📋 Tender Overview
Scope :
The asian development bank (adb), jointly with the world bank, proposes to establish the kazakhstan urban infrastructure modernization program as a medium- to long-term roadmap to ensure sustainable development and financing of urban infrastructure, operationalized through a national level facilitys the kazakhstan urban infrastructure finance facility (kuiff)(the project), in the republic of kazakhstan. this supports kazakhstans annual estimated $20 billion investment need for urban infrastructure and services required for promoting economic diversification, and an environmentally sustainable and inclusive growth for an improved quality of life, aligned with the governments strategic plan for development of kazakhstan 2025: technological modernization for accelerated growth and better quality of life. it is aligned with adbs country partnership strategy, 2017-2021, for kazakhstan, which highlights urban infrastructure development and responds to the government request for support to the urban sector, particularly for urban water supply and sanitation.
Aging infrastructure and inadequate investments. there is a growing infrastructure deficit with 75% of infrastructure requiring replacement and/or rehabilitation. investment requirements through 2040 have been projected to total at least $150 billion with annual requirements estimated at about $2.8 billion for water supply improvements and $1.3 billion for sewage treatment (in 28 cities), $2 billion for solid waste management, $3 billion for district heating, $8 billion for integrated district heating, energy efficiency and housing improvement measures, $3 billion for urban transport, and $3 billion for integrated urban development of new areas (footnote 3). the government prefers to avoid sovereign borrowing given their current financial constraints, but its own funding for infrastructure investment was about $270 million in 2016 from both the governments budget subsidies and investments given the substantial reduction in kazakhstans gross domestic product from about $224 billion in 2013 to $133 billion equivalent in 2016.
weak institutional capacity. municipalities are responsible for the delivery of urban infrastructure and services through their public utility companies. weak technical and financial management capacity of the utilities have led to inefficient operations and maintenance, and poor asset management (including outdated equipment). low tariffs for water and district heating services limit the revenues for utility companies and are insufficient for the operations and maintenance or for capital investments. as tariffs are inadequate to sustain utilities, ad hoc emergency funds are regularly transferred from the national government to oblast and city akimats, and from them to utility companies. public budget commitments in kazakhstan can extend to a maximum of 3 years, which is not sufficient for the long-term planning needed to build and operate complex infrastructure for u
