Kyrgyz Republic: CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3

Sovereign Project | 42399-023 Status: Approved

Summary

ADB is helping the Kyrgyz Republic to continue upgrading the Bishkek-Torugart Road. The project will improve the 60-kilometer section from At Beit to Torugart at the border with the People's Republic of China. It will also strengthen infrastructure management skills of government staff engaged in the road sector.

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Procurement Documents


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Project Name CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3
Project Number 42399-023
Country Kyrgyz Republic
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2755-KGZ: CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3
Asian Development Fund US$ 55.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description

The CAREC Corridor 1 (Bishkek-Torugart Road) Project 3 (the project) will help the government improve the 60-km section from At Beit to Torugart at the People's Republic of China (PRC) border. Together with the ongoing improvement works in the other sections, it will enable all weather road travel between Bishkek and Kashi. Aside from the economic benefits of higher speeds and reliability, the better road geometry and protective structures resulting from the improvement will reduce the accidental toxic spill risk and material run-off from vehicles. These reductions will benefit the ecosystem of Chatyr Kul lake--a wetland of international significance and protected under the Ramsar convention.

The project will also strengthen infrastructure management skills of government staff engaged in the road sector. This is an essential and natural complement to the capital investment. The Asian Development Bank (ADB) provided technical assistance for institutional strengthening and capacity building totaling nearly $6 million between 1996 and 2010. The World Bank and the European Bank for Reconstruction and Development have more assistance programmed for 2011. These are short and one-off interventions. The project, in contract, supports a long-term, results oriented program of learning and development for government staff. It will result in better informed staff, equipped to champion strategies for reducing life cycle costs and improving user cost recovery.

Project Rationale and Linkage to Country/Regional Strategy

The condition of the Kyrgyz Republic's road network and its management have improved substantially between 2005 and 2010. However, several dilapidated network links and poor infrastructure management skills continue to hamper regional trade and economic growth. The project will help the government make some of these much improvements in accordance with ADB's Strategy 2020. Aside from being landlocked, 80 percent of the Kyrgyz Republic's land is covered by the Tian Shan mountain range. Trade and travel are almost entirely dependent on road transport. More than 90% of the passenger trips and about 60% of the freight in 2009 moved by road. This has been made partly possible by donor assistance since 1996 to upgrade about 2,000 km of strategic roads. More roads are waiting to be improved. The 539-km Bishkek-Torugart road is one of them. Its surface, most bridges, and safety devices are either inadequate or functionally obsolete. Traffic volumes in several sections exceed the capacities causing heavy delays during the summer months, and movement in some sections are frequently interrupted due to landslides, snow drifts, water logging, and flooding. Bishkek-Torugart road plays several important functions. It is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 1(c), which extends from Troitsk in the Russian Federation to Kashi in Xinjiang Uygur Autonomous Region of the PRC; is the shortest thoroughfare from Bishkek to Kashi; and the only north-south trunk road in Central Kyrgyz Republic, connecting the Naryn oblast (province), the poorest of the Kyrgyz Republic's seven oblasts, and the City of Naryn to the rest of the country. It is also the only road that provides direct access at present to Issyk Kul lake region, one of Central Asia's best known tourist destinations with a huge potential to grow. However, the costly, slow, unreliable, and unsafe travel due to the poor road condition has hampered the development of the entire corridor, particularly the province (oblast) of Naryn. Imports from the PRC continue to grow, but exports are limited to a few products because only few local communities are able to transport their produce to the consolidation centers such as Naryn and At Bashi. Although the government prepared the Road Sector Development Strategy for 2007-2010, in which Bishkek-Torugart road improvement features prominently as an action item, it lacked resources for implementing the strategy. As the country's first development partner and largest multilateral lender to the road subsector, ADB was first to offer to meet part of the resource need. In 2008 and 2009, it financed the improvement of 114 km (km 365-km 479) of this road. It is also helping the government through CAREC to strengthen trade ties with its neighbors. The PRC government provided $200 million in 2010 to improve 223 km (from km 9 to km 272). Works under these projects are progressing mostly on schedule, and are expected to be complete by the end of 2014. The government is discussing with the Arab Coordination Group on a financing package of $80 million for improving 93 km (km 272 to km 365). If unimproved, the 60-km section from km 479 to km 539 at the Kyrgyz-PRC border will be the only bottleneck in the corridor.

Infrastructure preservation is another task that the government has yet to accomplish efficiently. Between 1996 and 2010, total investment in road improvement exceeded $1 billion--ADB provided about $300 million of this. Investment in preservation was approximately $28 million in 2009, six times more than in 2005. But, it was only half of what was needed to keep the 19,000-km network under the Ministry of Transport and Communications' (MOTC) jurisdiction in good shape. Cost recovery from road users covers a fraction of the needs at present, and the government is facing ever rising construction and maintenance costs. Therefore, more attention must be paid to preservation. For this, the government not only needs tools--legislation, policies, techniques, and procedures--but also skilled staff to use the tool, and champion change.

Impact Increased regional trade, particularly between the Kyrgyz Republic and the People's Republic of China

Project Outcome

Description of Outcome Higher mobility for people and goods with origins and destinations in the road corridor between Naryn and Torugart
Progress Toward Outcome Project closing extended from 31 Mar 2016 to 31 Dec 2017 to coincide with the closing date of additional financing. Project is likely to achieve outcome.
Implementation Progress
Description of Project Outputs

The last 60 km section of the Bishkek-Torugart road (km 479-km 539), repaired, rehabilitated, or reconstructed to meet national Category III road standards with special hydraulic features for protecting the environment and preserving the road structure

Infrastructure management skills of MOTC and other government agency staff improved.

