Kazakhstan: KAZ: Bakad PPP Toll Road Project

Nonsovereign Project | 49360-001

The project comprises of design, construction, financing, operations and maintenance of a 66 km open access toll road in Almaty, Kazakhstan. A group of international financiers including ADB is considering providing a 15-year senior loan to finance the construction, operation, and maintenance of the project.

Project Details

Project Name KAZ: Bakad PPP Toll Road Project
Project Number 49360-001
Borrower / Company BAKAD Investment and Operation Limited Liability Partnership
Country / Economy Kazakhstan
Location Almaty
Type or Modality of Assistance
Loan Ordinary capital resources USD 125.00 million Proposed
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Aoki, Ichiro
Project Sponsor(s) Alsim Alarko Sanayi Tesisleri ve Ticaret A.S.
Korea Expressway Corporation
Makyol Insaat Sanayi Turizm ve Ticaret A.S.
SK Engineering and Construction Co. Limited
Description The project comprises of design, construction, financing, operations and maintenance of a 66 km open access toll road in Almaty, Kazakhstan. A group of international financiers including ADB is considering providing a 15-year senior loan to finance the construction, operation, and maintenance of the project.
Objectives and Scope The project is expected to alleviate traffic congestion in the city of Almaty by diverting commercial and passenger vehicles, enabling them to circumvent the city center and transit at higher speed. It would also establish an important transportation and regional cooperation link between Asia and Europe.
Linkage to Country/Regional Strategy The project is consistent with key operational priorities of ADB's Strategy 2030, which includes, among others, making cities more livable, and fostering regional cooperation and integration. ADB's support for the project is also in line with its country partnership strategy for Kazakhstan, 2017-2021, as the project will help promote private sector development, address infrastructure bottlenecks, and foster regional cooperation and integration. The project is aligned with ADB's Sustainable Transport Initiative, which advocates introduction by development member countries of more sustainable approach to road maintenance, incorporating improved maintenance planning, execution, and financing.
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Anticipated significant environmental issues include: i) expected noise levels at several sections of the road; and ii) impacts and risks on aquatic habitats associated with bed diversions. Other potential impacts and risks include: i) pollution prevention, management and control during construction and operation; ii) road and traffic safety; iii) emergency preparedness and response; and iv) community health and safety. The final Environmental and Social Impact Assessment will include an Environmental Management Plan to address potential impacts and risks.
Involuntary Resettlement Approximately 690 hectares of land in Karasaisky, Ilijsky and Talgarsky districts has been acquired by the government for the proposed project per national laws and regulations between 2007 and 2014. Land acquisition affected 784 land parcels, out of which 62 parcels were public land and 722 parcels were privately owned or leased (339 in Karasaisky district, 197 and 186 in Ilijsky and Talgarsky districts, respectively) and were expropriated. The land acquired for the project constitutes 6.1 percent of the total area of affected 784 land parcels as some parcels were only partially expropriated. The project is undertaking an audit in order to identify any residual risks resulting from this historic land acquisition process and will identify vulnerable groups and supplemental mitigation measures to be taken. The assessment will include a risk management plan with responsibility for actions apportioned between the project and the government. The Environmental and Social Impact Assessment will include Land acquisition and Resettlement Principles to ensure that any future unanticipated land acquisition that would cause involuntary displacement impacts will be undertaken in accordance with lender requirements.
Indigenous Peoples The proposed project does not have the potential to directly or indirectly affect the dignity, human rights, livelihood systems, or culture of indigenous peoples. There are no distinct and vulnerable ethnic minority groups identified in the area of the proposed project.
Stakeholder Communication, Participation, and Consultation The project has prepared a stakeholder engagement plan, which maps out future engagement and disclosure activities during project preparation, implementation and operation. Various public consultation activities including public hearing meetings and focus group discussions with the community representatives were conducted in 2013 and in 2018.
Timetable for assistance design, processing and implementation
Concept Clearance 26 Oct 2015
Credit Committee Meeting -
Approval -
Last PDS Update 28 Mar 2019

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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None currently available.

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Big Almaty Ring Road (BAKAD) PPP Toll Road Project: Environmental and Social Impact Assessment Environment and Social Impact Assessments Sep 2018

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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