The World Bank Implementation Status & Results Report SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) EUROPE AND CENTRAL ASIA | Kazakhstan | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2009 | Seq No: 23 | ARCHIVED on 01-Jan-2020 | ISR38262 | Implementing Agencies: REPUBLIC OF KAZAKHSTAN, Ministry of Investments and Development Key Dates Key Project Dates Bank Approval Date: 30-Apr-2009 Effectiveness Date: 09-Dec-2009 Planned Mid Term Review Date: 03-Dec-2012 Actual Mid-Term Review Date: 27-Nov-2012 Original Closing Date: 31-Dec-2013 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Project aims to increase transport efficiency along the road sections between Aktobe/Kyzylorda Oblast border and Shymkent and to improve road management and traffic safety in Kazakhstan. 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 objective of the Project is to improve transport efficiency along road sections in Kyzylorda, South Kazakhstan and Almaty Oblasts, improve road management and increase traffic safety in Kazakhstan. Components Table Name Upgrade and reconstruction of road sections along the WE-WC Corridor within Kyzylorda oblast (excluding the bypass to Kyzylorda):(Cost $1260.00 M) Upgrade and reconstruction of road sections within South Kazakhstan oblast, including the bypass to Kyzylorda:(Cost $880.00 M) Project Management Consultants:(Cost $14.00 M) Institutional Development, Road Safety, Road Services and Road Asset Management System:(Cost $4.00 M) Supervision of civil works:(Cost $66.00 M) Upgrade and reconstruction of road sections within Almaty oblast:(Cost $276.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory 1/1/2020 Page 1 of 7 The World Bank Implementation Status & Results Report SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project is on track towards the achievement of its PDO. Total disbursements have reached US$1.88 billion (88.4% of total Loan), with about US$44.7 million disbursed in FY20. The initial scope to construct about 1,200 km (24 lots) of new motorways (both four and two lanes) has been completed and these roads are now open to traffic. The civil works on seven sections added during the Project’s three restructurings are ongoing under five contracts, which were all visited by the Bank team during the mission. These include the Tunnel in Shymkent and adjacent 39 km road section in Turkestan oblast under Component 2, and five lots (total 180km in length) in Almaty and Zhambyl oblasts financed under Components 6. In addition, it was noted during the mission that the Client needs to strengthen its contract management capacity at all levels, both for the works supervision and Project Management Consultant (PMC), to adequately monitor project implementation and address issues on a timely manner. To this effect it was agreed that the Client will update the Bank on specific measures taken to strengthen the team by January 31, 2020. The following is a summary of activities by component (except for Components 3 and 5 that provide implementation support through financing Project Management and Supervision Consultants services): Component 1 - Upgrade and reconstruction of road sections along the Western Europe -Western China (WE-WC) Corridor within Kyzylorda oblast (excluding the bypass to Kyzylorda): All civil works on a 760 km road stretch (14 lots) in Kyzylorda oblast have been completed and are currently under a defect liability period. Component 2 - Upgrade and reconstruction of road sections within South Kazakhstan oblast, including the bypass to Kyzylorda: Out of 10 lots financed under this component, only two (tunnel and a 39 km road section) on the Khorgos-Almaty-Shymkent-Uzbekistan border corridor remain to be completed. The slow progress of construction of the tunnel and the road works continue to be a serious concern. The progress has further been affected by the collapse of the tunnel in August 2019 at two locations, triggering the need for extension of time to address these and other technical issues. Thus, based on the volume of work and contractor’s historical performance the consultant estimates to complete the works by the revised completion date of July 1, 2020. As of November 2019, the physical progress was only at 53%, requiring a close follow up by the CR to ensure completion by the revised date. There are also potential social risks arising from the lack of proper Code of Conduct by the contractor on site that includes risks and impacts of gender-based violence and child labor. The Client has been requested to monitor the works closely and update the Bank on the implementation status and actions taken by January 30, 2020, and submit the Code of Conduct that is fully compliant and has been introduced to all workers by January 15, 2020 Component 4 – Institutional Development, Road Safety, Road Services and Road Asset Management System (RAMS): All the activities under this component