The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) Appraisal Environmental and Social Review Summary Appraisal Stage For Official Use Only (ESRS Appraisal Stage) Date Prepared/Updated: 07/25/2024 | Report No: ESRSA03623 Jul 25, 2024 Page 1 of 17 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 TRACE 2025 (IPF) Operation Name Transport Resilience and Connectivity Enhancement Project Country/Region Beneficiary country/countries Region Practice Area (Lead) Code (borrower, recipient) Kazakhstan Kazakhstan EUROPE AND Transport CENTRAL ASIA Borrower(s) Implementing Agency(ies) Estimated Appraisal Estimated Board Date Date National NC QazAvtoJol JSC 15-Jul-2024 15-Nov-2024 For Official Use Only Company KazAvtoZhol JSC Estimated Total Project Cost Decision Review Date 21-Jun-2024 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 PAD 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 Jul 25, 2024 Page 2 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) 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 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 For Official Use Only 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 [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 10,000] The main project road will pass by 27 settlements with varying population densities along the Jezqazgan - Karagandy corridor. In 2022, the central Karagandy oblast was divided into two distinct entities, with its western part becoming the Ulytau oblast, with Jezqazgan as its administrative center, and Karagandy remaining the administrative center of a reduced Karagandy oblast. Of the two oblasts, Karagandy retained the greater population (1.14 million compared to 0.22 million), a more extensive and diverse industrial base, and better connectivity to major urban centers like Astana and Almaty. The newly established Ulytau oblast suffers from a severe lack of reliable connectivity with the rest of the country, which is exacerbating regional disparities. Transport and logistics costs remain disproportionately high, exceeding 20 percent of the final product cost. 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. Jul 25, 2024 Page 3 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) The regional economy is dominated by manufacturing, followed by the mining sector. Agriculture represents a small share of the overall economy and is much lower in areas with poor road networks. Concerning the potential environmental and social risks to the operation, the project area is characterized by hot summers and cold winters with a recurrence of severe weather events such as strong winds, snowstorms and natural fires. These conditions pose safety risks both during construction and operations. The existing Karagandy-Jezqazgan road has two lanes and is generally in poor condition with pavement defects (rutting, potholes, and transverse and longitudinal cracks), substandard bridges, and inadequate drainage provision. In non-populated areas, no lighting and sidewalks were observed. While average speeds remain low, traffic accidents were frequently reported. 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. Both oblasts face many development issues, notably environmental degradation and outdated water, waste management, and transportation infrastructure. Urban areas face insufficient capacity to manage solid waste disposal, while rural regions often lack such facilities. Hence, the project shall consider the current carrying capacity of the public infrastructure and services, particularly with regards to potential impacts on water use and generation of wastes and wastewater associated with civil work activities. In terms of local labor force, a significant portion of the working age population is being absorbed in the manufacturing and mining industries. There For Official Use Only could be local labor shortages due to outflow of population for economic purposes. At the same time, there are expectations from local stakeholders for job opportunities as indicated in the earlier consultations that need to be managed carefully. Gender disparities are evident in labor force participation rates (63.7 percent for women compared to 75.5 percent for men) and earned incomes. With regards to the project’s implications on the biodiversity, although there could 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 Association for the Conservation of Biodiversity of Kazakhstan (ACBK) suggest that the road corridor does not pass through nor is located in close proximity to the protected areas of high status in the region. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts [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 10,000] “KazAvtoZhol” NC” JSC (KAZh) will be both the Borrower and the Project Implementing Agency responsible for delivering the project’s activities and the formal point of contact between the Government of Kazakhstan and the World Bank. Within the governmental structure, “KazAvtoZhol” NC” JSC is accountable to the Committee for Roads under the Ministry of Transport. KAZh will establish a Project Implementation Unit (PIU) to implement the Project activities and will be responsible for procurement contract administration, financial management, monitoring of progress and ensure quality compliance with Environmental and Social Framework (ESF) standards. KAZh has experience in managing World Bank-financed operations through the ongoing South-West Roads Project (P099270) and East-West Roads Jul 25, 2024 Page 4 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) 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. At the Project Implementation Agency level, KAZh will hire one environmental specialist and one social development/gender specialist, prior to the Project effectiveness. The PIU shall assess staffing needs during the first year of Project implementation. Additional staff may be hired under the PIU depending on the needs on the ground once the civil works have commenced. These actions have been incorporated as time-bound actions in the project’s Environmental and Social Commitment Plan (ESCP) which forms part of the loan legal agreement. Specific project requirements for ESHS management will be assessed during project preparation, based on For Official Use Only context-specific risks and institutional capacity needs, and finalized once the scope of the civil works under Component 1 has been confirmed based on the final detailed designs. