Uzbekistan : MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program
The Second Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Program (investment program) will increase domestic and international trade. The outcome will be improved road connectivity, safety, and effective management of the Uzbekistan section of CAREC Corridor 2. The investment program will include (i) about 236 km of the reconstructed 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.
Project Details
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Project Officer
Karki, Pawan
Central and West Asia Department
Request for information -
Country/Economy
Uzbekistan -
Modality
Related Projects
| Project Name | MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program | ||||
| Project Number | 44483-024 | ||||
| Country / Economy | Uzbekistan |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | |||||
| Gender | Effective gender mainstreaming | ||||
| Description | The Second Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Program (investment program) will increase domestic and international trade. The outcome will be improved road connectivity, safety, and effective management of the Uzbekistan section of CAREC Corridor 2. The investment program will include (i) about 236 km of the reconstructed 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. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The 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 investment program fits with Strategy 2020 of the Asian Development Bank (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 | Increased domestic and international trade |
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| Project Outcome | |
|---|---|
| Description of Outcome | Improved road connectivity, safety, and effective road fund management of the Uzbekistan sections of CAREC Corridor 2 Road |
| Progress Toward Outcome | As the MFF availability period will close on 23 August 2021, ADB and the government are discussing the approach to extending the MFF and Projects 2 and 3. Should sufficient assurance be given by the government to complete Project 3 under ADBs financing, an extension of the MFF beyond 10 years may be sought from the Board. |
| Implementation Progress | |
| Description of Project Outputs | Selected road sections of CAREC Corridor 2 Road reconstructed by the RRF and CR Road sector sustainability plans implemented by the RRF and CR Projects completed as targeted and budgeted |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Project 1 was financially closed on 10 July 2020. Civil works, now being financed under Project 2 is ongoing. The Tranche 3 project experienced substantial delays due to government transition, suspension of procurement, revisiting of design, feasibility study and cost estimates, and disagreement with ADB's recommendation for contract award. The contract with the civil works contractor was signed on 15 May 2020 while the contract with the project management and construction supervision consultant (PMCS) was signed on 15 October 2019. The notice to proceed to PMCS was issued on 22 April 2020. Commencement date for the works was notified to the contractor on 27 July 2020. Due to Covid-19 lockdown in the country, mobilization of the contractor's machinery and equipment, delays in selecting the subcontractors and delays in utility works further delayed the construction activities. Both the MFF and tranches' (Project 2 and Project 3) closing date is 23 August 2021. ADB and the government are discussing the approach to extending the MFF and Projects 2 and 3. Should sufficient assurance be given by the government to complete Project 3 under ADB's financing, an extension of the MFF beyond 10 years may be sought from the Board. |
| Geographical Location | |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Project 1 does not have major environmental impacts. In line with ADB's Safeguard Policy Statement (SPS) 2009, Project 1 is classified as environment category B. The Republican Road Fund (RRF) has prepared an environment assessment and review framework (EARF) for the investment program and an initial environmental examination (IEE) for Project 1. Contract agreement with civil works contractor specifically includes the environmental requirements.Project 2 is classified as environment category B in accordance with ADB''s SPS 2009, based on the following: (i) the project does not involve any environmentally sensitive areas, and (ii) environmental impacts will mostly occur during construction, and will be minimized by proper planning, good engineering design, and implementation of the proposed mitigation measures and monitoring programs and will not pose threat to the environment. The Republican Road Fund prepared draft IEE, which complies with the requirements of the SPS (2009). Public consultations including public hearings in two locations along the road section were held on 17 October 2012. The English version of the draft IEE was posted on ADB's website on 12 November 2012. The IEE found that no major negative potential impacts from the road construction work. Effective implementation of the environmental management plan will minimize and mitigate any adverse impacts during project implementation. The tender and the contract documents will contain details of the environmental management and monitoring requirements to be carried out by the contractor.Project 3 is classified as environment category B. The RRF has prepared IEE that complies with the requirements of ADB's Safeguard Policy Statement (SPS) 2009. Public consultations, including public hearings in two locations along the road section, were held on 28 May 2014. The English