- Rationale
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Railways are the primary mode of long distance and bulk transportation of people and goods in Uzbekistan and, consequently, essential for the country's international and subregional economic development. Because of the country's critical reliance on railway transportation, the Project will facilitate pro-poor growth by providing efficient transportation, and income generation activities necessary for reducing poverty. The Project, by improving transportation linkages, will support the Government strategic objective of accelerating economic development of the central and western regions of Uzbekistan.
- Objectives and Scope
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The main goal of the Project is to facilitate pro-poor economic growth. This will be achieved through technical improvements and restructuring initiatives for improving the operational efficiency of railway transport. The Project will (i) provide more efficient movement of freight and passengers, (ii) facilitate international trade through improved access to neighboring countries, and seaports, and (iii) enhance UTY's institutional capacity. The scope of the Project comprises: (i) rehabilitation of 341 km of railway track on the Samarkand-Bukhara-Khodjadavlet route and parts of the second line between Dzhizak and Samarkand; (ii) provision of modern equipment for track laying and efficient maintenance of railway tracks; (iii) installation of optical fiber telecommunications systems, (iv) computerization of financial accounting systems, including consulting services, (v) human resources development including training of staff in sustaining the technological improvements, and (vi) establishment of the Small Business Fund (SBF).
- Policy Dialogue
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The principal issues discussed include restructuring of UTY; rationalization of ancillary activities; financial accounting systems and business plans; pricing policies and traffic costing system; reducing staff and downsizing of assets, development of a marketing function for UTY, strengthening of UTY's human resources development function and, mitigation of the negative impact of staff reduction by providing gainful employment opportunities to former UTY employees.
- Environment Category:
B
- Environment Impact and Mitigation
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An initial environmental examination was carried out. Since the Project involves track rehabilitation using the existing right-of-way, and no new line construction is involved nor is any additional land required, there would be no significant environmental impact.
- Social Aspects and Remedies
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Restructuring of the railway organization and staff reduction are the key social issues. Restructuring of the organization to become financially sustainable will be done on the basis of a program which would take into consideration the impact on staffing and requirement for operational skills. The Project will assist in the development of effective measures to assist in the mitigation of negative impacts arising from the organizational restructuring. A small business fund has been created to assist separated staff in establishing small business ventures.
- Benefits and Beneficiaries
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The Project will provide savings in railway track maintenance, train running costs and efficient access to bordering countries and seaports for freighting companies, manufacturers and travelers. Overall, the Project will assist in the economic development fo the country and provide additional opportunities for creation of jobs and income generating activities for reducing poverty..
- Public Consultation
- Arranged by Borrower
- Date for Consultation : various
- Groups Consulted : People who would be affected by the restructuring, including those affected by separation of schools and medical institutions. Consultations were done during the preparation of the feasibility study.
- Beneficiary Participation in Formulation
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Beneficiaries, including major railway customers, were consulted during project preparation and formulation. The PPTA consultants and advisory technical assistance consultants for the Institutional Strengthening of Uzbekistan Temir Yullari also undertook necessary consultations. The process is continuing during implementation of the Project.
- Beneficiary Participation in Implementation
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Beneficiary participation is being ensured by the executing agency (EA) at all stages of the project cycle including implementation. The EA has established a railway marketing department for liaison with project beneficiaries.
- Consulting Services
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International experts habe been engaged for computerization of financial accounting systems for about eight person-months in accordance with ADB's Guidelines on the Use of Consultants.
- Procurement
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The procurement of all goods and equipment financed under the ADB loan is being done in accordance with ADB's Guidelines for Procurement. Materials and equipment for the Project, including rails and fitting, concrete sleepers, elastic fastenings, equipment for rehabilitation, maintenance, and telecommunications, and computer hardware and software for financial accounting system will be procured using international competitive bidding or international shopping procedures
- Contacts
- Bank
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Manmohan Parkash
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Senior Transport Specialist (Railways)
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EATC
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Tel. No.:
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(632) 632-6364
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E-mail:
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mparkash@adb.org
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- Executing Agency
- Uzbekistan Temir Yullari
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Contact Person
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Mr. S. Erkinov, Head, ADB-PIU
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Tel. No.
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998 (71) 138 8573
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Fax. No.
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998 (71) 133-4179
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- Remarks
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