The World Bank Implementation Status & Results Report East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - EUROPE AND CENTRAL ASIA | Kazakhstan | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2012 | Seq No: 15 | ARCHIVED on 03-Jan-2020 | ISR37943 | Implementing Agencies: Republic of Kazakhstan, Ministry of Investments and Development Key Dates Key Project Dates Bank Approval Date: 01-May-2012 Effectiveness Date: 14-Jun-2013 Planned Mid Term Review Date: 28-Dec-2012 Actual Mid-Term Review Date: 28-Dec-2012 Original Closing Date: 30-Jun-2017 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objectives (PDOs) are to increase transport efficiency along the section of the Western Europe-Western China Road Corridor within Almaty Oblast and to modernize highway management on sections of the Western Europe-Western China Road Corridor. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The project development objective (PDO) is to increase transport efficiency and modernize highway management along the Selected Road Sections of the Western Europe – Western China Road Corridor and the Center-South Corridor. Components Table Name Component 1: Upgrade and construction of the Selected Road Sections:(Cost $1250.00 M) Component 2: Modernize highway management along the Western Europe-Western China Road Corridor and Center -South Corridor:(Cost $6.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Implementation Progress: The project continues to be implemented satisfactorily and is on track towards achievement of project development objectives. Total disbursements have reached US$632 million (59% of total loan), with about US$26.5 million disbursed in FY20. Total expected 1/3/2020 Page 1 of 7 The World Bank Implementation Status & Results Report East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - disbursements in FY20 are estimated at US$87.6 million. The construction of 305km motorway along the Western Europe - Western China (WE- WC) corridor between Almaty and border with China at Khorgos has been completed and the section is now open to traffic. The toll collection system at Almaty-Khorgos section, financed under the project, has also been launched and undertaken by KazAutoZhol (KAZ) for operation. The toll road has started generating revenue and will be essential in ensuring the sustainability of the investments made on Almaty-Khorgos under the project. The additional 297km of Balkhash-Burylbaital road section (6 lots), which is part of the Almaty-Astana corridor, were added during the 2017 restructuring to utilize the savings from the loan. The restructuring was ratified by the Government only in December 2018. To date all the contracts of all the 6 lots have been signed and the contractors are in the process of mobilization. Procurement of supervision consultants has also been completed. However, the Bank has highlighted the need to strengthen the project management consultants (PMC) team and ensure timely submission of Quarterly Progress Reports and other required documents. The PMC team should have a social specialist in addition to the environmental specialist in the team and receive training on Bank’s fiduciary and safeguards procedures by January 31, 2020. The below is a summary of activities by component: Component 1 - Upgrade and construction of the Selected Road Sections: The contracts for the 6 lots of Balkhash-Burylbaital road (297 km added during the last restructuring for estimated budget of US$392 million) were signed in April 2019, and the commencement orders were issued in June 2019. However, not all contractors have fully mobilized yet and the progress of works on all lots, except Lot 2, is far behind the schedule. The supervision consultants are on site and fully mobilized, but their teams require strengthening to ensure compliance with Bank’s safeguards policies. To this effect, the Client has been requested to enhance overall management and monitoring of civil works contracts, including acceleration of contractors’ mobilization and strengthening of capacity of the supervision consultant teams. In addition, the Client has been advised to urgently ensure familiarity of the supervision engineers and contractors with the Bank's safeguards policies and guidelines and take corrective measures to address the compliance with the safeguards policies on all contracts by January 31, 2020. The Client has also been reminded of the need to report any incidents happening at the construction sites, including road accidents, within 24 to 72 hours of their occurrence as required by the Banks Guidelines. Component 2 - Modernize highway management along the WE-WC Road Corridor and Center-South Corridor:  Road Safety. The CR has completed a road safety (i-RAP) assessments of the design of the new road sections on Balkhash-Burylbaital added during 2017 restructuring. Currently, the CR is procuring consulting services to conduct road safety assessment within the European Road Infrastructure Safety Assesment Programme (EuroRAP) Framework. The procurement of consulting services to implement the Euro-RAP is almost complete (in contract negotiations stage);  E-Tolling. This component supported the development and installation of the e-tolling system for the 305km Almaty-Khorgos section. This system has been completed and is now fully functioning;  Road Sector Advisor to prepare feasibility study for Turkestan Bypass construction: The CR has launched the procurement of consulting services to prepare the feasibility study for Turkestan Bypass construction using EPC or PBC type of contract;  National Center for Quality of Road Assets (NC): The project supported establishment of the NC, which officially opened in March 2019. The NC has a management team in place and staff from the 14 CR’s Oblast laboratories nation-wide have been transferred to the NC. However, it requires further capacity building and operationalization support. The NC’s responsibilities will include the management of RAMS, road safety, quality of materials, and innovation. The Bank team discussed with the management of the NC the ways to support the new institution further under the EWRP. Potential savings from the project loan: Based on the commitments made so far, there are potential savings in the project that can be used to finance additional activities. The Ministry of Industry and Infrastructure Development has expressed its interest to finance bypasses in Shymkent and Turkestan from these savings. The Bank will need to review the feasibility studies and understand the potential social and environmental impacts from these new proposed activities. Proper safeguards instruments will have to be prepared following the Bank’s safeguards policies and procedures. To ensure timely implementation, the final decision on the use of savings must be received from the Ministry of Finance as soon as possible. The Committee for Roads will also need to share the feasibility studies for the proposed new activities. