Completion Report

Project Number: 45432-002 Grant Number: 0301 Loan Number: 8259 (OFID) September 2018

Tajikistan: Central Asia Regional Economic Cooperation Corridor 6 (Ayni–Uzbekistan Border Road) Improvement Project

This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011.

CURRENCY EQUIVALENTS

Currency Unit – somoni (TJS)

At Appraisal At Project Completion (6 August 2012) (31 March 2017) TJS1.00 = $0.2099 $0.1234 $1.00 = TJS4.765 TJS8.1022

ABBREVIATIONS

AADT – annual average daily traffic ADB – Asian Development Bank ADF – Asian Development Fund CAREC – Central Asia Regional Economic Cooperation CWRD – Central and West Asia Department, ADB EIRR – economic internal rate of return GAP – gender action plan GDP – gross domestic product ICB – international competitive bidding IEE – initial environment examination IRI – international roughness index km – kilometers MOT – Ministry of Transport NGO – nongovernment organization OFID – OPEC Fund for International Development OPEC – Organization of the Petroleum Exporting Countries LARP – land acquisition and resettlement plan NCB – national competitive bidding PAM – project administration manual PCR – project completion review PIU – project implementation unit ECSPMC – engineering, construction supervision and project management consultant PPRR – project procurement-related review QCBS – quality- and cost-based selection TA – technical assistance VOC – vehicle operating cost

NOTES

(i) The fiscal year (FY) of the Government of Tajikistan ends on 31 December. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 31 December 2018. (ii) In this report, "$" refers to United States dollars.

Vice-President Wencai Zhang, Operations 1 Director General Werner Liepach, Central and West Asia Department (CWRD) Director Pradeep Srivastava, Country Director, Tajikistan Resident Mission, CWRD

Team leader Farrukh Nuriddinov, Senior Project Officer, CWRD Team members Mufara Hamidova, Operations Assistant, CWRD Nana Kvanchiany, Project Analyst, CWRD Mutabarkhon Rahimova, 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 i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 2 A. Project Design and Formulation 2 B. Project Outputs 2 C. Project Costs and Financing 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Consultant Recruitment and Procurement 5 H. Gender Equity 6 I. Safeguards 7 J. Monitoring and Reporting 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Effectiveness 9 C. Efficiency 10 D. Sustainability 11 E. Development Impact 12 F. Performance of the Borrower and the Executing Agency 13 G. Performance of Cofinanciers 13 H. Performance of the Asian Development Bank 14 I. Overall Assessment 14 IV. ISSUES, LESSONS AND RECOMMENDATIONS 14 A. Issues and Lessons 14 B. Recommendations 15

APPENDIXES 1. Design and Monitoring Framework 16 2. List of Equipment Procured under the Project 19 3. Project Cost at Appraisal and Completion 20 4. Project Cost by Financier 21 5. Disbursement of ADB Grant and Loan Proceeds 22 6. Contract Awards of ADB Grant Proceeds 24 7. Appraisal and Actual Implementation Schedules Compared 25 8. Chronology of Major Events 26 9. Organization Structure for Project Implementation 28 10. Summary of Contract Packages 29 11. Achievement of the Gender Action Plan 30 12. Status of Compliance with Major Grant Covenants 38 13. Economic Reevaluation 45 14. Summary of the Socioeconomic Impacts 49 15. Contribution to the ADB Results Framework 51 16. Project Ratings 52

BASIC DATA

A. Grant/Loan Identification

1. Country Republic of Tajikistan 2. Grant number and financing sources 0301, Asian Development Fund (ADF) Loan number and financing sources 8259, OPEC Fund for International Development (OFID) 3. Project title Central Asia Regional Economic Cooperation Corridor 6 (Ayni–Uzbekistan border road) Improvement Project 4. Recipient Republic of Tajikistan 5. Executing agency Ministry of Transport 6. Amount of grant $100 million (ADF) Amount of loan $14 million (OFID) 7. Project completion report number TAJ 1711 8. Financing modality Project grant and loan

B. Grant/Loan Data

1. Appraisal Grant 0301 – Date started 31 May 2012 – Date completed 13 June 2012 Loan 8259 – Date started 31 May 2012 – Date completed 13 June 2012

2. Grant/Loan negotiations Grant 0301 – Date started 6 August 2012 – Date completed 7 August 2012 Loan 8259 – Date started 30 October 2012 – Date completed 30 October 2012

3. Date of Board approval Grant 0301 11 September 2012 Loan 8259 12 September 2012

4. Date of grant/loan agreement Grant 0301 2 October 2012 Loan 8259 30 October 2012

5. Date of grant/loan effectiveness Grant 0301 – In grant agreement 1 November 2012 – Actual 5 November 2012 – Number of extensions none Loan 8259 – In loan agreement 28 January 2013 – Actual 3 December 2012 – Number of extensions none

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6. Project completion date Grant 0301 – Appraisal 30 June 2016 – Actual 31 January 2017 Loan 8259 – Appraisal 30 June 2016 – Actual 30 September 2016

7. Grant/loan closing date Grant 0301 – In grant agreement 30 September 2016 – Actual 31 March 2017 – Number of extensions one Loan 8259 – In loan agreement 30 September 2016 – Actual 30 September 2016 – Number of extensions none

