Concept Paper

Project Number: 46145 March 2012

Republic of Kazakhstan: CAREC Corridor 3 (Shymkent-Tashkent Road) Rehabilitation Project

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I. THE PROJECT A. Rationale

1. The project will rehabilitate a 37-km four-lane asphalt-paved Category 1 road section in Kazakhstan, part of the road connecting Shymkent, one of the major industrial cities in Kazakhstan, and Tashkent, the capital of Uzbekistan. The European Bank of Reconstruction and Development (EBRD) will finance the remaining 62 km of the road in parallel. The project road is in poor condition and with traffic expected to increase over the next few years, rehabilitation to an all weather road is required. The project road will start from Shymkent at the junction of CAREC Corridors 1 and 3, and is expected to extend benefits of the ongoing ADB-assisted improvement works along CAREC Corridor 1 in Zhambyl Oblast. In addition, commodities’ trade network will be enhanced from/to Shymkent because of various manufacturing industries active in Shymkent. The project aligns with the government’s development strategy and ADB’s Strategy 2020, and is included in ADB’s Country Operations Business Plan for Kazakhstan (2012). Appendix 1 provides the basic project information. 2. The Shymkent-Tashkent road is located on CAREC Corridor 31 (Russian Federation–Middle East and South Asia), which runs from west and south Siberian region of the Russian Federation through Kazakhstan, Kyrgyz Republic, Tajikistan, Afghanistan, and Uzbekistan to the Middle East and South Asia. It intersects CAREC Corridor 1 at Shymkent. Therefore, the project road is an important conduit for regional and international traffic. Kazakhstan has been facing bottlenecks in the transport sector, with poor road conditions around the country coupled with inadequate institutional and financial capacity for maintaining and regularizing road transport. Existing roads are not rehabilitated and maintained well, and their technical and operational characteristics are below international standards. Appendix 2 shows a problem tree analysis. 3. The government of Kazakhstan has adopted the 2020 Strategy for Economic Development and the State Program on Accelerated Industrial-Innovate Development (SPAID) to diversify the economy and promote balanced developments. In recognition of the needs of developing more connectivity internally and with its surrounding countries to enhance regional cooperation in traffic and trade, the government has developed the Transport Sector Program for 2010–2014 (TSP), which describes the future vision of integrating the Kazakhstan’s transport system into the international transport network. To overcome the bottlenecks in the transport sector and in support of the government’s efforts, ADB approved the multitranche financing facility for the CAREC Corridor 1 (Zhambyl Oblast) [Western Europe-Western People’s Republic China International Transit Corridor] Investment Program (the Investment Program) in 2008. Four projects under the Investment Program and one additional stand alone project 2 are ongoing to improve road sections along CAREC Corridor 1 running from Horgos through Almaty towards Shymkent. Other international financial institutions are providing financing to improve other sections along the same corridor. 1 The corridor is one of the six priority corridors under the CAREC Transport and Trade Facilitation Strategy (2009). 2 Under the Investment Program, a $340 million loan was approved for Project 1 in 2008. Subsequently, the loans

for Project 2 ($187 million), Project 3 ($173 million), and Project 4 ($112 million) were approved in 2009, 2010, and 2011, respectively. Another $95 million loan was approved in 2011 for a standalone project to construct a bypass in Taraz City to link road sections being rehabilitated in the projects above.

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B. Impact, Outcome, and Outputs

4. The project’s impact will be improved regional cooperation and trade along CAREC corridors. The outcome will be efficient transport network in the Shymkent-Tashkent road section, and the output will be a 37-km rehabilitated road section. Appendix 3 provides the preliminary design and monitoring framework. C. Investment and Financing Plans 5. The project will cost approximately $380 million equivalent, inclusive of taxes and duties (Table 1). The government has requested a loan of $125 million from ADB to help finance the project. The loan, from ADB’s ordinary capital resources,3 will have a loan term, grace period and repayment schedule as determined during the project’s fact-finding mission; an annual interest rate determined in accordance with ADB’s London interbank offered rate-based lending facility; a commitment charge of 0.15% per year; and such other terms and conditions set forth in the draft loan agreement. Whether or not the government will be obligated to pay a maturity premium on the loan will be determined at fact-finding based on the loan terms and repayment option selected by the government. The tentative financing plan is summarized in Table 2.

