Kazakhstan Green Growth in Road Sector Through E-tolling

Project Summary:

This project provided technical assistance to support ongoing World Bank and Kazakh efforts to design, plan, and implement an e-tolling strategy. More specifically, it supported a financial and environmental cost-benefit analysis of e-tolling technical and tariff options, as well as an analysis of the necessary legislative and institutional frameworks for implementation. And it would help the government of Kazakhstan develop an emissions monitoring system. By partnering with key transportation agencies in Korea, the Kazakhstan government set the foundation for long-term knowledge-sharing as it turns its green growth strategy, in the transportation sector as well as other areas of national concern into a reality.

List of Activities:

• Technical Assistance to support KAZ during preparation of the National E-tolling Strategy. This activity would include revision and updating of the strategy that is currently under preparation and provide strategic advice on different aspects where internal capacity of KAZ is not sufficient.  In the short term, the government, through KAZ, intends to introduce e-tolling on the Center-South Road Corridor  and sections of Western Europe-Western China Corridor, and would benefit from a strategy prepared in line with best international practices and accounting for country and regional specificities. In very recent engagement with KAZ, KAZ has informed the Bank that this is a high priority for KAZ and for the country, and requested assistance from the Bank.
• Technical Assistance to develop E-tolling Options and Cost-Benefit Analyses: Analyze the full range of available e-tolling options and their applicability in the Kazakhstan context. Such options may include vignettes and e-vignettes, open e-tolling systems using satellite technology,  closed systems using DSRC (Dedicated Short-Range Communications) or RFID (radio frequency identification). The options analysis would also explore different levels of tariffs (willingness to pay), and the sequence of e-tolling on the network, and would be supported by a cost-benefit analysis, considering also the environmental benefits. This work would form a foundation for preparation of a revenue generation business plan for KAZ, which is planned as part of the CSP, where the revenue from e-tolling will be used for maintaining and operating the republican network. It will also help the government better monitor the level of emissions by domestic and international freight and regulate emissions charges. The value of this work would be to support the government in finding cost effective solutions for pricing mechanisms and recommendations on pricing policy and technological solutions.
• Technical Assistance to turn the Strategy into Action Plans, comprising institutional set-up, detailed technology specifications, legislation framework, procurement strategy including Bidding Documents, and project management plan. These aspects are critical to turn the vision into action, which will determine the success of this greenhouse gas mitigation proposal.
• Knowledge sharing and capacity building for KAZ and the broader stakeholders, who will be involved in implementing, operating or using the e-tolling system.

Outcomes:

Output 1:

• Review of selected technological solutions  
• Review of implementation targets  
• Review of user charging and tariffing policy

Output 2:

• Analysis of options:  technology, types of vehicles to be charged, road network and e-tolling rates

Output 3:

• Review of institutional, financial,  procurement arrangements and legislative provisions

Outcomes:

The project increased efficiency of transport operation on the major roads will have positive implications for people’s mobility and for goods’ movement through improved trade and logistics. It also achieved greater resilience through promotion of more sustainable transportation system via toll mechanisms will decrease negative environmental impacts from polluting vehicles and bridge a financing gap for maintaining a road network that is more resilient to climate change and harsh weather conditions.  The project successfully increased competitiveness by improving trade and road network which lowered the cost of produce and make country more competitive.

Collaboration with K-Partners and Others:

• WBG internal partners: the team included ICT colleagues and Trade &Competitiveness colleagues
• K-Partners
  Korea Expressway Corporation (KEC): The state-owned company has developed and implemented a new smart e-tolling system without much road infrastructure (an open system) in 2014 and has affluent experience with various e-tolling technology on roads. Also, the company has worked with Kazakhstan government as partners. The team will collaborate with the company to suggest reasonable e-tolling options for the expressway in Kazakhstan.
  Ministry of Land, Infrastructure and Transport (MOLIT) in Korea: The team will work with the MOLIT, which is responsible for making policies for road network building and management, for knowledge-exchange related to road, as a development corridor, including technologies and institutions for e-tolling and construction. 
  Korea Transport Institute (KOTI): The team will get some consultation from the KOTI, which has excellent experts specializing in the road network, to introduce competitive road transport circumstances for Kazakhstan green and sustainable transport.
• Other external partners: The team engaged with e-tolling professionals and practitioners under the recently completed Bulgaria e-tolling and ITS RAS, and the proposed activity may look for ways to expand the collaboration.