51052-002: Railway Efficiency Improvement Project | Asian Development Bank

Uzbekistan: Railway Efficiency Improvement Project

Sovereign (Public) Project | 51052-002 Status: Proposed

The project aims to improve the efficiency of Uzbekistan's railway operations, combining investments where it faces operational bottlenecks (e.g. electric locomotives), and strategic support to improve business practices.

Project Details

Project Officer
Sakamoto, Ko Central and West Asia Department Request for information
Country
  • Uzbekistan
Modality
  • Loan
Sector
  • Transport
 
Project Name Railway Efficiency Improvement Project
Project Number 51052-002
Country Uzbekistan
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Railway Efficiency Improvement Project
Ordinary capital resources US$ 170.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The project aims to improve the efficiency of Uzbekistan's railway operations, combining investments where it faces operational bottlenecks (e.g. electric locomotives), and strategic support to improve business practices.
Project Rationale and Linkage to Country/Regional Strategy

Surrounded by Afghanistan to the south, Kazakhstan to the north and northwest, the Kyrgyz Republic to the northeast, Turkmenistan to the southwest, and Tajikistan to the southeast, Uzbekistan serves three of six Central Asia Regional Economic Cooperation (CAREC) corridors. With 31 million people, Uzbekistan is the most populous country in Central Asia. Being a double landlocked country requiring crossing at least two countries to reach seaports, transport plays an important role in sustaining its socioeconomic development.

Rail transport has a unique competitive advantage over road transport for moving commodities and goods in bulk over long distances. The 4,669 km Uzbekistan rail network carries about 60 million tons of freight and 15 million passengers annually. Since 2004, Uzbekistan's gross domestic product has grown by more than 7% per year. This has contributed to strong demand for rail transport. Improvements in relationships between Uzbekistan and its immediate neighbors will further add to such demand.

Uzbekistan has continued to modernize its railway infrastructure. Since its founding in 1994, O'zbekiston Temir Yo'llari (UTY), the vertically integrated public railway company, has gradually implemented a holistic railway modernization program, including the completion of a unified rail network, electrification and modernization of existing lines, and improvement of rolling stock. The government accorded particular importance to electrification, with 2,446 km or 52% of the network now electrified.

Despite these efforts, the railways still face long transport times, inadequate service quality, and high operating costs, because of aged or inadequate infrastructure, operational inefficiencies, competition from road transport, and an insufficient number of locomotives. This results in lost economic opportunities, suboptimal regional trade, and negative environmental impacts.

Impact Implementation of targeted programs to build affordable housing, development and modernization of road and rail transport, engineering, communication, and social infrastructure achieved
Outcome Efficiency of passenger and freight transport throughout Uzbekistan's railway network improved
Outputs

Electric locomotives commissioned

Locomotive depot upgraded

Long-term development strategy implemented

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is likely to contribute to environmental sustainability by promoting the energy efficiency of railways, and thereby reducing greenhouse gases. Diesel fumes emitted by aged diesel locomotives will also be reduced.
Involuntary Resettlement No land acquisition or resettlement is envisaged.
Indigenous Peoples The country in general, and the project area in particular, does not have indigenous peoples' communities as defined in ADB's Safeguard Policy Statement for operational purposes.
Stakeholder Communication, Participation, and Consultation
During Project Design The project will be designed in close consultation with O'zbekiston Temir Yo'llari (UTY) and all its relevant departments and divisions. Consultations will extend to government agencies at the national, regional and local levels. End users of the railway system (for both freight and passenger services) have been consulted through a social survey.
During Project Implementation Such consultations will continue throughout project implementation. This will be particularly important for elements of the project that touch upon UTY's business process improvements. Such consultations will aim to identify any negative implications of changes in business processes, and be a basis to develop mitigation actions.
Business Opportunities
Consulting Services None to be financed under the loan.
Procurement

All procurement financed under the ADB loan will follow open competitive bidding procedures pursuant to ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). Procurement will comprise of one goods package with two lots, one for passenger locomotives, and another for freight locomotives. Procurement will be conducted with one-stage one envelope,

without prequalification. The locomotives to be procured may require certain integral parts which originate from non-ADB member countries, namely the braking system, radio equipment, safety devices, tires and automatic couplings; these are estimated to constitute only about 6% of the procurement value. A waiver of the country eligibility requirement is requested from ADB's Board of Directors, based on the strong technical, regulatory, safety and economic basis for inclusion of such parts. With the exception of the above, civil works and supply of materials and equipment from ADB non-member countries will be financed by UTY from its own resources and procured under existing government procedures consistent with the principles of economy and efficiency.

Responsible ADB Officer Sakamoto, Ko
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
O'zbekiston Temir Yo'llari
7 Taras Shevochenko St.
Tashkent 70060
Uzbekistan
Timetable
Concept Clearance 07 Aug 2017
Fact Finding 04 Dec 2017 to 08 Dec 2017
MRM 21 Jun 2018
Approval -
Last Review Mission -
Last PDS Update 19 Mar 2018

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.

Title Document Type Document Date
Railway Efficiency Improvement Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jul 2017

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.

Title Document Type Document Date
Railway Efficiency Improvement Project: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Mar 2018
Railway Efficiency Improvement Project: Social Due Diligence Report Safeguards Due Diligence Reports Mar 2018

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
UZB: Railway Efficiency Improvement Project Advance Notice Active 08 Nov 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.