Table 1: Cost Estimatesa Item ADB Government

Amount % Amount % Total Civil works 297.5 85 52.5 15 350.0 Construction supervision consultant 22.5 85 4.05 15 27.0 Contingenciesb 2.55 85 0.45 15 3.0

Total Cost 323 85 53.00 15 380.00 а Including taxes and duties, which will be paid by the government. b Contingencies for price escalation include reserve for possible changes in exchange rate from the current rate

$1=KTZ150. Physical contingencies included in the civil works category. Sources: Ministry of Transport and Communications of the Republic of Kazakhstan and the Asian Development Bank estimates.

Table 2: Tentative Financing Plan

Source Amount

($ million) Share of Total (%)

Asian Development Bank 125.00 32.89

EBRD 200.00 52.63

Government of Kazakhstan 55.00 14.47

Total 380.00 100.00 EBRD = European Bank for Reconstruction and Development. Sources: Ministry of Transport and Communications of the Republic of Kazakhstan and the Asian Development Bank.

D. Indicative Implementation Arrangements

6. The Ministry of Transport and Communications (MOTC) will be the executing agency (EA). The Committee of Roads, a responsible authority for road transport under MOTC, will be the implementing agency. Procurement of civil works and construction supervision consultancy service financed from ADB will be undertaken according to ADB’s Procurement Guidelines (2010, as amended from time to time) and Guidelines on the Use of Consultants (2010, as 3 ADB. 2001. Ordinary Operations Loan Regulations Applicable to LIBOR-Based Loans Made from ADB's Ordinary

Capital Resources. Manila.

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amended from time to time), respectively and the procurement plan to be developed for the project. International competitive bidding will be used for all the procurement exercises. Advance contracting for civil works will be requested prior to MRM. MOTC will be required to include the relevant sections of ADB’s Anticorruption Policy (1998, as amended to date) in all bidding and contractual documents.

II. TECHNICAL ASSISTANCE

7. The government conducted a feasibility study of the road section of Shymkent toward Tashkent in 2008. Following that study, MOTC has been carrying out preparatory work for the project. However, extra work is needed to undertake an economic analysis, safeguards due diligence, and advance procurement. Therefore, small-scale project preparation technical assistance (S-PPTA) is recommended to prepare the project (Appendix 4). 8. The TA is estimated to cost $225,000 equivalent, to be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-other sources). The government will provide in-kind contribution by providing office space for the consultants and staff time. The detailed cost estimate for the S-PPTA is presented in Table 3.

Table 3: Cost Estimates and Financing Plan ($'000)

Item Total Cost ADB Financinga 1. Consultants a. Remuneration and per diem i. International consultants (8 person-months) 160.0 ii. National consultants (2 person-months) 10.0 b. International and local travel 30.0 c. Reports and communications 3.0 2. Miscellaneous administration and support costsb 3.0 3. Contingencies 19.0 Total 225.0

a Financed by the Asian Development Bank's Technical Assistance Special Fund (TASF-other sources). b Surveys cover traffic, engineering, social, and environmental surveys and other field surveys, as necessary. Source: Asian Development Bank estimates.

III. DUE DILIGENCE REQUIRED

9. Due diligence is underway and will continue under the proposed S-PPTA. The current status is as follows:

(i) Technical. The project road will be rehabilitated and upgraded to a four-lane asphalt-paved Category 1A road. This is justifiable due to an expected increase in freight and passenger traffic volumes and trade of manufactured goods between Shymkent and Tashkent. For such traffic increases in future, axle load weigh stations will be considered to be installed along the project road as part of the civil works to deter overloading of freight vehicles. A technical assessment of the project will be undertaken under the S-PPTA.