8. Financial closing date Grant 0301 – Actual 7 August 2017 Loan 8259 – Actual 8 November 2016

9. Terms of loan Loan 8259 – Interest rate 1.5% per annum on the principal amount of the loan withdrawn and outstanding – Service charge 1% per annum on the principal amount of the loan withdrawn and outstanding – Maturity 21 years – Grace period 5 years beginning 30 October 2012

10. Disbursements

a. Dates Initial Final Time Interval Disbursements Disbursement Grant 0301 10 December 2012 7 August 2017 56 Months Loan 8259 04 February 2013 8 November 2016 45 Months Effective Date Actual Closing Time Interval Date Grant 0301 5 November 2012 31 March 2017 53 Months Loan 8259 3 December 2012 30 September 2016 46 Months

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b. Amount ($) Grant 0301 Increased Cancelled Last Original during during Revised Amount Undisburse Allocation Implementatio Implementation Allocation* Disbursed d Balance** Category (1) n (2) (3) (4=1+2–3) (5) (6 = 4–5) 1． Works 1A. Project Road 71,400,000 34,146 71,365,854 71,365,854 0 1B. Border 2,500,000 382,010 2,882,010 2,882,009 1 Infrastructure and Feeder Roads 1C. Project Road 18,089,093 18,089,093 18,089,092 1 2. Equipment 2,500,000 127,300 2,372,700 2,372,700 3. Consulting Services 5,600,000 309,657 5,290,343 5,283,611 6,732 4. Unallocated 18,000,000 18,000,000 Total 100,000,000 18,471,103 18,471,103 100,000,000 99,993,266 6,734 * The last grant reallocation was made on 23 March 2017. ** The undisbursed amount was cancelled at grant financial closure

Loan 8259 Increased Cancelled Last Original during during Revised Amount Undisbursed Allocation Implementation Implementation Allocation Disbursed Balance Category (1) (2) (3) (4=1+2–3) (5) (6 = 4–5) 1． Works 14,000,000 - - 14,000,000 14,000,000 - Total 14,000,000 - - 14,000,000 14,000,000 -

C. Project Data

1. Project cost ($ million)

Cost Appraisal Estimate Actual Foreign exchange cost 114.00 113.99 Local currency cost 22.00 21.34 Total 136.00 135.33

2. Financing plan ($ million)

Cost Appraisal Estimate Actual Implementation cost Borrower financed 22.00 21.34 ADB financed 100.00 99.99 OFID financed 14.00 14.00 Total 136.00 135.33 IDC costs and other financial charges* Borrower financed ADB financed OFID financed Total 136.00 135.33 * At appraisal, the financial charges for the OFID loan weren’t included in the project cost estimations. ADB = Asian Development Bank, IDC = interest during construction. OFID = OPEC Fund for International Development

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3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Base Cost 1. Rehabilitation and reconstruction of the Ayni– 85.40 103.45 Panjakent–Uzbekistan border road 2. Road safety improvement 2.50 2.37 3. Border infrastructure upgrade and community 2.50 2.88 development 4. Consulting services for engineering, supervision and 5.60 5.28 project management, and project auditing 5. Land acquisition and resettlement 0.20 0.18 6. Project management 0.80 0.46 7. Taxes and duties 20.70 20.70 Subtotal (A) 117.70 135.33 B. Contingencies 1. Physical 13.90 2. Price 4.40 Subtotal (B) 18.30 Total (A+B) 136.00 135.33 Note: Numbers may not sum precisely because of rounding

4. Project Schedule Item Appraisal Estimate Actual A. Civil Works for Ayni–Uzbekistan border road Procurement Q2 2012–Q4 2012 Q2 2012–Q4 2012 Implementation Q1 2013–Q4 2015 Q4 2012–Q1 2017 B. Road safety improvement Strategy and action plan Q2 2014–Q3 2015 Road safety audit Q3 2013–Q2 2017 Training and campaign Q3 2016–Q4 2016 Equipment procurement Q2 2013–Q1 2014 Q2 2015–Q4 2015 C. Civil works for border infrastructure improvement Procurement Q2 2014–Q3 2014 Q1 2015–Q4 2015 Implementation Q4 2014–Q3 2015 Q4 2015–Q4 2016 D. Civil works for Feeder Roads Procurement Q4 2014–Q1 2015 Q1 2015–Q2 2015 Implementation Q2 2015–Q1 2016 Q3 2015–Q4 2016

5. Project Performance Report Ratings Implementation Period Ratings From 1 September to 31 December 2012 On Track From 1 January to 31 December 2013 On Track From 1 January to 31 December 2014 On Track From 1 January to 31 December 2015 On Track From 1 January to 31 December 2016 On Track From 1 January to 31 September 2017 On Track

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D. Data on Asian Development Bank Missions No. of No. of Specialization Date Person- Persons of Members Name of Mission Days Fact finding 31 May–13 June 2012 4 42 t, p, b, c Inception* 22–31 October 2012 3 15 t, p, a Review* 15–28 April 2013 2 28 t, p Review* 23 September–4 October 2013 3 36 t, p, a Consultation* 26 November–7 December 2013 3 36 t, p, d Review* 16 December 2014–20 January 2015 2 74 p, a Midterm Review* 7–25 September 2015 2 36 p, a Review* 25 April–20 May 2016 3 21 p, a, o Completion 18–30 December 2017 4 26 p, a, a, n a = analyst, b = public sector officer, c = counsel, d = director, n = consultant, o = operations assistant, p = project officer, t = transport specialist * mission combined with other projects in the project areas.

