Afghanistan: Transport Network Development Investment Program - Tranche 4

Sovereign Project | 44482-025

ADB is working with Afghanistan to build a new road that will open up an east-west trade link with Tajikistan and beyond. The project is building a 108-kilometer road in Badakhshan province that is improving the movement of goods and people, and is promoting best practices in road operations and maintenance that can be emulated across Afghanistan.

Project Name Transport Network Development Investment Program - Tranche 4
Project Number 44482-025
Country / Economy Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0422-AFG: Transport Network Development Investment Program - Tranche 4
Asian Development Fund US$ 109.00 million
Grant 0423-AFG: Transport Network Development Investment Program - Tranche 4
AFG:MFF Trans. Network Dev. Inv. Program US$ 21.00 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 Equity and Mainstreaming Effective gender mainstreaming
Description ADB approved a multitranche financing facility (MFF) for the Transport Network Development Investment Program (TNDIP) on 12 October 2011 for an amount not exceeding $787 million, and comprising a maximum contribution of $754 million from ADB's Special Funds resources. To date, four tranches of the MFF are under implementation.
Project Rationale and Linkage to Country/Regional Strategy The proposed Tranche 4 will reconstruct the remaining 108 km gap from Beharak to Eshkashim in the envisaged northeastern corridor, which starts at city of Kunduz and connects to the border crossing point with Tajikistan at Eshkashim. The completion of this road supports east west trade and indeed the development of Badhakshan province, one of Afghanistan's most inaccessible provinces. Through EU cofinancing, Tranche 4 also provides significant non-physical outputs under the transport management capacity development component of the MFF to strengthen transport sector governance and increase sustainability.
Impact Better connectivity and efficiency through a fully complete transport corridor traversing Badakhshan province to Tajikistan
Project Outcome
Description of Outcome Increased movement of goods and services and better connectivity for people and businesses in the project areas.
Progress Toward Outcome Extension of the project until 20 September 2021 approved in December 2019. This may allow full completion of the components particularly for the achievement of Output on Improved Efficiency for Traffic Traversing Afghanistan along CAREC Corridors 5 and 6.As of 30 June 2020, achieved work under the construction of Beharak-Eshkashim road is 66.54% against planned of 81.33% with elapsed contract period of 90.22%. The pilot Operation and Maintenance contract of Kabul to Sarobi road was completed in November 2017. The capacity building component of the Afghanistan railway authority is ongoing. The government approved Railway Authority as independent entity. Bid evaluation reports for procurement of tracking devices and scanners under review by the National Procurement Authority.
Implementation Progress
Description of Project Outputs

108 km (Beharak-Eshkashim section of the Faizabad-Eshkashim Road) of reconstructed, rehabilitated, and appropriately maintained national and regional highways

Community development infrastructure

Strengthened Capacity of Afghanistan Railway Authority (AfRA)

Improved efficiency for traffic traversing Afghanistan along CAREC Corridors 5 and 6

