Kazakhstan: Strategic Road Connectivity and Sector Modernization Project

proposed

The Project aims to upgrade a selected section of the Middle Corridor between Jezkazgan and Karagandy, focusing on improving road conditions and implementing climate-resilient standards. It will pioneer the use of integrated design, build, and maintenance contracts through the Output and Performance-Based Road Contracts (OPBRC) format to optimize value for money and encourage private sector participation. Additionally, the Project will enhance last mile connectivity with rural areas along the road corridor, improve road sustainability and safety measures, review national road design standards with a focus on climate resilience and road safety, and provide institutional capacity building support. The estimated total Project cost is USD1.53 billion and will be co-financed by the World Bank Group (WB) and AIIB. Both financiers plan to contribute USD650 million each. The remaining 15 percent of the Project cost will be covered by counterpart funding. The Project comprises three components: Component 1. Resilient and Safe Road Connectivity. This component accounts for 99 percent of the total Project cost. It involves (i) reconstruction and upgrading of an existing 498km third category highway between Jezkazgan - Karagandy to a first category dual-carriageway highway, following national road classification standards with the improved climate resilient and road safety measures. It will pioneer the use of integrated design, build and maintenance contracts; (ii) improvement of around 40km all-weather Last Mile Connectivity roads to the rural areas along the corridor; and (iii) implementation of road sustainability and road safety features, including electronic tolling facilities, rapid electric charging stations, and axle load management systems and road safety audit. Component 2. Transport System Development. It includes (i) review of national road design standards to incorporate climate resilience and road safety measures; and (ii) identify actions to improve the sustainability and efficiency in supporting the middle corridor development. Component 3. Project Management and Implementation Support. This component includes experts to assist "KazAvtoZhol" NC" JSC (the Implementation Entity, QAJ) in designing and implementing the performance-based contracts for the Project.