I. PROJECT DESCRIPTION

1. At the request of the government of the Republic of Tajikistan, the Asian Development Bank (ADB) approved a grant of $100 million on 11 September 2012 for the Central Asia Regional Economic Cooperation (CAREC) Corridor 6 (Ayni–Uzbekistan border road) Improvement Project.1 The project aimed to improve the infrastructure and performance of the transport corridor connecting Tajikistan and Uzbekistan, while fostering regional trade and cooperation among the countries along the corridor and other Central Asian countries.2

2. Tajikistan’s geographic isolation and mountainous territory (comprising over 90% of the country) results in high transport and logistics costs, which makes it uncompetitive in international and regional markets. In its poverty reduction strategy for 2010–2012, 3 the Government of Tajikistan noted the importance of infrastructure in promoting economic development and reducing poverty, in line with the main goals of the National Development Strategy up to 2015.4 One of the government’s main objectives was to unblock transport bottlenecks by improving roads and railways. The Zarafshan Valley is an isolated and remote region, which is prone to extreme natural events. The project road provides the only access to rest of the country and beyond. Besides, the project road is a vital link in the national transport network, and is regionally strategic as it provides a trade corridor with Uzbekistan, particularly for northern Tajikistan. As a result of the project road, more than 300,000 inhabitants of the region will gain access to markets, education, and health facilities. The region's capacity to develop diverse industries, including agriculture, mining, and tourism, will also be enhanced. The project was classified as part of the CAREC Corridor 6 and was included in the list of CAREC medium-term (2011–2015) priority projects.5

3. At appraisal, the project envisaged three outputs: (i) rehabilitate and reconstruct 113 (kilometers) km of road between Ayni–Panjakent and the border with Uzbekistan, (ii) improve road safety, and (iii) upgrade Sarazm border post infrastructure and improve infrastructure of local communities. The initial project cost was estimated at $136 million, which was to be financed by the $100 million ADB grant, an OPEC Fund for International Development (OFID) loan of $14 million, and the government’s contribution of $22 million. The executing agency was the Ministry of Transport (MOT). The project impact was enhanced regional cooperation and inclusive economic growth in Tajikistan, particularly in Sughd province. The project outcome was improved connectivity and mobility along the CAREC Corridor 6 (Ayni–Uzbekistan border road). The project was scheduled to be implemented over 3.5 years, with completion scheduled for March 2016.

1 ADB. August 2012. Report and Recommendation of the President to the Board of Directors on the Proposed Grant and Administration of Loan to Republic of Tajikistan: Central Asia Regional Economic Cooperation Corridor 6 (Auni– Uzbekistan Border Road) Improvement Project. Manila. 2 The project road is part of the historic Silk Road; it runs east–west following the Zarafshan River through the valley. 3 International Monetary Fund (IMF). 2010. Poverty Reduction Strategy of the Republic of Tajikistan for 2010–2012. IMF Country Report No. 10/104. Washington, D.C. 4 Republic of Tajikistan. 2007. National Development Strategy of the Republic of Tajikistan for the Period to 2015. Dushanbe. 5 Endorsed at the 10th Ministerial Conference on CAREC in Baku, Azerbaijan in November 2011 and confirmed at the 11th CAREC Transport Sector Coordinating Committee Meeting in Manila, Philippines in May 2012, these represent the operational priority projects of CAREC for the next 5 years, and form an integral part of medium-term priority projects for the 10-year CAREC strategic framework (CAREC 2020).

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II. DESIGN AND IMPLEMENTATION

A. Project Design and Formulation

4. The project design and formulation was aligned with two core operational areas of ADB’s Strategy 2020: infrastructure, and regional cooperation and integration.6 The project was included in the country operations business plan for Tajikistan, 2012–2014.7 Project preparation technical assistance (TA) was provided to design and formulate the project.8 The TA team produced a good analysis of the project background and needs, carried out consultations with stakeholders, properly formulated the project scope, and adequately accessed the project’s outcome and impact. Government ministries and agencies were fully involved in the design and preparation process, which ensured their ownership of the project. The project design also incorporated key lessons from ADB’s experience in the transport sector of Tajikistan and other Central Asian countries.

5. The project design was highly relevant to the government’s development priorities and to ADB’s country partnership strategies for Tajikistan at appraisal and completion. At completion, 112.7 km of road along the corridor had been rehabilitated or reconstructed (para. 6); a road safety improvement program had been implemented (para. 8); the cross-border infrastructure at the Sarazm border post had been substantially improved and 60 km of feeder roads had been improved (para.10). The outputs and outcomes of the project have met the development objectives of the government and of ADB as outlined in the country partnership strategy for Tajikistan, 2010-2014.9 The design and monitoring framework (DMF) is in Appendix 1.