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) 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 4,000] The project’s environmental risk classification is assessed as substantial at the appraisal stage. The substantial environmental risk rating considers the Project’s potential environmental and Occupational Health and Safety (OHS) risks and impacts associated with infrastructure activities (i.e., highway upgrading and supporting infrastructure) and potential capacity constraints within KAZh in terms of ensuring environmental and social compliance due to the large geographic scope of the proposed operations. Although the Project could potentially affect a small part of Saiga’s winter migration range, the biodiversity assessment indicates that the A17 highway will not impact the antelope's primary habitat. The Project will not affect natural 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, the Key Biodiversity Areas (KBA) of the region. However, the ESIA study indicates that the A17 corridor crosses two clusters within the nature sanctuary of Andasai. Although this area does not hold the highest conservation status, it still requires certain protection Jul 25, 2024 Page 5 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) measures to comply with the environmental requirements by law. Andasai is originally located in Zhambyl oblast’ (more than 400 km away from the A17 highway) but has been recently expanded by six clusters on the territory of Ulytau and Karaganda regions as per the Resolution of the Government of the Republic of Kazakhstan dated July 11, 2022, No. 470. Nevertheless, the identified potential risks and impacts of the road on biodiversity are expected to be effectively prevented and mitigated through implementation of the required mitigation measures included in the Biodiversity Management Plan (BMP) that was prepared as part of the ESMP and project designs. Other potential risks typical to road upgrading works include: i) increased pollution due to construction waste, ii) generation of dust, noise, and vibration due to the movement of construction vehicles and machinery, iii) 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. The anticipated road upgrading works impacts can be effectively prevented, mitigated, or minimized on-site in a predictable manner through good engineering design, and effective implementation of the ESMP and Construction Environmental and Social Management Plans (C-ESMPs). 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 4,000] For Official Use Only The project's social risk classification is assessed as substantial at the appraisal stage based on the scope and nature of the proposed investments. The substantial social risk rating considers the potential impacts associated with land acquisition and restrictions on land use during construction, as well as community health and safety associated with potential labor influx. The project does not anticipate major livelihoods impacts associated with land acquisition. While the project expects to affect around 260 land plots along the proposed corridor, consisting of 139 plots owned by households, 68 plots owned by legal entities (i.e. enterprises) and 53 plots owned by state agencies. Two potential displacement impacts affecting local businesses (i.e., a kiosk and gas station) are currently envisaged. The design options are proactively seeking options to minimize physical displacement impacts to the extent technically viable. 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. Since the region may experience shortages of skilled local labor forces, inflows of labor from other regions and countries are anticipated. Hence, there could be labor influx risks that could affect rural communities and available services and resources due to sudden presence of workers with their operating facilities (i.e., camps, plants, etc.). Potential impacts will differ across communities and groups. Depending on their vulnerability and exposure to risks, further assessments and consultations will be required, building on the draft Environmental and Social Impact Assessment (ESIA), to confirm the management of potential risks and impacts during the project implementation. The project will require substantial efforts to enforce and oversee 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 Jul 25, 2024 Page 6 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) number of contractors and their sub-contractors that may be mobilized and hence, monitored 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 8,000] B. Environment and Social Standards (ESS) that Apply to the Activities Being Considered B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Relevant Social Risks and Impacts [Explanation - Max. character limit 10,000] ESS 1 is relevant. The environmental and social risk classification is substantial, with environment and social ratings being assessed as substantial at the appraisal stage based on the findings of the biodiversity assessment completed as part of the ESIA study that points to For Official Use Only minimal potential impacts on once endangered