Uzbekistan: CAREC Corridor 2 Road Investment Program - Tranche 2

Sovereign Project | 42107-033

Summary

The project' outcome will be reconstructed, effectively operated and maintained A380 highway section with improved travel time. The project has two outputs--(i) reconstructed Uzbekistan section of CAREC Corridor 2 road (85 km of the A380 highway between Km355 and Km440), and (ii) road sector sustainability strategy and plans adopted by the Republican Road Fund (Road Fund).

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Procurement Documents


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Project Name CAREC Corridor 2 Road Investment Program - Tranche 2
Project Number 42107-033
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2746-UZB: Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2
Ordinary capital resources US$ 240.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming No gender elements
Description The project' outcome will be reconstructed, effectively operated and maintained A380 highway section with improved travel time. The project has two outputs--(i) reconstructed Uzbekistan section of CAREC Corridor 2 road (85 km of the A380 highway between Km355 and Km440), and (ii) road sector sustainability strategy and plans adopted by the Republican Road Fund (Road Fund).
Project Rationale and Linkage to Country/Regional Strategy With the increasing role of the Uzbekistan's transport sector, it faces operational and institutional bottlenecks. These problems translate into higher-than-average transport costs. They also hamper regional cooperation and integration opportunities, and ultimately the country's competitiveness. Under ADB's Loan 2403-UZB, the Road Fund has improved its planning capacity to be able to make better investment decision. It has also looked at various options to improve the road sector institutional structure.
Impact Better connectivity and an efficient transport system along Uzbekistan section of CAREC Corridor 2 Road
Project Outcome
Description of Outcome Reconstructed A380 highway section with improved travel time and effectively operated and maintained
Progress Toward Outcome The earlier contract for the civil works was terminated in December 2012 owing to bankruptcy of the contractor. As a result of the rebidding process, civil works contract was awarded to POSCO Engineering & Construction Co. Ltd. (Korea) in December 2013 and registered by MFERIT in May 2014. This is likely to delay the achievement of outcomes. The construction supervision consultancy contract was awarded in August 2012. The equipment supply contract was completed in 2012. Outcomes of all the components will be visible after completion.
Implementation Progress
Description of Project Outputs

Uzbekistan section of CAREC Corridor 2 road constructed

Road sector sustainability plans adopted by the Road Fund

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

Civil works package was awarded to POSCO Engineering & Construction Co. Ltd. (Korea) on 24 December 2013, registered by MFERIT on 7 May 2014, and commenced on 26 May 2014. The contractor has mobilized and started construction work in July 2014. As of 23 January 2015, the contractor has completed 23.18 km of earthworks, 13.52 km of subbase and 5.92 km cement treated base course.

Boring equipment procured and delivered to Uzbekistan in 2012 and comissioned in 2013.

Geographical Location Bukhara, Khorezm, and Karakalpakstan Republic
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

1. No major environmental impacts. Project 2 was classified as Category B.

2. An initial environmental examination (IEE) was prepared.

3. The IEE concluded that the overall environmental impacts of projects 1 and 2 would be insignificant and will be minimized by adequate mitigation measures included in the Environmental Management Plan (EMP).

4. The construction contractor will implement all environmental management requirements set out in the IEE and will prepare site specific environmental management plans. The. Monthly monitoring reports will be issued by the contractors and will be reviewed by the design and supervision consultant.

5. The construction supervision and project management consultants will monitor the EMP

Involuntary Resettlement An assessment of impacts and the inventory of loss assets was undertaken during 19-25 July 2010, following the project cut-off date of 19 July 2010. Project 2 will mostly follow the existing right-of-way, so land acquisition is minimal. However, a total of 0.84 ha of land will be acquired permanently (including abandoned and non-operating entities). Project 2 will affect 4 households comprised of 16 people. These households include business entities (1 operating and 3 non-operating) and located in the desert areas along the project road. During construction, additional land may be used temporarily for camps and borrow pits. However, this land is desert, and free of any land acquisition and resettlement impacts. Preparation of the replacement lands and payment of compensation has been completed. LARP compliance report was disclosed on 30 September 2014.
Indigenous Peoples The project will not affect the dignity, livelihood systems, or culture of Indigenous Peoples. The Tranche 2 project activities will have no impacts on land, housing, property or income; and no new limitations to the movement of local residents.
Stakeholder Communication, Participation, and Consultation
During Project Design

Discussions were held with khokimyat authorities and key stakeholders, and public consultations with villagers and other interested parties. Where land acquisition and resettlement is required, household surveys and a full census of all affected persons was held in accordance with ADB's social safeguards.

A consultation and participation plan was prepared for Project 2 which undertook detailed level of information sharing and consultation particularly for the land acquisition and resettlement plan preparation.

During Project Implementation Information sharing and public consultations will continue during implementation. ADB's safeguards specialist is monitoring the resettlement activities. Payment of compensation to the affected households has been completed.
Business Opportunities
Consulting Services All consultants financed from ADB were recruited according to ADB''s Guidelines on the Use of Consultants (2010, as amended from time to time) and the procurement plan of Project 2. Consulting firms were selected and engaged using the quality- and cost-based selection method. Individual consultants were recruited for procurement and safeguard component.
Procurement Procurement of civil works and goods followed ADB''s Procurement Guidelines (2010, as amended from time to time) and the procurement plans of Project 2.
Responsible ADB Officer Khuong Luu
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Republican Road FundMinistry of Finance
29 Istiklol Street
Tashkent, 100017,Republic of Uzbekistan
Timetable
Concept Clearance 18 Jan 2010
Fact Finding -
MRM 15 Mar 2011
Approval 31 Mar 2011
Last Review Mission -
PDS Creation Date 15 Jul 2010
Last PDS Update 24 Mar 2015

Loan 2746-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Mar 2011 12 Apr 2011 06 May 2011 30 Jun 2014 31 Dec 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 289.00 Cumulative Contract Awards
ADB 240.00 31 Mar 2011 191.41 0.00 80%
Counterpart 49.00 Cumulative Disbursements
Cofinancing 0.00 31 Mar 2011 76.81 0.00 32%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - - - -

Evaluation Documents

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