B. Project Outputs

6. Road rehabilitation and reconstruction. At appraisal, a road section of 113.0 km from Ayni to the Uzbekistan border was to be rehabilitated and improved; upon completion, 112.7 km had been rehabilitated or reconstructed, including a 55.0 km section of category IV mountainous road (from the Ayni roundabout to km 55.0) and a 57.7 km section of category III plain road (from km 55.0 to km 112.7). Road improvement works included detailed design, removal of existing asphalt surfacing, pavement reconstruction, improvement of drainage structures and construction of culverts, construction of new off-road service areas, construction of pedestrian lanes and bus stops, installation of road furniture, installation of signs and markings for traffic safety and control, and reconstruction of existing bridges. Under the project, 31 bridges were rehabilitated and/or reconstructed. During implementation, major scope changes included:

(i) Widening the road section in Panjakent city according to real needs and site permissions (to 6–20 meters wide). (ii) Providing electrical lines and poles (about 18 km) and parking areas with toilets and a mother’s room in Panjakent city. (iii) Maintenance and strengthening of two suspension bridges adjacent to the main road. (iv) Additional works aimed to improve facilities along the road and improve road safety (e.g., hard shoulders and pedestrian lanes).

6 ADB. 2008. Strategy 2020: The Long Term Strategic Framework of the Asian Development Bank, 2008-2020. Manila. 7 ADB. 2011. Country Operations Business Plan: Tajikistan, 2012–2014. Manila 8 ADB. 2012. Technical Assistance to the Republic of Tajikistan for the Roads Improvement Project. Manila. 9 ADB. 2010. Country Partnership Strategy: Tajikistan, 2010–2014. Manila

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7. The project road was designed as per national standards for a category IV highway.10 During construction, the engineering, construction supervision and project management consultant (ECSPMC)11 inspected and assessed the civil works to ensure that the specifications were being met. As of ADB’s project completion review (PCR) mission in December 2017, no serious quality issues had been reported. The PCR mission observed that the improved road was of good quality, that drainage, safety, and environment protection facilities had been installed, and that pedestrian lanes and bus stops had been provided along the road.

8. Road safety improvement. At appraisal, it was envisaged that the project will promote community road safety awareness and improve MOT’s road safety management capacity. Upon completion:

(i) A National Road Safety Strategy and Action Plan has been developed that included detailed analysis of road safety in the country and recommendations on improving road safety, plus a road safety action plan.12 The MOT has approved this action plan and it is being implemented. (ii) The ECSPMC carried out road safety audits for the project road in 2013 and 2017; these audits focused mainly on safety concerns during construction. The MOT was aware of the findings and recommendation of these audits and incorporated them into project implementation.13 (iii) Public campaigns and trainings on road safety have been provided to local communities in the project area.14

9. Equipment procured under the project included road maintenance vehicles and equipment, including two sets of mobile weighing machines for axle load control. The list of equipment procured is in Appendix 2.

10. Border infrastructure and community development. At appraisal, it was envisaged that the infrastructure of the Sarazm border post would be improved and that about 60 km of village feeder roads would be constructed under the project. Upon project completion, improvements at the border post included a new administrative building, a new customs control building (terminal), two new checkpoints, an external toilet facility, a water reservoir, a fire water reservoir, a septic tank, parking lots, street lighting, and landscaping. The PCR mission observed that these improvements had been completed and that all new infrastructure was of high quality and ready for operation (para. 40). The project also contributed to the social development of local communities by improving approximately 60 km of village feeder roads.15 A selection committee comprising MOT staff, local road maintenance units, district (Ayni and Panjakent) representatives, village representatives, and the ECSPMC selected the feeder roads to be rehabilitated. During construction, rehabilitation of two small bridges (in Dupula and Urmetan) were added to the scope to expand project benefits to women and roadside communities. The PCR mission visited the improved feeder roads and observed that the roads were of high quality, were in good condition, met design standards, and had significantly improved connectivity and mobility among affected

10 Category IV highway: two lanes with 6-meter carriage way and a 0.5 meter paved shoulder on each side. Category III highway: two lanes with a 7-meter carriage way and a 0.5-meter paved shoulder on each side. 11 Kocks Consult GmbH, Germany. 12 MOT. August 2015. National Road Safety Strategy and Action Plan, prepared by Kocks Consult GmbH. Dushanbe. 13 Kocks Consult GmbH. 2017. Pre-opening Stage Road Safety Audit Report. Dushanbe. 14 The trainings and campaigns were mainly conducted by the nongovernment organization Young Generation Tajikistan, which had been engaged by the ECSPMC. 15 About 30 km of feeder roads in each district (Ayni and Panjakent), comprising 1–5 km sections.

4 villages.

C. Project Costs and Financing

11. At appraisal, the total project cost was estimated at $115.3 million equivalent, which consisted of basic costs and contingencies.16 Upon completion, the actual cost of the project was $114.6 million (excluding taxes and duties), which is about 0.6% lower than the cost estimated at appraisal. The cost of the main road increased by $18.05 million (21.1%), mainly because of additional works identified during implementation and price adjustments for the civil works contracts. The cost overrun for works was fully covered by the cost contingencies. The estimated cost of the border post and community infrastructure was revised after detailed engineering design and that increased by $0.38 million (15.2%). The project management cost declined substantially (42.5%) compared with the appraisal estimate.17 Appendix 3 compares the actual project costs with the appraisal estimates.

