Turkmenistan: North-South Railway Project

Sovereign Project | 43441-013

Summary

The project will develop an efficient, safe and reliable railway transport network in Turkmenistan for better connectivity and increased trade with neighboring countries. The project outputs include (i) procurement and installation of signaling, power supply, and telecommunication systems for about 288 km of the completed railway between Chilmammet and Buzkhun; (ii) procurement of track maintenance equipment and supply and installation of track safety equipment; and (iii) improvement of the Ministry of Railway Transport's institutional capacity and provision of project management consultant.

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Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
North-South Railway Project: Procurement Plan Apr 2015

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Project Name North-South Railway Project
Project Number 43441-013
Country Turkmenistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2737-TKM: North-South Railway Project
Ordinary capital resources US$ 125.00 million
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 project will develop an efficient, safe and reliable railway transport network in Turkmenistan for better connectivity and increased trade with neighboring countries. The project outputs include (i) procurement and installation of signaling, power supply, and telecommunication systems for about 288 km of the completed railway between Chilmammet and Buzkhun; (ii) procurement of track maintenance equipment and supply and installation of track safety equipment; and (iii) improvement of the Ministry of Railway Transport's institutional capacity and provision of project management consultant.
Project Rationale and Linkage to Country/Regional Strategy

The Government of Turkmenistan signed a multilateral agreement in October 2007, with Kazakhstan and Iran to construct new railway tracks to develop the North-South railway corridor. This is the region's key route for transporting bulky goods, such as oil and oil products, mineral resources, agricultural products and textiles.

The North-South railway corridor will improve the accessibility of Turkmenistan to the central areas of Kazakhstan, Iran, the Persian Gulf countries, Russia, and the Southern and South East Asia; facilitate the movement of goods; and increase transit growth of the country and the development of an integrated, efficient railway system in the region.

Impact Increased trade between Turkmenistan and other countries in the region
Project Outcome
Description of Outcome An efficient, safe, and reliable railway transport network developed and operated in Turkmenistan with better connectivity with neighboring countries
Progress Toward Outcome The loan closing date has been extended from 30 September 2014 to 30 September 2015 to compensate for the delays in the implementation of the turnkey contract for design, supply, installation and commissioning of power supply, signaling and telecommunication systems.
Implementation Progress
Description of Project Outputs

Safe and efficient movement of trains with the installation of signaling, power, and telecommunications systems between Chilmammet and Buzkhun (288.2 km)

Tracks are well maintained and kept safe

Support provided for the project management and MRT's institutional capacity improvement

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

Contract for design, supply, installation, and commissioning of power supply, signaling, and telecommunication equipment (TCP1) was awarded on 28 May 2012 to the Consortium of ASPMK-519 Limited Liability Partnership (KAZ) and KEC International Limited (IND). Contract completion date originally set to 17 January 2014 was extended to 1 October 2014 through a contract amendment. The amendment became effective only on 19 August 2014, leaving only 43 days to complete the project. Thus another extension of contract completion date was requested and approved in principle by TKM concerned authority. Contract amendment process is underway.

Supply of track maintenance machinery and installation of track safety equipment (TCP2) was awarded to Plasser and Theurer Export von Bhanbaumaschinen Gesellchaft m.b.H. (AUS) on 14 April 2012. All the equipment under TCP2 contract arrived in Ashgabat on 8 October 2012, installation was completed on 4 November 2012, and formally handed over to MRT on 7 November 2012. TCP2 contract was completed in December 2013 and the final payment was settled on 25 February 2014.

First phase training on MRT's financial management completed covering (i) training MRT's accounting staff on project related financial management; (ii) assisting MRT in establishing the imprest bank account for counterpart funding; and (iii) preparing accounting policies and procedures manual for financial management of the project. Training on management information system, asset management, and auditing was planned but not carried out. PMC's assistance for MRT in converting the existing reporting system in line with government's mandatory requirement of the implementation of international financial information and reporting system standards was planned but not carried out. The work related to locomotive utilization improvement and asset management not carried out.

