Uzbekistan : CAREC Corridor 6 (Marakand–Karshi) Railway Electrification Project

Sovereign Project | 45067-005

The project will increase regional trade and accelerate economic growth. The outcome will be improved railway operation between Marakand and Karshi. The outputs will be (i) electrification of 140-km between Marakand and Karshi and (ii) improved UTY's management capacity.

Flickr photos from the 45067-005: CAREC Corridor 6 (Marakand–Karshi) Railway Electrification Project in Uzbekistan album.

Project Details

  • Project Officer
    Musaev, Shokhimardon
    Central and West Asia Department
    Request for information
  • Country/Economy
    Uzbekistan
  • Sector
    • Transport

Related Projects

Project Name
CAREC Corridor 6 (Marakand–Karshi) Railway Electrification Project
Project Number
45067-005
Country / Economy
  • Uzbekistan
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 2781-UZB: Central Asia Regional Economic Cooperation Corridor 6 (Marakand"Karshi) Railway Electrification Project
Source Amount
Ordinary capital resources US$ 100.00 million
Strategic Agendas
  • Inclusive economic growth
  • Regional integration
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
Sector / Subsector
  • Transport / Rail transport (non-urban)

Gender
Some gender elements
Description
The project will increase regional trade and accelerate economic growth. The outcome will be improved railway operation between Marakand and Karshi. The outputs will be (i) electrification of 140-km between Marakand and Karshi and (ii) improved UTY's management capacity.
Project Rationale and Linkage to Country/Regional Strategy

The north-south corridor linking Europe through Central Asia to the Middle East and South Asia (CAREC Corridor 6) transits Uzbekistan from Keles on the border with Kazakhstan to Tashkent, Samarkand, Karshi, and Kumkurgan, before reaching Termez on the border with Afghanistan. The corridor annually carries about 10 million tons of freight, including 1.6 million tons of humanitarian relief goods to Afghanistan (more than half its imports). Afghanistan expects more traffic from Uzbekistan and its northern neighbors via the corridor, especially after the ADB-funded Hairatan to Mazar-e-Sharif railway in northern Afghanistan was completed in 2010. The corridor will also enable the Uzbekistan provinces of Samarkand, Kashkadarya, and Surkhandarya to increase exports of cotton and its by-products, horticulture products, marble, oil, and gas. Overall, rail traffic is increasing and inadequate rail line capacity in some sections of the route creates bottlenecks.

The northern part of this rail corridor from Keles to Marakand is electrified and operated by electric locomotives, increasing capacity and improving freight and passenger services. The remaining part of the rail corridor from Marakand to Termez is currently operated by less powerful diesel locomotives, and the slow, short trains limit throughput in the section. Electrification will help overcome capacity constraints and meet current and future traffic demand. From Karshi to Termez, electrification is in progress, cofinanced by UTY and the Government of Japan. The Government of Uzbekistan has requested ADB assistance for electrification on the remaining section from Marakand to Karshi.

The project fits with ADB's Strategy 2020, and is included in the country operations business plan (2011-2013). It also aligns with the Uzbekistan Transport Sector Strategy (2006-2020) and supports the CAREC Transport and Trade Facilitation Strategy and Action Plan.

This investment will boost trade, promote regional connectivity, cut transport costs and lessen greenhouse gas emissions. The project includes (i) design, supply, and installation of electrification, signaling, and telecommunications components; (ii) associated civil works; and (iii) strengthening institutional capacity.

Impact

Increased regional trade and accelerated economic growth

Project Outcome

Description of Outcome

Improved railway operation on the Marakand-Karshi rail line

Progress Toward Outcome
ADB approved on 27 September 2016 the government's request to extend the loan by 15 months from 30 September 2016 to 31 December 2018 and allow for the procurement of additional specialized maintenance equipment to further increase the efficiency of maintenance activities and safety/reliability of railway operation. Two contracts for said equipment were signed on 19 April 2017. Additionally, ADB approved on 10 January 2018 UTY's request to procure additional spare parts for the specialized equipment for maintenance of electrified railway lines under the contract of Plasser & Theurer Export. All such additional spare parts have now been delivered.

Implementation Progress

Description of Project Outputs

140 km electrified rail line from Marakand to Karshi

Improved management capacity of UTY

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

Completed.

Goods delivery and refitting activities for Karshi depot completed.