12. Under the financing plan envisaged at appraisal, the project would be financed by a $100 million ADB grant (74% of the total cost); an OFID loan $14 million (10%), and the government’s contribution of $22 million (16%), including taxes and duties of $20.7 million.18 The actual financing percentages remained the same. Appendix 4 compares the actual project financing with the appraisal estimates. The OFID loan was administered by ADB on a partial administration basis; it financed civil works exclusively.

D. Disbursements

13. Grant and loan proceeds were disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time). All disbursements of the ADB and OFID funds were carried out using direct payment procedures. For the OFID loan, the borrower submitted separate withdrawal applications using the cofinancier’s form to claim eligible project expenditures. Disbursements under the government portion of the financing covered land acquisition and resettlement, incremental administrative expenses, and other miscellaneous costs; these were carried out in accordance with regulations of the government on cofinancing projects financed by multilateral financing organizations.

14. Disbursements of the ADB grant went smoothly. The first disbursement was made on 10 December 2012 and disbursement peaked in 2015. The grant proceeds were reallocated several times to meet actual project needs. At the government’s request, the grant closing date was extended by 6 months, from 30 September 2016 to 31 March 2017, to ensure the successful completion of rehabilitation works and the continuous engagement of the ECSPMC. The ADB grant account was closed on 7 August 2017, with total disbursement of $99,993,266 (99.9% of the total grant amount); the undisbursed amount of $6,734 was cancelled. The OFID loan was duly closed by 30 September 2016 with the loan proceeds ($14 million) having been fully disbursed. The annual and cumulative disbursements and contract awards under the ADB grant and the OFID loan are presented in Appendix 5 and Appendix 6.

16 Excluding taxes and duties estimated at $20.7 million, which were exempted by the government. 17 A portion of the government contribution was in-kind and not included in the project cost. 18 The OFID loan has a 20-year term including a grace period of 5 years and an annual interest rate of 2.5% (inclusive of a 1.0% service charge).

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E. Project Schedule

15. The grant was signed on 2 October 2012, became effective on 5 November 2012, and was closed on 31 March 2017. The original closing date (30 September 2016) was extended once—until 31 March 2017—at the request of the recipient. The request for a 6-month extension was made because of significant floods and mudflows in the project area, which damaged the project road, bridges, and other structures, necessitating additional rehabilitation works. The civil works contracts and the contract with the ECSPMC were extended and amended to accommodate these additional works. Appendix 7 compares the actual implementation schedule with the schedule at appraisal; a chronology of the main events is in Appendix 8.

16. To expedite preconstruction activities, ADB approved retroactive financing and advance procurement action on 2 October 2011. ADB consented to have the TA consultant temporarily serve as the engineer to supervise preconstruction activities. The contract for the civil works of the main road was awarded on 10 October 2012, as scheduled. Implementation of the border post infrastructure improvement component completed about 1 year later than scheduled, mainly because more time was required to finalize the scope and the detailed design. Additionally, the construction of the feeder roads was delayed by about 18 months because extra time was needed for selection of the road sections and procurement of the contracts.

F. Implementation Arrangements

17. At appraisal, it was arranged that the MOT would be the executing agency for the project. The project implementation unit (PIU) under the MOT, established through first ADB-financed road project in Tajikistan in 2001, was responsible for project management and implementation and was assessed to have the required experience and skills.19 PIU has been responsible for implementing all ADB financed projects in Tajikistan since it was established. The institutional arrangements agreed upon at appraisal remained in effect during implementation. The MOT supervised project implementation closely, carrying out periodic reviews and approving time- bound action plans. The executive director of the PIU was supported by professional and administrative staff with expertise in financial accounting, road engineering, construction supervision, social aspects, and contract management. To strengthen project implementation, PIU recruited a project manager to work full-time in the field. With assistance from the ECSPMC, the PIU fulfilled its role in implementing the project and coordinating with related government agencies. The PIU prepared and submitted all required progress reports to ADB. For the border- infrastructure-improvement component, the Customs Service under the Government of Tajikistan actively participated in the project design and implementation. The Customs Service seconded one staff member to the PIU and provided technical support during project implementation. Appendix 9 outlines the institutional arrangements for implementation of the project.

G. Consultant Recruitment and Procurement

18. As envisaged at appraisal, an international firm was recruited as the engineering, construction supervision and project management consultant (ECSPMC) in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). Under advance contracting, the recruitment of the ECSPMC began in early 2012 via quality- and cost-based selection (QCBS). Unforeseen delays in internal government procedures delayed the recruitment process, and the contract was finally signed on 28 February 2013. When the civil

19 ADB. 2000. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Republic of Tajikistan for Road Rehabilitation Project. Manila

6 works contract was extended to 31 March 2017, the ECSPMC’s contract was also extended. The performance of the ECSPMC was satisfactory.

