The Republic of Kazakhstan and the World Bank signed a loan agreement on the East-West Roads Project (Almaty-Khorgos section): the International transit corridor Western Europe-Western China (CAREC 1b) on 10 October 2012. Kazakhstan’s Minister of Finance Bolat Zhamishev said the agreement will complete the upgrade of the transit corridor.
A new 305-kilometer road section of the corridor from Almaty to Khorgos will help improve transport efficiency between Kazakhstan and the People’s Republic of China. It has great potential to boost regional economy by accelerating trade flows and increasing economic prospects. The road will improve access to markets, enhance business opportunities, and create more jobs.
The road project will also help improve highway operations and maintenance, leading to lower social costs associated with road traffic injuries, and increased travel speed. World Bank Country Manager for Kazakhstan Sebnem Akkaya said that an adequate institutional capacity is required in managing important public assets such as roads.
In the course of implementation of the West Europe–West China Road Corridor Development Program, Kazakhstan is taking steps toward reforming the Ministry of Transport and Communications to improve the road asset management system, road safety, and road services.
The World Bank loan of $1,068 million is boosted by cofinancing of $188.5 million from the Kazakhstan state budget. The Ministry of Finance will handle servicing and acquittance of the loan from the funds envisaged by the Law On the State Budget for the next fiscal year, according to the financial terms and conditions of the Loan Agreement.
(Photo credit: World Bank)
- Project Page: East-West Roads Project (Almaty-Korgos Section): Western Europe-Western China International Transit Corridor (CAREC 1b)
- World Bank press release: A loan agreement on the East-West Roads Project signed between the Republic of Kazakhstan and the World Bank
- CAREC feature: From south-west to east-west, Kazakhstan’s CAREC Corridor 1 portion gets another upgrade