saiga species and its important crossing sites along the road. The environmental and social risks also consider the potential Occupational Health and Safety (OHS) risks and impacts associated with (i.e., highway upgrading and supporting infrastructure) and potential capacity constraints within KAZh in assuring environmental and social compliance with ESF requirements due to the project’s large geographic scope. The biodiversity experts from the Association for the Conservation of Biodiversity of Kazakhstan (ACBK) carried out their own biodiversity surveys in the project area, including satellite tagging of saigas over the last decade. The assessment indicates 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 (KBAs) of the region. Potential social risks consider potential livelihoods impacts resulting from land acquisition and restrictions on land use during construction, as well as community health and safety associated with potential labor influx. The project does not anticipate major livelihoods impacts associated with land acquisition. Given the anticipated length of the corridor to be rehabilitated, the project will require a substantial workforce which could potentially create labor influx risks, particularly in rural settings where supplies of skilled labor may be limited. To inform the management of potential environmental and social risks and impacts, a draft Environmental and Social Impact Assessment (ESIA) was commissioned during the project preparation based on the available designs for subcomponent 1.1 works. Since the locations of the local roads and bridges envisaged under subcomponent 1.2 addressing reliable last-mile connectivity for the rural population and agricultural producers along the Jezqazgan-Karagandy are not confirmed at the project appraisal stage, a guideline for the screening/scoping of potential environmental and social risks and impacts and for preparation of site-specific environmental and social Jul 25, 2024 Page 7 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) management plans for upgrading around 40 km of local roads is included as an Annex 1 into the ESIA. The ESIA/ESMP prepared during Project preparation will be updated once the designs have been finalized and approved by KAZh and finalized prior to the launch of the procurement of civil works. The ESIA informed the approach and resourcing for management of potential environmental and social impacts, as embodied in the project’s Environmental and Social Management Plan (ESMP) along with the Labor Management Procedures (LMP). The detailed biodiversity assessments along the corridor with a particular focus on potential impacts on critical habitats, protected areas, presence and migration routes of saiga species and other wildlife were conducted by two biodiversity experts from the ACBK as part of the ESIA study. The outcomes of the studies together with the recommended measures to manage potential issues related with biodiversity protection and management were incorporated into the ESIA/ESMP, including BMP, and consulted jointly with respective institutions, non- governmental organizations and/or other relevant stakeholders with interest and professional expertise in biodiversity. A draft Resettlement Action Plan (RAP) was prepared during the project preparation based on partial information on the preliminary road designs. Potentially affected and interested stakeholders were identified as part of the preparation of a Stakeholder Engagement Plan (SEP). This includes development of a project-level grievance redress mechanism, which consists of national and regional focal points. The above draft instruments were publicly disclosed and consulted on June 24-28, 2024 prior to the project appraisal. These management plans, including the ESMP and RAP, will reflect on and inform For Official Use Only the final design options for each road section and are expected to be finalized prior to the launch of the bidding process during the project implementation. Given the scale of the proposed road upgrading works, 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 are expected to be hired during the project preparation and prior to the launch of civil works. At the Project Implementation Agency level, KAZh will hire one environmental specialist, and one social development/gender specialist prior to the Project Effectiveness date. Additional personnel will be mobilized based on needs and will be regularly revisited during the project implementation. These actions have been incorporated as time- bound actions in the project’s Environmental and Social Commitment Plan (ESCP) which forms part of the loan legal agreement. ESS10 - Stakeholder Engagement and Information Disclosure Relevant [Explanation - Max. character limit 10,000] ESS 10 is relevant. Stakeholder engagement informs both management of potential risks and impacts and enables the inclusion of measures to promote development benefits to the public, including road users and communities along the corridor. In addition to the management of potential risks and impacts, a key element of the stakeholder engagement activities will include activities to promote engagement with local stakeholders such as Akimats, local training providers and universities to facilitate skills training for local stakeholders to promote absorption of the local workforce into the project. Stakeholder engagement activities will be carried out as early as the design stage to ensure concerns and feedback are systematically captured and addressed as part of the design decisions as well as measures during the project Jul 25, 2024 Page 8 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) implementation. The ESIA was prepared in consultations with a broad range of stakeholders, including government