Turkmenistan: North-South Railway Project

Sovereign Project | 43441-013 Status: Approved

Summary

ADB is helping Turkmenistan develop an integrated and efficient railway system that will improve its access to neighboring Kazakhstan, the Persian Gulf countries, the Russian Federation, and South Asia. The project will fund power, signaling, and telecommunication systems for about 288 kilometers of the railway between Chilmammet and Buzkhun as well as track maintenance and safety equipment.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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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$ 116.52 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 2015 to 30 June 2016 to compensate for the delays in the implementation of the turnkey contract for design, supply, installation and commissioning of power supply, signaling and telecommunication system.

ADB regularly fields review missions to follow up and assist MRT in resolving project implementation issues and timely complete the project. Last review mission was fielded from 27 January to 3 February 2016.

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 was awarded on 28 May 2012 to the Consortium of ASPMK-519 Limited Liability Partnership (KAZ) and KEC International Limited (IND). Contract completion date was originally set to 17 January 2014. Due to the delay of project implementation, the contract was extended to 1 December 2015. The final completion date of the project was 21 January 2016. Full commissioning is expected to be done by March 2016.

First training workshop was conducted by the PMC on project accounting and financial management from 14 to 18 May 2012. On capacity building and on-the-job training assistance, the following activities have been completed: (i) training of 10 MRT staff and mechanical technicians in Austria on track maintenance machinery (10 days); (ii) training in Ashgabat of 5 MRT inspectors of track maintenance machinery on inspection scope and procedures at manufacturer's plant prior to their departure to Austria (2 days); (iii) training of 5 MRT accounting and finance department employees on modern accounting procedures and financial control/reporting requirements (5 days); (iv) training of MRT management and mid-level staff on turnkey works contract and goods procurement contract conditions and procedures (3 days); (v) on-the-job training to 2 staff from accounting and finance department on contract requirements and preparation of financial documents for submission to ADB.

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. Environmental Monitoring Report for July 2013-December 2014 has been submitted.
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 Staff

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 Turkmenistan
Mr. Bairam Annameredov
744007, 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 30 Mar 2016

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 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 158.22 Cumulative Contract Awards
ADB 116.52 15 Mar 2011 116.82 0.00 100%
Counterpart 41.70 Cumulative Disbursements
Cofinancing 0.00 15 Mar 2011 105.37 0.00 90%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - 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

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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