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  2. (AP3F005-PP003) Project preparation assistance for the Saryagash and Shymkent bypass road projects
(AP3F005-PP003) Project preparation assistance for the Saryagash and Shymkent bypass road projects
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COUNTRY:
Kazakhstan
TA AMOUNT:
$1,933,897
TYPE OF ASSISTANCE:
Project Preparation
PROJECT STATUS:
Inactive
Beneficiaries
Ministry of Investments and Development (MID) and the Roads Committee of MID (CoR)
Background

Shymkent and Saryagash are located in South Kazakhstan, near the Uzbekistan border. The region is a major agriculture and industrial hub and has a population of approximately 3 million

The Roads Committee (CoR), under MID has requested AP3F to provide project preparation assistance for the development of Saryagash and Shymkent bypasses as either separate PPPs or as a single PPP considering that the two projects, in close proximity to each other, are of a similar nature and complexity. The exact PPP modality will be finalized once feasibility studies for both bypasses are completed.

It is envisaged that:

  • Saryagash bypass will be converted into a four lane (56km) road;
  • Shymkent bypass will be developed into a four lane (48km) category 1b road; and
  • The commercial viability of launching a single tender combining Shymkent and Saryagash bypasses with connecting corridors will also be evaluated.
Key Activities

  • Phase 1 (non-recoverable grant basis): prepare heads of agreement for various modalities of road PPPs and develop a common understanding of the technical, operational and financial risks typically associated with availability payment-type PPPs and concession-type PPPs

  • Phase 2: review and complement the ongoing feasibility study for the Shymkent bypass and conduct a detailed feasibility study for the Saryagash bypass, recommend to CoR the most appropriate PPP modality and advise on the commercial viability of combining the two bypasses (include connecting corridors, if necessary) under a single tender

  • Phase 3: assist CoR in launching the tender(s) and inviting private sector bidders to design, build, finance, operate and maintain the projects and bring the projects to commercial and financial close

Expected Outcomes

At least one AP3F-supported project achieves commercial or financial close