(ii) Economic and financial. The project will benefit road users, road construction

companies, traders, logistics companies, industrial companies, and other people

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who will enjoy income opportunities from the project. The major project benefits will be savings in vehicle operation costs and travel time, and reduced traffic accidents. An economic and financial assessment of the project will be undertaken under the S-PPTA.

(iii) Governance. The policies, procedures, capacity of financial management,

procurement, anticorruption, and other institutional issues and mechanisms will be reassessed before loan negotiations.

(iv) Poverty and social. Poverty and social analysis including gender analysis of the

project will follow ADB’s Handbook on Social Analysis (2007). Overall poverty reduction impacts will be (i) reduced transport cost, (ii) jobs created during road construction and maintenance, and (iii) economic activities enhanced along the project road. An assessment of the poverty and social aspects of the project will be undertaken under the S-PPTA.

(v) Safeguards. MOTC reported that the project will not involve land acquisition or

involuntary resettlement, as the proposed works will be done within the existing right-of-way. Land acquisition is reportedly limited to the section to be financed by EBRD. There are no ethnic communities in project area that may be considered as indigenous people as defined by ADB. In the S-PPTA, due diligence will be conducted to validate if there are no past or potential involuntary resettlement impacts from the civil works in the 37-km section proposed for ADB financing to ensure that the project complies with ADB’s Safeguard Policy Statement (2009) and relevant laws and regulations in Kazakhstan. In case gaps or non-compliance are noted, a corrective action plan will be agreed with the government. ADB will coordinate with EBRD to develop a common safeguards framework for addressing environmental impacts and potential or unanticipated involuntary resettlement impacts in the project. Based on a rapid assessment, the project is classified as environmental category B, and category C for involuntary resettlement and indigenous people.

IV. PROCESSING PLAN

A. Risk Categorization

10. The project is designated low risk because (i) the project loan amount does not exceed $200 million, (ii) the sound record of ADB’s investments in Kazakhstan’s transport sector, (iii) the EA has reasonable capacity and experience for administering externally-financed projects, and (iv) all safeguard categorizations for the project are other than A.

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B. Resource Requirements

11. The processing of the project will require inputs from 5 staff for about 26 person-weeks on procurement, resettlement, environmental safeguard, and project administration. About 8 person-months of international consultants and 2 person-months of national consultant4 will be engaged to assist the processing of the project under the S-PPTA. C. Processing Schedule

12. Major milestones up to loan effectiveness will be as follows:

Table 4: Proposed Processing Schedule Milestones Expected Completion Date

Concept paper approval April 2012

Loan Fact-finding Mission April 2012

Circulation of draft RRP and Loan Agreement June 2012

Management Review Meeting July 2012

Loan Negotiations August 2012

Board Circulation August 2012

Board Approval September 2012

Loan Signing December 2012

Loan Effectiveness February 2013

Source: Project team estimates.

V. KEY ISSUES

13. There is no major issue at this stage.

4 The S-PPTA will require inputs of 8 person-months of international consultants and 2 person-months of national

consultants, comprising (i) 1 person-month of a highway engineer, (ii) 3 person-months of a transport economist, (iii) 2 person-months of a procurement specialist, (iv) 2 person-months of a social development specialist, and (v) 2 person-months of an environment specialist.

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BASIC PROJECT INFORMATION Aspects Arrangements Modality Project loan

Financing The total project cost is estimated at about $380 million equivalent. ADB will

finance part of it through a $125 million loan from ADB’s ordinary capital resources.

COBP/RCOBP The project is included in the draft COBP for Kazakhstan (2012).