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate 1/3/2020 Page 2 of 7 The World Bank Implementation Status & Results Report East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Low Low Environment and Social -- Substantial Substantial Stakeholders -- Low Low Other -- Moderate Moderate Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes increase transport efficiency and modernize highway management along selected road sections of WE-WC IN00725505 ►Transport Efficiency:Reduce by the end of the Project, Road User Costs from US$0.26/veh-km to US$0.23/veh-km on Project road sections (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.26 0.24 0.24 0.23 Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 IN00725511 ►Transport Efficiency: Reduce Travel time on the Almaty -Khorgos section of the WE WCh corridor (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 3.00 3.00 3.00 Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2018 IN00725512 Travel Efficiency: Reduce travel time on the selected section of the Center South Corridor (Hours, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 4.00 3.80 3.00 Date 12-May-2017 07-Jun-2018 10-Dec-2019 31-Dec-2021 IN00725513 ►Modernization of highway management: Introduction of sound operation and maintenance practices along the WE-WC Corridor and Center South Corridor. (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 300.00 300.00 600.00 Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 IN00725514 ►Modernization of highway management: Financing gap for operations and maintenance activities along the WE-WC and Center South Corridor (Percentage, Custom) 1/3/2020 Page 3 of 7 The World Bank Implementation Status & Results Report East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - Baseline Actual (Previous) Actual (Current) End Target Value 50.00 40.00 40.00 20.00 Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 IN00725515 ►Roads in good and fair condition as a share of total classified roads (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 70.00 85.00 87.00 95.00 Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 Intermediate Results Indicators by Components Component 1: Upgrade and construction of the Selected Road Sections IN00725516 ►Roads constructed, non-rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 305.00 355.00 605.00 Date 12-Jan-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 Component 2: Modernize highway management along the Western Europe-Western China Road Corridor and Center - South Corridor IN00725517 ►CR and KAZ Staff familiar with new operation and maintenance methods (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 200.00 210.00 300.00 Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 IN00725518 ►User survey --the number of users interviewed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 184.00 204.00 500.00 Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 IN00725519 ►Length of the road network for which new user-pay principles (e.g., tolling) are agreed upon. (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 750.00 780.00 1,000.00 1/3/2020 Page 4 of 7 The World Bank Implementation Status & Results Report East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - Date 01-Mar-2012 07-Jun-2018 10-Dec-2019 31-Dec-2021 IN00725520 ►Changes to Project activities as a result of citizen feedback (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Jan-2013 07-Jun-2018 10-Dec-2019 31-Dec-2021 During the course of construction of the roads, people living adjacent to the roads made requests to the Committee for Roads for some additional works, such as pedestrian crossings, cattle crossings, culverts, change in location of the rest areas, construction of footpaths, bus shelters, trading areas for sale of local products, access roads to the villages, payments for labor, payments to the suppliers, etc.. These Comments: requests were made through the local authorities (Akimats) and to the Employer directly. Upon checking and reviewing the requests, some of them were incorporated in the project designs and implemented through the Variation Orders to existing contracts within the project completion period. IN00725521 ►Feedback on Project activities received - Number of questions from citizens answered at the Project website (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 508.00 538.00 700.00 Date 18-Jun-2010 07-Jun-2018 10-Dec-2019 31-Dec-2021 The total number of inquiries received from the citizen totals 538 of which 511 were submitted through the project website and 27 directly reported to the Committee for Roads. 30 inquiries were received during the last reporting period. Some of the inquiries received have been directly responded to by the Committee for Roads, while others have been addressed through integration within the project. The nature of the inquiries is mostly related to additional services such as pedestrian crossings, cattle crossings, culverts, change in location of the rest areas, construction of footpaths, bus shelters, trading Comments: areas for sale of products, access roads to the villages, payments for labor, etc. Some other feedbacks are related to the completion date of the road construction, reasons for closure of the road sections, road traffic accidents, traffic control and safety during construction, etc. The Committee for Roads has already addressed most of the feedbacks and continues addressing them in consultation with the local authorities and contractors on site. IN00725522 ►Complete road safety audit of the design for Balkhash-Burylbaital Road; improvements integrated. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 17-May-2017 07-Jun-2018 10-Dec-2019 31-Jan-2018 IN00725523 ►Develop and operationalize the road accident database (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 17-May-2017 07-Jun-2018 10-Dec-2019 31-Dec-2020 Overall Comments IR 1/3/2020 Page 5 of 7 The World Bank Implementation Status & Results Report East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - From the progress to date, its likely that most of the targets can be achieved by the end of the projects. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P128050 IBRD-81560 Effective USD 1,068.00 1,068.00 0.00 631.69 436.31 59% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P128050 IBRD-81560 Effective 01-May-2012 10-Oct-2012 14-Jun-2013 30-Jun-2017 31-Dec-2021 Cumulative Disbursements 1/3/2020 Page 6 of 7 The World Bank Implementation Status & Results Report East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - Restructuring History Level 1 Approved on 16-Jun-2017 Related Project(s) There are no related projects. 1/3/2020 Page 7 of 7