agencies, potentially affected parties and interested stakeholders to inform the management approach and required measures to prevent and mitigate potential impacts. Key stakeholder groups include national and regional authorities, professional associations, private sector interests in transport sector, non-governmental organizations and community groups. These include Association of Biodiversity Conservation of Kazakhstan (ACBK), Immigration Department and Labor Inspectorates, Ministry of Environment, and other relevant organizations. The SEP, while focusing on risks management under Component 1, will also cover other project elements that could benefit from stakeholder engagement and include a project-level grievance redress mechanism with measures to handle confidential and sensitive complaints (e.g. SEA/SH). The SEP was prepared, disclosed, and consulted prior to project's appraisal and is expected to be adopted within no later than one month following Project effectiveness as established in the ESCP. ESS2 - Labor and Working Conditions Relevant [Explanation - Max. character limit 10,000] ESS2 is relevant. Road upgrading works are expected to bring a substantial number of workforce from different parts of the country and abroad. The estimated number is expected to be above 2000 workers in line with the LMP, and the precise number and how they will be For Official Use Only 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 the civil work contractors and their sub-contractors, service providers (such as electricians, mechanics, drivers, operators, and supporting services), 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 risks considered under this standard for these workers. Hence, dedicated management of risks will be required as established in the LMP and ESMP. This includes mobilization of a full-time ESHS coordinator within the Project Implementation Agency, specific qualification requirements for civil work contractors that will mandate ESHS personnel and dedicated ESHS staff within the supervision consultant(s). A periodic assessment on labor management will be required as part of the ESHS reporting to assess the overall compliance with the LMP. Such an assessment is expected to be led by the supervision firm(s) in close coordination with KAZh through its E&S staff. Accessibility to health and emergency services can be limited due to the remote sites and hence, the contractor’s camps must be equipped with on-site first aid response equipment and paramedics. Collaboration with local hospitals shall be established by the contractor(s) as part of the emergency procedures. A dedicated GRM for workers will be required as a standard practice for all contractors. The project’s will also adapt its GRM to be accessible to these workers as an alternative channel. No child and forced labor risks are envisaged and employment contracts will be audited. The LMP was prepared, disclosed, and consulted prior to the project's appraisal and will be adopted prior to the hiring of project workers as established in the ESCP. Jul 25, 2024 Page 9 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) ESS3 - Resource Efficiency and Pollution Prevention and Relevant Management [Explanation - Max. character limit 10,000] ESS 3 is relevant. The proposed road works will require significant resource use, including water, energy efficiencies and use of raw materials such as aggregates, asphalt, and concrete. This could lead to increased energy consumption and waste generation during construction. The construction activities may release pollutants to air, water, and land, potentially impacting local ecosystems and communities and environmental degradation. The Borrower will adopt and implement measures to avoid or minimize pollution from project activities, including resource efficiency, pollution prevention, and management measures consistent with EHSGs. The ESIA assessed types of materials and their potential sourcing and identified measures to include adopting sustainable sourcing practices to minimize resource depletion. This includes implementing measures to reduce raw material use through efficient construction techniques and material recycling and adopting energy-efficient practices during construction activities, such as optimizing equipment use and minimizing energy and water consumption. The project is also expected to produce considerable construction and demolition waste from existing pavement, alongside solid waste from workers’ camps. A Waste Management Plan to manage hazardous and non-hazardous wastes generated during construction activities was included in For Official Use Only the ESMP. The plan includes measures to minimize waste generation, segregate different types of waste, and ensure proper disposal. The civil works will also result in the emission of dust, pollutants and contaminants into the air, land and nearby water bodies. These risks and impacts were assessed within the scope of ESIA and ESMP and the proposed measures are expected to be implemented through the C-ESMPs, including specific measures to cover management of air and noise pollution, spill prevention control of fuel and lubricants from the construction machinery, wastewater and water pollution, hazardous and non-hazardous materials and wastes, borrow pit management and proper reinstatement of disturbed lands. The ESMP will be further updated based on the project’s final detailed designs. ESS4 - Community Health and Safety Relevant [Explanation - Max. character limit 10,000] ESS 4 is relevant. Potential risks concerning community health and safety include traffic safety, construction related impacts, and labor influx. Traffic congestions could be anticipated during peak construction periods resulting from partial road blockages and