46378-002: Central Asia Regional Economic Cooperation Regional Improving Border Services Project | Asian Development Bank

Pakistan: Central Asia Regional Economic Cooperation Regional Improving Border Services Project

Sovereign (Public) Project | 46378-002 Status: Active

The Asian Development Bank is working with Pakistan to improve border-crossing facilities and to upgrade management skills to meet demand for high quality services. The project is improving border infrastructure at Torkham, Chaman, and Wagha, key transit points to Afghanistan and India. It is also providing skills training to border agency staff and adopting a border point management regime.

Project Details

Project Officer
Samukhin, Oleg Central and West Asia Department Request for information
  • Pakistan
  • Loan
  • Transport
Project Name Central Asia Regional Economic Cooperation Regional Improving Border Services Project
Project Number 46378-002
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3344-PAK: Central Asia Regional Economic Cooperation Regional Improving Border Services Project
Ordinary capital resources US$ 150.00 million
Loan 3345-PAK: Central Asia Regional Economic Cooperation Regional Improving Border Services Project
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Transport / Multimodal logistics

Gender Equity and Mainstreaming No gender elements
Description The proposed project will (i) improve border crossing point infrastructure and facility at Torkham, Chaman, and Wagha to the standard that meets users' demand for quality border crossing services; and (ii) establish a border point management regime and enhance knowledge and skills of border point operating agencies.
Project Rationale and Linkage to Country/Regional Strategy

Pakistan is strategically located to connect South Asia to Central Asia and further to Caucasus countries and Europe and provides the landlocked Central Asia countries with access to sea ports. With this strategic location, Pakistan has a large potential to play a role of a regional transport hub. Government's national trade corridor improvement program realized this potential and highlights the importance of regional connectivity through improving linkages with the neighboring countries. Further, the three-year strategic trade policy framework announced in January 2013 identified regional trade as the most important element. The Pakistan Vision 2025 embracesrecognizes its potential to serve as a hub and corridor of regional trade and help integrate these regions into an interconnected market and sets the goal of making the country a hub of regional trade and commerce.

According to the World Bank Doing Business: Trading across the Borders Index and Logistics Performance Index studies in 2012 and 2014, Pakistan's customs performance substantially improved since 2010 and were ranked by international freight forwarders as being best in the region, with ranking at 46 among 155 countries in 2012 and at 58 among 160 countries in 2014. Performance of Pakistan customs is comparable with performance of East European EU-candidate states. In 2012 Pakistan customs started roll-out of its Web-based One Customs (WeBOC) system, which helped achieve gradual reduction of paperwork and processing time. Pakistan customs implements preliminary assessment of cargo pre-arrival information and uses risk management for selective customs inspections. In contrast to conspicuous improvement in customs performance, the performance of border point management still lags far behind and consequently poses a fundamental obstacle to promoting transit and intraregional trade through Pakistan. Main reasons are charted as (i) poor infrastructure and facility at border points; (ii) misdirected governance structure in border point management; and (iii) remote location of border points, normally in security-sensitive areas and lack of internet connectivity to central database of WeBOC system.

Torkham and Chaman are the major transit station for Afghan transit trade (84% of cargo flows via Torkham and the rest via Chaman). Traffic volume at Torkham border crossing point now amounts 700 vehicles per day. However, both border points face some challenges to meet the demand of its quality service such as non-availability of modern and sufficient physical infrastructure; non-availability of suitable information and communication and information technology (ICT) infrastructure; poor logistics for staff/officers; lack of equipment/scanners to detect explosives; and insufficient facilities to manage movement of people (estimated to be more than 25,000 people per day for Torkham). Currently the trade volume between India and Pakistan is less than $3 billion. With full normalization of political and trade relationship, potential trade volume between the countries can grow manifolds within a few years. If trade with India is normalized, Wagha, the only open land route to connect South Asia to Central Asia, will hardly be sufficient to handle the trade and traffic volumes mainly because of no infrastructure in place to permit containerized cargo handling by road transport.

According to the CAREC cCorridor pPerformance mMeasurement and mMonitoring studies, the major bottleneck for transport and trade in the CAREC region is border crossing points.

It shows that for a typical 500-km journey by a 20-ton truck, more than three-quarters of the total stopping time, or 24 hours, occurs at border crossing points. Of these, more than 18 hours are spent waiting for the start of border-crossing formalities. A significant portion of delays is attributable to poor physical infrastructure, low utilization of information and communication technology (ICT) for efficient border control, and limited supporting trade logistics facilities at the border crossing points. Pakistan is not an exception. Border crossing points pose the severest bottleneck for cross-border transport and trade, mainly caused by poor infrastructure at the border points such as poor customs facilities, insufficient and outdated office/cargo handling equipment, limited parking space for vehicles near border crossings, frequent power failures, insufficient and unplanned supporting infrastructure, poor ICT infrastructureinformation communication, and difficult terrain and uncertain road security conditions.

The project will assist the government in upgrading border point infrastructure and facility in Torkham, Chaman, and Wagha and thereby effectively facilitating intra- and inter-regional trade through Pakistan and ultimately fulfilling its potential as a regional trasnport hub.

Impact Value of exports, imports, and transit trade increased (Pakistan Vision 2025).
Project Outcome
Description of Outcome Reduced cross-border processing time for goods and cargo in Chaman, Torkham, and Wagha.
Progress Toward Outcome Procurement activities for BCPs Torkham and Chaman are still ongoing. Further review and revision of the detailed design is done by the design team of Construction Supervision Consultant. After this design review, the revised price bid will be submitted by the direct contractor. ADB's initial comments to the draft bidding documents for Wagha BCP have been communicated to the EA. The comments entail further internal discussions between the project team and the EA.
Implementation Progress
Description of Project Outputs

3. Knowledge and skills of border point operating agencies enhanced.

2. Governance structure of national border point management regime produced and adopted; and organizational design, management structure, financial and administrative procedures, and financial modeling for the PLPA produced and adopted.

