The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) Concept Environmental and Social Review Summary Concept Stage ( ESRS Concept Stage) For Official Use Only Date Prepared/Updated: 03/27/2024 | Report No: ESRSC04197 Jul 07, 2024 Page 1 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P500565 Investment Project Financing (IPF) TRACE 2025 Operation Name Transport Resilience and Connectivity Enhancement Project Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Kazakhstan Kazakhstan EUROPE AND CENTRAL Transport ASIA Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Republic of NC QazAvtoJol JSC 15-Jul-2024 15-Nov-2024 Kazakhstan Estimated Concept Total Project Cost For Official Use Only Review Date 01-Dec-2023 1,531,035,000.00 Proposed Development Objective To strengthen the resilience of transport systems in Kazakhstan and improve climate-adapted road connectivity along the Jezkazgan - Karagandy section of the Middle Corridor. B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities [Description imported from the Concept Data Sheet in the Portal providing information about the key aspects and components/sub-components of the project] Kazakhstan's transportation networks are crucial for facilitating physical and economic connectivity across its vast and sparsely populated land. Despite notable progress, significant gaps remain in the national and regional transport corridors. These gaps hinder the connectivity and integration of Kazakhstan's regions with both internal and regional markets. The proposed Project Development Objective (PDO) is to strengthen the resilience of transport systems in Kazakhstan and provide climate-adapted road connectivity along the Jezkazgan - Karagandy section of the Middle Jul 07, 2024 Page 2 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) Corridor. The project will support the construction of selected sections of the 513 km long A17 Jezkazgan - Karaganda corridor by upgrading the highway through piloting design, build, and maintain contracts. The project will restore the highway to a serviceable and climate-resilient condition by fully reconstructing of the existing carriageway and will improve the ride quality, making it economically maintainable, and reducing road user costs. The Project will also support developing associated infrastructure for services, tolling, axle load control, as well as local roads rehabilitation to enable last-mile connectivity for rural populations and agricultural producers. The project will complement implementation of ambitious Government development plans for the newly established Ulytau Oblast, which faces social, environmental, and connectivity challenges. Through substantial capital investments in targeted sections of the Middle Corridor, the project seeks to deliver tangible enhancements in connectivity. These improvements will not only benefit local communities but also foster more robust national and international integration. The Project activities seek to develop transport systems to make the country’s roads more climate resilient and safer, address motorization challenges, and improve the multimodality of the Middle Corridor. The Project will improve the climate resilience and safety of roads in Kazakhstan by modernizing design practices and introducing a systematic approach to motorization management, contributing to emission reduction. Technical assistance will explore opportunities to better integrate road, railway, ports, and logistics networks and identify missing transport links constraining the corridor’s development. In parallel with infrastructure investment, project activities will also strengthen governance in the sector with initiatives to optimize the efficiency of contracting and maintenance and facilitate private sector investment. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings For Official Use Only [Description of key features relevant to the operation’s environmental and social risks and opportunities (e.g., whether the project is nationwide or regional in scope, urban/rural, in an FCV context, presence of Indigenous Peoples or other minorities, involves associated facilities, high-biodiversity settings, etc.) – Max. character limit 2,000] The project area is characterized by hot summers & cold winters with a recurrence of severe weather events (i.e., strong winds, snowstorms and natural fires) and hence, presents safety risks both during construction and operations. The main road corridor will pass 27 settlements with varying population densities. The regional economy is dominated by manufacturing, followed by mining sectors. Agriculture represents a small share of the overall economy and is much lower in areas with poor road networks. A significant portion of the working age population is being absorbed in the manufacturing and mining industries. There could be local labor shortages due to outflow of population for economic purposes. Rural areas suffer from low levels of transport accessibility, with less than half of the road networks paved, thus further limiting the potential for economic diversification. Along the proposed corridor, the existing road conditions are generally in poor conditions, with lack of reinforcement and lowering of road shoulders and defects (i.e., potholes, cracks, and pothole repairs). In non-populated areas, no lighting and sidewalks were observed. Between 2018 and 2023, 138 road accidents, with 94 casualties and 222 injuries were recorded on the corridor (km 946-433,350). A high proportion of the fleet in the project area consists of trucks, busses and private cars. Speeding and poor road conditions, are attributed to the recurrence and severity of road accidents. Although there may be risks that the road upgrading works could potentially cause barriers to the migration of saiga across certain road sections, the available studies of the specialized organization on wildlife conservation in Kazakhstan, suggests that the corridor does not pass through nor is located in a close proximity to the the protected areas of high status in the region. The expected risks and impacts will be confirmed during biodiversity assessments as part of the ESIA. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts Jul 07, 2024 Page 3 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) [Description of Borrower’s capacity (i.e., prior performance under the Safeguard Policies or ESF, experience applying E&S policies of IFIs, Environmental and social unit/staff already in place) and willingness to manage risks and impacts and of provisions planned or required to have capabilities in place, along with the needs for enhanced support to the Borrower – Max. character limit 2,000] The Ministry of Transport through its Committee for Roads (CR) is the Executing Agency of the Project. KazAvtoZhol (KAZh) will act as the Project Management Agency (PMA) in charge of the project implementation. KAZh has experience in managing World Bank-financed operations through the ongoing South-west Roads Project (P099270) and East-West Roads Project (P128050). Such experience has enabled familiarity with international standards for Environmental, Social, Health and Safety (ESHS) management in the sector. Based on the ESHS performance of the on-going projects, common gaps include i) enforcement of road safety measures both during construction and operations, factoring into extreme weathers anticipated along the road corridors and significant volumes of traffic during certain seasons; ii) Labor management and Occupational Health and Safety (OHS); iii) contractors and sub-contractors' capacity to enforce ESHS provisions in their respective contracts and implementation of construction-Environmental and Social Management Plan (ESMP), i.e., spills prevention, proper waste handling practices, dust control, incident investigation and reporting; iv) management of community grievances resulting from unplanned land acquisition and restrictions on land use, including property damages and disruptions to local businesses. Given the scale of the proposed road upgrades, stretching along 513 km corridor, the project will require substantial investments in the institutional capacity within KAZh to enforce and oversee ESHS compliance. While the volume of contract packages cannot be confirmed at this stage, additional ESHS personnel (both in-house and through third-party firms) are expected to be hired prior to the launch of civil works. Specific project requirements for ESHS management will be assessed during project preparation, based on context- For Official Use Only specific risks and institutional capacity needs, and finalized once the scope of the project has been confirmed. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial A.1 Environmental Risk Rating Substantial [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 2,000] Environmental risks and impacts are envisaged to be attributed to implementation of road improvement and maintenance of Jezqazgan - Karagandy highway corridor. The existing 513 km 2-lane highway will be reconstructed, and an additional 2-lane highway will be constructed in parallel under the project. The associated infrastructure, such as bridges, interchanges, road/railway underpasses and overpasses, will be upgraded. Potential risks include: i) l disturbance of natural habitats and migration routes of Saiga Tatarica which although previously classified as an endangered species, is no longer a 'threatened' species ii) increased pollution due to construction waste; iii) generation of dust, noise, and vibration due to the movement of construction vehicles and machinery; iv) operational or accidental spills of fuel and lubricants from the construction machinery; v) traffic and road safety risks to workers, affected communities and road users as well as OHS issues; and vi) improper reinstatement of construction sites upon completion of works. Such potential risks and impacts can be effectively prevented, mitigated, or minimized on-site in a predictable manner through good engineering design, and effective implementation of Environmental and Social Management Plan (ESMP). The preliminary biodiversity assessment revealed that the project will have no impact on the main habitat of Saiga but only a small part of their winter migration range. The project will not have impact on Jul 07, 2024 Page 4 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) legally protected and critical habitat. Given the project’s potential impact on pollution, Occupational Health and Safety and a small part of Saiga’s winter migration range as well as the capacity constraints of the implementing agency, the environmental risk is rated as Substantial. The environmental risk rating will be reviewed at appraisal. A.2 Social Risk Rating Substantial [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 2,000] The project's social risk classification is assessed as substantial at the concept stage based on the proposed investments. Road widening and re-alignment could potentially affect approximately 195 – 205 households along the entire corridor. The number will be revisited given the once decisions of the sections are made based on the project design. At this point, physical displacement is not envisaged. The design options will proactively avoid such impacts to the extent technically viable, and will take into account road safety aspects. Since such