transport of construction materials as well as dusts. Vulnerable groups, including individuals with underlying health conditions, may be more susceptible to construction-related impacts (i.e., dusts, noise and other pollutants). Labor influx may result in the crowding out of basic services that could otherwise be available to the local communities. There could also be public health risks associated with the spread of communicable diseases due to overcrowding and poor living conditions that may affect the host communities if such risks are not contained. SEA/SH risks may increase in contexts where there are high poverty rates and lack of supervision. Such risks can vary depending on the scale of labor influx, health status of the migrating population and the absorbing capacity of the destination areas. These risks are expected to be Jul 25, 2024 Page 10 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) mitigated through implementation of the ESMP and C-ESMPs, which includes traffic management plans, dust control and noise reduction measures, SEA/SH awareness campaigns, implementation of Codes of Conduct and grievance mechanism(s) for the affected communities. With regards to the project’s investments, the road designs and their supporting facilities will incorporate relevant measures to promote public safety, universal access and disaster resilience. Involvement of military personnel is not envisaged under the project and there are no specific security risks being reported across the locations along the proposed road corridor. However, in the event of private security personnel is required to guard the contractors’ premise and facility, the PIU shall request them to implement measures to manage security personnel as guided by the principles of proportionality and by applicable law and Good International Industry Practices (GIIPs), in relation to hiring, rules of conduct, training, equipping, and monitoring of such personnel. ESS5 - Land Acquisition, Restrictions on Land Use and Relevant Involuntary Resettlement [Explanation - Max. character limit 10,000] ESS 5 is relevant. 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 For Official Use Only construction will be financed. The project does not anticipate major livelihoods impacts associated with land acquisition. While the project expects to affect around 260 land plots along the proposed corridor, consisting of 139 plots owned by households, 68 plots owned by legal entities (i.e. enterprises) and 53 plots owned by state agencies. Two potential displacement impacts affecting local businesses (i.e., a kiosk and gas station) are currently envisaged. No physical displacement is envisaged and the design options will proactively avoid such impacts. Nevertheless, since expropriation and payment of compensations as well as provisions of other support will be provided by Akimats, there could be risks due to institutional fragmentation. Further, since informal land occupants are not fully protected by the national legal framework, gap filling measures to address impacts have been included in the RAP, although there could be risks that such measures may not be fully implemented and/or acted upon by Akimats. 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. To assess the scope of the standard under the project, the project has prepared a draft Resettlement Action Plan (RAP) based on the available designs prior to the project appraisal. The draft RAP was disclosed and consulted prior to appraisal. The RAP shall be finalized and fully implemented before taking possession of the land and related assets, full compensation has been provided and as applicable, displaced people have been resettled and moving allowances have been provided. The RAP may be implemented in stages depending on design readiness and approvals. ESS6 - Biodiversity Conservation and Sustainable Management Relevant of Living Natural Resources Jul 25, 2024 Page 11 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) [Explanation - Max. character limit 10,000] ESS 6 is relevant. The ESIA study included a thorough biodiversity assessment performed by national biodiversity experts representing the ACBK along the corridor with a particular focus on potential impacts on natural and critical habitats, protected areas, as well as presence, and migration routes of Saiga Tatarica using various tools such as satellite tracking, aerial and ground monitoring data. Although the project could potentially affect a small part of Saiga’s winter migration range, the Project is not expected to present a significant impact on the main habitat of Saiga and will not affect natural nor critical habitats and species of ecological and conservation significance as the road corridor does not pass through known legally protected areas of high value and sensitivity, Ramsar sites, or Key Biodiversity Areas (KBAs) of the region. The state rangers jointly with ACBK specialists observed around 29 saiga crossings over the last five years as part of regular ground monitoring. The specific mitigation measures for preventing saiga mortality as well as other animals and making more comfortable wildlife crossings were included in the design and reflected in the ESIA/ESMP and BMP. The key measures include gentle/smoothed side slope of embankment, reinforced mesh fencing to be installed along the edges of the crossings, road signage and saiga crossing signs, and speed limits to be applied alerting drivers of crossing areas, etc. The detailed biodiversity conservation measures such as compensatory planting of trees affected by the project, installation of artificial nests and fish protection facilities, installation of mesh fencing and For Official Use Only proper traffic signage, environmental awareness campaigns, etc. are included