Kazakhstan : Central Asia Regional Economic Cooperation (CAREC) Corridors 3 and 6 Turkistan Oblast Highway (Saryagash Bypass) Project

Transport / Road transport (non-urban)

Country and sector context. Kazakhstan's economy relies on a well-functioning road system, as evidenced by 29.0% of freight and 88.2% of passengers being transported by road in 2019. With a sparse population (7 people per km2)2, maintaining connectivity is crucial socially and economically. Given this context, addressing the current shortcomings in its transport infrastructure and enhancing regional connectivity is essential to strengthen its geostrategic advantage, stimulate trade, diversify the economy, and promote non-carbon economic growth. The project in the Turkistan Oblast, along with ADB's KyzylordaZhezkazgan Reconstruction Project, strategically strengthens the linkage between Central Asia and South Asia, especially between Kazakhstan and Uzbekistan. As part of CAREC Corridor 3 and 6, the project enhances the linkage between the region's key economic hubs (Shymkent-Tashkent-Khujand Economic Corridor) and potentially offers an alternative option to the Middle Corridor initiative.

Regional disparities. The government has demonstrated commitment to addressing the widening regional disparities that spurred protests in January 2022.5 The Turkistan oblast significantly lags economically and socially, with the highest poverty rate of 9.7% in Q2 2023, compared to the national poverty rate of 5.1% (2.5% in Astana) in the same period. The country partnership strategy (CPS) for Kazakhstan, 20232027 sets an objective to promote inclusive economic growth by reducing socioeconomic and regional disparities, improving access to services in lagging regions, and enhancing transport connectivity in the country. In this context, the project that diverts through-traffic, including Heavy Goods Vehicles (HGV), currently traversing Saryagash city, aligns with government strategy and CPS, acting as a catalyst for economic and social development, and representing the most significant public investment in this region in recent decades.

Climate and disaster resilience. With temperatures rising faster than the global average, Kazakhstan faces increased vulnerability to frequent droughts, accelerated glacier melting, and a higher risk of floods. The project incorporates measures for climate and disaster resilience, aiming to enhance the road's resilience to intensifying extreme weather conditions and disasters.

Sector experience and lessons learned. From 2008 to 2022, ADB financed six loans to improve major corridors of the national road network, totaling $1.94 billion. The project will incorporate lessons learned from previous projects, particularly integrating FIDIC conditions of contract, and continuously supporting the latest efforts in road safety by development partners.

Private sector development. Current policy directions and institutional reforms aim to liberalize the road sector to attract private investment, and enhance project delivery, road quality, and asset sustainability. Through the involvement of the private sector in the Performance-Based Maintenance Contract (PBMC), the sustainability of road assets can be strengthened. The incorporation of the Design-Build (DB) modality may also enhance the enabling environment for private sector engagement, which often includes the form of DB.

Transport efficiency and regional connectivity improved

Mobility in the Turkistan region of Kazakhstan improved by 2031

Climate-resilient, disaster-prepared and universally-inclusive road constructed by 2030

Institutional capacity on road safety and asset sustainability improved by 2030