Transport / Road transport (non-urban)

As part of the implementation of the Central Asia Regional Economic Cooperation (CAREC) program in the country, the Government of Uzbekistan has requested ADB to provide assistance for continued rehabilitation of the CAREC Corridors. ADB approved on 7 September 2015 the multitranche financing facility (MFF) concept for the Third CAREC Corridor Investment Program. The proposed MFF was to complement the ongoing efforts to improve the CAREC Corridors by providing the last missing link to the international border with Kazakhstan, rehabilitating roads in Khorezm and Kashkadarya, developing road side infrastructure, and developing the capacity of the Road Research Institute and other Uzavtoyul agencies for introducing efficiencies and innovation in the road subsector. A project preparatory technical assistance (PPTA) was approved to carry out due diligence for the MFF and to support Uzavtoyul agencies in preparing a framework for the implementation of institutional reforms in state-owned enterprises and the provision of capacity building in improving road design standards.

The approved MFF concept proposed three tranches to be approved over the period 2016-2018: (i) Tranche 1--rehabilitation of 77 km section of the regional road that links the tourist centers of Karshi and Kitab on the A380 and M39 highways, including pilot road side infrastructure development and installation of cross-border scanning equipment; (ii) Tranche 2--rehabilitation of 240 km of the A380 highway in the Republic of Karakalpakstan, including institutional development for Uzavtoyul agencies (road safety planning and audits and capacity assistance for design, construction and maintenance) and support for road safety improvement; and (iii) Tranche 3--reconstruction of 47 km of the Turtkul bypass section of the A380 highway in Khorezm province and implemention of performance-based road maintenance contract management on a pilot basis.

Considering the discussions during the PPTA inception mission, it was proposed that Tranche 1 be processed as a standalone project and not under an MFF. The Government of Uzbekistan formally sent its request to ADB on 13 May 2016. ADB approved on 28 June 2016 the government's request. Consequently, the MFF concept was revised--the proposed Tranche 1 was removed from the MFF while the proposed Tranches 2 and 3 will be the new Tranches 1 and 2 of the MFF. Moreover, the scope of the PPTA was changed to cover the conduct of due diligence and preparation work for both the MFF and the proposed standalone project.