50062-001: Road Asset Management Project | Asian Development Bank

Afghanistan: Road Asset Management Project

Sovereign (Public) Project | 50062-001 Status: Active

I submit for your approval the following report and recommendation on a proposed grant to the Islamic Republic of Afghanistan for the Road Asset Management Project.

The proposed grant will finance priority maintenance works for part of Afghanistan's regional highway sections from Kabul to Ghazni and from Kabul to Jalalabad, which are the economic lifeline of the country's eastern region. The project will include a capacity development component to introduce sustainable road management practices, specifically in road asset management and road maintenance.

Project Details

Project Officer
Tawisook, Witoon Central and West Asia Department Request for information
Country
  • Afghanistan
Modality
  • Grant
Sector
  • Transport
 
Project Name Road Asset Management Project
Project Number 50062-001
Country Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0508-AFG: Road Asset Management Project
concessional ordinary capital resources lending / Asian Development Fund US$ 25.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description

I submit for your approval the following report and recommendation on a proposed grant to the Islamic Republic of Afghanistan for the Road Asset Management Project.

The proposed grant will finance priority maintenance works for part of Afghanistan's regional highway sections from Kabul to Ghazni and from Kabul to Jalalabad, which are the economic lifeline of the country's eastern region. The project will include a capacity development component to introduce sustainable road management practices, specifically in road asset management and road maintenance.

Project Rationale and Linkage to Country/Regional Strategy

Prolonged conflict has devastated Afghanistan's economy by destroying the minimal economic infrastructure and institutions that the country once possessed and driving more than 2.5 million Afghans away from their homes and livelihoods. Since the fall of the Taliban regime, the country has received billions of dollars in international assistance, which has dramatically boosted the country's gross domestic product to more than $20 billion five times higher than in 2002. However, the country is still at the very beginning of recreating an economy that can address the needs of its people. Afghanistan requires stable and sustainable economic development. To this end, and with donor support, the Government of Afghanistan has developed a range of policies and strategies, not all of which have been successfully implemented. The 2008 2013 Afghanistan National Development Strategy, the country's first strategy paper for poverty reduction, has set the context for rebuilding the country by

(i) addressing poverty through private sector-led equitable economic growth and (ii) exploiting the economy's growth potential.

Afghanistan's fragile and conflict-affected situation has also heavily damaged its roads. By 1994, around 80% of the 42,000-kilometer (km) network was in a poor state of repair, and road conditions deteriorated further until 2002, when major reconstruction programs were begun. The government focused on reconstructing damaged or destroyed roads, as well as rehabilitating roads that had fallen into disrepair due to a prolonged lack of maintenance. A massive multinational reconstruction and development effort to rebuild Afghanistan's infrastructure has been underway since 2002, and nearly 8,000 km of roads have been reconstructed or rehabilitated. While the government and development partners have focused on reconstruction, the sustainability of past investments has resurfaced as a major sector issue. According to the ongoing Asian Development Bank (ADB) study for operation and maintenance (O&M), 85% of the road network is in poor condition, and only 50% is serviceable year-round condition.

Financial and institutional sustainability are some of the main challenges facing roads network O&M in Afghanistan. The Ministry of Public Works (MPW) has so far been unable to fully implement various approaches proposed in the 2006 2013 O&M strategy. The lack of policies pertaining to road user charges and O&M financing further complicates these challenges, both financially and institutionally. Afghanistan is not expected to be financially self-reliant in the interim. Institutional O&M challenges include organizational and human resource issues. Organizationally, the mandates of the different organizations responsible for the road network must be properly delineated. Functionally, the MPW lacks the specialized system to ensure adequate and accountable operations. A tool for planning and managing roads O&M at the national level does not exist. The scattered bits and pieces of this system must be integrated and properly developed to enable the systematic planning and management of roads O&M.

Realizing the importance and seriousness of the issue, development partners since 2011 have started to pay attention to roads O&M and able to contributed to $150 million. The donors' primary efforts include the Road Sector Sustainability Program of the United States Agency for International Development and the World Bank's National Rural Access Program (NRAP). Under the $109 million Road Sector Sustainability Program, short- and long-term plans have been jointly agreed upon by the government and development partners. In the short term, a 5-year transfer process has been defined, with roads O&M funded by donor contributions in the first year and by road user fees in the fifth and final year. In the long term, three autonomous entities a road authority, road fund, and transportation institute will

Impact Increased sustainability of Afghanistan's road transport sector (Afghanistan's O&M Strategy 2006)
Project Outcome
Description of Outcome Improved road connectivity and safety
Progress Toward Outcome

Procurement of civil works is ongoing.

