Afghanistan: MFF - Road Network Development Investment Program Tranche 1

Sovereign Project | 42095-022

Summary

To cover the cost overruns under the Andkhoy-Qaisar Road Project and the North-South Corridor Project, therefore, this tranche has been released. This is the supplementary fund for (Ankhoy-Qaisar 240 km and North South Cooridor 238 km). The Government planned to utilize the MFF in four tranches. With regard to the Tranche 1 Project under the MFF, the financing plan will involve only ADB at this stage. It will amount to $60 million, of which $45 million will be for supplementary financing for civil works and $2 million on initial project

management work relating to existing projects. About $13 million will be in the form of contingencies. The subsequent tranches will be for around $100 million each, except the fourth, which is estimated at $140 million. ADB will seek cofinancing from third parties for these tranches. This work is underway.

Latest Project Documents


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Project Name MFF - Road Network Development Investment Program Tranche 1
Project Number 42095-022
Country Afghanistan
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0135-AFG: MFF - Road Network Development Investment Program Tranche 1
Asian Development Fund US$ 60.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming
Description

To cover the cost overruns under the Andkhoy-Qaisar Road Project and the North-South Corridor Project, therefore, this tranche has been released. This is the supplementary fund for (Ankhoy-Qaisar 240 km and North South Cooridor 238 km). The Government planned to utilize the MFF in four tranches. With regard to the Tranche 1 Project under the MFF, the financing plan will involve only ADB at this stage. It will amount to $60 million, of which $45 million will be for supplementary financing for civil works and $2 million on initial project

management work relating to existing projects. About $13 million will be in the form of contingencies. The subsequent tranches will be for around $100 million each, except the fourth, which is estimated at $140 million. ADB will seek cofinancing from third parties for these tranches. This work is underway.

Project Rationale and Linkage to Country/Regional Strategy Afghanista's reconstruction and development need investments in many areas. Roads are one of these. Poor connectivity hampers investment, trade, people's mobility, and ultimately job creation. This affects the cost of doing business, but also prevents Afghanistan from becoming an attractive transit option for Central Asian trade. Lack of enough and well maintained roads leaves rural areas isolated. This has a negative impact on growth and prospects for social inclusiveness, peace, and stability. Everyone is affected: manufacturers, public and private sector service providers, farmers, truckers, wholesalers, retailers, women, and children. The MFF makes sense. One of its merits is to build not only new assets and maintain existing ones, but also to work on the institutional front.
Impact Economic and social development and poverty reduction in the project areas
Project Outcome
Description of Outcome

Improved road transport services in the project areas

Reduced transport costs and travel time on the project road

Provide rural population with better access to social services, markets, and other economic opportunities

Enhance project management capability of Ministry of Public Works (MPW)

Progress Toward Outcome Completed.
Implementation Progress
Description of Project Outputs

1. Improvement of national highway sections from Mazar-e-Sharif to Dara-i-Suf

2. Cross border facilities at Hairatan and Spin Boldak

3. Improvement of public awareness about HIV/AIDS

4. Improvement of national highway sections from Bamian to Yakawlang

5. A primary road section from Andkhoy to Qaisar improved to a standard that allows smooth passage of all types of vehicles, and equipped with facility for road tolling and axle load control

6. Primary roads equipped with facility for road tolling and axle-load control

7. Project managers, accountants, engineers, and other administrative staff within MPW have experience in implementing large investment projects

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

Con 1: Mazar-i-Sharif - Poli Baraq (76 km) is 100% complete; Con 2: Poli Baraq -Dara-i-Suf (58.94 km) is 100% complete; International roughness index are being measured after completion of works.

Completed.

Completed.

Yakawlang-Bamyan (86.8 km) 100% completed by June 2012.International roughness index are being measured.

Completed and opened for traffic.

Completed.

Completed. Office equipment and material handling equipment was procured and installed at Spin Boldak.

Completed.

Geographical Location Samangan (Darisuf) Province,Bamyan (Yakawlang) Province,Balkh (Mazar-i-sharif) Province,Faryab (Andkhoy-Qaisar) Province
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The Investment Program has been assessed according to ADB's Environmental Policy (2002). It is classified as category B due to the minimal short-term environmental impacts of improvement and maintenance works planned in each of the projects. Long-term environmental impacts of the Investment Program will be addressed during implementation. This environmental assessment and review framework (EARF) has been developed to guide the Ministry of Public Works (MPW), Asian Development Bank (ADB) staff, road designers, supervision consultants, and construction contractors in carrying out the environmental assessment and relevant mitigation and monitoring activities required when designing and implementing subprojects to be financed under the multitranche financing facility (MFF).

MPW will assist ADB in its periodic environmental due diligence analyses on any project at any given time. MPW will have the main responsibility, however, for performing periodic environmental due diligence analyses, as well as for monitoring the implementation of all projects to ensure compliance with Afghanistan's and ADB's environmental policies and overall environmental standards.

