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Home , Anzob Tunnel, Dushanbe

CAREC Corridors 3 and 5 Enhancement Project (RRP TAJ 46543)

DEVELOPMENT COORDINATION

A. Major Development Partners: Strategic Foci and Key Activities 1. External funds, either from multilateral or from bilateral, have been essential for the development of the transport sector. The Asian Development Bank (ADB) is the lead agency in transport, customs cooperation, and trade facilitation activities of the Central Regional Economic Cooperation (CAREC) program; the People’s Republic of is the lead investor in the road subsector. Other development partners including the Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development; the Islamic Development Bank; Fund for Arab Economic Development; the Aga Khan Foundation; the European Bank for Reconstruction and Development; the International Cooperation Agency; the governments of Japan and , have also been focusing their assistance on the road subsector in Tajikistan. Additionally, the is planning to finance a road project to commence in/about end of 2013.

Major Development Partners in Transport Development Amount Partner Project Name Duration ($ million) ADB Institutional Strengthening of the Transport and Energy Sectors 1998–2004 1.5 Preparing the Road Rehabilitation Project 1999–2004 0.8 Regional Railway Improvement 2000–2001 0.2 Institutional and Policy Support in Road Sector 2000–2006 0.5 Preparing the Second Road Rehabilitation Project 2001–2003 0.6 Strengthening Implementation of Road Maintenance 2003–2008 0.6 Preparing the –Kyrgyz Border Road Project (Phase 2) 2004–2006 0.5 Preparing the Dushanbe–Kyrgyz Republic Border Road Rehabilitation Project 2006–2008 0.7 (Phase 3) Transport Sector Master Plan 2007–2008 0.6 Preparing the CAREC Transport Corridor 3 (Dushanbe– Border 2008–2010 0.7 Road) Project Post-Conflict Emergency Reconstruction (at approval, road subsector 1998–2000 10.0 expected to account for 52% of project value) Emergency Flood Assistance (at approval, road subsector expected to 1999 5.0 account for 68% of project value) Emergency Flood Assistance (supplemental credit) (at approval, road 2000 2.0 subsector expected to account for 80% of project value) Road Rehabilitation 2000–2007 20.0 Dushanbe–Kyrgyz Border Road Rehabilitation (Phase 1) 2003–2009 15.0 Dushanbe–Kyrgyz Border Road Rehabilitation (Phase 2) (Loan) 2005–2010 29.5 Dushanbe–Kyrgyz Border Road Rehabilitation (Phase 2) (Grant) 2005–2010 0.6 CAREC Regional Road Corridor Improvement (Loan) 2007–2013 40.9 CAREC Regional Road Corridor Improvement (Grant) 2007–2013 12.5 Supplementary to Dushanbe–Kyrgyz Border Road Rehab.(Phase 2) 2009–2012 20.0 Community-Based Rural Road Maintenance 2005–2010 1.8 Sustainable Access for Isolated Rural Communities 2007–2010 2.0 CAREC Corridor 3 (Dushanbe–Uzbekistan Border) Improvement Project 2011–2015 120.0 Preparing the CAREC Corridor 6 (Ayni-Uzbekistan Border Road) 2012 0.8 Improvement Project CAREC Corridor 6 (Ayni-Uzbekistan Border Road) Improvement Project 2012–2016 100.0 Islamic Feasibility Study for Murgab–Kulma Road Rehabilitation Project 1998–1999 0.3 Development Murgab–Kulma Road Rehabilitation Project 2000–2002 9.7 Bank Feasibility Study for Shagon-Zigar Road Rehabilitation Project 1999–2000 0.3 Shagon–Zigar Road Rehabilitation Project, Phase 1 2003–2005 9.1 Shagon–Zigar Road Rehabilitation Project, Phase 2 2007–2010 13.8 Shagon–Zigar Road Rehabilitation Project, Phase 3 2011–2013 18.6 Rehabilitation of Kulyab-Kalaikhumb Road (Shurobod-Shagon) 2012–2014 20.0 European Bank Rehabilitation of Airport Runway Completed 3.0 for Modernization of Navigation System of Tajikistan State Air 2001–2006 5.5 Reconstruction Air Fleet Upgrade Project Ongoing 5.5 and Road Maintenance Development Project (finance the purchase of road 2008–2010 4.0 Development maintenance equipment) 2

