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

Sovereign Project | 44483-026 Status: Active


ADB is helping Uzbekistan improve roads that will boost trade along a key transport corridor linking Asia to Europe. The second tranche of the investment program will upgrade a 75-kilometer, two-lane section of a highway running from Pungan to Namangan to four lanes. It will also provide additional financing to help complete work on 58 km of road approved under Tranche 1 of the program.

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Procurement Documents

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Project Name Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2
Project Number 44483-026
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2965-UZB: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2
Ordinary capital resources US$ 220.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements

The components for financing under the Loan 2965-UZB are:

(i) Road development. The output will be about 75 km of the reconstructed section of A373/4R112 highway (between Km 0 and Km 75) from Pungan to Namangan. The investment will upgrade the existing two-lane section to a four-lane section with an international design. The cost includes civil works and construction supervision consulting services.

(ii) Additional financing for Tranche 1. The output will be completion of civil works for the 58 km road improvement approved under Tranche 1.

Project Rationale and Linkage to Country/Regional Strategy The second investment program will finance the reconstruction of selected sections of CAREC Corridor 2 A380 and A373/4R112. This reconstruction will improve connectivity and road safety, and boost domestic and international trade. The second investment program fits with Strategy 2020 of the Asian Development Bank (ADB), and is aligned with the United Nations Decade of Action for Road Safety 2011-2020. The investment program is in line with the proposed Uzbekistan Transport Sector Strategy (2006-2020) and road map, as well as the CAREC Transport and Trade Facilitation Strategy and Action Plan. The investment program is included in ADB's 2012-2016 Country Partnership Strategy for Uzbekistan.
Impact Improved road connectivity, safety, and effective management for the Uzbekistan sections of CAREC Corridor 2 Road

Project Outcome

Description of Outcome Increased travel efficiency on the reconstructed A373/4R112 highway sections
Progress Toward Outcome The project management and construction supervision consultant contract was awarded in Jun 2015. Procurement of civil works is ongoing.
Implementation Progress
Description of Project Outputs

Selected section of A373/4R112 highway reconstructed by the Road Fund

Remaining sections of Project 1 on A373 completed

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

The bids for the civil works were advertised on 28 Nov 2013. The Road Fund received bids on 4 Feb 2014. Bids due to rebidding were received on 27 Mar 2014. ADB approved on 5 Jun 2014 the technical bid evaluation report. The Road Fund opened the price bids on 8 Jul 2014 and submitted the price bid evaluation report to ADB on 31 Jul 2014. ADB recommended on 8 Sep 2014 for the Road Fund to start negotiations with the substantially responsive and lowest evaluated bidder. Negotiations were held on 10-15 Oct 2014. The Ministry of Finance and the Road Fund informed ADB about modification in the scope of the works in view of the construction of new railway project in the vicinity of the proposed project road. An independent technical expert reviewed the extent of the modification in the scope of the project and his final report was submitted in Aug 2015. On 23 Oct 2015, ADB approved, on a exceptional basis, rebidding limited to those five bidders who submitted bids in the previous bidding exercise.

The updated LARP was approved by ADB and disclosed on ADB website on 9 Apr 2014. LARP implementation is ongoing and expected to be completed by 30 Sep 2015. Due to design change in road sections and interchanges, the Road Fund has to confirm the latest project design and indicate if additional land acquisition is required. If confirmed, a supplementary LARP will have to be prepared and approved by Nov 2015.

Technical and financial proposals for the project management and construction supervision consultant package were received on 21 Dec 2013. The contract was signed on 12 Jun 2015.

Construction has not yet started due to delays in the procurement of works.

Civil works are ongoing. The contractor Corsan Corviam Construccion (Spain) was supposed to have completed rehabilitation of 58 km (4 lanes) by 21 June 2014, which was the contract completion date. As of 30 September 2015, the contractor completed 50 km of concrete pavement out of the 116 km road indicating 40% physical progress. In view of the several contractual disputes, the work was suspended in March 2015. With ADB's facilitation, the work resumed through the subcontractor Alliance Capital following a high level joint meeting on 23 July 2015 among the contract parties. Negotiations between the civil works contractor and the EA to resolve the contractual issues and eventually complete the works are ongoing and expected to be completed on 15 November 2015 with the signing of the Amendment to Contract.

As of 26 October 2015, all payments for the ongoing civil works have been covered by Loan 2772-UZB Project 1. There are no disbursements yet under Loan 2965-UZB Project 2 for civil works.

Geographical Location Namangan Province

Safeguard Categories

Environment B
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Project 2 does not have any major environmental impacts. IEE has been prepared in accordance with the updated environment assessment and review framework for the investment program.
Involuntary Resettlement The Project 2 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. Consultations with stakeholders have been carried out (last consultation was done in August 2013) and will be continued during project implementation. A draft land acquisition and resettlement plan (LARP) has been prepared and disclosed to all stakeholders. The LARP has been further revised and disclosed after the finalization of detailed design.
Indigenous Peoples The project is likely to have no adverse impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Discussions have been held with affected persons, khokimyat authorities and key stakeholders through public consultations with villagers, Mahalla committees, and various groups.
During Project Implementation Consultations will be continued with khokimyat authorities and key stakeholders. Public consultations with villagers, Mahalla committees, women's committee representatives and groups, and other interested parties will be carried out.

Business Opportunities

Consulting Services All consulting services to be financed under the project 2 will be procured in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement All procurement of works and goods will be undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).

Responsible Staff

Responsible ADB Officer Jiangbo Ning
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Republican Road Fund
Jamol Shukurov
Ministry of Finance 29 Istiklol Street
Tashkent, 100017,Republic of Uzbekistan


Concept Clearance -
Fact Finding -
MRM 22 Nov 2012
Approval 10 Dec 2012
Last Review Mission -
Last PDS Update 31 Mar 2016

Loan 2965-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2012 16 Apr 2013 15 Aug 2013 30 Jun 2016 30 Jun 2019 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 265.00 Cumulative Contract Awards
ADB 220.00 10 Dec 2012 35.28 0.00 16%
Counterpart 45.00 Cumulative Disbursements
Cofinancing 0.00 10 Dec 2012 0.74 0.00 0%

Evaluation Documents See also: Independent Evaluation

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Related Publications

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