CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe–Western People’s Republic of China International Transit Corridor] Investment Program and Taraz Bypass Project (Kazakhstan)

The MFF is a useful modality for providing the substantial financing required for infrastructure through successive tranches, but frequent policy dialogue between ADB and the executing agency would support the strategic long-term requirements of the sector. Implementation of the program demonstrated the flexibility and effectiveness of the MFF modality, for example when an additional tranche was approved to cover a section of the corridor that was originally not envisioned for ADB finance. ADB also demonstrated its flexibility when it agreed to cover the investment shortfall in the Taraz Bypass through an additional project loan. Additional value addition could have achieved if frequent policy dialogue with the executing agency to assess the progress of the strategic requirements of the sector plan had taken place. This plan covered a range of institutional policy reforms and capacity development aimed at improving sector planning, strengthening governance, and involving the private sector.