CAREC Corridor 3 (– Border) Improvement Project (RRP TAJ 42052)

DEVELOPMENT COORDINATION

A. Major Development Partners: Strategic Foci and Key Activities

1. The Asian Development Bank (ADB) is the lead agency in the transport sector, customs cooperation, and trade facilitation activities of the Central Asia Regional Economic Cooperation (CAREC). ADB; the Islamic Development Bank; the Organization of Petroleum Exporting Countries (OPEC), Kuwait, Saudi funds; the Aga Khan Foundation; the European Bank for Reconstruction and Development (EBRD); the Japan International Cooperation Agency (JICA); and the governments of the People’s Republic of , , and Japan have been focusing their assistance on the road sector in . Activities of development partners are summarized in Tables 1 and 2.

Table 1: Major Development Partners Development Amount Partner Project Name Duration ($ million) Transport ADB Institutional Strengthening of the Transport and Energy Sectors 1998–2004 1.5 Preparing the Road Rehabilitation Project 1999–2004 0.84 Regional Railway Improvement 2000–2001 0.15 Institutional and Policy Support in Road Sector 2000–2006 0.5 Preparing the Second Road Rehabilitation Project 2001–2003 0.60 Strengthening Implementation of Road Maintenance 2003–2008 0.6 Preparing the Dushanbe–Kyrgyz Border Road Rehabilitation Project 2004–2006 0.50 (Phase 2) Preparing the Dushanbe–Kyrgyz Republic Border Road 2006–2008 0.65 Rehabilitation Project (Phase 3) Transport Sector Master Plan 2007–2008 0.60 Preparing the CAREC Transport Corridor 3 (Dushanbe–Uzbekistan 2008–2010 0.65 Border Road) Project 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 41.1 CAREC Regional Road Corridor Improvement (Grant) 2007–2013 12.5 Supplementary to Dushanbe–Kyrgyz Border Road Rehabilitation 2009–2012 20.0 (Phase 2) Community-Based Rural Road Maintenance 2005–2010 1.8 Sustainable Access for Isolated Rural Communities 2007–2010 2.0 World Bank Emergency Flood Assistance (supplemental credit) (at approval, 2000 2.00 road subsector expected to account for 80% of project value) Emergency Flood Assistance (at approval, road subsector expected 1999 5.00 to account for 68% of project value) Post-Conflict Emergency Reconstruction (at approval, road 1998–2000 9.98 subsector expected to account for 52% of project value) Islamic Feasibility Study for Murgab–Kulma Road Rehabilitation Project 1998–1999 0.27 Development Murgab–Kulma Road Rehabilitation Project 2000–2002 9.70 Bank Feasibility Study for Shagon-Zigar Road Rehabilitation Project 1999–2000 0.28 Shagon–Zigar Road Rehabilitation Project 2003–2005 9.10 Shagon–Zigar Road Rehabilitation Project Phase II 2005–2007 13.77 European Bank for Rehabilitation of Airport Runway Completed 3.0 Reconstruction Modernization of Navigation System of TSA Completed 5.5 and Development Air Fleet Upgrade Project Ongoing 5.5 Road Maintenance Development Project (Finance the purchase of Ongoing 4.0 Road Maintenance Equipment) Grant for Road Maintenance Development Project (Grant to finance Ongoing 2.675 the purchase of road maintenance equipment) 2

Development Amount Partner Project Name Duration ($ million) OPEC Fund Road Rehabilitation Project (co-financing) Shkev–Zigar Road 2001–2008 4.00 Rehabilitation Project Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase 1– 2001–2005 4.00 ADB co-financing) Feasibility Study for Shkev–Zigar Road Rehabilitation 2004–2007 6.00 Kuwait Fund Shkev–Zigar Road Rehabilitation Project 1998–1999 0.486 Shkev–Zigar Road Rehabilitation Project 2001–2006 16.25 Saudi Fund Repair of Roads and Bridges in Gorno Badakhshan Autonomous 2003–2006 6.00 Region Aga Khan Grant for Construction of Anzob Tunnel 1997–2000 1.10 Foundation Grant for construction of bridge in Vanj district of Gorno Badakhshon 2008 3.2 Islamic Republic Autonomous Region of Iran Grant for Construction of Anzob Tunnel 2004 5.00 Loan for Construction of Anzob Tunnel 2005 21.2 Grant for Construction of Anzob Tunnel 2008 5.00 Government of the Dushanbe–Chanak Road 2003 281.10 People’s Republic Grant for the Shar–Shar tunnel 2006 32.39 of China Dushanbe–Dangara Road 2009 48.99 Government of Rehabilitation of Dusti–Nijniy Pyanj Road, Phase 1 2006–2008 5.0 Japan Rehabilitation of Dusti–Nijniy Pyanj Road, Phase 2 2009–2012 13.5 Kurgan Tube-Dusty 2009–2010 35.02 Government of the Construction of bridge over the Pyanj River (Tajikistan–) 2004–2007 28.0 United States Government of Construction of Dushanbe Airport Terminal Ongoing 24.5 France ADB = Asian Development Bank, CAREC = Central Asia Regional Economic Cooperation, TSA = Tajikistan State Air. Source: Asian Development Bank.

