44483-023: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1 | Asian Development Bank

Uzbekistan: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1

Sovereign (Public) Project | 44483-023 Status: Active

The Asian Development Bank is helping Uzbekistan upgrade roads that will boost trade along a key transport corridor linking Central Asia to Europe. The first tranche of the program will rehabilitate a 74-kilometer section of a highway running through the Fergana Valley, where a third of all Uzbeks live and a large proportion of the country's agricultural goods are produced. It will also improve road safety and asset management.

Project Name Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1
Project Number 44483-023
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2772-UZB: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1
Ordinary capital resources US$ 129.50 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

The Asian Development Bank (ADB) approved a multitranche financing facility for an aggregate amount not exceeding $500 million for the Second CAREC Corridor 2 Road Investment Program on 23 August 2011 and an OCR loan of $130 million for Loan 2772-UZB Project 1 on 2 September 2011. The investment program aims to increase domestic and international trade. The outputs under the investment program will be (i) about 236 km of the reconstructed road section of CAREC Corridor 2; and (ii) implemented road system sustainability plans, which relate to road safety and asset management. The investment program will finance three separate projects.

Loan 2772-UZB Project 1 was signed on 1 December 2011 and became effective on 13 January 2012 with current loan closing of 31 December 2017. The project intends to reconstruct about 58 km of the A373 highway (between Km 116 and Km 190), and improve road safety management.

Project Rationale and Linkage to Country/Regional Strategy The second investment program will finance the reconstruction of the Uzbekistan section of CAREC Corridor 2, which connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. This reconstruction will improve connectivity and road safety, and boost domestic and international trade. The second investment program fits with Strategy 2020 of ADB, is included in the country operations business plan (2011-2013), and is aligned with the United Nations Decade of Action for Road Safety 2011-2020. The investment program is in line with the Uzbekistan Transport Sector Strategy (2006-2020) and road map, as well as the CAREC Transport and Trade Facilitation Strategy and Action Plan.
Impact Improved road connectivity, safety, and effective Road Fund management for the Uzbekistan sections of CAREC Corridor 2 Road
Project Outcome
Description of Outcome Reconstructed A373 highway section with increased traffic volume is safe and effectively operated and maintained
Progress Toward Outcome Further extension of the current loan closing date of 31 December 2017 is being considered to ensure completion of all works.
Implementation Progress
Description of Project Outputs

Selected section of A373 highway reconstructed by the Road Fund

Road sector sustainability plans implemented by the Road Fund

Tranche 1 Project completed as targeted and budgeted

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

Civil Works:

The civil works contract with Corsan Corviam Construccion S.A. (Spain) was approximately 48% complete prior to its termination in December 2015. Arbitration is currently ongoing.

A new civil works contract to complete the remaining works was awarded on 11 August 2016 to JSC Euro-Asian Construction Corporation "Evrascon" (Azerbaijan). Civil works implementation is ongoing. Based on the value of the civil works completed, the progress is approximately at 30% (of the works under the new civil works contract) in September 2017.

Road Safety:

The report on road safety management was completed on 31 October 2015. Final report has been accepted by the government. The road safety strategy and programs recommended by the report are pending government approval. The road safety equipment was delivered to the site.

Geographical Location Tashkent, Toshkent Tumani
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project does not have major environmental impacts.
Involuntary Resettlement Civil works do not involve land acquisition or involuntary resettlement.
Indigenous Peoples There are no potential impacts expected on indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design Discussions were held with hokimyat authorities and key stakeholders, and public consultations with villagers, Mahalla committees, women's committee representatives and groups, and other interested parties.
During Project Implementation Stakeholder participation and consultation during implementation will be conducted consistently by Road Fund, consultants, and ADB.
Business Opportunities
Consulting Services Firms were recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement Procurement of works and goods were undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).
Responsible ADB Officer Luu, Khuong
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 01 Mar 2011
Fact Finding 12 Apr 2011 to 28 Apr 2011
MRM 14 Jun 2011
Approval 02 Sep 2011
Last Review Mission -
Last PDS Update 25 Sep 2017

Loan 2772-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Sep 2011 01 Dec 2011 13 Jan 2012 31 Mar 2014 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 159.50 Cumulative Contract Awards
ADB 129.50 02 Sep 2011 129.19 0.00 100%
Counterpart 30.00 Cumulative Disbursements
Cofinancing 0.00 02 Sep 2011 120.30 0.00 93%

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Contracts Awarded

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Procurement Plan