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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1963 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 19.70 MILLION (US$27.50 MILLION EQUIVALENT) AND A PROPOSED GRANT IN THE AMOUNT OF SDR 19.70 MILLION (US$27.50 MILLION EQUIVALENT) TO THE Public Disclosure Authorized KYRGYZ REPUBLIC FOR THE THIRD PHASE OF THE CENTRAL ASIA REGIONAL LINKS PROGRAM (CARS‐3) SEPTEMBER 18, 2018 Transport Global Practice EUROPE AND CENTRAL ASIA Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective August 31, 2018) Currency Unit = Kyrgyz Som (KGS) KGS69.020 = 1 US$ US$0.015 = KGS 1 Special Drawing Currency Unit = Rights (SDR) SDR0.714 = 1 US$ US$1.401 = 1 SDR FISCAL YEAR January 1 ‐ December 31 Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Jose Luis Irigoyen Practice Manager: Binyam Reja Task Team Leader(s): Cordula Rastogi; Aidai Bayalieva ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic IPIG Investment Project Implementation Group ADB Asian Development Bank ISA International Standards on Auditing ANS Air Navigation System JICA Japan International Cooperation Agency ATC Air Traffic Control JSC Joint Stock Company ATM Air Traffic Movement KAI Kyrgyz Aviation Institute BCP Border Crossing Point KWPF Korea World Bank Partnership Facility BGI Business Growth Initiative MfD Maximizing Finance for Development BP Bank Policy MoCIT Ministry of Culture, Information and Tourism CAA Civil Aviation Agency MoTR Ministry of Transport and Roads CAREC Central Asia Regional Economic Cooperation MSR Maritime Silk Road CARs Central Asia Regional Links NCB National Competitive Bidding CARs‐1 CARs – Phase 1 NPV Net Present Value CARs‐2 CARs – Phase 2 NSDS National Sustainable Development Strategy CARs‐3 CARs – Phase 3 OP Operational Policy CARs‐4 CARs – Phase 4 PAD Project Appraisal Document CBA Cost‐Benefit Analysis PBA Performance‐Based Allocation CBTA Cross‐Border Transport Agreement PDO Project Development Objective CCTV Closed‐circuit television POM Project Operational Manual CE Citizen Engagement RAP Resettlement Action Plan CIS Commonwealth of Independent States RF Results Framework CPS Country Partnership Strategy RKDF Russian‐Kyrgyz Development Fund DMO Destination‐level Management Organization RPF Resettlement Policy Framework EASA European Aviation Safety Agency SDR Special Drawing Rights EBRD European Bank for Reconstruction and Development SLA Service Level Agreement EC European Commission SME Small Medium Enterprise EEU Eurasian Economic Union SNIP Design Standards EIA Environmental Impact Assessment SOE Statement of Expenditures EIRR Economic Internal Rates of Return SOP Series of Projects EMP Environmental Management Plan SORT Systematic Operations Related Risks ESIA Environmental and Social Impact Assessment SREB Silk Road Economic Belt EU European Union SSC Significant Safety Concern FM Financial Management SSP State Safety Program GDP Gross Domestic Product SWISS Swiss Embassy GIZ Die Deutsche Gesellschaft für Internationale TTFS Transport and Trade Facilitation Strategy Zusammenarbeit GNI Gross National Income TIKA Turkish Cooperation and Development Agency GRSF Global Road Safety Facility TOR Terms of Reference FM Financial Management TRACECA Transport Corridor Europe‐Caucasus‐Asia ICAO International Civil Aviation Organization TSA Tourism Satellite Accounts ICB International competitive bidding TSCC Transport Sector Coordinating Committee IDA International Development Association UN United Nations IDB Islamic Development Bank UNESCO United Nations Educational, Scientific and Cultural Organization IFAC International Federation of Accountants UNIDO United Nations Industrial Development Organization IFC International Finance Corporation UNWTO United Nations World Tourism Organization IFR Interim Financial Report USAID US Agency for International Development IMF International Monetary Fund USOAP Universal Safety Oversight Audit Programme INDC Intended Nationally Determined Contributions WEF World Economic Forum under the 2015 UNFCCC Paris Agreement IPF Investment Project Financing The World Bank Central Asia Regional Links Program - Phase 3 - Kyrgyz Republic (P159220) BASIC INFORMATION BASIC INFO TABLE Country(ies) Project Name Kyrgyz Republic, Third