potential impacts will differ across communities and groups, depending on their vulnerability and exposure to risks, further assessments and consultations will be required to confirm the risk classification. This includes an assessment of potential livelihoods impacts as part of the ESIA. Other social risks are expected to be residual, due to poor construction practices which could result in restrictions on land uses, property damages, pollution, road safety risks and other disruptions. If not mitigated, such issues may generate grievances and adversely affect livelihoods, public safety and public health. Given the anticipated length of the corridor to be rehabilitated, the project will require a substantial workforce. Since the region may experience local labor shortages, inflows of labor from other regions and countries are anticipated. However, whether such labor influx has any implications on the host community is largely unknown and will be assessed during the project preparation. Lastly, the project will require substantial efforts to enforce and oversee For Official Use Only environmental and social compliance across contractors and to maintain engagement with various stakeholders. The project may face potential capacity constraints due to its geographic coverage, the potential number of contractors that may be mobilized and stakeholders that need to be closely engaged, particularly the affected communities. [Summary of key factors contributing to risk rating. This attribute is only for the internal version of the download document and not a part of the disclosable version – Max. character limit 2,000] B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant [Optional Explanation - Max. character limit 1,000] ESRC is assessed as substantial based on the preliminary findings of the biodiversity assessment that have revealed minimal potential impacts on once-endangered saiga species and its important crossing sites along the road. Potential capacity constraints within KAZh due to the project's scale are also a potential risk. Other risks are typical to road upgrading works & context-specific, such as OHS, impacts on community health & safety, pollution & waste management, resettlement, labor management & stakeholder engagement; these will be identified through stakeholder consultations. The ESIA covering 513 km road corridor, incl. biodiversity assessment and a management plan is recommended for the project. It will also cover investments under the last-mile connectivity. The risks & Jul 07, 2024 Page 5 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) impacts will be mitigated through implementation of ESMP included in the ESIA and comprised of LMP & OHS features. A SEP and a RAP will also be prepared, disclosed, and consulted prior to the project's appraisal. ESS10 - Stakeholder Engagement and Information Disclosure Relevant [Optional Explanation - Max. character limit 1,000] Stakeholder engagement informs both management of potential risks & impacts and enables the inclusion of measures to promote development benefits to the public, including road users & communities along the corridor. Stakeholder engagement activities will be carried out as early as the design stage to ensure concerns & feedback are systematically captured & addressed as part of the design & project implementation. The ESIA will include consultations with potentially affected parties to inform development of a project-level SEP. Key stakeholder groups include national & regional authorities, professional associations, private sector interests in transport sector, NGOs & community groups. The SEP, while focusing on risks management under Component 1, will cover other elements and include a project-level grievance redress mechanism with measures to handle confidential & sensitive complaints (e.g. GBV/SEA/SH). The SEP will be prepared, disclosed, and consulted prior to project's appraisal. ESS2 - Labor and Working Conditions Relevant [Optional Explanation - Max. character limit 1,000] Road upgrading works are expected to bring a substantial number of workforce from different parts of the country For Official Use Only and abroad. The estimated number and how they will be sourced will only be known following contract awards and submission of workplans by winning contractors. The majority of the project's workers will consist of construction workers hired by contractors, including their sub-contractors, and workers hired by supervision engineers and design consultants (or hereafter contracted workers). Direct workers include government secondees and consultants hired as project staff. OHS and risks around working conditions are most pertinent to construction workers. Hence, dedicated management of risks will be required through preparation of a LMP and ESMP. No child and forced labor risks are envisaged and employment contracts will be audited. The LMP will include a grievance mechanism for workers. It will be prepared, disclosed, and consulted prior to the project's appraisal. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant [Optional Explanation - Max. character limit 1,000] The proposed road works require significant amount of resource use, including water, energy efficiencies & construction material use. The substantial consumption of construction materials may lead to depletion of local natural resources & environmental degradation. The ESIA will assess types of materials & their sourcing & identify measures to include adopting sustainable sourcing practices to minimize resource depletion. The project is also expected to produce considerable construction & demolition waste from existing pavement, alongside solid waste from workers’ camps. Borrower will develop & implement relevant waste management plans in line with GIIPs. The civil works will also result in the emission of dust, pollutants & contaminants into the air, soil and nearby water bodies, negatively impacting air & water quality. Noise pollution from construction activities could also disturb local communities. These risks and impacts will be assessed within the scope of ESIA and ESMPs. Jul 07, 2024 Page 6 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) ESS4 - Community Health and Safety Relevant [Optional Explanation - Max. character limit 1,000] Potential risks include safety & traffic congestion during construction stage. Vulnerable groups, incl. individuals with underlying health conditions, may be more exposed to construction-related impacts (dust, noise). Labor influx may result in the crowding out of basic services & public health risks due to overcrowding & poor living conditions. SEA/SH risks may increase in contexts where there are high poverty rates & lack of supervision. Such risks can vary depending on the scale of labor influx, health status of the migrating population & absorbing capacity of the destination areas. These risks will be mitigated through site-specific ESMPs, incl. traffic management plans to minimize disruptions & enhance pedestrian safety; dust control measures & noise reduction strategies to mitigate air quality & noise impacts & effective grievance mechanisms addressing community concerns promptly & effectively. Rest areas will be designed with universal access for disabled and older individuals. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant [Optional Explanation - Max. character limit 1,000] Road widening, route alignment and establishment of ancillary facilities (both temporary and permanent) may require acquisition of land beyond the existing Right of Way (RoW). The project does not anticipate major land acquisition since no greenfield road construction will be financed. While the project expects to affect between 195- 205 households along the road corridor, the exact number of project affected people will be re-assessed. No physical For Official Use Only displacement is envisaged and the design options will proactively avoid such impacts. Due care is warranted for potential land acquisition impacts on vulnerable groups as well as unintended impacts on land and land use due to poor construction practices, which could generate grievances. The project will prepare a preliminary Resettlement Action Plan (RAP), which may be implemented in stages depending on design readiness and will be disclosed and consulted prior to appraisal. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources [Optional Explanation - Max. character limit 1,000] The ESIA study will include a comprehensive Saiga Tatarica habitats and their migration routes, protected areas, presence of endangered species. The studies will be jointly conducted and consulted with public organizations, NGOs and other relevant stakeholders with interest and professional expertise in biodiversity. Should the ESIA identify significant risks and adverse impacts on biodiversity, a Biodiversity Management Plan (BMP) will be developed as an integral part of the ESIA to address biodiversity protection and management concerns. It is envisaged that the project can meet the requirements of standards that relates to critical habitat in Paragraph 24 as well as Paragraphs 26 and 27 of ESS6. The project’s mitigation measures will be described in a Biodiversity Management Plan and set out in the legal agreement including the ESCP. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities Jul 07, 2024 Page 7 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) [Optional Explanation - Max. character limit 1,000] There are no groups and/or populations in the project area categorized as Indigenous Peoples under ESS7. ESS8 - Cultural Heritage Relevant [Optional Explanation - Max. character limit 1,000] The project does not envisage potential impacts on known tangible and intangible cultural heritage as a result of road upgrading works in the project area. However, ESS8 is considered relevant as a pre-cautionary measure in anticipation of soil excavation works. The ESMP will incorporate Chance Finds procedures for handling chance finds and will include training for workers/supervisors/contractors on managing finds, in case any such finds are identified during road upgrading works. ESS9 - Financial Intermediaries Not Currently Relevant [Optional Explanation - Max. character limit 1,000] The project does not involve activities which involves financial intermediaries nor support establishment of such intermediaries. For Official Use Only B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No [Optional explanation – Max. character limit 1,000] The project does not envisage use of the Borrower's policy, legal and institutional framework considering the Substantial risks of the environmental and social management and potential institutional capacity constraints to meet international standards. Use of Common Approach No [Optional Explanation including list of possible financing partners – Max. character limit 1,000] Involvement of other financiers cannot be confirmed at the concept stage. B.4 Summary of Assessment of Environmental and Social Risks and Impacts Jul 07, 2024 Page 8 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) [Description provided will not be disclosed but will flow as a one time flow to the Concept Stage PID – Max. character limit 5,000] Both the environmental and social risks are assessed as Substantial at the concept stage. The preliminary biodiversity assessment revealed that the A17 