MANILA, PHILIPPINES (29 October 2024) — The Asian Development Bank (ADB) has approved a sovereign-guaranteed local currency loan of up to $291.49 million equivalent to “KazAvtoZhol” National Company” JSC (KazAvtoZhol) to reconstruct 208 kilometers of road in central Kazakhstan that will improve domestic and regional connectivity, road safety, and promote national and international trade.

The ADB project will upgrade the existing two-lane highway connecting Kyzylorda to Zhezkazgan, the administrative center of the Ulytau region, to a higher standard, climate-resilient two-lane road. The rehabilitated road will provide all-weather access and reduce travel time from 4 to 2 hours on the route.

“By improving the Kyzylorda–Zhezkazgan corridor, we are addressing critical infrastructure constraints that hinder Kazakhstan’s economic growth and balanced regional economic development,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “The project road is also crucial for leveraging Kazakhstan’s geostrategic advantage and boosting regional and global integration.”

Kazakhstan, the largest economy in Central Asia, is well-placed to become a bridge between Asia and Europe. However, the country faces significant challenges in leveraging its strategic position due to inefficiencies and high costs in transport and logistics. The country has also seen a high traffic fatality rate, with 12.2 deaths per 100,000 people in 2021.

To improve road safety, the project incorporates rumble strips, safer pedestrian crossings, and interchanges. These measures are expected to significantly reduce accidents and enhance the overall safety of the road corridor.

The reconstruction will also improve connectivity between three corridors (1, 2, and 6) of the Central Asia Regional Economic Cooperation (CAREC) Program which are strategic trade routes with neighboring countries. The ADB-supported CAREC Program is a partnership of countries and development partners working together to promote sustainable development, accelerate economic growth and reduce poverty.

KazAvtoZhol is responsible for the planning, construction, operation, and maintenance of national highways of Kazakhstan.

“ADB’s project will strengthen KazAvtoZhol’s institutional capacity in climate resilience, gender equality, and financial sustainability,” said ADB Senior Transport Specialist Woo-Hyun Kwon. “It will provide professional development training for KazAvtoZhol’s female staff and local female students and enhance the knowledge and skills of women entrepreneurs in the project areas.”

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.