Table 2: Summary Development Partners’ Activities

Donors Ongoing Activities PRC Continue ongoing road infrastructure projects IMF Established a state-owned company monitoring agency IsDB Continue rehabilitation of Shago–Zigar section JICA Road improvement along north–south corridor (Dusti–Nizhniy Pianj Phase 2 and Kurgan Tube–Dusty) Rural water supply Food Aid Human resource development scholarship Equipment and medical material provision for mother and child health Vaccines for expanded immunization program Agricultural technical cooperation $6 billion investment for climate change mitigation (Tajikistan selected as a model country) OSCE Established a Border Management Staff College Operational since October 2009 Capacity building for senior managers of border security and management agencies Will launch OSCE Border Security and Management Research and Development Center UNODC Programs on illegal drug trafficking, border management, and human management USAID Technical Support for Tajikistan for WTO membership Trade Facilitation (single window; customs automation; capacity building; legal framework) World Bank No transport sector activities Leading Land Reform donor Working Group IMF = International Monetary Fund, IsDB = Islamic Development Bank, JICA = Japan International Cooperation Agency, OSCE = Organization for Security and Co-operation in Europe, PRC = People’s Republic of China, USAID = United States Agency for Internation Development, UNODC = United Nations Office on Drugs and Crime, WTO = World Trade Organization. Source: Asian Development Bank. 3

B. Institutional Arrangements and Processes for Development Coordination

2. The development coordination mechanism among international and bilateral financial institutions has been established through exchange of information and policy dialogue. Sector- specific donor coordination also exists. ADB has established good relations with bilateral and international development partners in Tajikistan, Facilitated by the Tajikistan Resident Mission. The Ministry of Economy, Investment and Trade synchronizes financial assistance from various development partners.

C. Achievements and Issues

3. A number of studies in the transport sector were completed through ADB regional technical assistance (TA).1 The government also prepared the transport sector strategy with ADB assistance.

4. In 2009, ADB approved a $20 million grant to support the road sector.2 The project has progressed well. With 20% time elapsed, the project reached 70% contract awards and 10% disbursements. Phase 13 of the Dushanbe–Kyrgyz border road was completed in January 2009. Phase 24 was completed in November 2010 and Phase 35 has achieved over 85% progress. ADB also provided advisory TA for a transport sector master plan.6 A road sector governance assessment was undertaken in 2009.7

5. The 2009 evaluation validation report8 for the Road Rehabilitation Project9 assessed the overall project satisfactory based on relevance, effectiveness, efficiency, and sustainability. The outputs exceeded the original targets and contributed to a significant improvement in transport conditions in the southwest of Tajikistan. However, several issues remain—project focus, financial sustainability, inefficient practices of government agencies, the lacking link between policies and practice, and project implementation. The new project follows the recommendations and lessons learned from the previous road projects by adopting a more realistic time horizon for implementing reforms and boosting project preparedness to avoid initial delay.

D. Summary and Recommendations

6. ADB’s intervention in the road sector will contribute to the government’s development objective. Its role remains strategic and ADB has adequate capacity to implement road projects in Tajikistan.

1 ADB. 2005. Technical Assistance for Facilitation of Transport Cooperation among Central Asia Regional Cooperation Economic Countries (Phase I). Manila (TA 6294-REG). 2 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). 3 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 No. 2062–TAJ). 4 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 No. 2196–TAJ). 5 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 No. 2359–TAJ). 6 ADB. 2008. Technical Assistance to the Republic of Tajikistan for Preparing the Transport Sector Master Plan. Manila (TA 4926-TAJ). 7 ADB. 2009. Technical Assistance for the Governance and Capacity Development Initiative. Manila (TA 7277-REG). 8 ADB. 2009. Validation Report for Tajikistan. Manila. 9 ADB. 2000. Report and Recommendations of the President to the Board of Directors: Proposed Loan to the Republic of Tajikistan for the Road Rehabilitation Project. Manila (Loan No.1819–TAJ).