COUNTRY | Kazakhstan
REGION | Asia
SECTOR | transport
QII Principles | Principle 3 Environmental Considerations, Principle 5 Social Considerations, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: Wider economic benefits, 2: Value for money analysis, 2: Life-cycle costing, 2: Operation and maintenance, 3: Environmental Impact Assessment, 3: Environmental Impact Mitigation, 3: Ecosystems, 3: Biodiversity, 3: Emissions, 5: Job creation, 5: Capacity and institutional building, 5: Gender, 5: Occupational health and safety, 5: Social inclusiveness, 6: Procurement transparency, 6: Legal and Regulatory Frameworks, 6: Institutional Framework of infrastructure investment, 6: Enabling Environment, 6: Policy
Overview
The total project cost is approximately USD 750 million.
The BAKAD will be a ring road forming the intersection of the international road corridors running along the Khorgos-Almaty-Bishkek-Taraz-Shymkent-Tashkent (known as the Silk Road) and Almaty-Karaganda-Astana-Petropavlovsk routes. The road will comprise a 57-km 6-lane section and a 9-km 4-lane section.
Despite being the largest city in Kazakhstan, Almaty does not yet have a bypass road. The project will divert a significant part of transit traffic flows away from the streets of Almaty, improving connectivity and increasing the speed of cargo transportation as well as the road network's capacity. The BAKAD will also reduce traffic congestion in the city, leading to a decrease in air pollution.
The project is being developed under a 20-year concession agreement signed on February 2018 between the Republic of Kazakhstan and concessionaire owned by a Turkish-Korean consortium comprising Alsim Alarko Sanayi Tesisleri ve Ticaret A.S., Makyol Insaat Sanayi Turizm ve Ticaret A.S., SK Engineering and Construction and Korea Expressway Corporation.
Timeline
The construction is expected to be completed in a 50-month period and will be followed by a 16 year operating period. The project reached financial close in August 2020.
Relevance to QII
Please see the responses to Benefits and Replicability sections.
Benefits
The BAKAD PPP project will have a significant positive impact on air quality, quality of life, and economic growth in Almaty and the region. It will divert a large part of transit traffic flows away from the streets of Almaty, improving connectivity and increasing the speed of cargo transportation as well as the road network's capacity. The BAKAD will also reduce traffic congestion in the city, leading to a decrease in air pollution.
The project is the first motorway construction and operation project in Central Asia to be financed under a public-private partnership (PPP) scheme, demonstrating an alternative and cost-efficient method of financing of infrastructure investment. The project will benefit from an engagement of the private sector in road construction and maintenance, stimulating timely and within budget completion of the project. The project also covenants development and implementation of a Gender Action Plan to enhance HR policies and practices with respect to gender in order to create equal opportunities in workforce and to prevent gender-based violence and harassment. The project will promote an increase in the number of women engaged in construction.
Metrics
The following success monitoring benchmarks have been put in place:
- The concessionaire will equip the motorway with a functioning tolling system for the duration of the concession period in accordance with pre-determined performance standards;
- Through its long-term performance-based contracting, the PPP will ensure sustainable funding and make the operation and maintenance less exposed to economic and political volatility;
- Timely and within budget completion to deliver Value for Money (VfM);
- The ratio of the actual demand to the forecasted equilibrium demand (average annual weighted traffic volume).
Name of Institution
European Bank for Reconstruction and Development
Website URL