52137-001: Railway Sector Development in CAREC Countries | Asian Development Bank

Regional: Railway Sector Development in CAREC Countries

Sovereign (Public) Project | 52137-001 Status: Proposed

The knowledge and support technical assistance (TA) will accelerate the sound development of the railway subsector in Central Asia Regional Economic Cooperation (CAREC) countries through (i) railway transport market research; (ii) project identification and preparation; (iii) knowledge sharing; and (iv) capacity development.

Project Details

Project Officer
Sluijter, Jurgen Central and West Asia Department Request for information
Country
  • Regional
Sector
  • Transport
 
Project Name Railway Sector Development in CAREC Countries
Project Number 52137-001
Country Regional
Afghanistan
Azerbaijan
Georgia
Kazakhstan
Kyrgyz Republic
Mongolia
Pakistan
China, People's Republic of
Tajikistan
Turkmenistan
Uzbekistan
Project Status Proposed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA: Railway Sector Development in CAREC Countries
People's Republic of China Poverty Reduction and Regional Cooperation Fund US$ 1.00 million
United Kingdom Fund for Asia Regional Trade and Connectivity under the Regional Cooperation and Integration Financing Partnership Facility US$ 1.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport / Rail transport (non-urban) - Transport policies and institutional development

Gender Equity and Mainstreaming No gender elements
Description

The knowledge and support technical assistance (TA) will accelerate the sound development of the railway subsector in Central Asia Regional Economic Cooperation (CAREC) countries through (i) railway transport market research; (ii) project identification and preparation; (iii) knowledge sharing; and (iv) capacity development.

The TA is aligned with the Asian Development Bank (ADB) Strategy 2030, ADB's Operational Plan for Regional Cooperation and Integration (2016 2020) , the CAREC Strategy 2030, CAREC Transport and Trade Facilitation Strategy 2020 (TTFS 2020), and the CAREC Railway Strategy 2017 2030. It is also complementary to other regional cooperation programs, such as the Belt and Road Initiative (BRI) of the People's Republic of China (PRC), the Transport Corridor Europe Caucasus Asia program supported by the European Union, the Trans Asia Railway supported by the United Nations Economic and Social Council for Asia and the Pacific (UNESCAP) and the Lapis Lazuli Corridor Agreement. The TA supports regional and inter-regional trade and cooperation and promotes ADB as a prime development partner in the railway sector in Central and West Asia, aiming for a strong, long-term engagement with CAREC member countries.

Project Rationale and Linkage to Country/Regional Strategy

Transport remains the primary vehicle for regional cooperation and integration in CAREC countries. Aiming to transform CAREC countries from land-locked to land-linked status, the CAREC program supports the expansion of trade and improvement of economic development by more closely connecting the CAREC region with its larger and rapidly growing neighbors. Central Asia has great potential to benefit from growing Eurasian transit traffic and the intraregional trade which will develop in the coming decades. The development of an effective, efficient, sustainable, safe, and user-friendly multimodal corridor network is the primary means of achieving this goal. Transport has therefore remained the largest sector of activity in the 17-year history of the CAREC Program, accounting for more than 80% of investments and amounting to $25 billion.

Despite their importance, railways are struggling to remain competitive. Since rail networks have a long life, existing network configurations do not necessarily match new traffic patterns; many railways in the region are struggling to adapt to these changing conditions. Besides gaps in effective railway infrastructure, the lack of robust commercial capabilities and inadequate legal and regulatory frameworks has caused railway market shares to decline generally, and most railways are not fully able to capture available trade flows. An increasing amount of freight traffic is carried by roads rather than rail, costing the economy more than it should in the form of traffic congestion, road crashes and deterioration of road assets. As a result, interregional and intraregional trade is subjected to high transportation cost and bottlenecks.

Further development of railways requires ways to prioritize investments, structure financing and to improve institutions. A regional railway system improved with both infrastructure investments and soft measures will enhance access to regional and international markets and help increase economic growth and social welfare.

While new investments are needed to maintain and improve the competitiveness of railways, they are bulky, long-term and risky in nature, making them difficult to attract commercial financing. There is the continued need to seek financing and funding from both government and international financial institutions, with further considerations on how such public funds can crowd in private financing. Furthermore, an adequate regional traffic model is currently lacking, yet required to identify most promising rail transport routes, and hence to prioritize investments in rail infrastructure.

The institutional and commercial changes needed to improve financial sustainability of railway organizations are difficult to implement and time-consuming, requiring a systematic injection of knowledge and continued capacity building support. CAREC railways need to engage in a process of commercialization and reform to become efficient, customer-oriented transport operators, making investments economically viable. While the approach and pace of reform will differ among CAREC railway organizations, there is valuable knowledge to share in common areas, such as financial restructuring, corporatization, marketing, asset management, interoperability and railway safety.

At the 17th Meeting of the CAREC Transport Sector Coordinating Committee held on 18 20 April 2018 in Istanbul, Turkey, member countries expressed particular interest in regional technical assistance that would help move the work of the RWG further forward to address described common challenges.

Impact Railway transport is a mode of choice for trade: quick, efficient, accessible for customers, and easy to use throughout the region
Outcome Railway investments in CAREC countries are prioritized to match market opportunities and backed by sector reforms
Outputs

Regional (rail) traffic model developed

Project pre-feasibility facility established

Knowledge products prepared

Capacity of EA in ADB related concerns improved

Geographical Location Afghanistan - Nation-wide; Azerbaijan - Nation-wide; China - Nation-wide; Georgia - Nation-wide; Kazakhstan - Nation-wide; Kyrgyz Republic - Nation-wide; Mongolia - Nation-wide; Pakistan - Nation-wide; Tajikistan - Nation-wide; Turkmenistan - Nation-wide; Uzbekistan - Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Individual international and national consultants will be hired on intermittent basis on output-based contracts where appropriate. Resource persons with specialized knowledge on key areas of the TA's scope will also be hired on basis of need. ADB will engage the consultants following the ADB Procurement Policy and ADB Procurement Regulations (2017, as amended from time to time) and their associated staff instructions Terms of Reference for Consultants (accessible from the list of linked documents in Appendix 3).
Responsible ADB Officer Sluijter, Jurgen
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 06 Jun 2018
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 06 Nov 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.

None currently available.

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
International Railway Sector Specialist Individual - Consulting Closed 31 Oct 2018 06 Nov 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.