Classification Sector (subsectors): Transport and information and communication technology (road transport)

Themes (subthemes): Regional cooperation and integration, economic growth

(widening access to markets and economic opportunities)

Targeting classification: General intervention Gender mainstreaming category: Some gender benefits Location impact: Regional (High), National (High), Rural (Medium) and Urban

(Medium) Safeguards: Environment (B), Involuntary resettlement (C), and Indigenous people (C)

Risk categorization Low

Partnership(s) European Bank of Reconstruction and Development

Use of a PBA N/A

Parallel PIU An existing project implementation unit within the Committee of Roads under the Ministry of Transport and Communications will manage implementation of the project.

Department and division

Central and West Asia Department /Transport and Communications Division

Mission leader and members

Sunil Mitra, Principal Transport Specialist, CWTC Tatsuya Kanai, Senior Advisor, CWOD Nurlan Djenchuraev, Environment Specialist, CWOD-PSS Jeremy Stickings, Senior Gender Specialist, CWOD-PSS Jose Tiburcio Nicolas, Social Development Specialist (Safeguards), CWOD-PSS Rika Idei, Transport Specialist, CWTC Douglas Perkins, Counsel, OGC Asem Chakenova, Operations Analyst, KARM Maria Cecilia Y. Villanueva, Senior Operations Assistant, CWTC

ADB = Asian Development Bank, COBP = country operations business plan, N/A = not applicable, PBA = programmatic based approach, PIU = project implementation unit,

Appe

ndix 2 7 PROBLEM TREE

Causes

Problem

Effects

Inefficient transport system

Poor / piecemeal planning

Inadequate and ineffective transport

services

Higher transport cost Longer travel time Transit traffic realized less than KAZ potential level

KAZ economy less integrated to the global economy

Sustainable economic development hampered due to increased economic vulnerability

Insufficient and

deteriorated roads

Lack of the long-term road map

Limited human

resource capacity

Insufficient investments

Inadequate maintenance

Appendix 4 9

SMALL-SCALE PROJECT PREPARATORY TECHNICAL ASSISTANCE (S-PPTA) A. Justification

1. The government of Kazakhstan conducted a feasibility study of the road section of Shymkent toward Tashkent in 2008. Following that study, the Ministry of Transport and Communications (MOTC) has been carrying out preparatory work for the project. However, extra work is needed to undertake an economic analysis, safeguards due diligence, and advance procurement. Therefore, the small-scale project preparation technical assistance (S-PPTA) is recommended to prepare the project. B. Major Outputs and Activities

2. The S-PPTA will produce the following outputs: (i) due diligence reports for engineering, economic, social and environmental safeguards; (ii) project implementation and financing plan for ADB assistance; and (iii) procurement documents for civil work and construction supervision consultancy service. 3. The major outputs and activities are summarized in Table A4.1.

Table A4.1: Summary of Major Outputs and Activities Major Activities Expected

Completion Date Major Outputs Expected

Completion Date Mobilization of Consultants April 2012 Inception report April 2012 Public consultations April 2012 Due diligence reports

(Engineering, Economic Analysis, Social and Environmental Safeguard)

May–June 2012 Closing the TA December 2012

C. Cost Estimate and Proposed Financing Arrangement

4. The S-PPTA is estimated to cost $225,000 equivalent, to be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-other sources). The government will provide in-kind contribution by providing office space for the consultants and staff time. The detailed cost estimate is presented in Table A4.2.

Table A4.2: Cost Estimates and Financing Plan ($'000)

Item Total Cost ADB Financinga 1. Consultants a. Remuneration and per diem i. International consultants (8 person-months) 160.0 ii. National consultants (2 person-months) 10.0 b. International and local travel 30.0 c. Reports and communications 3.0 2. Miscellaneous administration and support costsb 3.0 3. Contingencies 19.0 Total 225.0

a Financed by the Asian Development Bank's Technical Assistance Special Fund (TASF-other sources). b Surveys cover traffic, engineering, social and environment surveys and other field surveys as necessary. Source: Asian Development Bank estimates.