Status of Implementation Progress (Outputs, Activities, and Issues) As of 30 June 2020, overall progress of the road project is 66.54% against schedule is 81.33% with elapsed contract period of 90.22%. A total of 45 staff have been trained by the operator on Railway Operation until December 2019. The Railway Law completed in mid-2018. It took effect on 6 Aug. 2018. The update of the transport sector master plan for the next 20 years (2017-2036) prepared by the technical assistance of ADB, which include both sub-sectors of road and railway. This is a comprehensive roadmap for the railway development in Afghanistan. TRS undertaken in Q2-Q3 2019. One national consultant is assisting ACD in the procurement of trackers and scanners. Procurement of tracking devices was rebid for the third time. Technical bid evaluation report (TBER) under review by the National Procurement Authority (NPA) of the MOF. The second bidding for procurement of scanners closed on 30 June 2020. TBER under review by the ADB.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Tranche 4 is classified as environment category B. MPW prepared an IEE for the road subproject, which was found to be in compliance with the requirements of the ADB's Safeguard Policy Statement (2009). Public consultations were held with the 57 villages along the road subproject alignment and there was significant public support for construction of the road. The IEE was disclosed on ADB's website on 29 October 2014. Given that the works are rehabilitation and upgrading of an existing road, no major negative impacts are expected, and effective implementation of the EMP will minimize and mitigate any adverse impacts during construction. However, as per the IEE for the preferred road alignment option, there will be some impact on trees. The trees to be logged are not endangered or rare species, and a Tree Replanting Plan has been worked out as a part of EMP and included in environmental costs. The tender and the contract documents will contain details of the environmental management and monitoring requirements. The contractors will have primary responsibility for implementing the EMP. With assistance of supervision consultants, MPW will monitor the effectiveness of the contractors in complying with the requirements. MPW's abilities in this regard are being strengthened through capacity building efforts and recurrent support to the PMO. Tranche 4 is classified as high risk for climate change impact. The engineering design already includes adaptation measures based on topography, climate and past lessons learned.
Involuntary Resettlement Tranche 4 is categorized as A for IR based on the magnitude of impacts caused by the proposed acquisition of 124 hectares of land, affecting an estimated number of 1,477 households (comprising 10,339 persons), of which 153 households and 448 shops will be physically displaced requiring relocation. The road subproject will mainly follow the existing right-of-way of the currently traversed tract. However, land acquisition is required to improve or upgrade the road alignment by either straightening or widening in certain sections. Although most of the Beharak to Eshkashim road alignment is in isolated undeveloped land, there is both agricultural land and urban encroachment on the right-of-way where it passes through communities. During construction, additional land may be used temporarily for camps and borrow pits, for which the government confirmed that government land will be made available. The LARP provides compensation for land, structures, loss on income, and relocation assistance for all affected businesses/households. Preparation of the replacement lands and its associated facilities will be done prior the relocation. The LARP will be updated based on the detailed engineering design of the contractor once procured.Capacity building and other support to MPW for the preparation and implementation of LARPs for Tranches 1, 2, and 3 is ongoing. MPW is receiving additional support in this regard through capacity building funded under Tranches 1 and 2, and a separate Regional Technical Assistance project. The LARP for Tranche 4 generally follows the format of the Tranche 1, 2, and 3 LARPs, and includes the required information as specified in the ADB's Safeguard Policy Statement (2009) and LARF, which was updated on 15 November 2012. The LARP is based on satellite photography, consultations, and field surveys carried out in 2014. In the course of the consultations, potentially affected persons were informed about the rationale and scope of the project, and compensation principles, and there was significant public support for construction of the road. The LARP was disclosed on the ADB's website on 14 November 2014 and Resettlement Information Booklets were distributed in the project area.
Indigenous Peoples Tranche 4 is classified as indigenous peoples category C as defined under ADB's Safeguard Policy Statement (2009).
Stakeholder Communication, Participation, and Consultation
During Project Design The existing organizational relationships and implementation arrangements for the Investment Program is intended to cover all tranches. MPW will be the executing agency, while MOF will be the recipient of the grant agreements. The PMO will support MPW to implement all tranches of the Investment Program, assisted by project management consultants and ADB, as necessary. The Facility Administration Manual (FAM) has been and will continue to be an integral part of the project documents, updated as required. The PMO will continue to assist MPW during implementation of Tranche 4, performing (i) project management and procurement; (ii) finance and administration; (iii) evaluation, monitoring, compliance, and reporting; and (iv) due diligence for possible subsequent projects. The PMO will establish a project performance monitoring system within six months from grant effectiveness and collect baseline data for performance monitoring. The current capacity of the PMO is adequate, but based on lessons learned, it needs additional support to effectively and efficiently prepare safeguards plans and monitor implementation. Additionally, MPW and the PMO need capacity development and support to continue to develop and assume a greater sector governance role. MPW is committed to ensuring efficient implementation of Tranche 4.
During Project Implementation A framework financing agreement (FFA) was signed by the government and ADB on 3 August 2011 for the Investment Program. Of the 15 FFA undertakings, 1 has been fully complied and 14 are ongoing and being complied. Annex 5 of the governments PFR provides a status of compliance vis-a-vis FFA undertakings. Significant progress has been achieved vis-a-vis the policy framework and roadmap as set out in the FFA: (i) On 24 September 2012, the Council of Ministers approved the establishment of the AfRA, and in February 2013, the President appointed a Chief Executive Director for AfRA. Advisory and technical assistance will be provided to AfRA under Tranche 4 to finalize the Railway Act, begin implementation of the Afghanistan National Railway Plan, and develop and deliver training programs AfRA staff. (ii) In August 2013, the government gave Cabinet approval to take forward the legal and institutional arrangements to establish a Road Authority and the Road Fund was established by Presidential Decree in the same month. Coordinated technical assistance is currently being provided by ADB and other Development partners to draw up the plan for design and operationalization of the Road Authority and Road Fund, and operationalize an Asset Management System. (iii) The Transitional Law on Toll was issued by the government on 17 November 2012, which allows for the collection of one Afghani from the price of each liter of fuel imported to the country, to be earmarked for road maintenance and construction. (iv) The new Afghanistan Reconstruction Trust Fund (ARTF) O&M Facility was launched in July 2012 to incentivize civilian O&M spending. As a result, allocations to MPW for operations and maintenance (O&M) in 2014 doubled compared to previous years. (iv) An ADB Technical Assistance for Afghanistan Infrastructure Master Plan Update was approved in July 2014, and will identify estimate future infrastructure project planning, construction, rehabilitation, and maintenance projects and resource requirements. (v) MPW has an established maintenance directorate to which Development Partners is providing capacity building support. The current mechanisms available and utilized for delivering O&M works by MPW are private contractors, MPWs own workforce, and local community contractors (including the Public Works Corp program in 8 provinces). A key constraint to greater use of private sector is that the local contractor industry is not sufficiently developed or skilled to execute the wide gamut of maintenance works.
Business Opportunities
Consulting Services

All consultants will be recruited and engaged according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).

Consulting firms will be selected and engaged using the quality- and cost-based selection method (90:10 ratio), and full technical proposals for the project management and construction supervision package and pre-feasibility study packages will be solicited. Individual consultants will be recruited for providing support to the PMO and AfRA.


Procurement will be carried out according to ADB's Procurement Guidelines (2013, as amended from time to


The list of works and goods to be procured are as per the approved procurement plan (

Responsible ADB Officer ADB Disclosure
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Concept Clearance -
Fact Finding -
MRM 17 Nov 2014
Approval 15 Dec 2014
Last Review Mission -
Last PDS Update 08 Dec 2020

Grant 0422-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2014 28 Jan 2015 25 Mar 2015 31 Dec 2019 20 Sep 2021 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 125.00 Cumulative Contract Awards
ADB 109.00 20 Jul 2022 107.75 0.00 99%
Counterpart 16.00 Cumulative Disbursements
Cofinancing 0.00 20 Jul 2022 81.79 0.00 75%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Grant 0423-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2014 28 Jan 2015 25 Mar 2015 30 Jun 2019 20 Sep 2021 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 21.00 Cumulative Contract Awards
ADB 0.00 20 Jul 2022 0.00 19.49 93%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 21.00 20 Jul 2022 0.00 8.00 38%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

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