Uzbekistan: Railway Efficiency Improvement Project

Sovereign Project | 51052-002

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
    Murodov, Khurshidbek
    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 Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3785-UZB: 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
Project Outcome
Description of Outcome Efficiency of passenger and freight transport throughout Uzbekistan's railway network improved
Progress Toward Outcome The loan became effective on 23 September 2019. Contract for PIU-05 was awarded and signed on 17 July 2019 through advance contracting. The electric locomotives are currently being produced as scheduled. The first batch of locomotives are expected to be received in Uzbekistan in Quarter 4 of 2020.
Implementation Progress
Description of Project Outputs

Electric locomotives commissioned

Locomotive depot upgraded

Long-term development strategy implemented

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

Output 1: On track to being achieved. Contract has been signed on 17 July 2019. Additional 6 freight electric locomotives and spare parts were procured through Supplementary Agreement No. 1 which was signed on 16 April 2020. Achievements will be assessed upon completion.

Output 2: On track to being achieved. Achievements will be assessed upon completion.

Output 3: On track to being achieved. On long-term development strategy, a coordination agreement has been signed in May between UTY, ADB and DBEC. A working group is meeting every month. On gender action plan, trainings/meetings have progressed in Q3 of 2020. Achievements will be assessed upon completion.

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 was designed in close consultation with O'zbekiston Temir Yo'llari (UTY) and all its relevant departments and divisions. Consultations extended 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 Murodov, Khurshidbek
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Uzbekistan Resident Mission
Executing Agencies
O'zbekiston Temir Yo'llari
Mr. S. A. Irgashev
[email protected]
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 20 May 2019
Last Review Mission -
Last PDS Update 18 Nov 2020

Loan 3785-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 May 2019 30 Aug 2019 23 Sep 2019 31 Dec 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 218.30 Cumulative Contract Awards
ADB 170.00 29 Sep 2021 170.00 0.00 100%
Counterpart 48.30 Cumulative Disbursements
Cofinancing 0.00 29 Sep 2021 97.20 0.00 57%

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.

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

Evaluation Documents See also: Independent Evaluation

None currently available.


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

Tender Title Type Status Posting Date Deadline
Loan No. 51052-UZB: Railway Efficiency Improvement Project [PIU-05] Invitation for Bids Closed 31 Jan 2019 03 Apr 2019
UZB: Railway Efficiency Improvement Project Advance Notice Active 08 Nov 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
16 FREIGHT AND 8 PASSENGER ELECTRIC LOCOMOTIVES Loan 3785 02 Oct 2019 CHINA NATL TECH & CRRC DALIAN | GENERTEC PLAZA NO.90 XISANHUAN ZHONGLU BEIJING CHINA,PEOPLE'SREP.OF O'zbekiston Temir Yo'llari 134,626,722.28 134,626,722.28

Procurement Plan