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D. Consulting Services

5. The S-PPTA will (i) carry out due diligence on technical, economic, social, and environmental safeguards; (ii) prepare project implementation and financing plan for ADB assistance; and (iii) prepare procurement documents for civil works and construction supervision consultant . The consultants to be recruited under the S-PPTA will mainly work on-site, with some home office work for report preparation. The consultants will be recruited individually in accordance with its Guidelines on the Use of Consultants (April 2010, as amended from time to time).

Table A4.3: Summary of Consulting Services Requirement Positions Person-Months Required International 8 Transport Economist 3 Highway Engineer 1 Procurement Specialist 2 Social Development Specialist 2 National

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Environment Specialist 2 Source: Asian Development Bank estimates. 6. The outline terms of reference and required qualification for the S-PPTA consultants are as below:

(i) Transport Economist: The expert will undertake (i) determining the project rationale by assessing the preceding ADB-financed projects and existing Kazakhstan’s transport sector policies, (ii) traffic analysis and forecasts of freight and passenger traffic for the 20-year timeframe, (iii) cost-benefit analysis comparing with and without the project, and (iv) sensitivity analysis. In addition, the expert will develop the design and monitoring framework with setting project performance indicators and consult with stakeholders. The qualifications required are an economic degree and a minimum of 15 years of professional experiences in this expertise in the infrastructure sector. Having working experiences in similar geological conditions and in ADB’s developing member countries are preferable.

(ii) Highway Engineer: The expert will undertake (i) assessing the current condition

of the project road and studying the existing designs; (ii) reviewing the preliminary design in the feasibility study; (iii) examining the demand for overall road transport, including freight traffic and passenger traffic, and developing the traffic forecast for the 20-year timeframe; (iv) estimating project benefits; (v) assisting in the preparation of bill of quantities and unit price and estimating the overall project cost; (vi) suggesting implementation arrangements and organizational setups during the civil works; and (vii) preparing routines and periodic maintenance plan during the project road’s economic life. The qualifications required are (i) a bachelor’s degree in civil engineering/transport engineering, and (ii) a minimum of 10 years of professional experiences in this expertise. Having working experiences in similar geological conditions and in ADB’s developing member countries are preferable.

Appendix 4 11

(iii) Procurement Specialist: The expert will undertake (i) developing the

procurement plan and a list of contract package, (ii) assessing the needs for consultant inputs for construction supervision, (iii) assisting MOTC in its procurement activities including the preparation of bidding documents, (iv) obtaining all necessary clearances in the procurement course within the government and ADB and keeping all procurement records in appropriate order, and (v) assisting MOTC during procurement prior-reviews. The qualifications required are (i) a bachelor’s degree in civil engineering, (ii) a minimum of 10 years of professional experiences in this expertise, and (iii) adequate knowledge of ADB’s procurement procedures. Having working experiences in ADB’s developing member countries are preferable.

(iv) Social Development, Resettlement and Gender Specialist: The expert will (i)

a due diligence assessment of involuntary resettlement impacts and prepare a corrective action plan if necessary; (ii) prepare a rapid poverty and social analysis for the project; (iii) conduct a gender analysis, identify differential impacts and developing gender design features as appropriate; (iv) propose measures to counter potential adverse impacts such as the spread of HIV/AIDS, STDs, and trafficking; (v) identify and initiate initial coordination with civil society organizations and preparing a draft participation and consultation plan for the project; (vi) prepare a draft common involuntary resettlement safeguards framework with EBRD; and (vii) recommend measures for facilitate employment of the population in the project area and ensure compliance of contractors to labor laws and core labor standards. The expert will be required to hold public consultations and focused group discussions with civil society groups and stakeholders. The qualifications required are (i) a bachelor’s degree in sociology, social development or safeguard-related spheres, (ii) a minimum of 10 years of professional experiences in similar expertise (including gender analysis), and (iii) adequate knowledge of ADB’s Safeguards Policy Statement (2009), and policies on gender mainstreaming. Having working experiences in similar socio-cultural contexts and in ADB’s developing member countries are preferable.

