ADB Approves $400m Loan for New Saryagash Bypass Road in Kazakhstan

The Asian Development Bank (ADB) has approved a sovereign-guaranteed loan of $400 million equivalent to “KazAvtoZhol” National Company JSC (KazAvtozhol) to finance the construction of a new 102-kilometer bypass highway in southern Kazakhstan. The project, known as the Saryagash Bypass Road, aims to enhance regional connectivity, facilitate cross-border trade, and improve transport safety and efficiency.

Strengthening Kazakhstan’s Role as a Regional Transit Hub

According to ADB Country Director for Kazakhstan Utsav Kumar, the Saryagash Bypass will provide a major boost to the country’s role as a key transit hub between East Asia and Western Europe, given its strategic location.

“The Saryagash Bypass Road will strengthen Kazakhstan’s trade and transport links within the region and with external markets in East Asia and Western Europe, helping unlock the country’s potential as a key transit hub. The project will contribute to the economic development of the Turkistan region by providing easier access to larger markets, reducing congestion, creating employment opportunities, and promoting tourism,” Kumar said.

By diverting transit traffic away from Saryagash city in the Turkistan region, the road will ease urban congestion, shorten travel times, and improve mobility for both freight and passengers.

Connecting Key Regional Economic Corridors

The new highway will also enhance connectivity between the Central Asia Regional Economic Cooperation (CAREC) Corridors 3 and 6, which link Kazakhstan with neighboring states and global trade routes. The CAREC Program—supported by ADB—unites countries and development partners to foster sustainable development and economic growth through regional integration.

Project Features and Sustainability

The Saryagash Bypass Road will be equipped with a smart traffic management system, enabling efficient monitoring and safer traffic flows. The project is designed with a focus on:

• Climate resilience, ensuring infrastructure is adaptable to environmental challenges.

• Road safety, introducing international best practices.

• Performance-based maintenance, to extend the road’s lifespan and optimize resources.

• Social inclusion, supporting women and girls through skills development and employment opportunities linked to the project.

Strengthening Institutional Capacity

The initiative will also help KazAvtoZhol, Kazakhstan’s national operator for highways, enhance its institutional capacity. The company is responsible for planning, constructing, operating, and maintaining roads of both national and international significance. Under the project, KazAvtoZhol will strengthen its expertise in sustainable road management, paving the way for improved infrastructure across the country.

A Longstanding Partnership

Kazakhstan has been a member of the ADB since 1994, with the Bank committing more than $7.5 billion in loans, grants, and technical assistance to support the country’s development in key sectors, including transport, energy, finance, and public sector management.

This latest investment highlights the Bank’s continued support for Kazakhstan’s efforts to modernize its infrastructure, boost trade competitiveness, and improve regional integration.

Looking Ahead

The Saryagash Bypass Road project represents more than just a highway—it is part of a larger strategy to make Kazakhstan a linchpin in Eurasian trade networks, contributing to the broader goals of sustainable development, economic diversification, and improved quality of life for local communities.