Uzbekistan: CAREC Corridor 2 Road Investment Program - Tranche 2

Sovereign Project | 42107-033 Status: Active


ADB is helping Uzbekistan improve a key highway linking the country to its neighbors in Central Asia. Tranche 2 of the program will finance the rehabilitation of about 85 kilometers of the A380 highway, which forms part of the Central Asia Regional Economic Cooperation Program (CAREC) Corridor 2. It will also improve road planning.

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Project Name CAREC Corridor 2 Road Investment Program - Tranche 2
Project Number 42107-033
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2746-UZB: Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2
Ordinary capital resources US$ 240.00 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 No gender elements
Description The project' outcome will be reconstructed, effectively operated and maintained A380 highway section with improved travel time. The project has two outputs--(i) reconstructed Uzbekistan section of CAREC Corridor 2 road (85 km of the A380 highway between Km355 and Km440), and (ii) road sector sustainability strategy and plans adopted by the Republican Road Fund (Road Fund).
Project Rationale and Linkage to Country/Regional Strategy With the increasing role of the Uzbekistan's transport sector, it faces operational and institutional bottlenecks. These problems translate into higher-than-average transport costs. They also hamper regional cooperation and integration opportunities, and ultimately the country's competitiveness. Under ADB's Loan 2403-UZB, the Road Fund has improved its planning capacity to be able to make better investment decision. It has also looked at various options to improve the road sector institutional structure.
Impact Better connectivity and an efficient transport system along Uzbekistan section of CAREC Corridor 2 Road

Project Outcome

Description of Outcome Reconstructed A380 highway section with improved travel time and effectively operated and maintained
Progress Toward Outcome As a result of rebidding, the civil works contract was awarded on 24 December 2013 to the lowest evaluated substantially responsive bidder, POSCO Engineering & Construction Co. Ltd. (Korea) for the final agreed price of $175,199,999.91. The contract was registered by MFERIT on 7 May 2014 and the notice to proceed was issued on 26 May 2014.
Implementation Progress
Description of Project Outputs

Uzbekistan section of CAREC Corridor 2 road constructed

Road sector sustainability plans adopted by the Road Fund

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

Civil works package was awarded to POSCO Engineering & Construction Co. Ltd. (Korea) on 24 December 2013, registered by MFERIT on 7 May 2014, and commenced on 26 May 2014. The civil works started in July 2014. As of 31 December 2015, work progress is at 40%.

Boring equipment procured and delivered to Uzbekistan in 2012 and commissioned in 2013.

Geographical Location Bukhara, Khorezm, and Karakalpakstan Republic

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

1. No major environmental impacts. Project 2 was classified as Category B.

2. An initial environmental examination (IEE) was prepared.

3. The IEE concluded that the overall environmental impacts of projects 1 and 2 would be insignificant and will be minimized by adequate mitigation measures included in the Environmental Management Plan (EMP).

4. The construction contractor will implement all environmental management requirements set out in the IEE and will prepare site specific environmental management plans. The. Monthly monitoring reports will be issued by the contractors and will be reviewed by the design and supervision consultant.

5. The construction supervision and project management consultants will monitor the EMP

Involuntary Resettlement An assessment of impacts and the inventory of loss assets was undertaken during 19-25 July 2010, following the project cut-off date of 19 July 2010. Project 2 will mostly follow the existing right-of-way, so land acquisition is minimal. However, a total of 0.84 ha of land will be acquired permanently (including abandoned and non-operating entities). Project 2 will affect 4 households comprised of 16 people. These households include business entities (1 operating and 3 non-operating) and located in the desert areas along the project road. During construction, additional land may be used temporarily for camps and borrow pits. However, this land is desert, and free of any land acquisition and resettlement impacts. Preparation of the replacement lands and payment of compensation has been completed. LARP compliance report was disclosed on 30 September 2014.
Indigenous Peoples The project will not affect the dignity, livelihood systems, or culture of Indigenous Peoples. The Tranche 2 project activities will have no impacts on land, housing, property or income; and no new limitations to the movement of local residents.
Stakeholder Communication, Participation, and Consultation
During Project Design

Discussions were held with khokimyat authorities and key stakeholders, and public consultations with villagers and other interested parties. Where land acquisition and resettlement is required, household surveys and a full census of all affected persons was held in accordance with ADB's social safeguards.

A consultation and participation plan was prepared for Project 2 which undertook detailed level of information sharing and consultation particularly for the land acquisition and resettlement plan preparation.

During Project Implementation Information sharing and public consultations will continue during implementation. ADB's safeguards specialist is monitoring the resettlement activities. Payment of compensation to the affected households has been completed.

Business Opportunities

Consulting Services All consultants financed from ADB were recruited according to ADB''s Guidelines on the Use of Consultants (2010, as amended from time to time) and the procurement plan of Project 2. Consulting firms were selected and engaged using the quality- and cost-based selection method. Individual consultants were recruited for procurement and safeguard component.
Procurement Procurement of civil works and goods followed ADB''s Procurement Guidelines (2010, as amended from time to time) and the procurement plans of Project 2.

Responsible Staff

Responsible ADB Officer Khuong Luu
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Uzbekistan Resident Mission
Executing Agencies
Republican Road Fund
Ministry of Finance 29 Istiklol Street
Tashkent, 100017,Republic of Uzbekistan


Concept Clearance 18 Jan 2010
Fact Finding -
MRM 15 Mar 2011
Approval 31 Mar 2011
Last Review Mission -
PDS Creation Date 15 Jul 2010
Last PDS Update 28 Mar 2016

Loan 2746-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Mar 2011 12 Apr 2011 06 May 2011 30 Jun 2014 31 Mar 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 289.00 Cumulative Contract Awards
ADB 240.00 31 Mar 2011 191.42 0.00 80%
Counterpart 49.00 Cumulative Disbursements
Cofinancing 0.00 31 Mar 2011 139.17 0.00 58%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - - - -

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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