Tajikistan: Regional Customs Modernization and Infrastructure Development Project (TAJ)

Sovereign Project | 37644-013

Summary

The objectives of the Project are to (i) improve the efficiency and transparency of customs services and reinforce the ongoing customs legal reforms and simplification of custom procedures; and (ii) facilitate trade and promote regional customs cooperation through concerted customs reforms and modernization in the Region.

Latest Project Documents


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Project Name Regional Customs Modernization and Infrastructure Development Project (TAJ)
Project Number 37644-013
Country Tajikistan
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Loan 2114-TAJ: Regional Customs Modernization and Infrastructure Development Project (TAJ)
Asian Development Fund US$ 10.70 million
Grant 0155-TAJ: Regional Customs Modernization and Infrastructure Development Project (Tajikistan)
LRG - United States Grant US$ 1.60 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector Industry and trade - Trade and services
Gender Equity and Mainstreaming
Description The objectives of the Project are to (i) improve the efficiency and transparency of customs services and reinforce the ongoing customs legal reforms and simplification of custom procedures; and (ii) facilitate trade and promote regional customs cooperation through concerted customs reforms and modernization in the Region.
Project Rationale and Linkage to Country/Regional Strategy

Since independence in 1991, Tajikistan has been in transition to private sector-led and market-oriented economy. Development of an outward-oriented trading environment is an integral part of the transition strategy as this country is highly dependent on international trade. Significant progress has been made in trade liberalization and trade-related policy reforms as evidenced by Tajikistan's accession to the World Trade Organization (WTO) in 1998.

Progress in trade facilitation is equally significant and has effectively complemented trade policy reforms. Among all the agencies relevant to trade facilitation and border controls, the customs administration is commonly recognized as one of the most important because of its control functions, revenue collection, and prevention of smuggling and drug-trafficking.

The Customs Administration of Tajikistan is relatively young and have suffered from weak institutional capacity, low efficiency, and poor governance. Recognizing these weaknesses, this country launched comprehensive modernization programs in 2002 to address this most critical bottleneck of trade facilitation.

Significant progress has been made since the inception of the reform programs, particularly in legal and institutional reforms, and strengthening of cooperation with customs administrations of neighboring countries. However, the benefits of customs legal and institutional reforms and regional customs cooperation initiatives cannot be fully realized, unless there is commensurate development and modernization of customs physical infrastructure to improve efficiency and transparency of customs services. This country do not have adequate information and communications technology (ICT) infrastructure to support automated customs services. The border post conditions are poor because of inadequate budget support.

The Project is directly relevant to ADB's strategic objectives for the two countries. Regional cooperation with an emphasis on trade and transport infrastructure is a priority area in support of private sector-led development. ADB's Country Strategy and Program for Tajikistan (2004-2008) focuses on promoting economic growth through (i) rural development and (ii) regional cooperation.

Trade facilitation is a strategic pillar of ADB's Regional Cooperation Strategy and Program for 2005-2007 and the Project is a priority. ADB adopts a three-pronged strategy for trade facilitation to help (i) modernize customs infrastructure, including customs legal and physical infrastructure; (ii) develop customs-supporting infrastructure by fostering customs intermediaries and their associations, such as brokers' associations; and (iii) support regional customs cooperation to address issues of common concern and complement country-specific support.

Impact Promotion of international trade and an enabling environment for private sector development.
Project Outcome
Description of Outcome Improved efficiency and transparency of customs services, and facilitated trade and promoted regional customs cooperation.
Progress Toward Outcome The Project (Loan/Grant) was closed as scheduled on 31 October 2011.
Implementation Progress
Description of Project Outputs

Development of a unified automated information system (UAIS)

Border-post infrastructure development

Human resource development, public awareness campaign, and border interagency cooperation (to support implementation of components 1 and 2)

Status of Implementation Progress (Outputs, Activities, and Issues)

The project progress is 100% as of 31 October 2011.

(i) Development of UAIS. The UAIS contract was awarded on 30 June 2009. Development of UAIS system included 11 subsystems. Working Group was created by the Customs Service to oversee the UAIS component implementation. On 28 August 2009 the Project Plan with the detailed schedule on UAIS development was agreed between EA and the Contractor. Software Requirements Specification was approved on 4 December 2009. The UAIS pilot testing started in October 2010 and was rolled out to 72 border posts. The system has been successfully completed.