1. Border crossing point infrastructure and facilities at Chaman, Torkham, and Wagha improved.

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

1. Will be assessed upon project completion.

2. PLPA consulting services recruitment not yet started.

3. Not yet due. This will be dealt with through the Training and Border Point Operating Agencies consulting services in which the recruitment has not started yet.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project has been categorized as B for environment as there are no major long term impacts associated with the project. An initial environmental examination (IEE) study has been conducted for each border points, which discusses the likely impacts, and recommends mitigation measures to minimize the impacts, the impacts of each of the sub projects are confined to the construction. The IEEs have been prepared in compliance with ADBs SPS 2009, and have been disclosed on the ADB website, each IEE contains an environmental management plan (EMP) according to which the mitigation measures will be implemented in the field during project implementation. The IEEs also contain the cost for EMP implementation. The environmental safeguards specialist of the contractor will use the generic EMPs to prepare site specific EMPs and will also implement the EMP at the project level. The construction supervision consultant's environment specialist will monitor the contractor's compliance on environmental safeguards and will provide technical support to the PIU safeguards coordinator. During project implementation stage the supervision consultant's environment specialist will monitor contractor compliance with the IEE and EMP. The PIU safeguards coordinator will be responsible for overall compliance with ADB requirements and will submit biannual environmental monitoring reports to ADB detailing progress on the implementation of the EMPs, support in preparing the environmental monitoring reports will be provided by the supervision consultant's environmental specialist.
Involuntary Resettlement

The project social safeguards impacts have been adequately assessed and the measures developed in the LARPs are adequate to address identified impacts Of three border crossing points, only Torkham and Wagha require land acquisition. In Chaman all land required is government-owned and unencumbered. A land acquisition and resettlement plan (LARP) has been prepared for each sub-project. Key resettlement impacts include acquisition of 115 acres of privately owned land (64.8 acres agricultural land at Wagah and 50.3 acres barren hilly land at Torkham), relocation of 3 residential structures (Torkham) and 42 commercial structures. Besides, 13 moveable push carts, crops and trees grown on the acquired land will be removed. There are 91 affected households across the 3 sub-projects, with a total of 192 affected persons entitled for compensation.

According to the LARP, (i) all impacted assets will be compensated in cash at full replacement costs basis; (ii) business structure owners will be provided replacement land/structure in the service/business area in the proposed project facilities on a secured tenure basis; and (iii) affected households losing residential structures will re-construct their new residential structures at locations of their choice in close proximity and thus no off-site relocation is envisaged under the project.

Indigenous Peoples Within the context of the three sub-project areas, there are no groups that fit the SPS 2009 criteria for indigenous people; local tribal communities represent the mainstream culture within the respective areas.
Stakeholder Communication, Participation, and Consultation
During Project Design

The main stakeholders of the project include public institution (immigration, trade and commerce, customs, communication and transport departments with other law enforcing agencies like responsible for operating BCPs) and project beneficiaries including immigrants/passengers crossing border, traders, freight forwarders, and transport operators as well as the local community having their assets landed and non landed in close proximity of the BCPs.

It is envisioned that during the PPTA stage, the consultation and participation process will involve a stakeholder analysis followed by subsequent consultations with various groups. It is planned to conduct consultations with line Government Departments, Non Government Organizations, Research institutes, facility users/beneficiaries, and at the household and community level near BCP's. A series of focus group discussions and consultation will be undertaken with all stakeholders as part of poverty assessment, the socio-economic analysis and preparation of resettlement planning documents.

In the course of processing and implementation of the project, ADB will take lead in fostering donor coordination through regular donor coordination meetings to avoid duplication of efforts and maximize development impact of each donor's intervention.

During Project Implementation Consultation with stakeholders will be conducted during project implementation, as may be needed.
Business Opportunities
Consulting Services The project will require consulting services for project management, construction supervision and capacity development for BCP officials. Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). The project management and construction supervision consultants have been mobilized.
Procurement Procurement of goods, civil works, and related services will be procured in accordance with ADB's Guidelines for Procurement (2015, as amended from time to time). Procurement of 3 civil works packages are ongoing.
Responsible ADB Officer Samukhin, Oleg
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Federal Board of Revenue
[email protected]
FBR House, Constitution Avenue, Islamabad
Concept Clearance 18 Jul 2013
Fact Finding 23 Jun 2015 to 03 Jul 2015
MRM 18 Sep 2015
Approval 04 Dec 2015
Last Review Mission -
Last PDS Update 27 Sep 2017

Loan 3344-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2015 26 Oct 2016 15 Dec 2016 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 200.00 Cumulative Contract Awards
ADB 150.00 04 Dec 2015 13.50 0.00 9%
Counterpart 50.00 Cumulative Disbursements
Cofinancing 0.00 04 Dec 2015 0.42 0.00 0%

Loan 3345-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2015 26 Oct 2016 15 Dec 2016 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 04 Dec 2015 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 04 Dec 2015 0.00 0.00 0%

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.

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Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tender Title Type Status Posting Date Deadline
PAK: Central Asia Regional Economic Cooperation Regional Improving Border Services Project Advance Notice Archived 29 Mar 2016

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Management Consultant Loan 3344 26 Apr 2017 Tera International Group, Inc. 107 E. Holly Avenue, Suite 12 Sterling, Va 20164 United States Federal Board of Revenue Consultancy 3111631