highway will have no impact on the main habitat of Saiga, and the project will not affect natural and/or critical habitats and species of ecological and conservation significance as the A17 corridor does not pass through known legally protected areas of high value and sensitivity, Ramsar sites, or Key Biodiversity Areas of the region. The anticipated road upgrading works impacts are largely temporary, predictable, reversible and can be readily mitigated. Other risks and impacts include Occupational and Health Safety (OHS), air and water pollution, water and energy efficiency, soil disturbance and contamination, traffic and road safety and community health, labor management, resettlement and stakeholder engagement. The project will prepare an Environmental and Social Impact Assessment (ESIA) for the entire 513km long Jezqazgan – Karagandy road corridor, including the last-mile connectivity of 30 km of local roads and bridges connecting communities with the Jezqazgan – Karagandy highway to be upgraded under Component 1. The proposed measures to mitigate the identified risks and impacts will be incorporated into the Environmental and Social Management Plan (ESMP). The project will identify whether it will significantly impact the saiga’s natural habitat range and migration routes and mitigate possible impacts on the antelope population by addressing these impacts in the ESMP or in the standalone Biodiversity Management Plan (BMP). The ESIA for the project is under preparation and if further findings indicate any major impact on Saiga or any other critical habitat, the environmental risk rating will be upgraded. As relevant and necessary, the E&S team will discuss with the TTL the feasibility of including wildlife crossing in the project design. Road widening, route For Official Use Only alignment and establishment of ancillary facilities (both temporary and permanent) may require acquisition of land beyond the existing Right of Way (RoW). While the scale of such acquisition is yet to be confirmed, the project does not anticipate major land acquisition since no greenfield road construction will be financed. While the project expect to impact around 195-205 households along the road corridor, the exact number of project affected people will be re- assessed. No physical displacement is envisaged at the concept stage and the design options will proactively avoid such impacts to the extent technically feasible, considering public safety. However, due care is warranted for potential land acquisition impacts on vulnerable groups as well as unintended impacts on land and land use due to poor construction practices, which could generate grievances. The project will prepare a preliminary Resettlement Action Plan (RAP), which may be staged depending on design readiness and will be disclosed and consulted prior to appraisal. Temporary impacts on land, land use and properties due to construction are expected to be addressed as part of site- specific ESMP. Given the scale of the proposed road upgrades, stretching along 513 km corridor, the project will require substantial investments in the institutional capacity within KazAvtoZhol (KAZh) to enforce and oversee ESHS compliance. While the volume of contract packages cannot be confirmed at this stage, additional ESHS personnel are expected to be hired during the project preparation and prior to the launch of civil works. The ESMP will include a LMP to address risks involving and affecting the significant labor force which will be contracted for the project. The SEP will be an important tool in ensuring that parties affected by and/or interested in the project can be consulted and participate in the design and implementation of the project. These requirements will be reflected in an Environmental and Social Commitment Plan (ESCP) which will be prepared by the project appraisal. Jul 07, 2024 Page 9 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? [Description of expectations in terms of documents to be prepared to assess and manage the project’s environmental and social risks and by when (i.e., prior to Effectiveness, or during implementation), highlighted features of ESA documents, other project documents where environmental and social measures are to be included, and the related due diligence process planned to be carried out by the World Bank, including sources of information for the due diligence - Max. character limit 3,000] Prior to the project appraisal, the following will be prepared: - A Environmental and Social Impact Assessment (ESIA) covering civil works under Component 1. - A Environmental and Social Management Plan (ESMP), covering civil works under Component 1. The ESMP includes a Labor Management Procedures (LMPs) for the road works, Codes of Practices for environmental and social management for complementary community investments (i.e., last mile connectivity), and Biodiversity Management Plan (BMP) - A project-level Stakeholder Engagement Plan (SEP), covering all project's components - An Environmental and Social Commitment Plan (ESCP) During project implementation, the ESIA and ESMP along with other applicable plans will be updated for the Project based on detailed designs. For Official Use Only III. CONTACT POINT Contact Point Task Team Leader: Nijat Valiyev Title: Senior Transport Economist Email: nvaliyev@worldbank.org TTL Contact: Irina Li Job Title: Transport Specialist Email: ili@worldbank.org IV. FOR MORE INFORMATION CONTACT Jul 07, 2024 Page 10 of 11 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Nijat Valiyev, Irina Li ADM Environmental Specialist: Zhuldyz Zhurumbetova ADM Social Specialist: Fajar Argo Djati For Official Use Only Jul 07, 2024 Page 11 of 11