19. Four civil works contract packages were procured under the project, including one for the main road, two for the feeder roads, and one for the border post infrastructure. All civil works contracts were procured following ADB’s Procurement Guidelines (2010, as amended from time to time). Under advance contracting, procurement for the civil works contract for the main road began in early 2012 by using international competitive bidding (ICB). An international contractor (Xinjiang Beixin Road and Bridge Group Co. Ltd) was selected and the contract was signed in October 2012. During implementation, the contract for the main road underwent three variations to reflect additional works, adjust the contract price, and extend the completion date. Procurement of contracts for the border post infrastructure and the feeder roads was delayed due to cost estimates done at appraisal that were found to be insufficient for completing the desired facilities under these contracts. Time taken in selection of the feeder roads sections also contributed to delay in award of contracts. Two works contracts for the feeder roads were signed in June 2015 and their completion was extended by 9 months to 30 November 2016. One contract for the border post infrastructure was signed in October 2015 and its completion was extended by 5 months to 30 November 2016. These contracts were procured by using national competitive bidding (NCB). The extension in completion date of these contracts was given to allow the contactors (Xinjiang Beixin Road and Bridge Group Co. Ltd, and Ltd Sohtmon) more time to complete additional works.

20. The performance of civil works contractors was satisfactory. The contractor for the main road mobilized immediately after signing the contract. However, the civil works for the main road encountered start-up delays mainly because of poor weather and slow mobilization of the scheduled personnel and equipment. The ECSPMC also found that the contractor for the main road was weak in preparing project reports. With joint efforts of the ECSPMC, MOT, and PIU the contractor improved its performance and completed the main road along with additional works recommended by the government and safety audits by the extended completion date. The contractors for the feeder-roads and border-post components also performed satisfactorily, completing all civil works on time.

21. A summary of the contract packages is in Appendix 10.

H. Gender Equity

22. The gender categorization of the project was effective gender mainstreaming. The project has effectively improved gender equity and empowerment in the project areas. The achievements of the gender action plan (GAP) prepared for the project are summarized in Appendix 11. The GAP was implemented successfully; 14 of the 17 actions were completed and 6 of the 8 targets were achieved. The project road included 25 km of paved sidewalks; 62 bus stops; 48 km of street lightening along the project road in settled areas of Ayni and Panjakent districts; 4 mother and child rooms (three the main road and one in Sarazm border crossing point), four public, women- inclusive toilets; four parking lots; and 3 rest areas equipped with stalls for women to sell agricultural products. The project benefited the population of roadside communities, of whom 50.3% were women in the project area as of December 2015. In addition, civil rights trainings covered more than 200 women in Ayni and Panjakent, while more than 100 women were trained in basic business and financial literacy, project and business plan development, AIDS and STI prevention, healthy lifestyles, and safe migration. During project implementation, 29 out of the total 538 local employees hired by the project were women, which was significant considering cultural restrictions for women in Tajikistan and considering that much of the work was in construction. PCR mission also noticed many women working in roadside businesses, operating small shops

7 and selling farm products along the project road.

I. Safeguards

23. Environmental safeguards. The project was classified as category B for environment, as defined in ADB’s Safeguard Policy Statement (2009). At appraisal, due diligence confirmed that the project would not affect environmentally sensitive areas and would not result in significant negative environmental impacts. The MOT prepared an initial environmental examination (IEE) in accordance with ADB’s Safeguard Policy Statement (2009) and national legislation and regulations. The IEE was disclosed on the ADB website on 6 July 2012, and the MOT carried out related consultations with project-affected people. The IEE indicated that the project would have temporary and reversible environmental impacts during construction. All potential and associated environmental impacts were to be addressed through implementation of the mitigation measures proposed in the IEE. During detailed design, MOT prepared an environmental management plan, which became the basis for environmental monitoring. The project budget contained provisions to cover environmental mitigation and monitoring. The contractors took precautions to prevent adverse environmental impacts during construction. The MOT, with assistance from the ECSPMC, complied with the environment safeguard requirements and carried out regular environmental impact monitoring of air quality, water pollution, soil erosion, borrow pits, noise and vibration, fuel and chemical storage, and waste management. The ECSPMC prepared biannual environmental monitoring reports and submitted them to ADB, which disclosed the reports on its website. The ECSPMC and the PIU confirmed that the contractors had implemented their environmental action plans in accordance with their contract obligations, and that no serious issues had been identified.

24. Involuntary resettlement. The project was classified as category B for involuntary resettlement.20 At appraisal, it was anticipated that the project’s major social impacts would be the relocation of three residential houses and possible temporary income loss for several shops in the village of Dar-Dar (Ayni District) during construction of the main project road. The MOT prepared a land acquisition and resettlement plan (LARP) in line with ADB’s Safeguard Policy Statement (2009) and national legislation and regulations. The LARP was disclosed to affected persons through public consultations and also disclosed on the ADB website on 10 July 2012. During implementation, the MOT assigned a dedicated staff member to implement the LARP. During construction works of the main road few design changes were adopted to include important additional structures such as drains and community access roads, which triggered additional impacts on displaced persons’ properties. These changes required timely updating and implementation of the LARP. The MOT assessed these additional impacts on displaced persons and subsequently incorporated its findings into an addendum to the LARP. According to the main LARP and the addendum to the LARP, the project permanently impacted 22 households’ residential and/or commercial land plots and 167 people, of which 3 households were displaced to new land lots of equal value in the vicinity of the project road. The government provided compensations and additional resettlement allowances to cover land preparation costs, transportation, and livelihoods assistance to displaced persons. Similarly, the government provided compensations for temporary income loss of business during construction to 38 business owners and 4 workers (shopkeepers). The government also compensated jamoat (subdistrict) authority for restoration of two public and communal structures affected by construction works on the main road. Additionally, six significantly affected households and six vulnerable households received allowances from the government to support their livelihoods. All project-relevant safeguard documents (e.g., LARPs, safeguards due diligence reports, and final

20 Project impact is not significant, with limited physical or economic displacement and fewer than 200 persons significantly affected.