in the BMP. According to the data collected during the project preparation, the A17 corridor crosses two clusters of the sanctuary Andasai which is located in Zhambyl oblast’ and expanded by six clusters on the territory of Ulytau and Karaganda regions as per the Resolution of the Government of the Republic of Kazakhstan dated July 11, 2022, No 470. The Borrower must follow the environmental requirements for landowners and land users located on the territory of the sanctuary as stipulated in the “Passport of the sanctuary” and outlined in the Biodiversity Management Plan. These requirements and other proposed mitigation measures with the objective of minimizing potential risks and adverse impacts on biodiversity were described in the biodiversity management plan as part of the ESMP. The ESMP was consulted with public organizations, NGOs and other relevant stakeholders with interest and professional expertise in biodiversity prior to appraisal. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Not Currently Underserved Traditional Local Communities Relevant [Explanation - Max. character limit 10,000] There are no groups and/or populations in the project area categorized as Indigenous Peoples under ESS7. ESS8 - Cultural Heritage Relevant [Explanation - Max. character limit 10,000] Jul 25, 2024 Page 12 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) ESS 8 is relevant. The project does not anticipate potential impacts on known tangible and intangible cultural heritage as a result of road upgrading works in the project area as indicated in the screening results in the ESIA. Nevertheless, vigilance and caution shall be exercised during construction, as the Ulytau region is considered for its cultural and historical significance in the country and is recognized as the epicenter of the nomadic culture dating back from the Genghis Khan’s era. ESS8 is relevant as a pre-cautionary measure in anticipation of chance finds (i.e., ancient structures, artefacts, bones and other objects during soil excavation works. The ESMP has incorporated Chance Finds procedures for handling chance finds and will include training for Project workers, particularly contractors, sub- contractors and supervision firms on managing finds, in case any such finds are identified during road upgrading works. ESS9 - Financial Intermediaries Not Currently Relevant [Explanation - Max. character limit 10,000] 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 [Explanation including areas where “Use of Borrower Framework” is being considered - Max. character limit 10,000] 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 [Explanation including list of possible financing partners – Max. character limit 4,000] The project is expected to be co-financed by the Government of Kazakhstan (15 percent) and Asian Infrastructure Investment Bank (AIIB – 42.5 percent). All financiers will adopt the instruments prepared under the projects which address the World Bank’s ESS requirements. No additional assessments of the co-financiers’ systems on their respective standards since the World Bank’s ESF will be applied. Jul 25, 2024 Page 13 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) B.4 Summary of Assessment of Environmental and Social Risks and Impacts [Description provided will not be disclosed but will flow as a one time flow to the Appraisal Stage PID and PAD – Max. character limit 10,000] The environmental and social risk classification for this project is substantial, with environment and social ratings assessed as substantial at the appraisal stage. The World Bank’s Environment and Social Standards (ESSs) 1, 2, 3, 4, 5, 6, 8 and 10 are considered relevant for the project. The substantial environmental risk rating considers the project’s potential environmental and Occupational Health and Safety (OHS) risks and impacts associated with infrastructure activities (i.e., highway upgrading and supporting infrastructure) and potential capacity constraints within “KazAvtoZhol” NC” JSC in terms of ensuring environmental and social compliance due to the large geographic scope of the proposed operations. Although the project could potentially affect a small part of Saiga’s winter migration range, the biodiversity assessment indicates 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, Ramsar sites, or Key Biodiversity Areas (KBAs) of high value and sensitivity in the region. Saiga Tatarica which although previously classified as a critically endangered species, now categorized as “near threatened” category under the International Union for Conservation of Nature (IUCN). Other potential risks typical to road upgrading works include i) increased pollution due to construction waste; ii) generation of dust, For Official Use Only noise, and vibration due to the movement of construction vehicles and machinery; iii) 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. The anticipated road upgrading works impacts are largely temporary, predictable, reversible and can be readily mitigated. The substantial social risk rating considers the potential impacts associated with land acquisition and restrictions on land use during construction, as well as community health and safety associated with potential labor influx. The project does not anticipate major livelihoods impacts associated with land acquisition. While the project expects to affect around 260 land plots along the proposed corridor, consisting of 139 plots owned by households, 68 plots owned by legal entities (i.e. enterprises) and 53 plots owned by state agencies. Two potential displacement impacts affecting local businesses (i.e., a kiosk and gas station) are currently envisaged. 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. Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH) risks are assessed as moderate. While the national average of domestic violence prevalence in Kazakhstan is generally high, with 17 percent of ever-partnered women aged 18-75 having experienced physical or sexual partner violence (UN Women, 2017), a significant portion of the proposed road corridor is sparsely populated, with the exception of major hubs such as Karagandy. Incoming construction workers Jul 25, 2024 Page 14 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) will be accommodated on-site possibly at a distance from the existing towns and villages. Siting and designs of workers camps will consider potential SEA/SH risks to the host community and amongst peer workers and require approval from supervision engineers prior to any construction. As part o the ESMP, SEA/SH prevention measures will be required from the contractors. These include establishment of referral and case-management procedures in cooperation with local service providers and/or a third-party organization; and/or SEA/SH-sensitive grievance management based on good international practices. Every project worker will sign Codes of Conduct (CoCs) on respectful behavior and be required to participate in relevant training prior to mobilization. The PIU will be staffed by a social development specialist with experience in the prevention and management of Gender-based Violence (GBV) and SEA/SH in particular. An Environmental and Social Impact Assessment (ESIA), along with an Environmental and Social Management Plan (ESMP), including a Biodiversity Management Plan (BMP) has been prepared based on the available designs. The ESIA and ESMP will be finalized as detailed designs are available during early project implementation. To inform the approach and resourcing for the management of potential environmental and social impacts during the project preparation, a scoping of risks, followed by preparation of a draft ESIA and ESMP were undertaken by KAZh in consultations with local stakeholders, including potentially affected communities. A draft Resettlement Action Plan (RAP) was prepared during the project preparation based on partial information on the preliminary road designs. Potentially affected and interested stakeholders were For Official Use Only identified as part of the preparation of a Stakeholder Engagement Plan (SEP). This includes development of a project-level grievance redress mechanism, which consists of national and regional focal points. A Labor Management Procedure (LMP), which forms part of the ESMP was prepared based on the proposed road upgrading works and estimated workforce requirements based on past and on-going projects. The above instruments are expected to be publicly disclosed and consulted prior to the project appraisal. These management plans, including the ESMP and RAP, will reflect on and inform the final design options for each road section and are expected to be finalized prior to the launch of the bidding process during the project implementation. Given the scale of the proposed road upgrades, stretching along 513 km corridor, the project will require substantial investments in the institutional capacity within the KAZh to enforce and oversee ESHS compliance. At the PIU level, the KAZh will hire one environmental specialist and one social development/gender specialist, prior to the Project effectiveness. A community liaison officer may be hired under the PIU depending on the needs on the ground once the civil works have commenced. While the volume of contract packages cannot be confirmed at this stage, additional ESHS personnel are expected to be hired during the project implementation and prior to the launch of civil works. Staffing for environmental and social management will be revisited during the project implementation. The ESMP will include a LMP to address risks involving and affecting the significant labor force who 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 25, 2024 Page 15 of 17 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 implementation? [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 10,000] Prior to the project appraisal, the following have been prepared: - A draft Environmental and Social Impact Assessment (ESIA) covering civil works under Sub- component 1.1 - A draft Environmental and Social Management Plan (ESMP), covering civil works under Sub- component 1.1. The ESMP includes a Labor Management Procedures (LMPs) for the road works (presented as a standalone document), Codes of Practices for environmental and social management for complementary community investments (i.e., last mile connectivity), and a Biodiversity Management Plan (BMP). A guideline for the screening and assessment of potential environmental and social impacts and risks for last-mile connectivity roads (siting to be For Official Use Only determined) is included as an annex 1 into the ESIA/ESMP - A project-level Stakeholder Engagement Plan (SEP), covering all project's components - A draft Resettlement Action Plan (RAP) based on the preliminary designs - An Environmental and Social Commitment Plan (ESCP) During project implementation, the ESIA and ESMP along with other applicable plans (i.e., LMP, SEP, RAP) will be updated for the Project based on the final detailed designs. Project environmental and social personnel shall be hired prior to effectiveness as established in the ESCP. III. CONTACT POINT World Bank Task Team Nijat Valiyev Title: Senior Transport Economist Leader: Email: nvaliyev@worldbank.org TTL Contact: Irina Li Job Title: Transport Specialist Email: ili@worldbank.org Jul 25, 2024 Page 16 of 17 The World Bank Transport Resilience And Connectivity Enhancement Project (P500565) IV. FOR MORE INFORMATION CONTACT 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 25, 2024 Page 17 of 17