Afghanistan: Transport Network Development Investment Program - Tranche 1

Sovereign Project | 44482-022

Summary

The proposed Project will promote regional cooperation and integration and improved access to social and economic opportunities in Afghanistan. It will increase connectivity, efficiency and effectiveness of land transport. The outputs under tranche 1 includes 145 km of improved road sections: (i) 50 km between Bagram Sapary road, (ii) 51 km between Jabul Saraj Nijrab, and (iii) 44 km between Faizabad Beharak. Tranche 1 will also support the Railway Project O&M contract, including additional project facilities and equipment to ensure its efficiency. The capacity component will deliver a new governance needs assessment; a revised national road and rail transport plan; assistance to the rail authority and a detailed feasibility study and design work for the new Mazar-e-Sharif to Andkhoy railway.

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Project Name Transport Network Development Investment Program - Tranche 1
Project Number 44482-022
Country Afghanistan
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0261-AFG: Transport Network Development Investment Program - Tranche 1
Asian Development Fund US$ 189.00 million
Grant 0262-AFG: Transport Network Development Investment Program - Tranche 1
Afghanistan Infrastructure Trust Fund US$ 33.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Transport - Road transport (non-urban) - Transport policies and institutional development
Gender Equity and Mainstreaming No gender elements
Description The proposed Project will promote regional cooperation and integration and improved access to social and economic opportunities in Afghanistan. It will increase connectivity, efficiency and effectiveness of land transport. The outputs under tranche 1 includes 145 km of improved road sections: (i) 50 km between Bagram Sapary road, (ii) 51 km between Jabul Saraj Nijrab, and (iii) 44 km between Faizabad Beharak. Tranche 1 will also support the Railway Project O&M contract, including additional project facilities and equipment to ensure its efficiency. The capacity component will deliver a new governance needs assessment; a revised national road and rail transport plan; assistance to the rail authority and a detailed feasibility study and design work for the new Mazar-e-Sharif to Andkhoy railway.
Project Rationale and Linkage to Country/Regional Strategy The proposed investment program will rehabilitate and expand major sections of Afghanistan's road and railway networks. The investments, physical and nonphysical in nature, will add to those already being supported by the Asian Development Bank (ADB) and other development partners. The aim is to further improve domestic and regional connectivity while widening access to social and economic opportunities. The effort will facilitate investment into key strategic industries, including mining and related services. The result will be growth, jobs, welfare and trade. Providing better links from Central Asia to markets in the south, east, and west will generate transit fees but also new business opportunities to companies across Afghanistan. The road network is incomplete, mostly in bad shape, and the railway network is in its infancy. Capital outlays in both networks will cut transport costs, increase competitiveness, and raise productivity. A modern and efficient multimode system reduces poverty, and contributes to inclusive economic growth and stability.
Impact Increased trade and jobs in the project areas
Project Outcome
Description of Outcome Increased movement of goods and services and better connectivity for people and businesses in the project areas
Progress Toward Outcome All civil works and supervision consultant contracts awarded. Work is ongoing on all three subprojects (Bagarmi-Sapari 69.2%, Jabul Saraj-Nejrab 51.5% and Faizabad-Baharak 43.4%). Outcome achievement will be delayed due to delays in project implementation.
Implementation Progress
Description of Project Outputs

145 km (Bagramy-Sapary, Jabul Saraj-Nijrab; and Faizabad-Beharak sections) of reconstructed, rehabilitated, and appropriately maintained roads

Operation and maintenance of 75 km of new railway line, loops and stations between Hairatan and Mazar-e-Sharif

Strengthened capacity of MPW

Improved transport sector governance.

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

i) Bagramy-Sapary: Overall progress is 69.2%. Progress has been very slow in the past few months due to cold weather. No significant security incident was reported in the project area, probably due to the rain and snow. The contractor recently resumed the works. The contracts of the civil work contractor and consultant were extended to December 2015 and January 2016, respectively.

(ii) Jabul Saraj-Nijrab: Overall progress is 51.5%. The bridge design issue has been resolved. Land acquisition and resettlement problem is still hampering the progress. This requires strong leadership of the new government and needs to be resolved by end of Q1 of 2015. The contracts of the civil work contractor and consultant were extended to November 2015 and December 2015, respectively.

(iii) Faizabad-Beharak: Overall progress is 43.4%. The main reason for slow progress is cutting of hard rock cutting along the road alignment. The contracts of the civil work contractor and consultant were extended to June 2016 and September 2016, respectively.

A new 3-year O&M contract between MPW and SE Sogdina Trans of Uzbekistan has been signed on 15 March 2015.

Cabinet on 12 August 2013 approved the establishment of the Road Authority and the Road Fund. Road Authority was stablished on 24 September 2012. A total of 38 staff of MPW have been trained by the operator on Railway Operation until Dec 2014. The Capacity Building Consultant is recruited, mobalized and the inception report is submitted.

MPW and ARDS are jointly handling procurement of civil works and consultant recruitment.

Technical assistance for master plan was approved and the TA implementation is ongoing.

Geographical Location Kabul(kabul),Balkh(Mazarisharif),Badakshan (Faizabad),Kapisa (Mahmoodraqi),Nangarhar (Jalalabad)
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental impacts of Project 1 are insignificant and limited to the construction phase and can be minimized by adequate mitigation measures in an environmental management plan (EMP) included in the IEEs. The IEEs have been disclosed to the public.
Involuntary Resettlement Land acquisition and resettlement plans (LARPs) for Project 1 were prepared and will be implemented. The LARPs have been disclosed to the public.
Indigenous Peoples The constitutional categorizations of Afghans expected to be negatively affected by the investment program include no indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were conducted with local people and the benefits of improving land transport infrastructure under the investment program were explained. Consultations were open for all to share and exchange views, ideas and experiences. The main issues discussed were affected land, prices of land, the compensation process, and employment opportunities for the local people (both skilled and unskilled). A qualitative social and gender analysis (focus group discussion and key informant interviews etc with women and men in the program areas and CSO) is planned to be conducted under Project 1.
During Project Implementation Public consultation will continue as a means to achieve maximum beneficiary buy-in during implementation.
Business Opportunities
Consulting Services All consultants ADB finances will be recruited under ADBs Guidelines on the Use of Consultants (2010, as amended) and the procurement plans for each of the Programs tranche projects.
Procurement Procurement of goods, civil works, and related services ADB finances will follow ADB's Procurement Guidelines (2010, as amended from time to time). Procurement plans will be developed for each tranche project under the Program. International competitive bidding (ICB) will be used for civil works over $3 million and goods and services over $1 million. National competitive bidding (NCB) for civil works can be conducted for contracts not exceeding $1 million.
Responsible ADB Officer Witoon Tawisook
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of Public WorksFirst Macrorayan, Kabul,Islamic Republic
of Afghanistan
Timetable
Concept Clearance 10 May 2011
Fact Finding 27 May 2011 to 08 Jun 2011
MRM 26 Jul 2011
Approval 12 Oct 2011
Last Review Mission -
Last PDS Update 17 Mar 2015

Grant 0261-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Oct 2011 19 Oct 2011 31 Oct 2011 31 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 199.00 Cumulative Contract Awards
ADB 189.00 12 Oct 2011 164.75 0.00 87%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 12 Oct 2011 92.95 0.00 49%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - - - Satisfactory

Grant 0262-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Oct 2011 19 Oct 2011 31 Oct 2011 30 Jun 2015 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 33.00 Cumulative Contract Awards
ADB 0.00 12 Oct 2011 0.00 32.00 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 33.00 12 Oct 2011 0.00 29.02 88%

Evaluation Documents

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