Uzbekistan: Railway Efficiency Improvement Project

Transport / Rail transport (non-urban)

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.

Electric locomotives commissioned

Locomotive depot upgraded

Long-term development strategy implemented

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.

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.