Kyrgyz Republic : CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project 1

Project Name

CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project 1

Project Number

39674-022

Country / Economy

• Kyrgyz Republic

Project Status

Closed

Project Type / Modality of Assistance

• Grant

Source of Funding / Amount

Grant 0123-KGZ: CAREC Transport Corridor 1 (Bishkek-Torugart Road) Project

Source	Amount
Asian Development Fund	US$ 20.00 million

Strategic Agendas

• Inclusive economic growth
• Regional integration

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development

Sector / Subsector

• Transport / Road transport (non-urban)

Gender

Some gender elements

Description

The 500 kilometer (km) Bishkek-Torugart road is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 1 linking the Kyrgyz Republic with the People's Republic of China (PRC) and other Central Asian countries. The Torugart post is a major border control and customs facility between the Kyrgyz Republic and the PRC. The road condition is poor; border-crossing facilities and procedures are outdated and inefficient, and they obstruct international traffic and trade. Improved road and customs infrastructure will remove the obstruction and open up this corridor for wider regional trade and economic cooperation. It will reduce travel and transit times from the current 3 to 4 days to 2 days.

Improvement of the Bishkek-Torugart road will be implemented in three phases and includes (i) improving 488 km of the Bishkek-Torugart road in the Kyrgyz Republic and the 20 km Bishkek bypass road, (ii) modernizing infrastructure and facilities at the Kyrgyz Republic-PRC border crossing at Torugart, and (iii) policy and institutional support in the road subsector. The Project 1 outputs are (i) an improved 39-km road section from Km 400 to Km 439 of the BishkekTorugart road, (ii) modernized customs infrastructure at the Kyrgyz Republic-PRC border crossing at Torugart, (iii) a transport sector master plan for 20102025, and (iv) a fully operational Bishkek-Torugart Road Corridor Management Department (BTRMCD).

Project Rationale and Linkage to Country/Regional Strategy

Regional cooperation in Central Asia has centered on transport, energy, and trade facilitation for the last decade since the launch of the Asian Development Bank (ADB)-sponsored CAREC Program in 1997. This proposal supports transport and trade facilitation under CAREC. Endorsed under the CAREC Transport and Trade Facilitation Strategy, the Bishkek-Torugart road forms part of the CAREC Transport Corridor 1. It is the shortest road link from Kashi, a vibrant cultural and trade center in the PRC, to consumer markets in the northern Kyrgyz Republic, Kazakhstan, and Russian Federation. As part of the Silk Road that linked ancient China to the Western world, it also represents an important historical heritage.

Development of the transport sector is a priority of the Government of the Kyrgyz Republic (the Government), as reflected in its Country Development Strategy for 2007-2010. Substantial investments of about $350 million were made in the last decade to rehabilitate the country's major road corridors. Along with these investments, the Kyrgyz Republic has also made progress in reforming transport sector operations. It adopted the Road Sector Development Strategy for 2007-2010, increased road financing, and plans to outsource and privatize road maintenance operations. Improvement of the Bishkek-Torugart road is a priority investment project included in the Government's strategy.

ADB is the lead partner in developing the transport sector in the Kyrgyz Republic. The Project is included in the Joint Country Support Strategy for the Kyrgyz Republic (2007-2010). It will complement ADB-led investment and policy dialogue in the country and complete a key transport corridor connecting Bishkek, the capital of the Kyrgyz Republic, to Kashi in the PRC.

Impact

Reduced transport costs and regional trade and tourism between the Kyrgyz Republic and the PRC promoted.

Project Outcome

Description of Outcome

Improved access to markets, social services, and tourist destinations

Progress Toward Outcome

Project outcome can be realized in 2015.

Two components were cancelled which are related to (a) modernization of customs infrastructure facilities at Kyrgyz Republic-PRC border; and (b) making operational the Bishkek-Torugart Road Corridor Management Department, as requested by the government. This will have no major impact over the achievement of overall project outcomes.

Implementation Progress

Description of Project Outputs

Bishkek-Torugart road improved

Long-term transport sector masterplan (2010-2025) developed

BTRCMD fully operational

Customs infrastructure facilities at Kyrgyz Republic-PRC border at Torugart modernized (this component was dropped from the project outputs at the Government's request due to complexity of conditions and high maintenance cost of the existing customs and border facilities). The Government plans to rehabilitate the customs facilities using its own resources.

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

Project physically completed on 31 September 2012. Project was financially closed on 11 March 2013.

Final Report for the transport sector masterplan completed.

Geographical Location

Nation-wide, Alamedinskiy Rayon, At-Bashi, At-Bashi, Balykchy, Bishkek, Chuyskiy Rayon, Issyk - Kulskaya, Kemin, Kochkor, Kochkor, Naryn, Tien Shan, Tokmok, Tong, Torugart, Ysyk-Ata

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

The Project is not expected to generate significant environmental impacts, provided the mitigation measures outlined in the IEE and environmental management plan (EMP) are implemented appropriately.

Involuntary Resettlement

Implementation of the resettlement plan has been completed with all affected persons compensated. Regular monitoring is ongoing.

Indigenous Peoples

There are no groups with characteristics of indigenous people (as defined by ADB's Policy on Indigenous Peoples [1998]) affected by the Project.

Stakeholder Communication, Participation, and Consultation

During Project Design

During the project preparation activities including ADB missions, feasibility studies, environmental impact assessment, and social surveys consultations were carried out with the Government, nongovernment organizations, local communities, road users, external aid agencies, and other project stakeholders. These consultations covered major issues such as road alignment, transport services, project benefits, and social and environmental impacts of the Project. The results showed a high degree of support from project stakeholders.

During Project Implementation

ADB and the Government jointly carried out a midterm review of implementation of the Project. The review focused on outputs, particularly those relating to institutional, administrative, technical, environmental, and social aspects. The Project's economic viability and other aspects that may have an impact on overall performance will be assessed after completion of the Project, or as necessary during implementation. The review will examine the implementation progress of the reforms and compliance with assurances specified in the Grant Agreement.

Business Opportunities

Consulting Services

International consultants for construction supervision, project monitoring and evaluation and preparation of subsequent subproject, and preparation of Transport Sector Master Plan were engaged. National consultants were also engaged who provided institutional support to IPIG/MOTC. All consulting services that were financed by ADB have followed ADB's Guidelines on the Use of Consultants.

Procurement

Civil works were packaged into three contracts with ADB-financed section following ADB's ICB procedures. Two other contracts have been financed under parallel cofinancing arrangement following cofinancier's procurement rules. Procurement of civil works for border infrastructure improvement following NCB procedures did not materialize as this component was cancelled.

Contact

Responsible ADB Officer

Lim, Susan

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Transport and Communications Division, CWRD

Executing Agencies

Ministry of Transport, Architecture, Construction and Communications (formerly Ministry of Transport and Roads)

Timetable

Concept Clearance

22 Apr 2008

Fact Finding

05 May 2008 to 16 May 2008

MRM

04 Jul 2008

Approval

14 Nov 2008

Last Review Mission

-

PDS Creation Date

10 Jun 2008

Last PDS Update

27 Mar 2013

Funding

Grant 0123-KGZ