Afghanistan: Transport Network Development Investment Program - Tranche 2

Transport / Road transport (non-urban)

Tranche 2 will finance outputs under both components of the approved MFF:

Component A: Transport Infrastructure Development

a) reconstruction and widening of the approximately 106 kilometer (km) Sapary to Jalalabad Road (the second section of the Kabul to Jalalabad Road), including provision of related design and construction supervision services;

b) rehabilitation of the approximately 32 km Chan-e-Anjir to Gereshk Road, (the second section of the Lashkar Gah to Gereshk Road), including provision of related design and construction supervision services; and

c) reconstruction of the approximately 50 km Sharan to Angoor Ada Road in Paktika, including provision of related design and construction supervision services.

All road infrastructure development projects under Tranche 2 have been designed to include community development and security plans.

Component B: Transport Network Management Capacity Development

a) capacity building for the Ministry of Public Works (MPW) including restructuring support based on a revised business plan and design and implementation of an asset management system; and

b) provision of support for project management and investment program implementation to MPW including procurement oversight, construction and contract supervision, safeguard policy and plan preparation and implementation, and feasibility studies to prepare subsequent tranches of the investment program.

As planned in the approved facility and linked documents, Tranche 2 of the investment program builds upon the ongoing Tranche 1 subprojects and the complementary efforts of other development partners in the sector to further improve domestic and regional connectivity while widening access to social and economic opportunities. Collectively, the proposed three subprojects involve the reconstruction and upgrading of approximately 188 kilometers (km) of roads, each of which has been previously identified as a priority in the Afghanistan National Development Strategy (ANDS) and subsequent national planning and implementation frameworks.

The rationale for the proposed subprojects include: (i) creating increased capacity for cross border links with Pakistan, which is Afghanistan's largest trading partner; (ii) supporting completion of CAREC Corridors 5 and 6; (iii) completing key national road network radian links between the Ring Road and provincial capitals; and (iv) the dilapidated physical condition of the roads, which impede transport, southern Afghanistan's economy, and regional trade. After years of use and lack of periodic maintenance, the subproject roads are in poor condition beyond repair, thus requiring major rehabilitation. The state of these roads is hindering economic development in the southern provinces, impeding regional trade and the opening of alternative trade routes, and imposing efficiency losses as traffic volumes continue to rise.

In addition to supporting the ANDS, justification of Tranche 2 stems from Afghanistan's strategic geographic center of gravity in the Central Asian region and potential to serve as the nexus between north-south and east-west regional trade corridors. Afghanistan is traversed by three major CAREC corridors, to which the proposed Tranche 2 subprojects support Corridors 5 and 6 providing landlocked Central Asian access to populous commercial centers in South Asia, and major ports in the Persian Gulf and Arabian Sea. An efficient and sustained Afghanistan road network will improve regional connectivity, support increased domestic and international trade, and generate jobs and economic growth. The proposed tranche is consistent with the envisaged outputs, outcomes, and impacts of the investment program and additionally Strategy CAREC 2020 aimed at the development of priority transport routes, increasing trade through transport connectivity, and facilitating cross-border movement of goods.

All three civil works contracts (Sapary-Jalalabad, Sharan Angoor Ada and Chah-e-Anjir to Greshk roads) have been awarded.

The physical progress of Sapary-Jalalabad road project was slow due to weak capacity of the contractor and security situation in project area. However, recently the employer (MPW) and the contactor reached to an agreement to reduce the project scope from 106 km to 33 km. The contract has been extended up to 31 December 2018 to complete the revised scope (33 km) of the project.

The physical progress of Sharana to Angora-Ada road subprojects is going very well with physical progress at 56.4954%.

Civil works for Chah-e-Anjir Gereshks have been suspended since 15 June 2018, due to military operations in the area. Works are expected to resume by 15 AugustOctober 2018. Physical progress of this sub-project is at 61.48%.

115 km [Sapary-Jalalabad (33km), Sharan-Angoor Ada (50km), and Chan-e-Anjir-Gereshk (32km) sections) of reconstructed, rehabilitated, and appropriately maintained national and regional highways.

Strengthened Capacity of MPW

i. Sapary Jalalabad road contract was awarded to Xinjiang Beixin Road and Bridge Group Co. Ltd. (PRC) on 4 December 2013. The contractor was mobilized on February 2014. Due to inaccessibility of contractor to worksite, the contractor and MPW agreed to reduced the scope of contract from 106 km to 33 km on 2 April 2018. the contractor has provided a work schedule to complete the remaining works by 31 December 2018.

ii. Sharana - Angoor Ada road contract has been awarded to the JV of MAB Construction Company Ltd. and Hamid Kandahari Construction Co. The contractor was mobilized on 18 April 2015. The contractor has mobilized more staff and machinery to overcome implementation problems resulting in significant progress on the project. The contractor has completed the first section of the road. Mobilization to second section of road has been completed and works are ongoing.

iii. The contract for Chah-e-Anjir Greshk Road was awarded to Rauf Aziz Construction and Supply Co. The contract was signed on 4 October 2015. The contractor, consultant, and PMO project team have been able to work together, well resulting in satisfactory implementation progress despite the difficulties due to security threats in the project area.

iv. The capacity building component was designed to assist the PMO/MPW in the areas of contract management, engineering design, procurement and land acquisition and resettlement. Currently, three international consultants (design specialist, resettlement specialist and financial management specialist) have been engaged to support the PMO.

v. The pre-feasibility study contract of Bamyan-Kandahar road project has been awarded to Dongshin consulting firm. MPW terminated their contract due to the weak performance of the consultant in 2016. However, MPW considers these corridors important and will restart the studies in the future.

The international roughness indicator will be assessed up one completion of the project

The PMO has been restructured

Under the capacity building component of this project three international consultants:

1. design specialist,

2. contract management specialist, and

3. resettlement specialist has been hired, and they are supporting PMO and MPW staff in on job training and providing technical advice to PMO and MPW management.

The team leader, deputy team leader, financial management specialist and their team have been recruited under the RAMP project to assess the current situation and develop the ToR for road asset management system (RAMS).