| Contact: |
Gina Ciagne (202) 458-4166 |
|
To obtain project documents please contact the World Bank's Infoshop
at tel: 202-458-5454, fax: 202-522-1500, email: |
WASHINGTON, February 9, 1999 — The World Bank today approved a US$100 million loan for a Road Transport Restructuring Project that will help create more efficient road and road transport sub-sectors in Kazakhstan.
The project includes the following components:
- Rehabilitation of priority sections of national roads;
- Strengthening of routine maintenance;
- Institutional strengthening of the Department of Roads and development of the road maintenance and construction industry;
- Improvements in road transport policies and regulations; and
- Improvement in road safety.
Because of its unique economic and geographic features, Kazakhstan relies on transport more than most other countries in the region, with the exception of Russia. In Kazakhstan, an efficient transport sector is therefore essential for the development of domestic and international trade, as well as for most other private sector-driven activities. The demand for transport services has somewhat rebounded in the past couple of years, but it is unlikely to return to the very high levels of the late 1980s.
Despite its vital importance to Kazakhstan's economy, the country's road network is in poor condition and quickly deteriorating. Of the 17,000 km of national (including transnational) roads, only 37 percent are in good condition, similar to the situation in Russia, but worse than that in most other comparable countries. Other public roads are in similar condition, though not as urgently in need of attention as the national network. Clearly there is a major need for rehabilitation of national roads.
There is also a need to improve the institutions and regulatory framework for the road and road transport sub-sectors. Indeed, despite steady progress in the past, the State's ability to plan, budget, and implement road programs still needs development. Better regulations and enforcement are also necessary to ensure road user safety, protection of the environment, and efficient provision of transport services.
The total project cost, including contingencies, is US$135.7 million, of which the Government of Kazakhstan is contributing US$35.7 million. The loan will carry the standard interest rate for LIBOR-based single currency loans in US dollars, and has a maturity of twenty years, including a 5-year grace period. Since Kazakhstan joined the World Bank in 1992, the Bank has committed a total of approximately US$1.61 billion for 17 projects. |