(ii) Border-Post Infrastructure Development. Rehabilitation of eight customs border posts located in Isfara, Zafarabad, Spitamen, Dushanbe, Murgab, Ishkoshim and Farkhor rayons, for which contracts were signed in May 2009, is completed. Construction of 3 customs border posts: Karamyk in Jirgital rayon, Kushtegirmon in Spitamen rayon, and Aivaj in Shaartuz rayon is also completed. The civil works at Kulma border post were completed in October 2011.

To ensure uninterrupted power supply in the most remote project sites, the contract for procurement of wind turbines and solar panels for Kulma and Kizilart border posts was awarded on 28 March 2011. The equipment was supplied at the border posts in October 2011.

The EA also procured anti-smuggling equipment to improve customs services. The contract for procurement of twelve X-ray machines and three electronic scales was awarded on 4 February 2010. The equipment was delivered at the border posts.

(iii) Human Resource Development. The training of customs officers on UAIS system was completed in October 2011. At the first stage, the customs officers were trained on basic and advanced computer skills. At the second and third stage, they were trained on operation of the UAIS subsystems and its practical use. The EA is recommended to undertake measures to sustain acquired skills and knowledge.

Geographical Location Republic of Tajikistan
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with Government agencies and nongovernment organizations during the implementation of the PPTA was conducted.
During Project Implementation A Project Steering Committee (PSC) was established to guide the overall direction and coordinate issues related to Project implementation. The PSC also serves as an additional mechanism for private sector participation in customs modernization in addition to the Consultatvie Council where Customs and private sector stakeholders meet regularly to discuss customs related issues and address major non-trade barriers facing traders and their representatives. Members of the PSC meet two times a year or as needed. To oversee the daily implementation of the Project, a Project Management Office (PMO)was set up within the Customs Service Department.
Business Opportunities
Consulting Services The Project will finance international and domestic consulting services to assist the PMO in project implementation. The terms of reference for the consultant services include systems analysis and design (technical specifications, hardware and software strategy), systems development/integration, systems implementation and project management advices. About 24 person-months of international and 52 person-months of domestic consulting services will be required. The consultants will be engaged either as individuals, and/or consulting firm(s) of international consultants with domestic associates to be selected following the quality-and cost-based selection (QCBS) method, in accordance with ADB's Guidelines on the Use of Consultants. The implementing agency and ADB have agreed that most of the consultants will be hired through a firm. Domestic consultants will be selected and engaged in accordance with arrangements satisfactory to ADB. Advance recruitment of consultants will be undertaken in accordance with ADB's Guidelines on the Use of Consultants. The Government was informed that approval of advance action does not commit ADB to finance the Project or to finance the recruitment cost.
Procurement

All services, supplies and equipment to be financed by ADB will be procured in accordance with ADB's Guidelines for Procurement. Equipment and materials for packages valued at $500,000 or more will be procured through international competitive bidding procedures. Some supply contracts and certain items estimated to cost less than $500,000 will be procured using international shopping procedures. Minor items of equipment and materials costing at $100,000 or less will be procured through direct purchase.

Civil work contracts estimated at $1 million equivalent or more will be carried out among pre-qualified contractors using international competitive bidding procedures, while those valued below $1 million equivalent will be carried out using local competitive bidding procedures acceptable to ADB. Force account will be applied to border-post infrastructure development. The upper limit for a force account works package will be $50,000.

Responsible ADB Officer Zarrina Abdulalieva
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Tajikistan Resident Mission
Executing Agencies
Custom Service50 Buhoro Street
Dushanbe
Tajikistan 734025
Timetable
Concept Clearance 22 Oct 2003
Fact Finding 14 Jun 2004 to 17 Jun 2004
MRM 27 Jul 2004
Approval 12 Aug 2009
Last Review Mission -
Last PDS Update 19 Apr 2012

Grant 0155-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Aug 2009 30 Jun 2010 13 Aug 2010 10 Jun 2010 31 Oct 2011 12 Jan 2012
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.28 Cumulative Contract Awards
ADB 0.00 12 Aug 2009 0.00 0.93 60%
Counterpart 2.68 Cumulative Disbursements
Cofinancing 1.60 12 Aug 2009 0.00 0.93 60%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 2114-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2004 31 Jan 2005 01 May 2005 30 Jun 2010 31 Oct 2011 12 Dec 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.70 Cumulative Contract Awards
ADB 10.70 26 Nov 2004 10.32 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Nov 2004 10.32 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Tajikistan: Regional Customs Modernization and Infrastructure Development Project Validations of Project Completion Reports Oct 2014

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