fbpx 42399-024: CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing | Asian Development Bank

Kyrgyz Republic: CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing

Sovereign (Public) Project | 42399-024 Status: Closed

ADB is helping the Kyrgyz Republic to continue upgrading the Bishkek-Torugart Road, which serves as its main trading link with the People's Republic of China. The additional financing is for a project that is improving the last 60 kilometers of this transport corridor. The project will also help increase sustainability of the national road network by training staff on infrastructure management.

Project Details

Project Officer
Eshenaliev, Mirdin Iskanderovich Central and West Asia Department Request for information
Country
  • Kyrgyz Republic
Modality
  • Grant
  • Loan
Sector
  • Transport
 
Project Name CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing
Project Number 42399-024
Country Kyrgyz Republic
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0418-KGZ: CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 4.30 million
Loan 3204-KGZ: CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 10.80 million
Strategic Agendas Environmentally sustainable growth
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 additional financing of the Central Asia Regional Economic Cooperation (CAREC) Corridor 1 (Bishkek Torugart Road) Project 3 will cover the cost overruns that have resulted in a funding gap for the project whose rationale remains valid and physical progress on-track. The project, by improving the last 60 kilometers (km) bottleneck section of the CAREC Corridor 1 (Bishkek Torugart Road), will contribute to fostering regional trade between the Kyrgyz Republic and the People's Republic of China (PRC) and higher mobility for people in Naryn Province where poverty is widespread. It will also help increase sustainability of the national road network by training staff on infrastructure management.
Project Rationale and Linkage to Country/Regional Strategy

The terrain of the Kyrgyz Republic is dominated by the Tian Shan and Pamir mountain systems, which together occupy about 65% of the country. Trade and travel in this landlocked country are highly dependent on road transport. Endorsed under the CAREC Transport and Trade Facilitation Strategy, the approximate 539 km Bishkek Torugart road forms part of the CAREC Transport Corridor 1 and has several important functions. The road, part of the old Silk Road that once linked Europe with what is now the PRC, is the shortest thoroughfare from Kashi, a vibrant cultural and trade center in the PRC, to consumer markets in northern Kyrgyz Republic and beyond. It is also the only north south trunk road in central Kyrgyz Republic, where the city of Naryn, in particular, depends heavily on it for connecting to the rest of the country. It is the only road that provides direct access at present to Issyk Kul lake region, one of Central Asia's best-known tourist destinations with a huge growth potential. However, costly, unreliable, and unsafe travel caused by the poor road conditions has hampered social and economic development along the road corridor, particularly for Naryn Province.

As one of the key development partners for the country's roads, ADB financed the improvement of 114 km (km 365 479) of the road corridor in 2008 and 2009, and helped the government strengthen trade ties with its neighbors through CAREC. In 2010 the Government of the People's Republic of China financed the improvement of 223 km (most of km 9 272), and in 2012 the Islamic Development Bank financed the improvement of 93 km (km 272 365) of the road corridor. The project will improve the 60 km section from At Beit to Torugart (km 479 539) at the Kyrgyz Republic PRC border, the last segment of the road corridor. Together with the improvement works in other sections and the corridor's full opening to traffic by 2017, this will enable all-weather smooth flow of local traffic between Bishkek and Torugart, as well as international through-traffic from the PRC to Central Asia and beyond, unleashing one of the key constraints to national and regional trade competitiveness and inclusive growth. Apart from the economic benefits of time savings, reliability, and reduced transport costs, better road conditions and protective structures will help reduce the risk of accidental toxic spills and material runoff from vehicles, therefore benefiting the ecosystem of nearby Chatyr Kul Lake a wetland of international significance protected under the Ramsar Convention on Wetlands. The project will also support a long-term, results-oriented program of learning and development for the Ministry of Transport and Communications (MOTC) and other government staff. It will result in better-informed staff, equipped to champion strategies for reducing life-cycle costs and improving user cost recovery.

The project road site conditions are unique elevation is over 3,000 meters and the weather allows only about 5 months (May October) in a year for any construction work; the ground is permanently frozen, and part of the road alignment is close to a unique wetland. Civil works were procured using a tailored design build delivery method to share the cost and risk of design changes between the project executing agency and the contractor, and allow the contractor to bring more economical and relevant technology and construction methods to the site. Detailed engineering investigations by the contractor and the construction supervision consultant indicate that additional engineering measures (mainly increasing the road embankment height, using suitable subgrade materials, and installing additional road drainage systems) are necessary to address the unforeseen frost heaves in some sections. This will help prevent premature pavement failure caused by pavement cracking and extend road service life.

The project was approved in June 2011 with a loan in various currencies equivalent to SDR35,041,000 from ADB's Special Funds resources. The loan became effective in February 2012 and will close on 31 March 2016. Contract packages for the works and construction supervision and environmental management were awarded in 2012. The project has been performing well and the present project performance rating is on track. The total project cost has increased by $18 million, from

$70 million in 2011 to $88 million in 2014. The cost overruns, resulting from the detailed engineering design under the design build delivery arrangement, are attributed to corrective engineering measures and input price increases. The government has accordingly requested financing to achieve the project's intended outputs with greater technical quality. Given that additional engineering measures by nature are an integral part of ongoing civil works, additional financing is deemed a more suitable instrument than options of restructuring, scaling down, and/or canceling the project.

