Kurty-Buribaytal Road Project

Location:

Kazakhstan

Project number:

47229

Business sector:

Transport

Notice type:

Public

Environmental category:

A

Approval date:

09 Dec 2015

Status:

Repaying

PSD disclosed:

29 Jul 2015

Translated version of this PSD: Russian

Project Description

The EBRD is considering extending a sovereign loan of up to USD 243 million to the Republic of Kazakhstan for the reconstruction and widening of a 228 km section of the Center-South road corridor, leading from Astana to Almaty, between the villages of Kurty and Buribaytal in the Almaty region.

The loan will be co-financed by a USD 217 million World Bank loan and a USD 228 million contribution from the state budget. The proceeds of the EBRD loan will be mainly used to rehabilitate the 81 km long section of the Road located close to Almaty (the “Project”).

Full reconstruction of roads within the transport corridor connecting Astana and Almaty (“Center-South Corridor”) is part of the Kazakhstan Strategic Plan 2020. The Kazakh Government is very close to completing the implementation of this strategic plan, with the major part or roads within the Center-South Corridor already having been rehabilitated. The remaining 228 km long section between the villages Kurty and Buribaytal (the “Road”), which remains in poor condition, restrains the transit of goods and passengers between the two main cities of Kazakhstan.

Transition Impact

The Project will target the following transition impact objectives:

  • Framework for markets. The Project will focus on

    (i) making road sector financing in Kazakhstan more sustainable by exploring new ways of road sector financing on the basis of international experience,

    (ii) introduction of heavy vehicles charges in line with the user/polluter-pay-principle and

    (iii)  rolling out the roads tolling system in Kazakhstan.
     
  • Assisting the Kazakh Government in arranging new PPP projects in road sector using EBRD sectorial expertise.
     
  • The expected transition impact rating is ‘good’.

The Client

The loan will be provided to the Republic of Kazakhstan.

EBRD Finance

A sovereign loan of up to USD 243 million to the Republic of Kazakhstan.

Project Cost

USD 688 million

Environmental and social categorisation, impact, and mitigation

Environmental classification and rationale

Categorised A (ESP 2014). The project involves reconstruction and widening of the existing 228 km long road (from two lanes to four lanes),which is under A category projects and requires an Environmental and Social Impact Assessment (ESIA) to be performed in line with Category A requirements.

Due diligence undertaken and outcomes

Under the Kazakhstan regulatory regime, a feasibility study and detailed design has been completed, accepted and approved by the State Expertise within the Ministry of National Economy. A national Environmental Impact Assessment (EIA) has previously been developed in accordance with the rules, regulations and standards of the Republic of Kazakhstan for design and construction of roads. The current ESIA has been developed in order to also meet the EBRD Environmental and Social Policy requirements. An independent gap analysis review of the ESIA and other key documentation has been undertaken against EBRD’s Performance Requirements, EU standards and best practice.

The gaps identified have been used to develop an Environmental and Social Action Plan (ESAP) for implementation and a disclosure pack comprising a Non-technical summary (NTS) and a Stakeholder Engagement Plan (SEP) in English, Kazakh and Russian. The SEP provides a framework for consultation activities and project disclosure information including the identification of potential stakeholders, methods used for consultation activities and the records to be kept. The EIA has considered an alternative (“without project" and "with the project") concluding that the selected widening of the present carriageway to 4 lanes with a dividing strip offers the best environmental approach to solve the problems with the traffic increase and will improve road safety. Potential environmental and social (including community and occupational health and safety) impacts have been identified and mitigation measures have been developed that are presented in an Environmental and Social Action Plan (ESAP) within the ESIA. The ESAP has been developed and agreed with the Kazakh Government to address the necessary mitigation measures and improvements.

The Bank will monitor environmental and social performance and implementation of the ESAP through annual E&S reports.

An Environmental and Social Impact Assessment can be found on the EBRD web site.

Environmental and Social Gap Analysis Report: Kazakh | Russian

Technical Cooperation

Pre-signing

  • Transition impact review and development of Transition Impact components. Financed by the Bank.
  • Technical review of the project, including the calculation of Economic IRR. Financed by the Bank.
  • Environmental and Social due diligence, including the Environmental and Social Impact Assessment (ESIA) and Road Safety Audit. Funded by the Bank.

Post-signing

  • Study of new ways of financing in the road sector. A review of international examples of road sector financing and identification of options that would contribute to making road sector financing in Kazakhstan more sustainable. Financed from the loan.

Contact

Asel Karymbayeva, Senior Expert,
Road Committee,
Ministry of Investments and Development of RK
Phone: 8-71-72-75-46-41
Astana, pr. Kabanbai Batyra 32/1
Email: a.karymbaeva@mid.gov.kz

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

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