Regional: Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (RIBS)

Sovereign Project | 46124-001

Summary

The project will support the construction and renovation of border crossing points (BCPs) in cases where investments to upgrade complementary facilities on the other side of the border have been completed or are nearing completion. National single windows (NSWs) alone would not be enough to achieve best results because all CAREC countries are transit countries and shipments have to cross multiple borders. This requires networking and the interoperability of NSWs at the CAREC regional level.

The project will benefit from ongoing and proposed CAREC Customs Cooperation Committee initiatives, including joint customs control, simplification of customs procedures, and the development of information and communication technology for customs modernization. Specifically, the project will focus on the following:

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Consulting Notices

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Procurement Documents


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Project Name Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (RIBS)
Project Number 46124-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0340-REG: Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (RIBS)
Asian Development Fund US$ 4.20 million
Grant 0341-REG: Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (RIBS)
Asian Development Fund US$ 9.20 million
Loan 2995-REG: Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (RIBS)
Asian Development Fund US$ 4.20 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector Finance - Trade finance
Gender Equity and Mainstreaming Some gender elements
Description

The project will support the construction and renovation of border crossing points (BCPs) in cases where investments to upgrade complementary facilities on the other side of the border have been completed or are nearing completion. National single windows (NSWs) alone would not be enough to achieve best results because all CAREC countries are transit countries and shipments have to cross multiple borders. This requires networking and the interoperability of NSWs at the CAREC regional level.

The project will benefit from ongoing and proposed CAREC Customs Cooperation Committee initiatives, including joint customs control, simplification of customs procedures, and the development of information and communication technology for customs modernization. Specifically, the project will focus on the following:

1. BCP improvement. The project will improve infrastructure at two road BCPs to improve working conditions and performance of border management personnel, and reduce processing time and cost:

(i) In the Kyrgyz Republic, at the Karamyk BCP, located along CAREC corridors 3b and 5, (a) the inspection facilities including customs, sanitary and quarantine, and veterinary checkpoints will be improved to handle traffic growth and improve the inspection process; and (b) power, water supply and sewerage facilities, communication facilities, and office and inspection equipment will be provided.

(ii) In Tajikistan, at the Guliston BCP, located in a key conduit of the regional Osh-Khujand highway, facilities will be upgraded and equipped, including infrastructure for vehicle inspection and two new border check posts, and water supply and sewerage facilities provided.

2. NSW development. This project will support the establishment of NSW facilities to streamline data submission to international trade regulators, and ensure conformity of submitted data with the requirements of business processes in various stages of trade and transport in the international supply chain. International standards will be adopted to ensure regional interoperability. The subcomponents of NSW facilities in the two countries include (i) single window and trade portal software development; (ii) single window backup system and hardware, regional centers, and trade portal hardware; (iii) certificate of origin and licensed track and trace of system development; (iv) operating assistance to the single window governance and working groups; (v) business process analysis and re-engineering (for up to 10 government agencies); (vi) legal and regulatory framework review; (vii) stakeholder engagement and public awareness activities; and (viii) market study and research. In terms of sequencing, a flexible software development process will incorporate possible policy and regulatory changes resulting from subcomponents (v) and (vi).

Project Rationale and Linkage to Country/Regional Strategy

The project supports the CAREC transport and trade facilitation strategy, which aims to streamline transport, trade logistics, customs, and other border control operations to increase cross-border trade in Central Asia. From 2007 to 2009, CAREC ministerial conferences endorsed a transport and trade facilitation strategy and its implementation action plan, and a plan to address physical infrastructure needs at BCPs along priority CAREC corridors, and to establish and network NSW facilities. The goal was to develop seamless corridors to enhance economic competitiveness of the region.

BCPs are identified as the major impediments to cross-border transport and trade in the CAREC region. The CAREC corridor performance measurement and monitoring (CPMM) system indicates that in 2012 a typical 500-kilometer journey by a 20-ton truck took an average of 21.8 hours and cost $999. Delays are mainly due to poor physical infrastructure and inadequate trade logistics facilities, cumbersome customs clearance procedures, and limited utilization of information and communication technologies.

NSW facilities, which enable trade- and transport-related information and documents to be submitted only once through a single entry point, and to be reviewed and processed by relevant government agencies prior to the cargo s arrival at the border, can provide significant efficiency gains. To maximize the benefits of NSWs, coverage should be extended to include cross-border electronic data exchange. Many CAREC governments supported by business communities are designing NSWs to accommodate eventual CAREC-wide interoperability.

