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

Sovereign Project | 44483-024

Summary

The Second Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Program (investment program) will increase domestic and international trade. The outcome will be improved road connectivity, safety, and effective management of the Uzbekistan section of CAREC Corridor 2. The investment program will include (i) about 236 km of the reconstructed 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.

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Project Name MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program
Project Number 44483-024
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0059-UZB: MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program
Ordinary capital resources US$ 500.00 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
Description The Second Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Program (investment program) will increase domestic and international trade. The outcome will be improved road connectivity, safety, and effective management of the Uzbekistan section of CAREC Corridor 2. The investment program will include (i) about 236 km of the reconstructed 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.
Project Rationale and Linkage to Country/Regional Strategy The 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 investment program fits with Strategy 2020 of the Asian Development Bank (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 Increased domestic and international trade
Project Outcome
Description of Outcome Improved road connectivity, safety, and effective Road Fund management of the Uzbekistan sections of CAREC Corridor 2 Road
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Selected sections of CAREC Corridor 2 Road reconstructed by the Road Fund

Road sector sustainability plans implemented by the Road Fund

MFF tranches completed as targeted and budgeted

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

Two tranches have been approved and are under implementation.

For the first tranche (Loan 2772-UZB), civil works, project management and construction supervision consultancy, and road safety consultancy contract have been awarded and under implementation.

For the second tranche (Loan 2965-UZB), procurement of civil works and recruitment of project management and construction supervision consultant are underway.

Overall implementation is slow owing to difficult weather conditions, contractual issues with the contractor, and procedural delays within the government. These issues have been resolved for Project 1.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects

Project 1 does not have major environmental impacts. In line with ADB''s Safeguard Policy Statement (SPS) 2009, Project 1 is classified as environment category B. The Republican Road Fund has prepared an environment assessment and review framework (EARF) for the investment program and an initial environmental examination (IEE) for Project 1. Contract agreement with civil works contractor specifically includes the environmental requirements.

Project 2 is classified as environment category B in accordance with ADB''s SPS 2009, based on the following: (i) the project does not involve any environmentally sensitive areas, and (ii) environmental impacts will mostly occur during construction, and will be minimized by proper planning, good engineering design, and implementation of the proposed mitigation measures and monitoring programs and will not pose threat to the environment. The Republican Road Fund prepared draft IEE, which complies with the requirements of the SPS (2009). Public consultations including public hearings in two locations along the road section were held on 17 October 2012. The English version of the draft IEE was posted on ADB's website on 12 November 2012. The IEE found that no major negative potential impacts from the road construction work. Effective implementation of the environmental management plan will minimize and mitigate any adverse impacts during project implementation. The tender and the contract documents will contain details of the environmental management and monitoring requirements to be carried out by the contractor.

Involuntary Resettlement

Project 1 is classified as category C for the purpose of involuntary resettlement. A land acquisition and resettlement framework (LARF) was prepared to cover potential resettlement impacts of the investment program and its tranches.

Project 2 is classified as category A for involuntary resettlement impacts. A draft land acquisition and resettlement plan (LARP) has been prepared by the Republican Road Fund based on the findings of the census carried out along the road section from August to September 2012. The draft LARP includes the required information, as specified in the ADB SPS 2009 and follows the LARF. Consultations were carried out with the affected persons in October 2012. The project traverses through four districts namely Turakurgon, Chust, Pop and Namangan. A total of 230.5 ha land is estimated to be acquired with 320 affected households. The land acquisition is also likely to affect crop farms, orchards and trees. A total of 16,117 trees would be affected along the road section. The draft LARP includes an estimate of the cost of land acquisition and resettlement at $8.9 million. The draft LARP was disclosed to the affected persons during November-December 2012 and on ADB''s website on 20 November 2012. It has been updated based on the final detailed design and submitted to ADB for approval in March 2014. Implementation of LARP is currently underway.

Indigenous Peoples Projects 1 and 2 are classified as indigenous people category C as defined under SPS 2009.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations continue to be held with potential stakeholders--the local population, the Republican Road Fund, and hokimyat or government officials, followed by discussions with village chairpersons and villagers through focus discussion groups.
During Project Implementation Continued consultations to be held during implementation with potential stakeholders--the local population, the Republican Road Fund, and hokimyat or government officials, followed by discussions with village chairpersons and villagers through focus discussion groups.
Responsible ADB Officer Narendra Singru
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Republican Road FundShukhrat Tagaev, Deputy DirectorMinistry of Finance 29 Istiklol Street Tashkent, 100017,Republic of Uzbekistan
Timetable
Concept Clearance 01 Mar 2011
Fact Finding 12 Apr 2011 to 28 Apr 2011
MRM 14 Jun 2011
Approval 23 Aug 2011
Last Review Mission -
Last PDS Update 24 Mar 2015

MFF Facility Concept 0059-UZB

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 500.00 Cumulative Contract Awards
ADB 500.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Evaluation Documents

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