Involuntary Resettlement

The Tranche 1 Project does not involve any significant land acquisition or resettlement issues. Land acquisition and resettlement impacts of each project under the MFF will be treate according to the resettlement framework , which was prepared by MPW in consultation with national and local administrative bodies and in accordance relevant ADB policies. The impact assessment and mitigation will depend on the method of contracting for the different types of physical works. In design-bid-build contracts, MPW will prepare detailed designs and corresponding resettlement plans (RPs) and implement them simultaneously with procurement of works. MPW will not sign works contracts prior to completing land acquisition and resettlement activities. In the case of design-build contracts, which would allow works to be expedited by the designing the road while physical works progress, after the award of contracts and during the detailed design phase, MPW will work

through the supervision consultant(s) and the contractor(s) to determine impacts. Depending on these impacts, MPW will prepare resettlement plans and implement the plans after obtaining approval from ADB.

Indigenous Peoples

An assessment of the impact of the Investment Program related activities on indigenous peoples has been performed in accordance with ADB's Indigenous Peoples Policy (1998). The constitutional categorizations of the people of Afghanistan do not include any as indigenous

peoples, and there are no people that will be negatively affected by the Investment Program related activities. The Investment Program is accordingly classified as category C.

Stakeholder Communication, Participation, and Consultation
During Project Design

To ensure that future development efforts in the road sector are aimed at a common goal, ADB has consulted USAID and the World Bank while preparing the MFF. Likewise, ADB has met with people of villages adjacent to the roads being constructed, road users and road builders to ascertain the immediate impacts, both positive and negative. These meetings revealed that the positive impacts far outweigh the negatives.

The Project has identified and consulted with both primary and secondary stakeholders. During social analysis extensive consultations were carried out with the local people (men and women), road users, truck drivers, vehicle operators, shop owners, farmers, traders, nongovernment organizations in the prominent towns, villages in the project influence area to ascertain their response to the construction of road, and their needs and demands from the Project. Apart from the public meetings, focus group discussions were organized with the young, old, men, and women from different occupations and population groups to ensure a comprehensive perspective on the Project as well as its impacts. All those consulted had positive reactions toward the Project and welcomed the benefits that improved access and/or road conditions would provide. They also emphasized that households that will be adversely affected should be compensated by the Project for their losses, so that they are able to reestablish their livelihoods and take advantage of road improvement.

During Project Implementation The grant agreement signed with Ministry of Finance (MoF) as an employer and The project was implemented by Ministry of Public Works (MPW). Based on these lessons, MPW will nsure that the Investment Program is implemented with active participation of all national stakeholders, using participatory practices. Consultation will continue throughout the Investment Program implementation. MPW, through regular field visits and the use of specialists, will implement each tranche. Disclosure of relevant information will continue throughout implementation of the Investment Program. In the case of tranche 1, resettlement and environmental impacts have been discussed with the stakeholders, including affected persons and local administrative units, and the relevant information has been publicly isclosed through the local media and ADB's website.
Business Opportunities
Consulting Services Consulting Services for supervision of works, capacity development, institutional reform and project management will be procured according to ADB's Guidelines on the Use of Consultants (April 2007, as amended from time to time) using the qualtiy and cost or cost based system.
Procurement Works in a Project may include: (i) construction, rehabilitation, and repair of roads of road-related infrastructure; and/or (ii) performance-based maintenance of roads for up to five years using international competitive bidding or national competitive bidding according to ADB's Procurement Guidelines (April 2007, as amended from time to time). Equipment costing up to $100,000 will be procured using shopping procedures acceptable to ADB.
Responsible ADB Officer Mookiah Thiruchelvam
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of Public WorksAbdul Qudus HamidiFirst Macrorayan, Kabul,Islamic Republic
of Afghanistan
Timetable
Concept Clearance 09 Jun 2008
Fact Finding 18 Apr 2008 to 29 Apr 2008
MRM 08 Jul 2008
Approval 02 Dec 2008
Last Review Mission -
PDS Creation Date 16 Oct 2008
Last PDS Update 28 Sep 2013

Grant 0135-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2008 01 Feb 2009 04 May 2009 30 Jun 2012 30 Jun 2013 04 Sep 2013
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 60.00 Cumulative Contract Awards
ADB 60.00 02 Dec 2008 53.60 0.00 89%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 02 Dec 2008 53.60 0.00 89%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
North South Corridor Project 3: Yakawlang-Bamyan Environmental Monitoring Reports Oct 2012
North South Corridor Project 2: Pul-e-Baraq to Darisuf Environmental Monitoring Reports Oct 2012
Road Network Development Project 1 (Community Development Plan) Environmental Assessment and Review Framework Sep 2010

Evaluation Documents

See also: Independent Evaluation

No documents found.


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