Building the New Silk Road:
EBRD transport infrastructure investments in
Central Asia
Askar Namazbayev,
Infrastructure Russia and Central Asia
June 2013
1. What is the EBRD?
2. EBRD transport Infrastructure investments in Central Asia
3. Case studies
What is the EBRD?
The European Bank for Reconstruction and Development:
•
International financial institution dedicated to promote
transition to market economies by investing mainly in
the private sector development and entrepreneurship.
•
Established in 1991. Headquartered in London, the
Bank has 36 regional offices.
•
Owned by 64 countries and two intergovernmental
institutions (AAA rated)
•
Largest single investor in the region (34 countries from
Central Europe to Central Asia): €78.8bn in more than
3,644 projects since 1991
Where we operate
May 2012
EBRD projects span every business sector
Transport
Financial Institutions
Manufacturing
& Services
Municipal & Environmental
Infrastructure
Property & Tourism
Natural Resources
Telecommunications,
Informatics & Media
Power & Energy
Industry, Commerce
& Agribusiness
The Bank invests in a broad range of Transport
projects including, but not limited to..
Road
Road rehabilitation and construction of new highways, secondary and
rural roads, by-passes, maintenance equipment and contracting, tollmotorway construction and operation
Rail
Rehabilitation, maintenance and construction of rail infrastructure (track,
signaling, power supply, civil structures), Rail operations (rolling stock,
maintenance facilities)
Ports &
Shipping
Rehabilitation and construction of port infrastructure (berths, quays, land
access), superstructure (warehouses, gantries), inland waterways, and
vessels
Logistics &
Intermodal
Construction of intermodal terminals & logistic centres, support to
intermodal operators
Aviation
Rehabilitation and construction of airport infrastructure and terminals for
passenger & cargo, airline finance, air navigation services (ANS)
1. What is the EBRD?
2. EBRD transport Infrastructure investments in Central Asia
3. Case studies
Transport infrastructure investments in CA
Portfolio by Region
Portfolio by Sector
In Central Asia the Bank’s portfolio in transport sector exceeds EUR 1 billion
in 20 projects, with Kazakhstan being the largest country of operation;
Road infrastructure in Kazakhstan
- Kazakhstan has a strategic location between Europe and Asia;
- The Government plans to improve transit corridors for trade with China, Russia and Europe;
- One of the most important corridors is the Western China – Western Europe International Transport
Corridor, running 2,800 km across the country (running along ancient Silk Road routes);
- The construction started in 2009 and expected to finish in 2014/15. The total cost of construction is
estimated to top USD 5.7 billion. IFIs, including EBRD provide funding.
WC-WE is part of CAREC
transport corridors..
-
The Central Asia Regional Economic Cooperation, or CAREC Programme was established
by the Asian Development Bank (ADB) in 1997 in cooperation with six multilateral
institutions, including EBRD.
-
The Programme is active the Central Asia as well as several other countries outside the
region.
-
CAREC aims to achieve its overall development objectives by promoting regional
cooperation in four priority areas: Transport; Trade Facilitation; Energy, and Trade Policy.
-
-
EBRD’s engagement in the CAREC programme has so far focussed mainly on transport
projects. The majority of CAREC’s transport projects have been in the road sub-sector.
Going forward CAREC related investments are expected to reach USD 23 billion to boost
regional integration.
1. What is the EBRD?
2. EBRD transport Infrastructure investments in Central Asia
3. Case studies
Case Study
Aktobe-Martuk road rehabilitation project

Client:
Ministry of Finance of Kazakhstan

EBRD finance:
USD 180 million

Type of finance:
Sovereign debt

Total Project
cost:
USD 207 million

Year:
2009

Project
description:
The Project is to rehabilitate and upgrade the 102 km long
road section from Aktobe to the border of the Russian
Federation. This is the most northerly link in Kazakhstan of
the WC-WE Transit corridor.

Impact:

Fostering expansion of private sector participation in the
development, management and operation of road
infrastructure by assisting the Government with structuring
a first pilot PPP.

Increase the role of private sector in the route road
maintenance by introduction of Service-Level agreements.
Case Study
Shymkent-Tashkent road rehabilitation project

Client:
Ministry of Finance of Kazakhstan

EBRD finance:
USD 142 million

Type of finance:
Sovereign debt, co-financing with ADB

Total Project
cost:
USD 378 million

Year:
2012

Project
description:
The Project is to reconstruct and upgrade the 99 km long
road section from the city of Shymkent to the border with
Uzbekistan. This is the most southerly link in Kazakhstan of
the WC-WE Transit corridor.

Impact:

Improving the efficiency of the road sector administration
by facilitating the establishing an independent road
agency.

Increase the role of private sector in the route road
maintenance by assisting with structuring a pilot
performance based maintenance contract.
Case Study
Structuring the first road PPP in Kazakhstan –
work in progress

The Government requested the Bank to assist with structuring the first
pilot road PPP in Kazakhstan and chose the Greater Almaty Ring
Road for the purposes of the pilot (also known as BAKAD).

The city of Almaty is the largest city in Kazakhstan (population >1.6m)
and lies on the WC-WE transit corridor.

In July 2012 EBRD joined forces with IFC in order to facilitate
structuring. Preparation of the feasibility study and update of technical
parameters is under way (March 2013).

The tender launch is planned for the second half of 2013.

Key highlights of the project:
Almaty

4- 6-lane road with total length of 64 km, passing major
international corridors around the city of Almaty.

Estimated construction cost is USD 730 m
Contacts
For all further enquiries, please contact :
Askar Namazbayev
EBRD
Principal Banker,
Infrastructure
t: + 7 7172 58 02 04
Samal distr., 12,
Astana Business
Tower
e: namazbaa@ebrd.com
Astana, Kazakhstan