Astana: The European Bank for Reconstruction and Development (EBRD) is making a significant investment to enhance transport connectivity in Central Asia. The bank has allocated up to £230 million to facilitate the completion of road upgrades in Kazakhstan, aimed at improving the Trans-Caspian Corridor, a key element of the EU's Global Gateway initiative.

According to Azeri-Press News Agency, the funds will assist in establishing sustainable transport connections across the region. The project will upgrade a 234 km section of road between the cities of Aktobe and Ulgaisyn, transforming the current single-carriageway road into a dual-carriageway. This strategic route is part of the Western Europe-Western China Corridor, the Central Asia Regional Economic Cooperation (CAREC) Corridor 1, and European Route E38.

The EBRD's financial support, provided in Japanese yen equivalent, is part of a larger collaboration with Kazakhstan's state-owned road operator, QazAvtoZhol. This is the second phase of the EBRD's financing package for the operator, with the first phase having been supplied in 2025, and additional co-financing coming from the Asian Infrastructure Investment Bank (AIIB).

The project will be executed using 'design, build and maintain' (DBM) contracts, incorporating a lifecycle-based approach to road infrastructure planning. This approach differs from the conventional engineering, procurement, and construction contracts typically used for such projects.

To enhance road safety and traffic management, the upgraded road will include advanced transport systems such as e-tolling, weigh-in-motion sensors, and weather-forecasting equipment. In a broader strategic move, the EBRD and Kazakhstan's Ministry of Transport have committed to promoting the digitalisation of the country's road sector. This will involve advancing Kazakhstan's digital platform for road asset management, E-Joldar, and introducing intelligent road control solutions.

The project is part of Kazakhstan's national road programme, which receives support from multiple international financial institutions, including the World Bank, the Asian Development Bank, and the Islamic Development Bank. The EBRD has been a longstanding partner to Kazakhstan, having invested nearly US$ 12.8 billion (£11 billion) through 354 projects, making it the largest and longest-running recipient of EBRD investments in Central Asia.