Kazakhstan: Reconstruction of M-32 Highway Aktobe-Karabutak-Ulgaisyn Section Project

proposed

The Project entails reconstruction and upgrade (from two- to four-lanes) a 234 kilometers (km) road section of the M-32 Highway, starting from the city of Aktobe, through Karabutak to Ulgaysyn in the Aktobe region of Kazakhstan. The subject road section runs through the western part of Kazakhstan and forms a key segment of the Western Europe-Western China transport corridor. It is one of the largest transportations routes traversing through Kazakhstan, linking the East with the West. The Project will focus on improving the road conditions and implementing road safety measures and climate resilient standards. The Project will also support the toll system of the road to enhance its self-sustainability. It is among the pioneers in using an integrated Design Build and Maintain (DBM) contract model using an Output Performance- Based Road Contract (OPBRC) format. This integrated contract model allows mobilizing private sector expertise to develop project design and long-term maintenance program up-front to suit specific project features, therefore facilitating a lifecycle approach to road infrastructure planning. It will also reduce the risk of cost overruns and implementation delays faced in the conventional input-based contract model. The total Project cost is estimated at USD1,124 million. The Project will be co-financed by AIIB and the European Bank for Reconstruction and Development (EBRD). Each Bank is expected to provide its sovereign backed loan of USD502 million respectively. The remaining USD120 million of total project cost, including taxes, will be covered by counterpart funding. The Project comprises two components: Component 1. Resilient and Safe Road Connectivity Component 2. Capacity Building and Implementation Support