Kyrgyz Republic: Regional Customs Modernization and Infrastructure Development Project (KGZ)

Sovereign Project | 38177-013 Status: Closed

Latest Project Documents

Project Results



cross-border cargo volume facilitated

The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Regional Customs Modernization and Infrastructure Development Project (KGZ)
Project Number 38177-013
Country Kyrgyz Republic
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2113-KGZ: Regional Customs Modernization and Infrastructure Development Project (KGZ)
Asian Development Fund US$ 7.50 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Industry and trade - Trade and services

Gender Equity and Mainstreaming No gender elements
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 customs procedures; and (ii) facilitate regional 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. the Kyrgyz Republic 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 the Kyrgyz Republic'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 the Kyrgyz Republic 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 the customs administrations of neighboring countries. However, the benefits of customs legal and institutional reforms and reginal 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. The current country partnership strategy supports the government development agenda, articulated in the country development strategy for 2008 2011, of which the main theme is to contribute to robust and sustainable economic growth and poverty reduction, and the attainment of Millennium Development Goals.

In line with the country development strategy, ADB supports four priority areas:

(i) promoting economic management consistent with strong and sustained pro-poor growth;

(ii) improving governance, promoting effective public administration, and reducing corruption;

(iii) building sustainable human and social capital; and

(iv) ensuring environmental sustainability and natural resources management.

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
Progress Toward Outcome Project is closed as scheduled on 31 December 2012. The project has broadly achieved its outcomes.
Implementation Progress
Description of Project Outputs

Development of a unified automated information system (UAIS)

Border-post Infrastructure development

Human resource development and improvement of border interagency cooperation (to support implementation of components 1 and 2)

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










Geographical Location Kyrgyz Republic
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project will have no direct negative impacts on water supply, sewerage, energy systems or waste disposal. It is concluded that the environmental impact of the project is minimal and can be kept to acceptable levels by implementing simple mitigation measures where appropriate. Therefore, it is recommended that the project be classified as Environmental Category C and a full environmental impact assessment would not be required.
Involuntary Resettlement None
Indigenous Peoples None
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with Government agencies and nongovernment organizations during the implementation of the PPTA.
During Project Implementation A Project Steering Committee (PSC) has been established to guide the overall direction and coordinate issues related to Project implementation. The PSC 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 will 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 State Customs Services.
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 20 person-months of international and 45 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.

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 Gulkayr Tentieva
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Kyrgyz Resident Mission
Executing Agencies
Ministry of Finance
Public Debt Department Room 500
58 Erkindik Boulevard
Bishkek 720040, Kyrgzy Republic
Concept Clearance 25 Nov 2003
Fact Finding 19 Jun 2004 to 24 Jun 2004
MRM 27 Jul 2004
Approval 26 Nov 2004
Last Review Mission -
PDS Creation Date 14 Dec 2006
Last PDS Update 19 Apr 2013

Loan 2113-KGZ

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2004 24 Feb 2005 23 Feb 2006 30 Jun 2010 31 Dec 2012 18 Apr 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 9.37 Cumulative Contract Awards
ADB 7.50 26 Nov 2004 6.88 0.00 98%
Counterpart 1.87 Cumulative Disbursements
Cofinancing 0.00 26 Nov 2004 7.01 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory
Title Document Type Document Date
Regional Customs Modernization and Infrastructure Development Project Project/Program Completion Reports Jun 2014
Regional Customs Modernization and Infrastructure Development Project Project/Program Administration Manual Dec 2004
Regional Customs Modernization and Infrastructure Development Project Reports and Recommendations of the President Nov 2004
Regional Customs Modernization and Infrastructure Development Project Reports and Recommendations of the President Oct 2004

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.