have been completed, except for the development of the RAMS. While major activities for the RAMS are completed, testing, operationalizing of the system, training of staff and final commissioning are some of the activities which are yet to be completed. To this effect the, Client has signed a new contract with the previous consultant to finalize these activities. Component 6 - Upgrade and reconstruction of road sections within Almaty oblast: This component, added during the third restructuring, finances the following activities: (i) upgrading of the Kurty-Togyz road section in Almaty oblast (85km, 2 lots) along the Center-South Corridor, (ii) upgrading of the Otar-Uzynagash section in Almaty and Zhambyl oblasts (96km, 3 lots) to the border with Kyrgyzstan along the WE-WC corridor, and (iii) continuation of improvements in road safety, roadside services, and road asset management. The civil works on these roads are currently ongoing with a mixed level of progress.  Kurty-Togyz (Lot 1 and Lot 2): The execution of works is very slow with 7.5% and 35% physical progress in Lots 1 and 2 respectively against 80% originally planned. The Borrower is currently considering various options to resolve the problem. Due to slow progress of works on this contract, the Client is currently considering various options as how to resolve the contractor’s poor performance. With regards to the social safeguards issued raised in this contract, the non-payments of salaries have been largely resolved. However, there are some remaining issues on subcontractor payments and the need to improve the living conditions at its labor camp. The Client will update the Bank on the decision on the contractor’s performance by December 31, 2019, and on the resolution of social issues by January 15, 2020;  Otar-Uzynagash (Lot 1 and Lot 3): The works are progressing well, and the contractor’s performance is satisfactory. The issue to access borrow pit at km 143 has now been dropped as the contractor opted for other alternatives. The Resettlement Action Plan (RAP) should for this section should also be updated to account for additional land acquisition of Café Akbulak (Lot 3). The contracts for the temporary use of land plots by the contractor in Lot 1 have still not been signed. The revised RAP will be submitted to the Bank by January 31, 2020, and the land use contracts for Lot 1 will be signed by January 15;  Otar-Uzynagash (Lot 2): The contractor has mobilized resources and personnel in full, and the camp construction and other preparatory works are advancing. Due to delayed mobilization and late start of works, the supervising engineer will advise whether the contract can be completed by the original completion date. 1/1/2020 Page 2 of 7 The World Bank Implementation Status & Results Report SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) 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 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 -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve transport efficiency along road sections in Kyzylorda, South Kazakhstan and Almaty Oblasts IN00735153 ►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. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.26 0.24 0.24 0.23 Date 09-Jun-2009 06-Jun-2018 09-Dec-2019 01-Dec-2021 IN00735154 ►Proportion of the Republican road network length that are in Good or Fair conditions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 53% 70.00 73.00 86% Date 09-Jun-2009 06-Jun-2018 09-Dec-2019 01-Dec-2021 IN00735155 ►Reduce, by the end of the Project, the rate (per 100 million veh-km) of road crash fatalities along the Project road sections by atleast 10% (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.00 9.50 9.55 9.50 1/1/2020 Page 3 of 7 The World Bank Implementation Status & Results Report SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) Date 01-Jun-2007 06-Jun-2018 09-Dec-2019 30-Jun-2018 IN00735191 ►Implementation and Effective use of Road Management System by the Committee (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target RAMS activities framework completed. Equipment tested. The system was rolled out RAMS activities in 14 oblasts. framework completed. However, additional 7 Value No system in place Equipment tested. The months service System in place system was rolled out in agreement was signed 14 oblasts. in Dec. 2019 for capacity building and to complete some elements of the system. Date 09-Jun-2009 06-Jun-2018 09-Dec-2019 30-Jun-2018 Intermediate Results Indicators by Components Upgrade and reconstruction of road sections along the WE-WC Corridor within Kyzylorda oblast (excluding the bypass to Kyzylorda) IN00735192 ►Number of kilometers of roads upgraded (cumulative km) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 788.00 788.00 788.00 Date 09-Jun-2009 28-Nov-2018 09-Dec-2019 01-Dec-2021 IN00735198 ►Updating of road data for Republican roads (% of total length per year) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0% 75.00 80.00 100% Date 09-Jun-2009 07-Jun-2018 09-Dec-2019 01-Dec-2021 Upgrade and reconstruction of road sections within South Kazakhstan oblast, including the bypass to Kyzylorda IN00735193 ►Roads constructed (Kilometers, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 353.00 353.00 354.00 Date 02-Dec-2009 28-Nov-2018 09-Dec-2019 14-Dec-2021 1/1/2020 Page 4 of 7 The World Bank Implementation Status & Results Report SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) Project Management Consultants IN00735194 ►Training received by the Committee staff from PMC (staff-hours) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,500.00 3,500.00 4,500.00 Date 09-Jun-2009 07-Jun-2018 09-Dec-2019 31-Dec-2021 Institutional Development, Road Safety, Road Services and Road Asset Management System IN00735195 ►Road asset management strategy, Rolling multiyearroad maintenance, and rehabilitation programestablished (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target system in place, system in place, tested, Value Not established tested, rolled out in 14 Established rolled out in 14 oblasts. oblasts. Date 09-Jun-2009 07-Jun-2018 09-Dec-2019 30-Jun-2018 IN00735199 ►Prepare road safety strategy and action plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not established Established Established Established Date 09-Jun-2009 07-Jun-2018 09-Dec-2019 30-Jun-2018 Supervision of civil works IN00735196 ►Works, Goods, and Consulting Services contracts processed and managed by the PMC (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 (W); 0 (G); 0 (CS) 28(w), (1) G, 11(CS) 28(w), (1) G, 11(CS) 28(W);1(G);11(CS) Date 09-Jun-2009 07-Jun-2018 09-Dec-2019 31-Dec-2021 Upgrade and reconstruction of road sections within Almaty oblast IN00735197 ►Roads constructed (Kilometers, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 181.00 Date 28-Nov-2018 28-Nov-2018 09-Dec-2019 23-Dec-2021 Roads are not yet completed Comments: IN00735200 1/1/2020 Page 5 of 7 The World Bank Implementation Status & Results Report SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) ►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 30-Jun-2010 10-Dec-2018 09-Dec-2019 30-Dec-2021 During the course of construction of the road, people living adjacent to the road, made requests to the Committee for Roads for some additional works, such as pedestrian crossing, cattle crossing, culverts, change of the location of the rest areas, construction of foot path, bus shelters, selling area for their local products, access roads to the village, labour payments, payments to the suppliers, site staff Comments: accommodation, canteen, food supply, etc., through the local authority (Akimat) and to the Employer. Upon checking and review of their requests, most of these requests were included in the project design and implemented under through the Variation Orders to the contract within the project completion period without changing the original scope of works. IN00735201 ►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 1.00 511.00 511.00 700.00 Date 18-Jun-2010 10-Dec-2018 09-Dec-2019 30-Dec-2021 The total number of feedbacks received from the citizens so far through the project website total 511. There were no new complaints recieved during the last reporting period. Some of the feedbacks received from the citizen were directly responded to by the Committee for Roads, while others were included in the design and addressed through the project. The nature of the inquiries was mostly related to additional services such as including additional pedestrian crossings, cattle crossings, culverts, change in location of the rest areas, construction of foot Comments: paths, bus shelters, trading area for the citizens' products, access roads to the village, payments for labor, etc. Some other inquiries are related to the completion date of the road construction, reasons for closure of the road section, road traffic accidents, traffic control and safety during construction, etc. The CfR has already addressed most of these inquiries and continues addressing them in consultation with the local authorities, supervision engineers and contractors on site. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P099270 IBRD-76810 Effective USD 2,125.00 2,125.00 0.00 1,878.57 246.43 88% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P099270 IBRD-76810 Effective 30-Apr-2009 13-Jun-2009 09-Dec-2009 31-Dec-2013 31-Dec-2021 Cumulative Disbursements 1/1/2020 Page 6 of 7 The World Bank Implementation Status & Results Report SOUTH-WEST ROADS: WESTERN EUROPE-WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR (CAREC 1B & 6B) (P099270) Restructuring History Level Approved on 25-Jun-2012 ,Level 1 Approved on 25-Jun-2015 ,Level 1 Approved on 16-Jun-2017 Related Project(s) There are no related projects. 1/1/2020 Page 7 of 7