Development of a road asset management system is in progress.

Implementation Progress
Description of Project Outputs

National highways in the southeastern region maintained

O&M and road asset management capacity enhanced

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

Procurement of civil works is ongoing. The bid evaluation report for the first civil works package is under review by ADB and the contract award is expected by November 2017.

Four individual consultants including the team leader for road asset management (RAM) system have been mobilized. Inception report was submitted in August 2017. Mobilization of six individual consultants are expected by October 2017.

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Environmental impact will be minimal and will not require a related action.
Involuntary Resettlement No land acquisition or involuntary resettlement is required under the project.
Indigenous Peoples No indigenous peoples will be impacted by the project.
Stakeholder Communication, Participation, and Consultation
During Project Design The central government is the primary stakeholder, together with the Ministry of Public Works (MPW), although anyone involved in the supply of goods, logistics, and transport services in Afghanistan is a stakeholder. These stakeholders will be consulted during project design.
During Project Implementation Consultation with MPW indicates the possibility of hiring local labor for rehabilitation and maintenance works, thus increasing incomes of the surrounding communities, in line with the fragile and conflict-centered situation responsive approach for Afghanistan. Initial consultations with community members in the command area show that the project is perceived as bringing jobs and livelihood opportunities and improving people's mobility. Continuous consultation with the stakeholders will be conducted during project implementation.
Business Opportunities
Consulting Services The consultant team will be recruited for the development of road asset management, O&M capacity development, and support to supervision of road maintenance work.
Procurement Delay in procurement has been a major problem in implementation, especially for large contract packages with high value. Thus, the Project will be tendered as small NCB packages approximately $3 5 million each so that the evaluation process can be expedited. In addition, ADB will request to carry out the consultant selection process.
Responsible ADB Officer Tawisook, Witoon
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of Finance
Pashtunistan Watt,
Kabul,
Islamic Republic of Afghanistan
Timetable
Concept Clearance 13 May 2016
Fact Finding 25 Jul 2016 to 08 Aug 2016
MRM 01 Sep 2016
Approval 31 Oct 2016
Last Review Mission -
Last PDS Update 26 Sep 2017

Grant 0508-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2016 12 Dec 2016 05 Jan 2017 31 Dec 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.00 Cumulative Contract Awards
ADB 25.50 31 Oct 2016 5.84 0.00 23%
Counterpart 0.50 Cumulative Disbursements
Cofinancing 0.00 31 Oct 2016 1.15 0.00 5%

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 Public Communications Policy (PCP) 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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) 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

Tender Title Type Status Posting Date Deadline
Grant No. 0508-AFG: Road Asset Management Project [NPA/MPW/96/W1958/NCB] Invitation for Bids Active 07 Dec 2017 06 Jan 2018
Road Condition Survey Officer Individual - Consulting Active 19 Sep 2017 23 Sep 2017
Roadway Structures Officer Individual - Consulting Active 10 Sep 2017 14 Sep 2017
Roadway Structures Expert Individual - Consulting Active 07 Sep 2017 12 Sep 2017
GIS and Mapping Expert Individual - Consulting Active 05 Sep 2017 08 Sep 2017
Grant No. 0508-AFG: Road Asset Management Project [NPA/MPW/96/W-1183/NCB] Invitation for Bids Active 01 Sep 2017 02 Oct 2017
Roadway Economics and Financing Expert Individual - Consulting Active 28 Aug 2017 03 Sep 2017
Condition Survey Individual - Consulting Active 28 Aug 2017 03 Sep 2017
Financial Management Specialist Individual - Consulting Closed 24 Jul 2017 30 Jul 2017
GIS Officer Individual - Consulting Closed 24 Jul 2017 30 Jul 2017
G0508 AFG (SF), Road Asset Management Project (RAMP) [NPA/MPW/96/W-1702/NCB] Invitation for Bids Closed 05 Jun 2017 10 Jul 2017
Transportation Engineer Individual - Consulting Closed 21 Apr 2017 27 Apr 2017
Team Leader Individual - Consulting Closed 21 Apr 2017 27 Apr 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
RECRUITMENT OF INDIVIDUAL CONSULTANT. Grant 0508 30 Aug 2017 RAJES AGGARWAL A INDIA Ministry of Finance 218409

Procurement Plan