Impact Increased regional trade, particularly between the Kyrgyz Republic and the People's Republic of China
Project Outcome
Description of Outcome Higher mobility for people and goods with origins and destinations in the road corridor between Naryn and Torugart
Progress Toward Outcome

Project cost overruns under the original loan were met through provision of additional financing.

The project was closed on 31 December 2017 and achieved its outcome. Average travel time between Naryn and Torugart (border with the PRC) has reduced to about 2.5 hours (target 4 hours). In 2016, more than 5 companies providing freight transport services in Naryn (target 5 companies).

Implementation Progress
Description of Project Outputs

The last 60 km section of the Bishkek-Torugart road (km 479-km 539), repaired, rehabilitated, or reconstructed to meet national Category III road standards with roadside truck parking facility and special haydraulic features for protecting the environment and preserving the road structure

Improved infrastructure management skills of MOTC and other government agency staff

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

As of the end of the 2016 construction season, civil works were fully completed. The completed works in 2016 included strengthening culvert pipe outlets (rock-fill blanket and slope protection), full installation of traffic signs and signal bars, and the drainage system for spillage collection at six sections. The defect liability period was expired on 16 Oct 2016, and the contractor handed over the site to the MOTR.

EMP monitoring was conducted properly. The EMR for January-June 2017 was submitted. The EMP compliance was assessed as satisfactory in June 2017 in the course of the post construction audit and project completion review mission.

Infrastructure management skillss were improved as intended under the original Loan 2755.

Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The additional financing for the project due to cost overruns did not entail any additional environmental impacts as the project's scope of work remained unchanged. The underlying project is categorized A for ENV as the road passes through the Karatal-Japaryk State Nature Reserve (KJSNR). The updated EIA and EMP was disclosed online. In accordance with the OM Section F1/OP para. 35, the additional financing loan was classified category C for environment.
Involuntary Resettlement The additional financing for the project did not entail any involuntary resettlement impacts as the proceeds were used for civil work activities and did not require any land acquisition. In accordance with the OM Section F1/OP para. 35, the additional financing loan was classified category C for involuntary resettlement.
Indigenous Peoples There are no indigenous peoples in the project area.
Stakeholder Communication, Participation, and Consultation
During Project Design Meetings with relevant government agencies and focus group consultations with local communities and/or affected people, supplemented by surveys, were conducted.
During Project Implementation The investment projects implementation group (project implementation unit) under the Ministry of Transport and Roads (project executing agency), the consultants, and ADB conducted needed stakeholder consultations during project implementation.
Business Opportunities
Consulting Services This additional financing will not require additional procurement of civil works as the additional scope for treatment of frost heave of natural ground is an integral part of the ongoing civil works. As such, associated supervision of these additional works will be added through a variation to the existing construction supervision contract.
Procurement This additional financing will not require additional procurement of civil works as the additional scope for treatment of frost heave of natural ground is an integral part of the ongoing civil works. As such, MOTC will issue contract variations to incorporate it into the scope of existing civil works contract.
Responsible ADB Officer Eshenaliev, Mirdin Iskanderovich
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Kyrgyz Resident Mission
Executing Agencies
Ministry of Transport and Roads
42, N. Isanov St.
Bishkek City 720017
Kyrgyz Republic
Timetable
Concept Clearance 12 Sep 2014
Fact Finding -
MRM 10 Oct 2014
Approval 02 Dec 2014
Last Review Mission -
Last PDS Update 22 Mar 2018

Grant 0418-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2014 26 Dec 2014 24 Apr 2015 31 Dec 2017 - 07 May 2018
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.30 Cumulative Contract Awards
ADB 4.30 02 Dec 2014 4.14 0.00 96%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 02 Dec 2014 4.14 0.00 96%

Loan 3204-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2014 26 Dec 2014 24 Apr 2015 31 Dec 2017 - 07 May 2018
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.70 Cumulative Contract Awards
ADB 10.80 02 Dec 2014 9.25 0.00 99%
Counterpart 2.90 Cumulative Disbursements
Cofinancing 0.00 02 Dec 2014 9.36 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing: Audited Project Financial Statements (1 January-31 December 2017) Audited Project Financial Statements Apr 2018
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing: Audited Project Financial Statements (1 January-31 December 2016) Audited Project Financial Statements Sep 2017
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing: Audited Project Financial Statements (24 April-31 December 2015) Audited Project Financial Statements Oct 2016
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3: Project Administration Manual Project/Program Administration Manual Jun 2015
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 (Additional Financing): Project Administration Manual Project/Program Administration Manual Jun 2015
Проект по улучшению транспортного коридора 3 (дорога Бишкек-Ош), Центрально-азиатское региональное экономическое сотрудничество (ЦАРЭС) Дополнительное финансирование : Информация о проекте Translated PDS Feb 2015
Financing Agreement (Special Operations) for CAREC Corridor I (Bishkek-Torugart Road) Project 3 - Additional Financing Financing Agreement Dec 2014
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 (Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Nov 2014
CAREC Transport Corridor I (Bishkek-Torugart Road) Project 3 (Additional Financing): Procurement Plan Procurement Plans Sep 2014

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

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found