Manufacturing/testing and commissioning completed.

An additional two contracts for equipment signed on 19 April 2017. Supplementary agreement with the supplier for additional spare parts approved on 10 January 2018. The equipment and spare parts have now been delivered.

Consultant's inception report in August 2013 recommended improvement on UTY's existing corporate governance practices and accounting framework, standards, and reporting requirements. The Consultant continued its remaining services, focusing mainly on FIDIC training for UTY key technical staff to ensure the compliance of their skills with international standards. The training activities started in February 2016 and completed in April 2016.

UTY remains committed to allocate resources for implementing cost optimization with main focus on improving management information system.

UTY project implementation unit is effectively functioning. Contract award and disbursements have reached 100% of the loan amount and the project is ready for financial closing.

Geographical Location
Nation-wide, Ayritom, Chiroqchi Tumani, Dzham Pervyy, G'umbaz, Koson Tumani, Nekuz, Nurobod Tumani, Olatun, Pastdarg'om Tumani, Pastdargom, Qarshi, Qarshi Tumani, Qashqadaryo, Samarkand, Samarqand Tumani, Ulus

Safeguard Categories

Environment
B
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
The project does not pass through any environmentally sensitive areas and does not have significant negative environmental impacts. UTY prepared an initial environmental examination (IEE) following ADB's Safeguard Policy Statement and national legislation and regulations. The project will have temporary and reversible environmental impacts that occur mostly during construction. The IEE includes the environmental management plan to minimize potential environmental impacts of the project.
Involuntary Resettlement
The project will electrify the existing railway line within the right of way, and therefore does not involve land acquisition and resettlement. In case, any land acquisition and resettlement impacts occur during implementation, UTY will prepare a land acquisition and resettlement plan for ADB approval prior to awarding a civil works contract. The LARP will be implemented following ADB''s Safeguard Policy Statement and national legislation and regulations.
Indigenous Peoples
The project will not affect indigenous peoples as described in ADBs Safeguard Policy Statement.

Stakeholder Communication, Participation, and Consultation

During Project Design

ADB conducted stakeholder consultations during the project design stage.

During Project Implementation
ADB will continue to conduct stakeholder consultations from time to time as needed during project implementation.

Business Opportunities

Consulting Services
The engineering and construction supervision consultant was selected following ADB's Guidelines on the Use of Consultants by the Asian Development Bank and its Borrowers and the project procurement plan, using ADB's quality- and cost-based selection method with full technical proposal.
Procurement
All goods and works financed under the ADB loan were procured following international competitive bidding, ADB's Procurement Guidelines, and the project procurement plan.

Contact

Responsible ADB Officer
Musaev, Shokhimardon
Responsible ADB Department
Central and West Asia Department
Responsible ADB Division
Uzbekistan Resident Mission (URM)
Executing Agencies
O'zbekiston Temir Yo'llari

Timetable

Concept Clearance
22 Jun 2011
Fact Finding
06 Jun 2011 to 18 Jun 2011
MRM
17 Aug 2011
Approval
28 Sep 2011
Last Review Mission
-
Last PDS Update
19 Sep 2018

Funding

Loan 2781-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2011 16 Feb 2012 28 Mar 2012 30 Sep 2016 31 Dec 2018 31 Dec 2018
Financing Plan
  Total (Amount in US$ million)
Project Cost 176.00
ADB 100.00
Counterpart 76.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 100.00 0.00 100%
Cumulative Disbursements 17 Jun 2022 100.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Uzbekistan: Central Asia Regional Economic Cooperation Corridor 6 (Marakand–Karshi) Railway Electrification Project Validations of Project Completion Reports May 2021

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Supply of Rail/Road Welding Machine Loan 2781 23 Jun 2017 Plasser & Theurer Export | Johannesgasse 3, 1010 Vienna, Austria O'zbekiston Temir Yo'llari 2,753,079.00 2,753,079.00
Supply of Track Leveling, Tamping and Lining Machine (VPR) Loan 2781 23 Jun 2017 Plasser & Theurer Export | Johannesgasse 3, 1010 Vienna, Austria O'zbekiston Temir Yo'llari 3,423,994.00 3,423,994.00

Procurement Plan

Title Document Type Document Date
CAREC Corridor 6 (Marakand-Karshi) Railway Electrification Project: Procurement Plan Procurement Plans Dec 2018