Uzbekistan: CAREC Corridor 6 (Marakand–Karshi) Railway Electrification Project

Sovereign Project | 45067-005

Summary

The project will increase regional trade and accelerate economic growth. The outcome will be improved railway operation between Marakand and Karshi. The outputs will be (i) electrification of 140-km between Marakand and Karshi and (ii) improved UTY's management capacity.

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Procurement Documents


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Project Name CAREC Corridor 6 (Marakand–Karshi) Railway Electrification Project
Project Number 45067-005
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2781-UZB: Central Asia Regional Economic Cooperation Corridor 6 (Marakand Karshi) Railway Electrification Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Rail transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The project will increase regional trade and accelerate economic growth. The outcome will be improved railway operation between Marakand and Karshi. The outputs will be (i) electrification of 140-km between Marakand and Karshi and (ii) improved UTY's management capacity.
Project Rationale and Linkage to Country/Regional Strategy

The north-south corridor linking Europe through Central Asia to the Middle East and South Asia (CAREC Corridor 6) transits Uzbekistan from Keles on the border with Kazakhstan to Tashkent, Samarkand, Karshi, and Kumkurgan, before reaching Termez on the border with Afghanistan. The corridor annually carries about 10 million tons of freight, including 1.6 million tons of humanitarian relief goods to Afghanistan (more than half its imports). Afghanistan expects more traffic from Uzbekistan and its northern neighbors via the corridor, especially after the ADB-funded Hairatan to Mazar-e-Sharif railway in northern Afghanistan was completed in 2010. The corridor will also enable the Uzbekistan provinces of Samarkand, Kashkadarya, and Surkhandarya to increase exports of cotton and its by-products, horticulture products, marble, oil, and gas. Overall, rail traffic is increasing and inadequate rail line capacity in some sections of the route creates bottlenecks.

The northern part of this rail corridor from Keles to Marakand is electrified and operated by electric locomotives, increasing capacity and improving freight and passenger services. The remaining part of the rail corridor from Marakand to Termez is currently operated by less powerful diesel locomotives, and the slow, short trains limit throughput in the section. Electrification will help overcome capacity constraints and meet current and future traffic demand. From Karshi to Termez, electrification is in progress, cofinanced by UTY and the Government of Japan. The Government of Uzbekistan has requested ADB assistance for electrification on the remaining section from Marakand to Karshi.

The project fits with ADB's Strategy 2020, and is included in the country operations business plan (2011-2013). It also aligns with the Uzbekistan Transport Sector Strategy (2006-2020) and supports the CAREC Transport and Trade Facilitation Strategy and Action Plan.

This investment will boost trade, promote regional connectivity, cut transport costs and lessen greenhouse gas emissions. The project includes (i) design, supply, and installation of electrification, signaling, and telecommunications components; (ii) associated civil works; and (iii) strengthening institutional capacity.

Impact Increased regional trade and accelerated economic growth
Project Outcome
Description of Outcome Improved railway operation on the Marakand-Karshi rail line
Progress Toward Outcome The project performance is rated "on track."
Implementation Progress
Description of Project Outputs

140 km electrified rail line from Marakand to Karshi

Improved management capacity of UTY

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

Works related to catenary system, traction sub-stations and section posts, and signaling and telecomunications are advancing as per work programme. Large part of Goods delivery completed, and refitting activities for Karshi depot on track. Manufacturing/testing and commissioning of specialized maintenance equipment ongoing.

Consultant recommends improvement on UTY's existing corporate governance practices and accounting framework, standards, and reporting requirements. It continues to deliver its remaining services for UTY.

UTY project implementation unit is effectively functioning. Disbursement targets are timely achieved to date.

Geographical Location Marakand-Karshi
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project does not pass through any environmentally sensitive areas and does not have significant negative environmental impacts. UTY prepared an initial environmental examination (IEE) following ADB's Safeguard Policy Statement and national legislation and regulations. The project will have temporary and reversible environmental impacts that occur mostly during construction. The IEE includes the environmental management plan to minimize potential environmental impacts of the project.
Involuntary Resettlement The project will electrify the existing railway line within the right of way, and therefore does not involve land acquisition and resettlement. In case, any land acquisition and resettlement impacts occur during implementation, UTY will prepare a land acquisition and resettlement plan for ADB approval prior to awarding a civil works contract. The LARP will be implemented following ADB''s Safeguard Policy Statement and national legislation and regulations.
Indigenous Peoples The project will not affect indigenous peoples as described in ADB s Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation
During Project Design ADB conducted stakeholder consultations during the project design stage.
During Project Implementation ADB will continue to conduct stakeholder consultations from time to time as needed during project implementation.
Business Opportunities
Consulting Services International and national consultants will be needed for the project. All consultants will be selected following ADB's Guidelines on the Use of Consultants by the Asian Development Bank and its Borrowers and the project procurement plan. Consulting firms will be selected and engaged using ADB's quality- and cost-based selection (QCBS) method with full technical proposal.
Procurement All procurement financed under the ADB loan will follow international competitive bidding (ICB) following ADB's Procurement Guidelines and procurement plan. The project is expected to have two ICB packages, one for goods and the second package for procurement of Plant-design, supply, and install.
Responsible ADB Officer Takeshi Fukayama
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Uzbekistan Temir Yullari7 Taras Shevochenko St.
Tashkent 70060
Uzbekistan
Timetable
Concept Clearance 22 Jun 2011
Fact Finding 06 Jun 2011 to 18 Jun 2011
MRM 17 Aug 2011
Approval 28 Sep 2011
Last Review Mission -
Last PDS Update 18 Mar 2015

Loan 2781-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2011 16 Feb 2012 28 Mar 2012 30 Sep 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 176.00 Cumulative Contract Awards
ADB 100.00 28 Sep 2011 93.25 0.00 93%
Counterpart 76.00 Cumulative Disbursements
Cofinancing 0.00 28 Sep 2011 50.83 0.00 51%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Evaluation Documents

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