(v) Environment Specialist: The expert will assist MOTC in (i) finalizing an

environmental assessment report and environmental management plan (EMP) following ADB’s Safeguards Policy Statement (2009), based on their previous and ongoing studies; (ii) assessing direct and indirect environmental impacts of the project and its associated facilities including physical impacts, determining environmental mitigation measures and their cost, incorporating those measures into the project design preparing environmental management and monitoring plans; and (iii) developing grievance redress mechanism and participating in public consultations. The qualifications required are (i) a bachelor’s degree in environment, environmental engineering, or safeguard-related spheres; (ii) a minimum of 10 years of professional experiences in similar expertise; and (iii) adequate knowledge of Safeguards Policy Statement (2009). Having working experiences in ADB’s developing member countries are preferable.

12 Appendix 4

E. Implementation Arrangements

7. MOTC will be the executing agency. The Committee for Roads, a responsible authority for road transport under MOTC, will be the implementing agency. MOTC will provide counterpart staff, office space, office equipment, and project-related data and information for the consultant to carry out the works and deliver the outputs. 8. The proposed S-PPTA processing and implementation schedule is in Table A4.4.

Table A4.4: Technical Assistance Processing and Implementation Schedule Major Milestones Expected Completion

Date Engagement of consultants March 2012 Mobilization of Consultants April 2012 Public consultations April 2012 Completion and financial closing of the TA December 2012 EIA = Environment Initial Assessment, IEE = Initial Environmental Examination, LARP = Land Acquisition and Resettlement Plan. Source: Asian Development Bank.

Appendix 5 13

INITIAL POVERTY AND SOCIAL ANALYSIS

Country: Kazakhstan Project Title: CAREC Corridor 3 (Tashkent-Shymkent

Road) Rehabilitation Project

Lending/Financing Modality:

Project Loan Department/ Division:

Central and West Asia Department/ Transport and Communications Division

I. POVERTY ISSUES

A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy

Ranked 68th out of 187 countries reported in 2011 Human Development Index by the United Nations Development Program, Kazakhstan made significant progress in poverty reduction and access to services of basic human needs. However, there remain regional poverty discrepancies among the oblasts, although the discrepancies have been shrinking. Such discrepancies are attributed to the uneven investment and the strategic resources’ allocations. In 2002, Kazakhstan adopted and implemented the State Poverty Reduction Program. The country partnership agreement between the government of Kazakhstan and ADB, which is being circulated for approval, aims at comprehensive development of Kazakhstan. One of the agreed interventions is to support road transport development aimed at improving and maintaining existing infrastructure, facilitating improvements to transport services, and creation of competitive transport markets. The project falls within this agreed intervention. Through the rehabilitation of a 37-kilometer (km) road section, a northern part of the road connecting Shymkent and Tashkent, the project will contribute to the government’s development program. When the road is constructed, including the adjoining 62-km section rehabilitated with EBRD financing, economic activities will increase, along with accessibility to services. B. Targeting Classification

General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2, etc.)

Basis for the targeting classification: The project will rehabilitate a road section, a northern part of the road connecting Shymkent and Tashkent. The road will boost regional traffic and trade of various commodities, since the area along the project road is an active area for agricultural, industrial and commercial sectors in Kazakhstan. Considering such expected comprehensive impacts, the project is classified as general intervention.

C. Poverty Analysis

1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed? Not Applicable 2. What resources are allocated in the S- PPTA/due diligence? An amount of $225,000 is proposed to be financed from TASF-others. 3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor

governance, and pro-poor growth)? No.

II. SOCIAL DEVELOPMENT ISSUESA. Initial Social Analysis Based on existing information: 1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit

from the project?

