CAREC Corridor 1 (Taraz Bypass) Project (RRP KAZ 45150) SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY Country: Kazakhstan Project Title: CAREC Corridor 1 (Taraz Bypass) Project Lending/Financing Project Loan Department/ Central and West Asia Department/ Modality: Division: Transport and Communications Division I. POVERTY ANALYSIS AND STRATEGY A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy The project aligns with Strategy 2020a of the Asian Development Bank (ADB) and its country operations business plan for 2010–2011,b as well as the Transport and Trade Facilitation Strategy and Action Plan of the Central Asia Regional Economic Cooperation (CAREC) program. It also aligns with the Kazakhstan's 2020 Strategy, State Program on Accelerated Industrial-Innovative Development, and Transport Sector Program. The country partnership agreement between the Government of Kazakhstan and ADB aims to maximize linkages between productive sectors, increase jobs, facilitate balanced growth in the country, and promote trade. Through the upgrading and construction of a 65-kilometer (km) road section around Taraz City in Zhambyl Oblast, the project will contribute to the government's development program. When the road is constructed, poor residents in the project area will have an increased chance to interact with people from other areas and more easily and comfortably travel to social services and job opportunities, and thereby be more actively involved in economic activities to raise their incomes. B. Poverty Analysis Targeting Classification: General Intervention 1. Key issues. The project is located in the Zhambyl Oblast, the southern region of Kazakhstan. The population of the oblast in 2009 was around 1 million, almost half of which lives in towns. Taraz City is the center of the oblast, with a population of 336,100 (34% of the total oblast population). The population in the oblast comprises Kazakhs (65%) and Russians (18.1%), followed by Uzbeks, Tatars and Ukrines. Poverty in Zhambyl Oblast has been reduced over the recent years, but remains higher than in most oblasts in the country. The Zhambyl Oblast Statistics Department indicates that 4.8% of people earn less than required for basic subsistence. As of January 2011, the unemployment rate is estimated at around 5.6%. Half of those with income sources are self-employed, with most relying on agriculture. The primary industries are crop agriculture, livestock and poultry raising. The government provides limited agricultural subsidies, and some 1,500 small- and medium-sized enterprises operate in the oblast, but most suffer from a lack of working capital and insufficient financial services support. By completing the last section of CAREC Corridor 1 in Zhambyl Oblast, the project will contribute to an efficient transport network in Zhambyl, and will contribute to regional cooperation and sustainable economic growth in Kazakhstan by helping the country’s economy better integrate with the global economy. 2. Design features. The project will support road transport in Kazakhstan. It supplements the existing road rehabilitation along Corridor 1 aimed at contributing to sustainable economic growth through support for physical infrastructure and development, institutional capacity development, and regional cooperation. The project has no direct poverty reduction impact and is hence classified as a general intervention. It is expected to contribute to poverty reduction by improving the transport of goods and people, and access to services. In addition, it will create jobs during road construction and operation and reduce travel cost and time. The project will provide some direct employment and income opportunities during construction, and improved transportation will improve access from rural settlements to employment, markets, and basic health and education services, thereby contributing indirectly to poverty reduction. 2 II. SOCIAL ANALYSIS AND STRATEGY A. Findings of Social Analysis Key issues. The project road comprises two sections, at km 483.0–490.7 and a bypass section at km 490.7–536.0. The bypass section will be constructed along a new right-of-way, and will involve land acquisition. That new alignment will go through agricultural areas that are mostly used as pastures. The project will avoid passing through settlements around Taraz, thereby avoiding any physical displacement and loss of structures. The population within the project area is involved mainly in agriculture, livestock and poultry rising. The main crops around the project area are hay, primarily for fodder, and perennials. Wheat, corn, barley, onion, potato and alfalfa are also commonly planted. The project will help improve safety for local residents and reduce traffic congestion in Taraz by diverting transnational and international traffic. It will also induce the development of roadside businesses along the bypass. The project has no impact on indigenous people. Around 80% of the people living in the project area are Kazakhs; others include Russians and other immigrant groups. People living along the project road have full and equal access to services and opportunities provided by local authorities. There were no records of patients hospitalized due to typical symptoms of lead poisoning. There were also no official records available on HIV/AIDS cases in the project area; at the national level, the HIV prevalence rate is 0.1% among adults aged 15–49c and an increase in the infection rate has been observed. Special precautions and awareness campaigns will be provided to prevent the spread of HIV/AIDS during road construction and operation. Detailed measures are described in Section C. Poor road infrastructure constrains access to jobs, markets, and basic social services such as education and health, thus affecting the poor. Most rural people must walk to reach social services and buy necessities. Rural areas generally have inadequate social services (teachers, doctors, and civil servants), water supplies, and electricity. B. Consultation and Participation 1. Provide a summary of the consultation and participation (C&P) process during project preparation. A number of consultations with rayons (districts), akimats (local administration) and anticipated displaced people have been conducted by the Committee of Roads, beginning in 2007. Initial consultations were with the akims (head of local administration), deputy akims and land allocation offices at the different rayons. Further informal discussions and individual visits were made in 2008 during the preparation of the detailed design. Displaced persons identified through this process were contacted by the valuators and the committee chaired by the deputy akims of Baizak and Zhambyl rayons from August–November 2008 to notify them of the extent of the affected lands and seek preliminary agreement for land acquisition. In January 2009, a consultation was held in Taraz City to present the scope of the project as part of the preparation of the environmental assessment for the Islamic Development Bank’s former planned project. Common questions and concerns related to the project included issues related to compensation and cattle. A total of 16 people attended the consultation. A consultation was also held in August, 2009, and the akim of Baizak rayon and the Sarykemer settlement officer explained the rights of displaced persons, as well as the valuation of losses, grievance redress and land acquisition procedures. To maximize participation, notices were placed made in local newspapers and the heads of rural villages were mobilized to disseminate the results of the consultation to displaced persons. A further consultation was held and chaired by the akim of Baizak rayon. The deputy director of the Zhambyl Oblast Road Department, displaced persons, stakeholders and representatives from the akimat and two local nongovernment organizations (Alga and Taraz Information Center) participated in the consultation, where the following issues were raised: (i) eligibilities and entitlements, (ii) factors to be considered in the valuation of agricultural and commercial lands, (iii) documentation requirements, (iv) compensation amounts, (v) schedule of project implementation and compensation payments, (vi) mode of delivery of compensation, (vii) concerns about charges and expenses related to receipt of compensation, (viii) options for plots that are no longer suitable for their former use, and (ix) treatment of people who had not registered their land rights. In March 2010 and 2011, public consultations were held. At the 2011 consultation, in addition to the above attendees, representatives from Committee of Roads, ADB and the project management consultant under the MFF also attended, and a detailed explanation about the project was presented to displaced persons. 2. What level of C&P is envisaged during the project implementation and monitoring? Information sharing Consultation Collaborative decision making Empowerment 3. Was a C&P plan prepared for project implementation? Yes No Consultation will be part of the implementation of environmental mitigation measures and land acquisition and resettlement activities. A community liaison group will be formed to improve information exchange and resolution of grievances within the entire Zhambyl oblast section. 3 C. Gender and Development Gender Mainstreaming Category: Some Gender Benefits 1. Key issues. The project is classified as having some gender benefits, because it is expected to create some job opportunities