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IMPLEMENTED PROJECT: Construction and operation of the Almaty Ring Road (BAKAD)

About the project

Project status

On February 7, 2018, concession agreement was signed between the Republic of Kazakhstan represented by the Ministry for Investment and Development of the Republic of Kazakhstan and the Consortium, which includes the following companies: Alsim Alarko Sanayi Tesisleri ve Ticaret A.Ş., Makyol Inşaat Sanayi Turizm ve Ticaret A.Ş., SK Engineering & Construction Co., Ltd., Korea Expressway Corporation

Type of contract

A Concession Agreement that provides for the creation of a concession object by the concessionaire and its subsequent transfer to the state property

Grantor

The Ministry of Industrial and Infrastructure Development of the Republic of Kazakhstan

Project objective

·         Creation of a modern high-tech bypass road around Almaty at the intersection of the international corridors "Western Europe – Western China", "Tashkent-Shymkent-Taraz-Bishkek-Almaty-Khorgos" and "Almaty-Karaganda-Astana - Petropavlovsk" with the removal of transit flows outside the boundaries of Almaty

·         Unloading of traffic flows and elimination of the formation of traffic jams on the main roads that are "entrances" to Almaty

Project implementation period

07.02.2018-31.12.2037

 

Cost of construction

KZT 150.6 bln.

Technical and technological parameters of the project

Length - 66 km (category 1-a, 6 lanes)

Bridges - 21 pcs.;

Fly-overs - 19 pcs.;

Transport junction - 7 pcs.;

Intersections in different levels – 13 pcs.;

Estimated speed up to 150 km/h;

Forecast traffic intensity on average up to 38 thousand cars/day

Positive effects

BAKAD Project will generate a high level of economic profitability for two reasons. First, this new road will solve the problem of workload in the city center by moving transport outside the city boundaries, which will save time and reduce transport costs for motorists. Environmental analysis shows that a reduction in traffic within the city boundaries should cause a measurable reduction in atmospheric and noise pollution that is harmful to human health. VAT on tolls paid by motorists and income tax payable by the concessionaire and other motorway businesses will provide partial compensation of state support.

Environmental impact of the project

The Project provides for the Concessionaire to implement a number of measures to mitigate the following possible negative impacts on the environment:

·         air pollution by exhaust gases of motor transport engines;

·         pollution of the natural environment by road construction machines and mechanisms used in construction works;

·         noise caused by machinery and equipment and various construction activities;

·         contamination by dust and wear products of road surfaces and car tires during the movement of vehicles, as well as during the transportation of roadbuilding materials;

·         contamination by products of industrial activities during the extraction of roadbuilding materials, soil development, construction of the roadbed and road topping;

·         possible contamination of the soil cover, surface water sources, various types of vegetation adjacent to the road;

·         disturbance of bird nesting sites and animal habitats.

KPPF's role in the Project

Provision of services to the Committee of Highways under the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan on advisory support of the project, including:

·         development of a concessional offer;

·         development of tender documentation;

·         development of a draft PPP agreement;

·         consulting services in the negotiation process with bidders before signing the agreement;

  • evaluation and elaboration of express agreement with the concessionaire's creditors.

The project provides for the construction of a bypass road around Almaty in order to reduce the transport and environmental burden.

The object of concession, resulting from the execution of the terms of the PPP agreement will be passed after its establishment in state property to the balance of the authorized state body of the road sector (Roads Committee under the Ministry of Industrial and Infrastructure Development of the RK). The PPP agreement also provides for the right to operate the concession object by the concessionaire after its transfer to state property.

  • The source of cost recovery and revenue generation by the Concessionaire is the fee for the availability of the concession object.
  • The availability fee is paid to the concessionaire during the operating period and consists of the following components:
  • Compensation of investment costs
  • Compensation of the concessionaire's operating costs

           Fee for concession object management 

  • The ring road runs 20-25 km from the center of Almaty in its suburban area on the territory of Karasai, Ili and Talgar districts of Almaty region.