1. Building the New Silk Road: EBRD transport infrastructure investments in
Central Asia
Askar Namazbayev, Transport Team
12 March 2013

2. What is the EBRD?
EBRD transport Infrastructure investments in Central Asia
Case studies

3. 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 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 4

4. Where we operate May 2012

5. EBRD projects span every business sector
Transport
Municipal & Environmental Infrastructure
Property & Tourism
Financial Institutions
Natural Resources
Telecommunications, Informatics & Media
Manufacturing & Services
Power & Energy
Industry, Commerce & Agribusiness

6. The Bank invests in a broad range of Transport projects including, but not limited to..
Road rehabilitation and construction of new highways, secondary and rural roads, by-passes, maintenance equipment and contracting, toll-motorway 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)

7. What is the EBRD?
EBRD transport Infrastructure investments in Central Asia
Case studies

8. 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;

9. 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.

10. 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.

11. What is the EBRD?
EBRD transport Infrastructure investments in Central Asia
Case studies

12. 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.

13. 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.

14. The tender launch is planned for the second half of 2013.
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:
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
Almaty

15. Contacts Sue Barrett EBRD Director – Transport One Exchange Square
For all further enquiries, please contact :
Sue Barrett
Director – Transport t: e:
Askar Namazbayev
Principal Banker, Transport t: e:
EBRD
One Exchange Square
London
EC2A 2JN
United Kingdom
Samal distr., 12, Astana Business Tower
Astana, Kazakhstan