Uzbekistan: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3)

Sovereign (Public) Project | 44483-027 Status: Active

The Asian Development Bank is working with Uzbekistan to improve roads along a key transport corridor linking the country to its Central Asian neighbors. The program is upgrading over 200 kilometers of roads to cut travel times, improve safety and boost domestic and cross-border trade. Tranche 3 is funding improvements to an 87-kilometer section of the corridor road route.

Project Name Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3)
Project Number 44483-027
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3355-UZB: CAREC Corridor 2 Road Investment Program II, Tranche 3
Ordinary capital resources US$ 150.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The proposed Tranche 3 will lead to improved road connectivity, efficient transport system, and effective management for the Uzbekistan sections of the CAREC Corridor 2 Road. The outcome will be improved travel time and efficiency on the reconstructed A380 highway section. The outputs of Tranche 3 will be (i) approximately 87 km of reconstructed Uzbekistan section of CAREC Corridor 2 Road (between Km 228-Km 315 of A380 highway); and (ii) nonphysical components for supporting the implementation of the civil works and for continued capacity development. Nonphysical components for this tranche include continued capacity development for implementing and updating road asset management system, and project implementation support.
Project Rationale and Linkage to Country/Regional Strategy Uzbekistan is a key transit point for Central Asian countries looking to trade among themselves, as well as with the rest of Asia and Europe. In 2010, ADB approved the first MFF for the CAREC Corridor 2 Road Investment Program for rehabilitating 175km of the A-380 highway between Urgench and Bukhara. The proposed Project 3, which is proposed under the second MFF, will rehabilitate the remaining 87 km of the A-380 highway near Bukhara. This will result in completing a crucial section of the highway, which is part of the CAREC Corridor 2 connecting Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. The proposed project will contribute to the improvement of connectivity and road safety, and boost domestic and international trade. The MFF is aligned with the country partnership strategy 2012-2016.
Impact better connectivity, efficient transport system, and effective management for the Uzbekistan sections of CAREC Corridor 2 Road (Program-defined [approved MFF Facility Outcome statement, 21 April 2010])
Project Outcome
Description of Outcome improved travel efficiency on the reconstructed A380 highway section.
Progress Toward Outcome The loan became effective only on 24 November 2016. Procurement of works and recruitment of consultants are ongoing.
Implementation Progress
Description of Project Outputs

Km 228-Km 315 road section in A380 highway reconstructed

Capacity for road asset management improved.

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

The recruitment of project management and construction supervision consultant is ongoing. The evaluation of technical proposals of the shortlisted firms was submitted for ADB review and approval on 16 March 2017. The procurement of works is underway. The invitation for bids was posted on ADB website on 22 February 2017 with revised deadline of 20 April 2017 for submission of bids.

The recruitment of capacity development specialist for road asset management is expected to commence in Q2-2017.

Geographical Location Jondor District,Bukhara District,Romitan District,Peskhu District
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 3 is classified as environmental category B in accordance with ADB's Safeguard Policy Statement (SPS) 2009. The Republican Road Fund prepared an initial environmental examination (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 28 May 2014. The English version of the draft IEE was posted on ADB's website on 3 November 2014. The IEE found no major negative potential impacts from the proposed Project 3. The main findings of the IEE are: (i) there is no negative environmental impact associated with the location of the project, which is mainly desert area and involves no environmentally sensitive areas, (ii) environmental impacts associated with construction such as dust, noise, impact from construction waste will be minimized by proper planning, good engineering design, and implementation of the proposed mitigation measures and monitoring programs. These aspects will not pose threat to the environment. All construction materials such sand and gravel will be supplied from areas that will be approved and cleared by Uzbekistan's State Committee for Nature Protection, (iii) the environmental impacts associated with operation such as noise, vehicle emission will be mitigated and addressed by the government's existing pollution control program, which will be closely coordinated 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 flows are likely to increase, causing rise in greenhouse gas emissions. However, the amount of incremental emissions is not significant as defined in SPS 2009. A climate risk screening exercise carried out using AWARE geographic data set concluded that the project faced 'medium risk' caused by potential flooding. The project is located in a predominantly desert area. This risk is minimized by an improved physical design, which makes the road resilient to flooding. The government has a strong environmental monitoring and mitigation system, which ensures sound management of environmental impacts.
Involuntary Resettlement Project 3 is classified as category B for involuntary resettlement impacts. A draft land acquisition and resettlement plan (LARP) has been prepared by the Republican Road Fund based on the findings of the census carried out along the road section during October 2014. The draft LARP includes the required information, as specified in the SPS 2009 and follows the land acquisition and resettlement framework. Consultations were carried out with the affected persons in April-May 2014 and in August 2014. The project traverses through four districts namely Bukhara, Jondor, Peshku, and Romitan. A total of 0.05 hectares of land is estimated to be acquired with 5 affected households. These households are located in Bukhara and Romitan districts. The draft LARP includes an estimate of the cost of land acquisition and resettlement at $188,597.30. The current budget for land acquisition is sufficient to cover these costs. The draft LARP was disclosed to the affected persons during October-November 2014 and on ADB's website on 3 November 2014. The Road Fund has in-house capacity to implement resettlement plans based on the Uzbek laws. To develop familiarity and expertise in implementing ADB's Safeguards Policy, a national social safeguards consultant has been appointed to work closely with the Program Management Unit.
Indigenous Peoples Project 3 is classified as indigenous people category C as defined under SPS 2009.
Stakeholder Communication, Participation, and Consultation
During Project Design Discussions were held in 2014 with khokimyat authorities (local government) and key stakeholders. Public consultations with local residents and other interested parties were also carried out.
During Project Implementation Consultations will continue with khokimyat authorities and key stakeholders. Periodic meetings will be conducted with local residents to monitor the implementation of LARP.
Business Opportunities
Consulting Services International and national consultants (firms and individuals) will be recruited and engaged according to ADB's Guidelines on the Use of Consultants by the Asian Development Bank and its Borrowers (March 2013, as amended from time to time).
Procurement Procurement of the civil works contract will be carried out in accordance with ADB's Procurement Guidelines (April 2015, as amended from time to time). International competitive bidding will be conducted following Single-Stage Two-Envelope bidding procedure through post qualification and is open to bidders from eligible source countries of ADB.
Responsible ADB Officer Luu, Khuong
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Republican Road Fund
Ministry of Finance 29 Istiklol Street
Tashkent, 100017,Republic of Uzbekistan
Concept Clearance -
Fact Finding -
MRM 07 Nov 2014
Approval 09 Dec 2015
Last Review Mission -
Last PDS Update 22 Mar 2017

Loan 3355-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2015 02 May 2016 24 Nov 2016 31 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 230.00 Cumulative Contract Awards
ADB 150.00 09 Dec 2015 0.10 0.00 0%
Counterpart 80.00 Cumulative Disbursements
Cofinancing 0.00 09 Dec 2015 0.17 0.00 0%

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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