Development Amount Partner Project Name Duration ($ million) Dushanbe–Uzbekistan Border Road Improvement Project 2012–2015 35.0 Grant for Road Maintenance Development Project (grant to finance the 2008–2010 2.7 purchase of road maintenance equipment) Preparing the EBRD section of the road ( Monument-West Gate) 2012–2013 0.9 under CAREC Corridor 3 (Dushanbei-Uzbekistan Border) Improvement Project. OPEC Fund for Road Rehabilitation Project (co-financing) Shkev–Zigar Road Rehabilitation 2003–2005 4.0 International Project Development Shkev–Zigar Road Rehabilitation Project 2003–2005 4.0 Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase 1–ADB co- 2001–2005 6.0 financing) Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase 2-ADB co- 2005–2010 3.5 financing) CAREC Corridor 6 (Ayni-Uzbekistan Border Road) Improvement Project 2012–2016 14.0 (ADB co-financing) Rehabilitation of Kulyab-Kalaikhumb Road (Shurobod-Shagon) 2012–2014 13.0 Kuwait Fund Preparing the Shkev–Zigar Road Rehabilitation Project 1998–1999 0.5 for Arab Shkev–Zigar Road Rehabilitation Project 2003–2005 16.3 Economic Preparing the Kulyab-Kalaikhumb Road 2007–2009 1.0 Development Rehabilitation of Kulyab-Kalaikhumb Road (Shurobod-Shagon) 2012–2014 17.0 Preparing the Labi Jar--Kalaikhub Road Project 2012–2013 1.0 Saudi Fund for Repair of Roads and Bridges in Gorno Badakhshan Autonomous Region 2003–2006 6.0 Development Shkev–Zigar Road Rehabilitation Project 2003–2005 6.0 Rehabilitation of Kulyab-Kalaikhumb Road (Shurobod-Shagon) 2012–2014 20.0 Islamic Preparing the construction of Tunnel 1997–2000 1.1 Republic of Construction of , 2004 5.0 Iran Construction of Anzob Tunnel, 2004–2010 5.0 Construction of Anzob Tunnel 2004–2010 21.2 Construction of Anzob Tunnel 2011–2012 3.0 Preparing the Feasibility Study for Tajik Railway Link 2011–2012 1.0 Government of Rehabilitation of Dushanbe–Chanak Road (Uzbekistan border) 2006–2012 281.1 the People’s Construction of Shar–Shar tunnel 2006–2009 32.9 Republic of Rehabilitation of Dushanbe–Kulma Road (PRC border), section Dushanbe- 2009–2012 49.0 China Dangara, Phase 1 Rehabilitation of Dushanbe–Kulma Road (PRC border), section Dushanbe- 2009–2013 143.9 Dangara, Phase 2 (including Charmaghzak tunnel construction) Rehabilitation of Dushanbe–Kulma Road (PRC border), section Dushanbe- Dangara, Phase 3 2011–2014 50.5 Government of Rehabilitation of Dusti–Nijniy Pyanj Road, Phase 1 2007–2008 4.5 Japan Rehabilitation of Dusti–Nijniy Pyanj Road, Phase 2 2009–2010 13.5 Rehabilitation of Kurgan-Tube-Dusty Road, Phase 1 2009–2011 35.0 Rehabilitation of Kurgan-Tube-Dusty Road, Phase 2 2012–2013 23.3 Procurement of road maintenance equipments 2013–2014 14.3 Government of Rehabilitation of Dushanbe Airport Runway 2004–2005 2.4 the United Construction of bridge over the Pyanj River (Tajikistan–) 2004–2007 28.0 States Government of Construction of Dushanbe Airport Terminal 2012–2014 26.5 France Rehabilitation of Kulyab-Kalaikhumb Road (Shurobod-Shagon) 2012–2014 15.0 Fund Aga Khan Grant for construction of bridges in 4 districts Gorno Badakhshon 2003–2010 4.3 Foundation Autonomous Region Grant for construction of bridge in Shurobod district of 2011–2013 3.5 ADB = Asian Development Bank, CAREC = Regional Economic Cooperation, OPEC = Organization of Petroleum Exporting Countries. Source: Asian Development Bank and Ministry of Transport.