version of the draft IEE was posted on ADB's website on 30 October 2014. The IEE found no major negative potential impacts from the proposed project. The IEE found that (i) no negative environmental impact is associated with the project location; and (ii) environmental impacts associated with construction will be minimized by proper implementation of the proposed mitigation measures. The IEE also found that operational environmental impacts such as noise and vehicle emissions will be mitigated and addressed by the government's existing pollution control program, which will be closely coordinated with and monitored by the State Committee for Nature Protection. Effective implementation of the environmental management plan will minimize and mitigate any adverse impacts during project implementation. The tender and contract documents will contain details of the environmental management and monitoring requirements to be carried out by the contractor. After completion, traffic is likely to increase, causing a rise in greenhouse gas emissions. However, the amount of incremental emissions is not significant as defined in the SPS 2009. A climate risk screening exercise carried out using geographic data concluded that the project faced a medium risk of flooding, which is mitigated in the road design. The government's strong environmental monitoring and mitigation system ensures the sound management of environmental impacts. |
| Involuntary Resettlement | Project 1 is classified as category C for the purpose of involuntary resettlement. A land acquisition and resettlement framework (LARF) was prepared to cover potential resettlement impacts of the investment program and its tranches.Project 2 is classified as category A for involuntary resettlement impacts. A draft land acquisition and resettlement plan (LARP) has been prepared by the Republican Road Fund (RRF) based on the findings of the census carried out along the road section from August to September 2012. The draft LARP includes the required information, as specified in the ADB SPS 2009 and follows the LARF. Consultations were carried out with the affected persons in October 2012. The project traverses through four districts namely Turakurgon, Chust, Pop and Namangan. A total of 230.5 ha land is estimated to be acquired with 320 affected households. The land acquisition is also likely to affect crop farms, orchards and trees. A total of 16,117 trees would be affected along the road section. The draft LARP includes an estimate of the cost of land acquisition and resettlement at $8.9 million. The draft LARP was disclosed to the affected persons during November-December 2012 and on ADB''s website on 20 November 2012. It has been updated based on the final detailed design and submitted to ADB for approval in March 2014. The updated LARP was approved by ADB and disclosed on ADB website on 9 April 2014. The LARP Internal Monitoring Report was submitted and posted on ADB website on 15 December 2015. The Semi-Annual Resettlement Monitoring Report was submitted and posted on ADB website on 20 December 2016.Project 3 is classified as category B for involuntary resettlement. Based on the findings of the census carried out along the road section in October 2014, the RRF prepared a draft LARP that includes the information required by the SPS 2009 and follows the LARF. Consultations with the affected persons were carried out in April, May, and August 2014. An estimated total of 0.05 hectares of land will be acquired and five households located in the Bukhara and Romitan districts will be affected. The draft LARP estimates the cost of land acquisition and resettlement at $188,597.30, which the current land acquisition budget can cover. The draft LARP was disclosed to the affected persons during October-November 2014 and posted on ADB's website on 3 November 2014. |
| Indigenous Peoples | Projects 1, 2, and 3 are classified as indigenous people category C as defined under SPS 2009. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Consultations continue to be held with potential stakeholders--the local population, the Republican Road Fund, and hokimyat or government officials, followed by discussions with village chairpersons and villagers through focus discussion groups. |
| During Project Implementation | Continued consultations to be held during implementation with potential stakeholders--the local population, the Republican Road Fund, and hokimyat or government officials, followed by discussions with village chairpersons and villagers through focus discussion groups. |
| Business Opportunities | |
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| Consulting Services | All consulting services to be financed under the individual projects of the MFF to be procured in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers (2013, as amended from time to time). |
| Procurement | All goods and works to be financed under the individual projects of the MFF are to be procured in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). |
| Responsible ADB Officer | Karki, Pawan |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Transport and Communications Division, CWRD |
| Timetable | |
|---|---|
| Concept Clearance | 01 Mar 2011 |
| Fact Finding | 12 Apr 2011 to 28 Apr 2011 |
| MRM | 14 Jun 2011 |
| Approval | 23 Aug 2011 |
| Last Review Mission | - |
| Last PDS Update | 12 Jan 2021 |
MFF Facility Concept 0059-UZB
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 600.00 | Cumulative Contract Awards | |||
| ADB | 500.00 | - | 0.00 | 0.00 | % |
| Counterpart | 100.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | - | 0.00 | 0.00 | % |
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