8 compliance monitoring reports on the LARP) were disclosed on the MOT and ADB websites.

25. Prior to commencement of the construction works in 2013, the Panjakent city government initiated a city development general plan. This included a subproject to expand and widen the city’s central avenue, which necessitated demolition of private structures and resulted in the displacement of 83 persons, of which 48 were business owners and their workers whose residential structures and shops were affected. The government of Panjakent city (i) compensated and provided new land plots to all affected persons and (ii) constructed and provided new shops to business owners and their workers prior to demolishing their structures. Although widening the Panjakent central avenue was not part of the ADB project, it was defined as an associated facility adjoining an ADB project, which falls under ADB’s Safeguard Policy Statement. Thus, the project reviewed the additional land acquisition and resettlement activities for the central avenue, and supported the government of Panjakent to properly register impacts, conduct consultation meetings, disclose information, and establish a grievance redress mechanism. The MOT submitted the final report on implementation of land acquisition and resettlement document for Panjakent city to ADB on 22 January 2015.

26. Indigenous people. At appraisal, the project was classified as category C for indigenous (the project would not affect indigenous peoples, as described in ADB’s Safeguard Policy Statement).

J. Monitoring and Reporting

27. The project complied with most covenants specified in the grant agreement and project documents; no serious instances of noncompliance were identified. The PIU, assisted by the ECSPMC, was proactive in carrying out all tasks, including procurement, financial management, quality control, environment compliance, and benefit monitoring. During implementation, the government provided counterpart funds and ensured that the project was implemented successfully. ADB found that the financial audit reports for the project were in order, and deemed the unqualified audit opinions acceptable. The project complied with all covenants related to environmental and social resettlement safeguards. The state budget allocation for road improvement and maintenance has increased substantially, reaching TJS4,384 per km in 2016 as compared to TJS3,000 per km in 2013. However, it is still lower than the TJS6,000 requested in the grant covenants by 2016. According to the MOT, the targeted allocation was not reached because of the external shocks to the economy during 2014-2017, mainly owing to economic recession in Russia. The target of TJS6,000 per km was set up at appraisal but now looks too optimistic. The actual fiscal allocation for routine and periodic road maintenance remains inadequate to meet the growing road network’s needs, but is generally sufficient to sustain the project. Appendix 12 outlines the status of compliance with the financing covenants.

III. EVALUATION OF PERFORMANCE

A. Relevance

28. The project is rated relevant as the project’s intended outcome—improved connectivity and mobility along the Ayni–Uzbekistan border road—was strategically aligned with (i) the country’s development priorities and strategies; and (ii) ADB’s corporate, country, and sector strategies. Tajikistan is a landlocked country with a population of 8.65 million (as of 2016). With some of the world’s highest mountains, Tajikistan faces obvious obstacles to its development. Its mountainous terrain, poor transport infrastructure, and general remoteness are natural barriers to investment and international trade. In 2007, the government issued a new 10-year National

9

Development Strategy (para. 3), which targeted three main goals: (i) promotion of sustainable economic growth, (ii) improved public administration, and (iii) development of human resources. The government’s strategy for the road subsector is to rehabilitate and maintain roads; develop an efficient road transport industry by encouraging more private sector participation in the provision of transport services; emphasize cost recovery in financing road maintenance; and rehabilitate critical parts of the road network and transport services, including international road corridors that will facilitate international trade. The project is relevant at appraisal and completion; no changes in the project design were required.

29. ADB has been a partner of Tajikistan since 1998. As of the end of 2016, ADB had cumulatively approved more than $1.5 billion in concessional loans, grants, and TA to the country. Of that sum, about 33.5% was for the transport sector. With ADB’s support, more than 650 km of Tajikistan’s roads had been rehabilitated as of 2016, creating international trade links and bringing social services to the country’s population. ADB’s country partnership strategy for Tajikistan, 2016–2020 emphasizes widening Tajikistan’s economic base by exploring its domestic and international competitive advantages and improving the country’s investment climate to create jobs with higher incomes. Under the CAREC program, ADB supports the rehabilitation of regional transport corridors and facilitation of regional trade. The primary objectives of the project were to increase regional connectivity, reduce transport costs, and strengthen the economic competitiveness of the project areas. The project also strived to improve access to markets and social services for local communities; and to stimulate the development of agriculture, tourism, and mining to create job opportunities and improve the region’s living standards. The project design was highly relevant to the government’s development priorities and ADB’s country partnership strategy. The project design incorporated the key lessons from ADB’s experience in the transport sector of Tajikistan and other Central Asian countries, and was prepared in consultation with stakeholders and development partners to ensure that the project did not overlap with existing development-partner-financed projects.

