WASHINGTON, November 15, 2024 ¨C The World Bank¡¯s Board of Executive Directors approved today $650 million in financing support for in Kazakhstan, specifically targeting the Jezkazgan-Karagandy section of the Trans-Caspian International Transport Route (Middle Corridor). The project is financed jointly with the Asian Infrastructure Investment Bank (AIIB) and marks the first collaboration between the World Bank Group and AIIB in Kazakhstan.
Through substantial capital investments in targeted sections of the Middle Corridor between Jezkazgan and Karagandy, the TRACE project will enhance national and local connectivity and improve trade routes. The project will benefit local communities by improving access to services and employment, supporting economic growth in Ulytau and Karagandy regions, and driving more robust national integration.
¡°With the approval of this project, the World Bank continues supporting sustainable infrastructure development in Kazakhstan to improve connectivity along the Middle Corridor,¡± said Andrei Mikhnev, World Bank Country Manager for Kazakhstan. ¡°This project will focus on enhancing climate resilience and introducing innovative solutions for road construction and maintenance.¡±
The project aims to develop transport systems to make the country¡¯s roads more climate-resilient and safer, and addressing increased motor congestion. The corridor will include elements such as improved road construction materials, flood prevention arrangements, snow barriers, and other measures.
The TRACE project will also support women's economic participation by offering jobs and internships in the road sector, aiming to reduce gender-based occupational segregation. It also includes a grievance mechanism for addressing concerns about equal opportunities, abuse, and harassment.
¡°In parallel with infrastructure investment, the project activities will strengthen governance mechanisms in the transport sector in Kazakhstan with reform initiatives to optimize the efficiency of contracting and maintenance, and enable private sector investment,¡± said Nijat Valiyev, leader of the World Bank project preparation team. ¡°It will also address challenges posed by emissions from cars and develop modern road design standards geared towards resilience and safety.¡±
The project will be implemented by the ¡°KazAvtoZhol National Company¡± Joint Stock Company, with a sovereign guarantee from the Republic of Kazakhstan. ľ¹ÏÓ°Ôº is providing a loan of JPY 94,441,800,000 (approximately US$650 million equivalent) with AIIB co-financing under a separate agreement with the Government of Kazakhstan. The project is expected to close on June 30, 2032.