The benefits of good BCP infrastructure and NSWs can only be fully realized when countries on both sides of the border fund complementary investments, and border control agencies cooperate. The project supports the construction and renovation of BCPs in cases where investments to upgrade complementary facilities on the other side of the border have been completed or are nearing completion. It will help develop NSWs based on international standards to streamline trade-related procedures. The project will be implemented in coordination with ongoing and proposed CAREC trade facilitation initiatives, particularly those under the CAREC Customs Cooperation Committee, including joint customs control, simplification of customs procedures, and development of information and communication technology for customs modernization. Both governments of the Kyrgyz Republic and Tajikistan accord high priority to the project.

As landlocked countries, the Kyrgyz Republic and Tajikistan need to develop predictable and transparent trading environments, improve trade facilitation, and leverage more transit and international trade to increase competitiveness and sustain inclusive growth. By modernizing BCP infrastructure and developing electronic trade platforms like NSWs, they can improve the performance of CAREC corridors, minimize negative impacts of geographic isolation, foster more diverse economic activity, and realize their economic potential. Two road BCPs have been selected under the project: the Karamyk in the Kyrgyz Republic and Guliston in Tajikistan. The BCPs selection is based on the governments' priority, their special significance for regional trade, complementary development on both sides of the border, and minimal safeguard issues.

ADB support for regional cooperation intersects with the strategies and priorities of the project countries, particularly those related to promoting sustainable growth and improving governance. The project will help improve the environment for trade, which is an engine for economic growth and development. NSW development is consistent with the main priority of governments to improve governance, reduce corruption by increasing transparency, and ensure effective public administration by improving the capacity of the civil service.

The project is included in ADB's country operations business plan 2012-2013 for the Kyrgyz Republic, which is line with the government's medium-term development program for 2012-2014. The main goal of the development program is to improve living standards and reduce poverty by accelerating economic growth, improving the business climate, and developing an efficient governance system.

The ADB country partnership strategy for Tajikistan supports addressing the most critical development constraints and creating a basis for higher economic growth. ADB is committed to helping ensure access to efficient and cost-effective regional transport, developing new export markets, improving regional customs facilities, and facilitating regional trade. ADB's strategy is to reduce logistics costs for trade and encourage knowledge sharing between Tajikistan and other CAREC member countries to foster regional integration and facilitation. Key intended outcomes include improved regional transport connections, improved trade and transit infrastructure, and reduced cross-border barriers.

Impact Accelerated trade growth within the CAREC region and with the rest of the world
Project Outcome
Description of Outcome Faster, more predictable, and cost efficient cross-border transport and trade
Progress Toward Outcome

KGZ: NSW consultants mobilized in November 2014. NSW inception workshop was held on 6 Feb 2014.

TAJ: Contract with SWITS consultant has been finalized. After ADB approval, consultant mobilization is expected within several weeks

Implementation Progress
Description of Project Outputs

Physical infrastructure and working conditions at Karamyk and Guliston BCPs improved

NSW facilities in the Kyrgyz Republic and Tajikistan established.

Capacity in project management and supervision strengthened

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

TAJ:

Bidding for the BCP Guliston works has started, with IFB posted in Feb 2015. Contract award is expected by May 2015. Procurement of BCP equipment is planned in Q3 2015.

Contract negotiations for the single window institutional and technical support (SWITS) consulting services has been finalized in Feb 2015. Draft negotiated contract is being reviewed by ADB.

Capacity development needs of the IA will be assessed and finalized once the international single window advisor is recruited and mobilized in April 2015.

KGZ:

BCP construction is behind schedule due to delayed recruitment of PIU procurement specialist, but both EA and IA assured that contractor will be mobilized by Q1 2016. Existing design may need to be revised due to revised requirements from the State Customs Service. Changes will be finalized as soon as the supervision consultant is mobilized.

Consultant for the NSW component has been mobilized in Nov 2014.