B. Institutional Arrangements and Processes for Development Coordination 2. As the lead donor in the Tajikistan transport sector, where possible ADB takes more of a lead in promoting information exchange amongst donors, government, and sector leaders. A development forum was organized in December 2010 by the government, with the support of development partner 3 members of the Donor Coordination Council (DCC). 1 The forum reviewed economic developments and, in particular, discussed Tajikistan’s reform priorities for the 2 years of its third Poverty Reduction Strategy (PRS-3), 2010–2012. Development partners restated their commitment to support the country’s priority sectors and projects, and this was agreed to through the action plan that was the outcome of the forum. ADB coordinated the infrastructure cluster, comprising two working groups, covering transport and energy. The government has demonstrated its commitment and adopted several transport-related laws and programs: in 2010, a national aviation policy, which provides for increased access to international airlines in terms of routes and frequency; and in 2011, the state program on transport sector development, 2010–2025. Actions have also been taken to restrict large overweight vehicles to night travel, to increase budget allocations for maintenance of existing infrastructure, and to outsource road maintenance to private contractors. The next Development Forum took place on 8–9 December 2012 for participants to assess the outcomes of the PRS-3 (2010–2012) and suggest key development challenges and policy priorities for the country’s new medium-term Living Standards Improvement Strategy (LSIS) period 2013–2015. Besides reaffirming continued support for Tajikistan’s development, DCC partners proposed nine cross-sectoral, multi- partner coordinated initiatives that are designed to achieve measurable results by 2015 in the LSIS’ six priority areas, and transport connectivity was among them. The Government of Tajikistan and the DCC agreed on concrete results indicators and milestones for progress in areas of highest priority.

C. Achievements and Issues 3. A number of transport sector studies were completed through ADB regional technical assistance (TA). 2 ADB also provided advisory TA for a transport sector master plan. 3 A road sector governance assessment was undertaken in 2009. 4 As a result, the State Program on Transport Sector Development, 2010–2025, which addresses all aspects of the transport sector, and particularly the issue of maintenance, was approved by Resolution No. 165 of the Republic of Tajikistan on 1 April 2011. In 2012, ADB approved a $100 million grant to support the road sector.5 The implementation of the Dushanbe–Uzbekistan Border Improvement Project is in progress.6 Phase 1 of the Dushanbe–Kyrgyz border road was completed in January 2009.7 Phase 2 was completed in June 2013,8 and Phase 3 is over 95% complete.9

D. Summary and Recommendations 4. As the lead development partner of Tajikistan’s transport sector, ADB assistance to the sector has been successful and contributed to the government’s development objectives. ADB will continue its strategic role and work closely with the government and development partners.

1 The overall objective of the DCC is to improve the efficiency and effectiveness of its members’ development activities in Tajikistan. 2 ADB. 2005. Technical Assistance for Facilitation of Transport Cooperation among Central Asia Regional Cooperation Economic Countries (Phase I) . (TA 6294-REG). 3 ADB. 2008. Technical Assistance to the Republic of Tajikistan for Preparing the Transport Sector Master Plan . Manila (TA 4926-TAJ). 4 ADB. 2009. Technical Assistance for the Governance and Capacity Development Initiative . Manila (TA 7277-REG). 5 ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Grant to the Republic of Tajikistan for CAREC Corridor 6 (Ayni-Uzbekistan Border Road) Improvement Project . Manila (Grant 0301-TAJ). 6 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Grant to the Republic of Tajikistan for CAREC Corridor 3 (Dushanbe–Uzbekistan Border) Improvement Project. Manila (Grant 0245-TAJ). 7 ADB. 2003. Report and Recommendations of the President to the Board of Directors: Proposed Loan to the Republic of Tajikistan for the Dushanbe–Kyrgyz Border Road Rehabilitation Project . Manila (Loan 2062–TAJ). 8 ADB. 2005. Report and Recommendations of the President to the Board of Directors: Proposed Loan and Asian Development Fund Grant to the Republic of Tajikistan for the Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase II) . Manila (Loan 2196–TAJ); and ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Grant to the Republic of Tajikistan for Supplementary Financing to the Phase 2 Project . Manila (Grant 0154-TAJ). 9 ADB. 2007. Report and Recommendations of the President to the Board of Directors: Proposed Loan and Asian Development Fund Grant to the Republic of Tajikistan for the CAREC Regional Road Corridor Improvement Project. Manila (Loan 2359–TAJ).