Turkmenistan: North-South Railway Project

Sovereign Project | 43441-012

Summary

The proposed north-south railway line will improve Turkmenistan's accessibility to Kazakhstan, the Persian Gulf countries, the Russian Federation, and South Asia; and increase regional trade. The Project will contribute to sustainable economic growth in Turkmenistan and development of an integrated, efficient railway system in the region. The Project will reduce the transport cost, cut travel time, and improve accessibility to rural areas of the country. This will generate benefits beyond railway transport cost and time savings. Experience in Europe and Africa indicate that transit traffic is usually a lucrative business for railways, the government, and the service sector including logistics. The new railway line will also help implement the Awaza National Tourism Zone project in Turkmenistan, simplifying transport of construction materials and logistics support to the zone. The rail link is expected to be ready for service by 2012.

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Project Name North-South Railway Project
Project Number 43441-012
Country Turkmenistan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7531-TKM: North-South Railway Project
Technical Assistance Special Fund US$ 350,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Rail transport (non-urban)
Gender Equity and Mainstreaming No gender elements
Description The proposed north-south railway line will improve Turkmenistan's accessibility to Kazakhstan, the Persian Gulf countries, the Russian Federation, and South Asia; and increase regional trade. The Project will contribute to sustainable economic growth in Turkmenistan and development of an integrated, efficient railway system in the region. The Project will reduce the transport cost, cut travel time, and improve accessibility to rural areas of the country. This will generate benefits beyond railway transport cost and time savings. Experience in Europe and Africa indicate that transit traffic is usually a lucrative business for railways, the government, and the service sector including logistics. The new railway line will also help implement the Awaza National Tourism Zone project in Turkmenistan, simplifying transport of construction materials and logistics support to the zone. The rail link is expected to be ready for service by 2012.
Project Rationale and Linkage to Country/Regional Strategy The government gives high priority to the Project because it aims to enhance pro-poor economic growth through transport infrastructure development. The railway will serve as a key transport link for Turkmenistan because it has significant potential for transporting bulky goods such as oil and oil products, mineral resources, agricultural products, and textiles. From the neighboring countries, all imports and transit goods are brought to the borders by road, and then transshipped onto the trucks for movement within Turkmenistan or across the borders. Although the road network, which carries a majority of the country's freight and passenger traffic, is being improved, the transport system remains inadequate, inefficient, and unsafe. A railway network will complement roads by (i) offering an affordable means of mass transport for sustained growth, and (ii) forming part of an integrated multimodal transport system to enable seamless connectivity from origin to destination for goods and passengers.
Impact The impact of the Project will be increased trade between Turkmenistan and other countries of the region.
Project Outcome
Description of Outcome The Project's outcome will be better connectivity with neighboring countries and an efficient, safe, and reliable railway transport network in Turkmenistan.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs The Project will comprise (i) the signaling and telecommunications for 311 km of the railway between Bereket and Buzhun; and (ii) capacity of the Ministry of Railway Transportation enhanced, and asset management system etablished and maintained.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Bereket and Buzhun, Turkmenistan
Safeguard Categories
Environment B
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 Since the Project covers signalling and communication system installation, information sharing was done with the central and local government officials, local communities, and the related service industry during the loan processing, which will continue during the detailed design.
During Project Implementation Information sharing will be conducted with the central and local government officials, local communities
Business Opportunities
Consulting Services The TA will require about 21 person-months of consulting services (12 international and 9 national). Qualified consultants will be recruited individually by ADB in accordance with ADB's procedures for recruitment of individual consultants.
Responsible ADB Officer Shakeel Ahmad Khan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Railway Transport of TurkmenistanMr. Rozymyrat Seyitkuliyev744007, 7 Saparmyrat Turkmenbashy, The Great Avenue, Ashgabat, Turkmenistan
Timetable
Concept Clearance 14 May 2010
Fact Finding -
MRM -
Approval 14 May 2010
Last Review Mission -
PDS Creation Date 24 May 2010
Last PDS Update 23 Jul 2011

TA 7531-TKM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 May 2010 31 May 2010 31 May 2010 31 Dec 2010 30 Jun 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
350,000.00 0.00 50,000.00 0.00 0.00 0.00 400,000.00 14 May 2010 275,537.99

No documents found.

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Proposed North-South Railway Project Initial Environmental Examination Feb 2011
Proposed North-South Railway Project (Draft) Initial Environmental Examination Sep 2010

Evaluation Documents

See also: Independent Evaluation

No documents found.


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