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Tajikistan, Dushanbe–Kyrgyz Border Road Rehabilitation Project

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Tajikistan, Dushanbe–Kyrgyz Border Road Rehabilitation Project Completion Report Project Number: 34569 Loan Number: 2062-TAJ August 2010 Tajikistan: Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase 1) CURRENCY EQUIVALENTS Currency Unit – Tajik somoni (TJS) At Appraisal At Project Completion 15 November 2003 31 December 2009 TJS1.00 = $0.3274 $0.22988 $1.00 = TJS3.0544 TJS4.3500 ABBREVIATIONS ADB – Asian Development Bank CAREC – Central Asia Regional Economic Cooperation EIRR – economic internal rate of return GDP – gross domestic product ICB – international competitive bidding M&E – monitoring and evaluation MOTC – Ministry of Transport and Communication NCB – national competitive bidding OFID – OPEC Fund for International Development OPEC – Organization of the Petroleum Exporting Countries PIU – project implementation unit PRC – People’s Republic of China TA – technical assistance VOC – vehicle operating cost NOTES (i) The fiscal year (FY) of the government ends on 31 December. (ii) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director H. Wang, Transport and Communications Division, CWRD Team leader F. Nuriddinov, Project Implementation Officer, CWRD Team members L. Chernova, Assistant Project Analyst, CWRD N. Kvanchiany, Senior Project Assistant, CWRD 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. CONTENTS Page BASIC DATA MAP OF PROJECT LOCATION I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 5 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 8 J. Performance of Consultants, Contractors, and Suppliers 9 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 12 D. Preliminary Assessment of Sustainability 12 E. Environmental, Sociocultural, and Other Impacts 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 15 APPENDIXES 1. Project Framework 2. Summary of Socioeconomic Impact Assessment 3. List of Road Maintenance Equipment Purchased under the Project 4. Project Costs and Financing Plan 5. Annual Disbursements 6. Comparison of Appraisal and Actual Project Implementation Schedule 7. Chronology of Major Events 8. Organization Chart 9. Status of Compliance with Loan Covenants 10. Technical Assistance Completion Report 11. Summary of Project Packages 12. Summary of Road Subsector in Tajikistan 13. Traffic Analysis and Revised Forecast 14. Economic Reevaluation BASIC DATA A. Loan Identification 1. Country Tajikistan 2. Loan Number 2062-TAJ(SF) 3. Project Title Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase 1) 4. Borrower Tajikistan 5. Executing Agency Ministry of Transport and Communication 6. Amount of Loan SDR10,476,000 7. Project Completion Report Number PCR:TAJ 1172 B. Loan Data 1. Appraisal – Date Started 7 June 2003 – Date Completed 16 June 2003 2. Loan Negotiations – Date Started 12 November 2003 – Date Completed 14 November 2003 3. Date of Board Approval 18 December 2003 4. Date of Loan Agreement 5 March 2004 5. Date of Loan Effectiveness – In Loan Agreement 3 June 2004 – Actual 15 April 2004 – Number of Extensions 0 6. Closing Date – In Loan Agreement 31 December 2008 – Actual 31 December 2008 – Number of Extensions 0 7. Terms of Loan – Interest Rate 1.0% per year during grace period and 1.5% per year thereafter – Maturity 32 years – Grace Period 8 years ii 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 19 January 2005 21 April 2009 51 months Effective Date Original Closing Date Time Interval 15 April 2004 31 December 2008 57 months b. Amount (SDR million) Last Category or Subloan Original Revised Amount Undisbursed Allocation Allocation Disbursed Balancea C/W Dushanbe–Kyrgyz Border Road 7,811,273 7,811,273 7,385,989 425,284 C/W Rural Roads 779,727 779,727 660,073 119,654 Equipment 687,349 687,349 687,187 162 Consulting Service 988,651 988,651 972,564 16,087 IDC 209,000 209,000 169,188 39,812 Contingency 0 0 0 0 Total 10,476,000 10,476,000 9,875,001 600,999 C/W = Civil Works. IDC = interest during construction, SDR = special drawing rights. a The undisbursed loan amount of SDR600,999 was canceled on 21 April 2009. 