ADB Approves $291.49M Loan to Kazakhstan’s KazAvtoZhol to Upgrade Key Highway

KazAvtoZhol to Lead Reconstruction of Kyzylorda–Zhezkazgan Corridor, Improving Climate Resilience, Regional Connectivity, and Gender Equity Initiatives.

The Asian Development Bank (ADB) has approved a sovereign-guaranteed loan of up to $291.49 million to Kazakhstan’s KazAvtoZhol National Company for a major highway reconstruction project aimed at advancing both domestic and regional connectivity. This ADB-funded project will upgrade 208 kilometers of the Kyzylorda–Zhezkazgan highway to an all-weather, climate-resilient road that meets enhanced safety standards, aiming to halve travel time from four hours to two on this key central Kazakhstan route.

The project will also improve Kazakhstan’s role as a bridge between Asia and Europe by addressing infrastructure issues that currently limit the country’s transport efficiency. Yevgeniy Zhukov, ADB Director General for Central and West Asia, noted the economic significance of the project: “Improving the Kyzylorda–Zhezkazgan corridor will alleviate critical infrastructure constraints, fostering economic growth and balanced regional development across Kazakhstan.”

In line with ADB’s Central Asia Regional Economic Cooperation (CAREC) Program, this highway connects with three vital regional corridors (1, 2, and 6), essential routes for trade between Kazakhstan and its neighbouring countries. These upgrades are expected to position Kazakhstan as a key transport hub, strengthening regional integration and boosting trade potential across the wider CAREC network.

To enhance road safety, the project will incorporate features like rumble strips, pedestrian crossings, and secure interchanges, targeting the reduction of traffic-related fatalities, which were recorded at 12.2 deaths per 100,000 people in 2021. These safety measures will benefit both local and international traffic on the route, contributing to a safer and more reliable transport network.

In addition to physical infrastructure improvements, the project emphasizes gender equality and institutional capacity building within KazAvtoZhol. Under the leadership of ADB Senior Transport Specialist Woo-Hyun Kwon, the project includes initiatives to strengthen climate resilience and train female staff and entrepreneurs in the project areas. This will include professional development for female employees and skills training for women entrepreneurs in the affected regions, fostering inclusive economic participation and career advancement for women.

The ADB investment represents a significant step toward sustainable infrastructure development in Central Asia, with KazAvtoZhol overseeing the planning, construction, and maintenance of the upgraded highway. This improved connectivity is expected to boost Kazakhstan’s economic position and trade potential in the region, aligning with ADB’s long-term goal of accelerating economic growth, reducing poverty, and promoting sustainable development across the CAREC member countries.