Need for realistic cost estimates. During implementation it was realized that costs for civil works and consulting services had been overestimated, and that contingencies were excessive, which resulted in cancellation of 33.8% of the loan proceeds. Furthermore, various changes in scopes and designs were required to accommodate the geological conditions and needs of local populations, which had not been identified at design stage. Robust due diligence should be performed at appraisal (e.g., through detailed engineering studies, examination of market rates of construction materials and consultant remuneration, and inclusion of careful calculations of physical and price contingencies in the project cost estimate).
CAREC Transport Corridor 1 (Zhambyl Oblast Section) Investment Program - Tranche 1