Geographical Location Bereket and Buzhun, Turkmenistan
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project activities will have both positive and negative impacts to the environment. The IEE findings clearly show that the Project will have socioeconomic benefits. If the prescribed mitigation and management measures are fully implemented, it is unlikely to have significant adverse environmental impacts. An environmental management and environmental monitoring has been prepared and responsibilities for implementation assigned.
Involuntary Resettlement The project does not require any land acquisition or involuntary resettlement. However, the provision of cattle crossings will be considered, as required.
Indigenous Peoples No indigenous peoples have been identified.
Stakeholder Communication, Participation, and Consultation
During Project Design

Two consultative meetings were held in Bereket and at station 300+00 along the alignment in July 2010. One was a formal consultative meeting with some of the construction works and the other an informal meeting with locally hired employees supporting construction works. In addition, some informal individual discussions and conversations were held with residents in one of the herding communities along the railway alignment. All were supportive of the project as they expect the railway to have positive impacts on their lives through increased economic activityand better access to social services.

Level of consultation and participation was made through information sharing.

Since the project covers signaling and communication system installation as well as procurement of equipment, there will be only information sharing.

During Project Implementation Public consultation through community-based organizations will continue to be held during project implementation.
Business Opportunities
Consulting Services Consultants were recruited according to ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). MRT recruited M/s TERA International Group, Inc. USA to act as PMC for the overall project management. Contract with TERA was signed on 16 September 2011 and after registration, it became effective on 19 October 2011. MRT issued the notice to proceed to PMC on 29 December 2011 and the PMC commenced services on 2 January 2012.
Procurement

The procurement of goods was undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Limited International Bidding has been followed for TCP-1 due to reduced scope. National competitive bidding is not applicable. Two contract packages were awarded: TCP-1 (design, supply, and installation of power supply, signaling and telecom); and TCP-2 (supply of track machinery and supply and installation of safety equipment).

Turnkey Contract for design, supply, installation, and commissioning of power supply, Signaling, telecommunications equipments (Contract TKM/ADB/TCP1): On 28 May 2012, MRT awarded the contract to the Consortium of ASPMK-519 Limited Liability Partnership and KEC International Limited (ASPMK+KEC) at the evaluated bid price of $104,782,927(excluding VAT).

Supply of Track Maintenance Machinery (Contract TKM/ADB/TCP2): MRT awarded the contract to the substantially responsive bidder M/s Plasser and Theurer Export von Bahnbaumaschinen Gesellchaft m.b.H. (Austria) on 13 April, 2012. Contract was registered on 25 April 2012 and declared effective on 8 May 2012. All the equipment under TCP-2 contract arrived in Ashgabat on 8 October 2012, installation was completed on 4 Nov. 2012, and the equipment was formally handed over to MRT on 7 Nov. 2012, six weeks ahead of the original schedule of 13 January 2013.

Responsible ADB Officer Takeshi Fukayama
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Railway Transport of TurkmenistanMr. Bairam Annameredov744007, 7 Saparmyrat Turkmenbashy
The Great Avenue, Ashgabat
TURKMENISTAN
Timetable
Concept Clearance 14 May 2010
Fact Finding 25 Aug 2010 to 03 Sep 2010
MRM 06 Oct 2010
Approval 15 Mar 2011
Last Review Mission -
PDS Creation Date 25 May 2010
Last PDS Update 23 Mar 2015

Loan 2737-TKM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Mar 2011 20 Jul 2011 29 Aug 2011 31 Mar 2013 30 Sep 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 166.70 Cumulative Contract Awards
ADB 125.00 15 Mar 2011 116.82 0.00 100%
Counterpart 41.70 Cumulative Disbursements
Cofinancing 0.00 15 Mar 2011 89.54 0.00 77%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - Satisfactory
Title Document Type Document Date
North-South Railway Project: Procurement Plan Procurement Plans Apr 2015
Loan Agreement for North-South Railway Project between Turkmenistan and Asian Development Bank dated 20 July 2011 Loan Agreement (Ordinary Resources) Jul 2011
North-South Railway Project Reports and Recommendations of the President Feb 2011
North-South Railway Project Summary Poverty Reduction and Social Strategies Feb 2011
North-South Railway Project Project/Program Administration Manual Sep 2010

Evaluation Documents

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