August 23, 2010
1. On August 23, the Japan International Cooperation Agency (JICA) signed a Japanese ODA loan agreement with the government of the Republic of Kazakhstan for up to 6.361 billion yen for the CAREC Transport Corridor (Zhambyl Oblast) Improvement Project. This is the first Japanese ODA loan to Kazakhstan in seven years since the FY2003 loan of 21.361 billion yen for the Astana Water Supply and Sewerage Project.
2. Under this project, a main national road in Kazakhstan's southern Zhambyl Province will undergo the construction of a new bypass, as well as rehabilitation work on existing lengths with the aims of regional economic development and the reduction of regional disparities. The target route is a portion of the international transportation network that would connect Europe and Asia, as proposed by the Central Asia Regional Economic Cooperation (CAREC).
3. This project is the second project to be implemented in the Central Asia Region under the ACFA (accelerated cofinancing scheme with ADB) with an objective of promoting cofinancing with a Japanese ODA loan and the Asian Development Bank (ADB).
4. Kazakhstan neighbors Russia to the north, Kyrgyzstan, Uzbekistan and Turkmenistan to the south, and China to the east. Being near Afghanistan as well, Kazakhstan is a geopolitically important nation, whose socioeconomic stability and development are key for the stability of the region as a whole. However, the country is landlocked and distant from overseas markets in Europe and Asia, and the population, natural resources and economic bases are scattered throughout the country, whose area is the largest in Central Asia (about seven times that of Japan).
5. Kazakhstan aims for economic development through the regional integration of domestic regions and its surrounding countries, and the development of a trunk road is a pressing need as a foundation for such integration. The disparities in the development of primary roadways are particularly marked between urban and rural areas, and have become a hindrance to socioeconomic development. Recognizing this, the government announced a development policy titled "Kazakhstan – 2030" in 1997, which cites development of primary roadways as one of seven long-term national priorities.
6. As this project area forms part of the South-North Corridor, which runs through Central Asia and the Arabian Sea via Afghanistan, and the East-West Corridor, which connects Central Asia and Europe via the Caucasus, it is expected to contribute to promoting collaboration within the region. At the occasion of the Third "Central Asia plus Japan" Foreign Ministers' Meeting held on August 7, Mr. Katsuya Okada, the Japanese Foreign Minister, expressed Japan's preparedness to support the development of transport and distribution infrastructure, which would contribute to the economic development, of each country in the region, the promotion of distribution of goods within the region, and the improvement of regional linkages. It is JICA's policy to support such efforts to meet these goals.
|Project title||Amount (million yen)||Annual interest rate (%)||Repayment period/|
Grace period (years)
|CAREC Transport Corridor (Zhambyl Oblast) Improvement Projecｔ||6,361||1.70||25/7||ADB untied *|
* This is an internationally competitive tendering by member nations and regions stipulated in the ADB founding agreement.
2. Executing Agency
Ministry of Transport and Communications, the Republic of Kazakhstan
Address: 010000, Astana city, Kabanbai batyr av.47, office 608
Phone: +7 (717) 229-3042 Fax: +7 (717) 229-9065
3. Planned Implementation Schedule