC with improved road sector planning and management.
The borrower will be the Republic of Kazakhstan, and the project will be implemented by the Committee on Roads and Infrastructure Development which is part of the Ministry of Transport and Communications.
An EBRD loan of US$ 119 million is proposed. Additional cofinancing will be provided by the Government and other IFIs.
The total project cost is estimated at US$ 243 million.
Screened B/0, an Environmental Analysis was undertaken which did not identify any significant issues of concern. The project is assessed as being likely to have only a minor overall impact on the environment. Those potential adverse impacts which were identified related mainly to the implementation phase. They were considered to be easy to mitigate through the employment of proper international working practices. The tender documents will include the required measures for prevention and/or mitigation of such impacts.
EBRD project preparation was made possible by a grant of €846,900 provided by EU-TACIS. This grant financed consultants who assisted the Committee on Roads and Infrastructure Development to prepare the project feasibility study, together with preliminary engineering designs and costs.
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