| Project Detail |
Project Name
Central Asia Regional Economic Cooperation Corridors 1, 2, and 6 Connector Road (Kyzylorda–Zhezkazgan) Reconstruction Project
Project Number
51264-001
Country / Economy
Kazakhstan
Project Status
Approved
Project Type / Modality of Assistance
Loan
Technical Assistance
The project will reconstruct a strategic 208-kilometer (km) section of the Kyzylorda and Zhezkazgan corridor in the Ulytau region, upgrading it to a higher two-lane standard, climate-resilient road, which will improve regional connectivity and boost trade and socioeconomic opportunities in central Kazakhstan. The project will also strengthen KAZHs institutional capacity in climate resilience, gender equality, and financial sustainability.
Project Rationale and Linkage to Country/Regional Strategy
Leveraging transit potential: As the worlds largest landlocked country and given its location at the crossroads of Europe and Asia, Kazakhstan needs to fully leverage its strategic position to connect East Asia with Western Europe. Despite this significant transit potential, inefficiencies and excessive costs in transport and logistics hinder the countrys industrial productivity, trade stimulation, diversification from an oil-dominated economy, and non-carbon economic growth.
Enhancing regional and global integration: Kazakhstan is the largest economy in Central Asia and an upper middle-income country; its gross domestic product per capita was $13,277 in 2023. Given the relatively small domestic demand, the country must integrate into the regional and global economy to expand its markets and enhance growth; this integration has been impeded by infrastructure constraints.
Central Kazakhstan challenges: Zhezkazgan, the administrative center of the Ulytau region, lacks all-weather connectivity with the northern economic center of Astana as well as the southern agricultural and economic clusters of Shymkent, Turkistan, and Tashkent (the capital of Uzbekistan) via Kyzylorda. A 100 km section of the proposed 208 km project road remains unpaved and is impassable from November to February because of a combination of harsh weather, snowmelt, and muddy conditions. Addressing these shortcomings in transport infrastructure is crucial for enhancing Kazakhstans geostrategic advantage and supporting sustainable economic and social development.
Country and regional priorities: Kazakhstans Strategy 2050 guides the countrys overall socioeconomic development directions. Two essential infrastructure development themes are (i) supporting economic growth with efficient transport infrastructure and logistics, and (ii) prioritizing regional infrastructure to provide basic accessibility and enhance connectivity. The governments key initiatives in the transport sector include (i) the National Infrastructure Plan of the Republic of Kazakhstan until 2029, focusing on infrastructure expansion, improvement for global competitiveness, and services of higher quality, with the KyzylordaZhezkazgan road reconstruction as a prioritized project; and (ii) KAZHs Development Strategy for 20232032, aimed at advancing its role as a sustainable national highway operator.
CAREC alignment: The governments strategy 2050 is in line with the CAREC Transport Strategy 2030, which seeks to improve regional and national transport networks to meet the growing social, economic, and trade connectivity needs. The project will contribute to seamless connectivity of the AstanaKaragandaZhezkazganKyzylordaShymkentTashkent corridor (1,800 km). As the project road also links CAREC Corridor 2 (eastwest) with CAREC Corridors 1 and 6 (northsouth), the project will contribute to increasing trade, both national and international, particularly northbound toward the Russian Federation and southbound toward Uzbekistan. Furthermore, the project will support CAREC Transport Strategy 2030, particularly its sustainability objective of improved economic and social conditions through better connectivity. It will also contribute to the implementation of the CAREC 2030 strategy, with a focus on its operational cluster on infrastructure and economic connectivity.
Impact
Transport infrastructure improved to enhance competitiveness globally and provide higher-quality services to citizens (Kazakhstan National Infrastructure Plan 2029) |