Geographical Location Not Applicable,Karamyk,Goliston
Safeguard Categories
Environment C
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No adverse environmental impact is foreseen to date. Continued monitoring is being conducted to ensure compliance with ADB's Safeguard Policy Statement (2009).
Involuntary Resettlement To date, LARP has been implemented satisfactorily, with all affected persons duly compensated. IA will submit a final compliance report to indicate that some errors noted in the earlier report have been corrected and cleared in accordance with the national regulatory requirements.
Indigenous Peoples BCP civil works will be carried out within customs-controlled zones or public land owned by local administrations to ensure that no ethnic communities are affected.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations were undertaken during project preparation with various stakeholders including government agencies, local communities, chambers of commerce, transport organizations, relevant private sector representatives, and international aid agencies. The consultations focused on the information and communication technology system design requirements, the potential impact of proposed works, obstacles impeding the adoption of more efficient operational procedures (a risk management approach to vehicle inspection), and other aspects related to the economic development of border communities. The project preparation consultants conducted a workshop on time release studies for Customs officials, and a representative of Azerbaijan's State Customs was invited to conduct an experience-sharing seminar on Azerbaijan's single window. Consultations were held with border management personnel stationed at BCPs, and with local authorities and civil society organizations. Stakeholder engagement will continue into project implementation.
During Project Implementation Extensive consultations will be undertaken during project implementation with various stakeholders including government agencies, chambers of commerce, transport organizations, relevant private sector representatives, local communities in border areas, international aid agencies, and other development partners. The consultations will be focused on the information and communication technology system design requirements, potential impact of proposed works, obstacles to the adoption of more efficient business processes and procedures, and other aspects related to the economic development of border communities. Under this project and other ongoing CAREC technical assistance projects, efforts will be made to organize capacity building and knowledge sharing events with regard to NSW development, joint customs control, and coordinated border management. These events will involve and benefit border management personnel stationed at BCPs, local authorities and civil society organizations.
Business Opportunities
Consulting Services

All consultants to be financed under the ADB grant will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). Consultants will be selected and engaged using ADB's quality- and cost-based selection (QCBS) procedures with the ratio of 90:10, Consultant Qualification Selection (CQS) and Individual Consultant Selection (ICS).

A total of 469 person-months (55 international and 414 national) of consulting services will be needed: a) 187 person-months of consulting services (25 international, 162 national) grouped into one package will be funded under the Project for the single window institutional and technical support to (i) provide operational assistance to single window governance and working groups, (ii) undertake business process analysis and reengineering, (iii) undertake legal and regulatory framework review, and (iv) develop and organize stakeholder engagement and public awareness activities; b) 282 person-months of project management and supervision consulting services consisting 252 person-months of national consulting services to work as full-time PIU staff, and 30 person-months of international consulting services to support the PIU in (i) preparing the design and build (D&B) bid documents, (ii) organizing and implementing the bidding, (iii) establishing the evaluation criteria for bidding the D&B packages, (iv) ensuring knowledge transfer to CST and end-users, (v) undertaking monitoring and evaluation, and (vi) preparing progress reports.

Procurement

Procurement of goods and works will be done for the following:

KGZ = 2 contracts ($4.568 million) [Karamyk BCP Improvement, Int'l Competitive Bidding (ICB) works, $2.809 million, and Single window system development, ICB Good $1.759 million]

TAJ = 3 contracts ($5.844 million) [Guliston BCP goods, ICB $1.471 million, Guliston BCP Works, Nat'l Competitive Bidding $ 0.753 and Single window system development, ICB Good $3.62 million]

Responsible ADB Officer Oleg Samukhin
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Economy106, Chui Prospect,Bishkek_Kyrgyz
Republic
Timetable
Concept Clearance 20 Dec 2010
Fact Finding 05 Jul 2012 to 12 Jul 2012
MRM 12 Oct 2012
Approval 01 Apr 2013
Last Review Mission -
Last PDS Update 13 Mar 2015

Grant 0340-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Apr 2013 22 May 2013 15 Aug 2013 30 Jun 2018 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.20 Cumulative Contract Awards
ADB 4.20 01 Apr 2013 2.68 0.00 64%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2013 0.56 0.00 13%

Grant 0341-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Apr 2013 24 Apr 2013 08 Jul 2013 30 Jun 2018 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.12 Cumulative Contract Awards
ADB 9.20 01 Apr 2013 4.85 0.00 53%
Counterpart 1.92 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2013 0.64 0.00 7%

Loan 2995-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Apr 2013 22 May 2013 15 Aug 2013 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.69 Cumulative Contract Awards
ADB 4.20 01 Apr 2013 0.00 0.00 0%
Counterpart 1.48 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2013 0.00 0.00 0%
Title Document Type Document Date
CAREC Regional Improvement of Border Services Project - Kyrgyz Republic: Audited Project Financial Statements (January-December 2014) Audited Project Financial Statements Jun 2015
Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (Tajikistan): Procurement Plan Procurement Plans Feb 2015
Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (Kyrgyz Republic) Project/Program Administration Manual Jan 2014
Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (Tajikistan) Project/Program Administration Manual Jan 2014
Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (Kyrgyz Republic) Procurement Plans Sep 2013
Project Agreement for Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project Project/Program Agreement Jul 2013
Financing Agreement for Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project Financing Agreement May 2013
Grant Agreement (Special Operations) for Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project Grant Agreement Apr 2013
Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project Reports and Recommendations of the President Mar 2013
Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (Kyrgyz Republic) Project/Program Administration Manual Feb 2013
Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project (Tajikistan) Project/Program Administration Manual Feb 2013

Evaluation Documents

See also: Independent Evaluation

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