Uzbekistan: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1

Sovereign Project | 44483-023 Status: Approved


ADB is helping Uzbekistan upgrade roads that will boost trade along a key transport corridor linking Asia to Europe. The first tranche of the program will rehabilitate a 74-kilometer section of a highway running through the Fergana Valley, where a third of all Uzbeks live and a large proportion of the country's agricultural goods are produced. It will also improve road safety and asset management.

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Project Name Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1
Project Number 44483-023
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2772-UZB: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1
Ordinary capital resources US$ 129.50 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming

The Asian Development Bank (ADB) approved a multitranche financing facility for an aggregate amount not exceeding $500 million for the Second CAREC Corridor 2 Road Investment Program on 23 August 2011 and an OCR loan of $130 million for Loan 2772-UZB Project 1 on 2 September 2011. The investment program aims to increase domestic and international trade. The outputs under the investment program will be (i) about 236 km of the reconstructed road section of CAREC Corridor 2; and (ii) implemented road system sustainability plans, which relate to road safety and asset management. The investment program will finance three separate projects.

Loan 2772-UZB Project 1 was signed on 1 December 2011 and became effective on 13 January 2012 with current loan closing of 30 June 2016. The project intends to reconstruct about 58 km of the A373 highway (between Km 116 and Km 190), and improve road safety management.

Project Rationale and Linkage to Country/Regional Strategy The second investment program will finance the reconstruction of the Uzbekistan section of CAREC Corridor 2, which connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. This reconstruction will improve connectivity and road safety, and boost domestic and international trade. The second investment program fits with Strategy 2020 of ADB, is included in the country operations business plan (2011 -2013), and is aligned with the United Nations Decade of Action for Road Safety 2011- 2020. The investment program is in line with the Uzbekistan Transport Sector Strategy (2006- 2020) and road map, as well as the CAREC Transport and Trade Facilitation Strategy and Action Plan.
Impact Improved road connectivity, safety, and effective Road Fund management for the Uzbekistan sections of CAREC Corridor 2 Road

Project Outcome

Description of Outcome Reconstructed A373 highway section with increased traffic volume is safe and effectively operated and maintained
Progress Toward Outcome

Civil works, construction supervision, and road safety contracts awarded. The government requested for a reduction in the scope of the project from reconstruction of 74 km to that of 58 km. The government plans to construct the 16 km using its own budget.

On 31 March 2015, ADB approved the second extension of loan closing date from 31 March 2015 to 30 June 2016.

Implementation Progress
Description of Project Outputs

Selected section of A373 highway reconstructed by the Road Fund

Road sector sustainability plans implemented by the Road Fund

Tranche 1 Project completed as targeted and budgeted

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

Civil works contract was terminated in December 2015. The contractor Corsan Corviam Construccion (Spain) has filed arbitration proceedings against RF in the International Chamber of Commerce (ICC) Court of Arbitration. As of 30 March 2016, the contractor completed 59 km of concrete pavement out of the 116 km road indicating 50% physical progress. Civil works is scheduled to resume in April 2016 with a new contractor.

Law on Road Traffic Safety was approved by the government in March 2013. Road Safety component was completed in October 2015.

Geographical Location Fergana region

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project does not have major environmental impacts.
Involuntary Resettlement Civil works do not involve land acquisition or involuntary resettlement.
Indigenous Peoples There are no potential impacts expected on indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design Discussions were held with hokimyat authorities and key stakeholders, and public consultations with villagers, Mahalla committees, women''s committee representatives and groups, and other interested parties.
During Project Implementation Stakeholder participation and consultation during implementation will be conducted consistently by Road Fund, consultants, and ADB.

Business Opportunities

Consulting Services Firms were recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement Procurement of works and goods were undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).

Responsible Staff

Responsible ADB Officer Khuong Luu
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Uzbekistan Resident Mission
Executing Agencies
Republican Road Fund
Ministry of Finance 29 Istiklol Street
Tashkent, 100017,Republic of Uzbekistan


Concept Clearance 01 Mar 2011
Fact Finding 12 Apr 2011 to 28 Apr 2011
MRM 14 Jun 2011
Approval 02 Sep 2011
Last Review Mission -
Last PDS Update 29 Mar 2016

Loan 2772-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Sep 2011 01 Dec 2011 13 Jan 2012 31 Mar 2014 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 159.50 Cumulative Contract Awards
ADB 129.50 02 Sep 2011 111.08 0.00 86%
Counterpart 30.00 Cumulative Disbursements
Cofinancing 0.00 02 Sep 2011 82.05 0.00 63%

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

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