14 Appendix 5

The potential primary beneficiaries of the project are road users, including vehicle drivers and transport operators, and local residents. Since the project will improve the road conditions, transport costs and travel time will be reduced after project completion. The poor and socially excluded will also benefit from the project because of increased access to markets and job opportunities. 2. What are the potential needs of beneficiaries in relation to the proposed project? Appropriate road safety measures along the project road, including road side facilities, affordable means of transport and reduced travel time. 3. What are the potential constraints in accessing the proposed benefits and services, and how will the project

address them? None B. Consultation and Participation

1. Indicate the potential initial stakeholders. Central and local government, local residents in the project area, civil society, nongovernment organizations (NGOs) and the people to be affected by civil works (if any). 2. What type of consultation and participation (C&P) is required during the PPTA or project processing (e.g.,

workshops, community mobilization, involvement of nongovernment organizations and community-based organizations, etc.)?

Workshops and meetings with NGOs and local residents groups 3. What level of participation is envisaged for project design? Information sharing Consultation Collaborative decision making Empowerment

4. Will a C&P plan be prepared during the project design for project implementation? Yes No Public consultations were conducted during the EA’s project preparation, and will continue to be held to reflect local concerns in the project design. C. Gender and Development Proposed Gender Mainstreaming Category: some gender benefits 1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project/program? Key gender issues in Kazakhstan include the loss of employment opportunities for women, especially in rural areas, and lower levels of pay for women than for men, In addition, the number of HIV infections has been increasing, and along this particular section of road there are concerns about commercial sex workers and trafficking in people and drugs. 2. Does the proposed project/program have the potential to promote gender equality and/or women’s

empowerment by improving women’s access to and use of opportunities, services, resources, assets, and participation in decision making?

Yes No The project will create some employment opportunities for women, who will also gain improved access to larger markets for their produce, and to education and health facilities (women are expected to care for the sick and the elderly). Public training and awareness-raising sessions will be held to address the issues of HIV/AIDS, and trafficking of people and drugs. Population in the immediate vicinity of the road is low, but these benefits will also apply to those living slightly further away. During the S-PPTA, efforts will be made to further identify potential positive impacts on women, and include gender design features in the project. 3. Could the proposed project have an adverse impact on women and/or girls or to widen gender inequality?

Yes No

The project is not expected to exacerbate gender inequalities. Rather, women will benefit from it through improved living conditions and better access to products, services, and job opportunities to be created along the rehabilitated road. Even during project implementation, women will be given job opportunities. A standard clause in the loan agreement of ADB-financed projects commits the borrower to avoid discrimination against women in employment. Consultants and contractors will be required to educate their staff about the risks of HIV/AIDS and other STDs (e.g. arising from the presence of construction camps etc), and about human trafficking.

Appendix 5 15

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue Nature of Social Issue Significant/Limited/

No Impact/Not Known Plan or Other

Action Required

Involuntary Resettlement

Works will be limited to existing ROW. No land acquisition/involuntary resettlement are anticipated. Due diligence will be undertaken during the S-PPTA.

No impact Other action

Indigenous Peoples About 50% of the people living in the project area are Kazakhs; others include Russians and Uzbeks, who. are fully integrated in the area. No indigenous/socially vulnerable peoples are observed.

No Impact No Action

Labor

Employment Opportunities

Labor Retrenchment Core Labor Standards

The project will offer opportunities for construction works to the local population. Provisions will be established in the civil work contract and contractors are required to meet labor law standards.

Not significant Other Action

Affordability No tolls will be charged on the project road. The improvement of the road conditions will reduce vehicle operating costs and travel time.

No impact No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human Trafficking Others (conflict, political instability, etc.), please specify

The project may increase the risks of HIV/AIDS and human trafficking. Mitigation measures will be discussed and included in the civil work contracts.

Significant Other Action

IV. PPTA/DUE DILIGENCE RESOURCE REQUIREMENT 1. Do the TOR for the PPTA (or other due diligence) include poverty, social and gender analysis and the relevant

specialist/s? Yes No

2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social and/or gender analysis, and C&P during the PPTA/due diligence? Yes No