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

Transport / Rail transport (non-urban)

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.

140 km electrified rail line from Marakand to Karshi

Improved management capacity of UTY

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.