Phase of the Central Asia Regional Links Program (CARs‐3) Kazakhstan, Tajikistan Project ID Financing Instrument Environmental Assessment Category Investment Project P159220 B‐Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [✓] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement‐linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non‐fragile Country [ ] Project‐Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man‐made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 05‐Oct‐2018 30‐Nov‐2024 Bank/IFC Collaboration No Proposed Development Objective(s) The project development objective of the proposed Third Phase of the Central Asia Regional Links Program (CARs‐3 Project) is to increase regional connectivity and support sustainable tourism development in Issyk‐Kul Oblast. Components The World Bank Central Asia Regional Links Program - Phase 3 - Kyrgyz Republic (P159220) Component Name Cost (US$, millions) Regional Connections, Associated Facilities and Equipment in Issyk‐Kul Oblast 46.00 Aviation Safety and Service Provision 4.50 Sustainable Tourism Development in Issyk‐Kul Oblast 3.50 Project Management and Implementation 1.00 Organizations Borrower: Ministry of Finance Implementing Agency: Ministry of Transport and Roads PROJECT FINANCING DATA (US$, Millions) SUMMARY‐NewFin1 Total Project Cost 55.00 Total Financing 55.00 of which IBRD/IDA 55.00 Financing Gap 0.00 DETAILS‐NewFinEnh1 World Bank Group Financing International Development Association (IDA) 55.00 IDA Credit 27.50 IDA Grant 27.50 IDA Resources (in US$, Millions) Credit Amount Grant Amount Total Amount Kyrgyz Republic 27.50 27.50 55.00 National PBA 17.50 17.50 35.00 Regional 10.00 10.00 20.00 The World Bank Central Asia Regional Links Program - Phase 3 - Kyrgyz Republic (P159220) Total 27.50 27.50 55.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2019 2020 2021 2022 2023 2024 2025 Annual 0.00 2.00 6.00 8.00 10.00 12.00 17.00 Cumulative 0.00 2.00 8.00 16.00 26.00 38.00 55.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Macroeconomics, Trade and Investment, Social, Urban, Transport & Digital Development Rural and Resilience Global Practice Climate Change and Disaster Screening This operation has been screened for short and long‐term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project‐relevant gaps between males and females, especially in light of Yes country gaps identified through SCD and CPF b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or Yes men's empowerment c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK‐RATING TOOL (SORT) Risk Category Rating 1. Political and Governance High 2. Macroeconomic Substantial 3. Sector Strategies and Policies Moderate The World Bank Central Asia Regional Links Program - Phase 3 - Kyrgyz Republic (P159220) 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary High 7. Environment and Social Substantial 8. Stakeholders Moderate 9. Other Moderate 10. Overall Substantial COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✔ Performance Standards for Private Sector Activities OP/BP 4.03 ✔ Natural Habitats OP/BP 4.04 ✔ Forests OP/BP 4.36 ✔ Pest Management OP 4.09 ✔ Physical Cultural Resources OP/BP 4.11 ✔ Indigenous Peoples OP/BP 4.10 ✔ Involuntary Resettlement OP/BP 4.12 ✔ Safety of Dams OP/BP 4.37 ✔ Projects on International Waterways OP/BP 7.50 ✔ Projects in Disputed Areas OP/BP 7.60 ✔ The World Bank Central Asia Regional Links Program - Phase 3 - Kyrgyz Republic (P159220) Legal Covenants Sections and Description Institutional Arrangements The Recipient shall, through MOTR, not later than one (1) month after the Effective Date, establish and thereafter maintain two working groups to provide technical support for matters concerning tourism and aviation during Project implementation, with responsibilities acceptable to the Association and set forth in the Project Operational Manual. Sections and Description Institutional Arrangements The Recipient shall, through MOTR, not later than one (1) month after the Effective Date employ or contract the services of a financial management specialist under terms of reference and with qualifications and experience satisfactory to the Association. Sections and Description
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