9. Local Costs (Financed) – Amount ($ million) 1.72 – Percent of Local Costs 59.93% – Percent of Total Cost 7.38% C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 16.8 20.43 Local Currency Cost 6.8 2.87 Total 23.6 23.30 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 2.6 2.42 ADB Financed 15.0 14.90 OPEC Fund 6.0 5.98 Total 23.6 23.30 IDC Costs Borrower Financed 0.3 0.00 ADB Financed 0.3 0.26 OPEC Fund 0.0 0.00 Total 0.6 0.26 ADB = Asian Development Bank, IDC = interest during construction, OPEC = Organization of the Petroleum Exporting Countries. iii 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Base Cost 1. Civil Works a. Dushanbe–Darband Road 15.2 18.91 b. Rural Roads 2.0 1.46 2. Maintenance Equipment 1.0 0.99 3. Consulting Services 1.6 1.68 B. Contingencies 1. Physical Contingency 2.0 0.00 2. Price Contingency 1.2 0.00 C. Interest During Construction 0.6 0.26 Total (A+B+C) 23.6 23.30 4. Project Schedule Item Appraisal Actual Estimate Date of Contract with Consultants September 2004 24 December 2004 Completion of Engineering Designs September 2003 Civil Works Contract for Dushanbe–Kyrgyz Border Road Date of Award September 2004 20 January 2005 Completion of Work December 2007 24 September 2008 Civil Works Contract for Rural Roads Date of Award 14 October 2006 Completion of Work 29 August 2008 Equipment and Supplies March 2005 Dates First Procurement January 2006 Last Procurement August 2006 Completion of Equipment Installation September 2005 August 2006 Start of Operations Completion of Tests and Commissioning December 2007 31 December 2008 Beginning of Start-up January 2008 1 January 2009 5. Project Performance Report Ratings Ratings Development Implementation Objectives Progress Implementation Period From 18 Dec 2003 to 17 Oct 2009 Satisfactory Highly Satisfactory iv D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Fact-Finding 11/02/2003– 5 30 d,t,I,c,b 21/02/2003 Appraisal 07/06/2003– 4 30 d,t,h,g 16/06/2003 Inception 09/06/2004– 2 12 t,g 14/06/2004 Review 1 29/11/2004– 2 6 t, 01/12/2004 Review 2 20/06/2005– 2 8 t,g 23/06/2005 Review 3 05/06/2006– Midterm Reviewb 21/08/2006– 2 12 d,g 26/08/2006 Review 4 07/02/2008– 14/02/2008 Review 5c 17/11/2008– 5 30 d,I,g,j,k 26/11/2008 Project Completion Review d 17/09/2009– 4 30 a,b,d,f,k 31/12/2009 a a - engineer, b - financial analyst, c - counsel, d - economist, e - procurement consultant or specialist, f - control officer, g - project officer, h - poverty reduction specialist, l - environmental specialist, j - resettlement specialist, k - project analyst, t - transport specialist. b The mission was mainly for the midterm review of the project, and also for fact-finding for technical assistance for the transport sector masterplan. c The mission was the midterm review mission for the Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase 2) but the mission also had discussions with the executing agency on several issues regarding other projects. d The mission comprised the Project Implementation Officer, Senior Project Assistant, Assistant Project Analyst from the Central and West Asia Department, and transport economist / staff consultant. I. PROJECT DESCRIPTION 1. The Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase 1) 1 aimed to rehabilitate part of the Central Asia Regional Economic Cooperation (CAREC) corridors 3 and 5 and Tajikistan’s key national and international transport corridor that provides the primary link between Dushanbe and the Rasht Valley to the northeast and, during winter, between the northern Sugd region and the rest of Tajikistan. Heavy fighting during Tajikistan’s civil war in the mid-1990s took place in the project area, which has a poverty incidence of 91%. By improving transport facilities in the area, the project supported the realization of the full potential of numerous agriculture and other poverty alleviation projects being implemented in the project area by other international organizations. The project facilitated national development and regional cooperation by rehabilitating the corridor connecting Afghanistan and Tajikistan to the People’s Republic of China (PRC) and other countries in the region. The project also aimed to address the national problem of road maintenance by increasing financing for maintenance of national roads and developing a maintenance system for rural roads. Finally, the project supported the strategy of the government and the Asian Development Bank (ADB) to rehabilitate infrastructure and develop international transport corridors. 2. The main objectives of the project were to reduce poverty by reducing the cost of road transport and improving access to markets, and to increase regional trade and cooperation by rehabilitating the road linking Dushanbe to Nurobod (Darband) in the Rasht Valley and on to the Kyrgyz Republic and the PRC.
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