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

As of March 2016, 96% of works have been completed, only minor works are remaining. The remaining works, such as road furniture road markings, and spillage collection system with retention ponds and drainage will be completed in Q2 and Q3 2016. Physical completion of the project is expected in Q4 2016. Contractor is preparing for road handover to MOTC in Q4 2016. The civil works is now in defects notification period since Oct 2015.

There is a cost overrun of about $1.2 million due to the price escalation of civil works. The MOF has been informed on the price escalation.

Safety audit achievement will be assessed in 2017.

EMP monitoring is ongoing. EMRs for 2015 were disclosed. The EMP compliance achievement will be assessed fully in 2016

Activities relating to the soft component, i.e. improvement of infrastructure management skills are ongoing. This includes (i) preparation of a draft Road Sector Strategy, (ii) capacity strengthening seminars and workshops for EA staff, and (iii) review of current institutional framework and legislation, and proposals on an institutional reform. Recruitment of capacity strengthening consultant and institutional experts is ongoing.

Geographical Location Bishkek-Torugart

Safeguard Categories

Environment A
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The updated EIA/EMP was disclosed. EMP monitoring is ongoing. EMP compliance achievement will be assessed fully in 2016.
Involuntary Resettlement Involuntary resettlement has been downgraded from B to C as the original foreseeable reallocation of trailers on project site is no longer needed. A due diligence report was disclosed.
Indigenous Peoples None.
Stakeholder Communication, Participation, and Consultation
During Project Design Several meetings were held with nongovernment organizations to explain the project's scope, impact monitoring and control measures, and grievance redress mechanism. Dialogue and public awareness meetings will continue throughout the project's implementation. MOTC''s social development and environment specialists work closely with their counterparts in the contractor and the supervision consultant teams to ensure maximum benefit to all stakeholders and compliance.
During Project Implementation Dialogue and public awareness meetings will continue throughout the project's implementation. Formal and informal discussions on project implementation are being held with concerned individuals.

Business Opportunities

Consulting Services

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants.

Construction supervision contract awarded on 17 May 2012 for $2.5 million.

Procurement

Procurement of goods, civil works, and related services financed from the loan will be done in accordance with ADB's Procurement Guidelines.

Civil works contract was awarded on 23 Aug 2012 for $47 million.

Responsible Staff

Responsible ADB Officer Mirdin Eshenaliev
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Transport and Communications
42, N. Isanov St.
Bishkek City 720017
Kyrgyz Republic

Timetable

Concept Clearance 17 May 2010
Fact Finding 24 Sep 2010 to 14 Oct 2010
MRM 11 Feb 2011
Approval 07 Jun 2011
Last Review Mission -
PDS Creation Date 23 Jun 2010
Last PDS Update 30 Mar 2016

Loan 2755-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Jun 2011 19 Sep 2011 13 Feb 2012 31 Mar 2016 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 70.00 Cumulative Contract Awards
ADB 55.00 07 Jun 2011 48.86 0.00 94%
Counterpart 15.00 Cumulative Disbursements
Cofinancing 0.00 07 Jun 2011 48.88 0.00 94%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

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.

Title Document Type Document Date
CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project 3: Section km 479 to 539 Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Dec 2015
CAREC Transport Corridor 1 (Bishkek-Torugart Road), Project 3: Section KM 479 to 539 - Biannual Environmental Monitoring Report (January-June 2015) (Russian Translation) Environmental Monitoring Reports Jul 2015
CAREC Transport Corridor 1 (Bishkek-Torugart Road), Project 3: Section KM 479 to 539 - Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project 3: Environmental Impact Assessment Environmental Impact Assessments Mar 2015
CAREC Transport Corridor 1 (Bishkek-Torugart Road) Projects 1, 2, and 3: Detailed Bird Survey and Assessment Report Environmental Monitoring Reports Jan 2015
CAREC Transport Corridor 1 (Bishkek–Torugart Road) Project 3: Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2014
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3: Section Km 479–539 2nd Environmental Monitoring Report (January - June 2014) Environmental Monitoring Reports Jul 2014
CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project 3: Environmental Monitoring Report (June-December 2013) Environmental Monitoring Reports Feb 2014
CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project 3 (Km 479-539) Environmental Impact Assessments Jan 2014
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 Environmental Impact Assessments Sep 2013
Кыргызская Республика: Транспортный коридор-1 ЦАРЭС, (Реабилитация автодороги Бишкек - Нарын - Торугарт) Проект 3, км 479-539 Environmental Impact Assessments Jul 2013
CAREC Transport Corridor 1 (Bishkek-Torugart Road), Project 3: (Km 479-539) Environmental Impact Assessments Jul 2013
Кыргызская Республика: Транспортный коридор Environmental Impact Assessments Dec 2010
CAREC Corridor 1 (Bishkek-Torugart Road) Project 3: Draft Environmental Impact Assessment (as of Board approval) Environmental Impact Assessments Nov 2010
CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project 3 (Draft) Environmental Impact Assessments Nov 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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