B. Effectiveness

30. The project is rated effective in achieving its outcome of improved connectivity and mobility along the CAREC Corridor 6 (Ayni–Uzbekistan border road). In particular, (i) the travel time between Ayni–Panjakent and the Uzbekistan border declined to 1.4 hours for cars and taxis and 1.8 hours for buses and trucks at project completion, compared with 3.5 hours on average for all vehicles at appraisal; 21 (ii) reported traffic accidents on the project road declined from 20 accidents in 2010 to 8 accidents in 2015.22 At the same time, political concerns delayed reopening of the Sarazm border post, that was reopened to vehicular traffic only in March 2018 — 11 months after project completion. Data on cross-border traffic will be available only in 2019, but it is expected that the fully operational border road and border facilities will increase cross-border traffic and promote economic cooperation and trade with Uzbekistan as well with other countries along the CAREC Corridor 6. Achievement of the project outcome was attributable to the substantial achievement of the project outputs, as detailed in Appendix 1.

31. Road rehabilitation and reconstruction. The project road is a vital link in the national transport network, and is regionally strategic as it provides a trade corridor with Uzbekistan. Before the project, the road condition had deteriorated substantially because of a lack of funds

21 MOT internal statistics and MOT. 2017. Completion Report. Republic of Tajikistan: Central Asia Regional Economic Cooperation Corridor 6 (Ayni-Uzbekistan Border Road) Improvement Project. Dushanbe. 22 Traffic Police Department annual traffic accident reports.

10 for road maintenance in Tajikistan.23 The project has substantially improved the condition of the road and the corridor performance. Under the project, 112.7 km of road from Ayni to the Uzbekistan border was reconstructed to a national standard of class III and/or class IV, with asphalt pavement and much better facilities. Vehicles now travel 60–80 km per hour on average, compared with 30–40 km per hour before the project. This has substantially reduced vehicle operation costs and passenger traveling time, with the consequent benefit of promoting socioeconomic development in the project area. According to national traffic surveys, traffic on the project road increased 20.8% per year on average during 2013–2017. It is predicted that traffic—particularly cross-border traffic—will increase sharply with the reopening of the Sarazm border post on 1 March 2018.

32. Road safety improvement. The MOT with Kocks Consult GmbH’s support has developed and approved a National Road Safety Strategy and Action Plan (para. 8). Under this plan, the relevant government departments, including the MOT, the traffic police of the Ministry of Internal Affairs, and the Road Traffic Safety Commission implement the short term, medium term and long term measures for road safety improvement. The government is in the process of formulating and revising the related legislation. The National Road Safety Strategy and Action Plan has contributed significantly to improving road safety legislation and road safety in general. During project implementation, the ECSPMC carried out two road safety audits—in 2013 and 2017. The audit identified a number of safety concerns related to the project road. The findings and recommendation of the safety audits were incorporated in the project and are also being adopted by other road projects. During implementation, the MOT and the ECSPMC provided trainings and public campaigns on road safety to the local traffic police and road users in the project areas. All of these activities have improved the government’s institutional capacity for road development and management, and increased road safety awareness among local communities.

33. Border infrastructure and community development. Sarazm is an important border crossing point with Uzbekistan. Before the project, the infrastructure at this border post was poor. Now the border post consists of completely new administration buildings, customs and quarantine facilities, parking lots, and other infrastructure. The border road and the border facilities are fully operational to service cross-border traffic and will effectively promote economic and trade cooperation with Uzbekistan and with other countries along the corridor. Environmental monitoring reports confirmed that the project did not generate serious environmental issues (para. 23). The LARP was properly implemented and implementation reports were disclosed on the ADB website (para. 24). The implementation of the GAP has effectively improved women’s equity and empowerment in the project areas (para. 22).

34. The project was successful in complying with the social and environmental safeguard and mitigation measures recommended in the environmental management plan and the LARP. The GAP was also successfully implemented (para. 22 and Appendix 11).

C. Efficiency

35. The project was assessed to be economically viable at completion. To assess the efficiency of the project, the ADB PCR mission re-evaluated the economic internal rate of return (EIRR) of the main project road using a methodology similar to that adopted at appraisal. The economic benefits were calculated by comparing “with-project” and “without-project” scenarios. These benefits included (i) savings in vehicle operation costs (VOCs), and (ii) savings in passenger travel time. The EIRR was calculated at 13.9% for the project road, which is lower than

23 At appraisal, the international roughness index (IRI) for the project road was measured at 7–15.

11 that estimated at appraisal (18.7%). The lower-than-projected EIRR was mainly caused by higher investment costs than anticipated for the main road, and by the inclusion of fewer benefit categories than anticipated in the assessment. 24 The EIRR is above the 12% discount rate recommended by ADB at appraisal. The EIRR was subjected to sensitivity analysis to test different scenarios (related to maintenance costs and benefits). The sensitivity analysis indicated that the project continued to be economically viable for all tested scenarios. A 20% maintenance cost increase combined with a 20% benefit reduction would result in an EIRR of 10.5%. The details of the economic reevaluation are in Appendix 13.

36. The grant was declared effective 2 months after ADB Board approval. The first civil works contract for the main road was awarded before grant effectiveness, while the main consulting services contract for ECSPMC was awarded 4 months after grant effectiveness. The remaining three works contracts for feeder roads and border post infrastructure were awarded in the course of project implementation although with some delays (para. 19). The project was substantially completed by the initial grant closing date (30 September 2016). The one project extension, for 6 months, was mainly attributed to major floods and mudflows in the project area, which damaged roads, bridges, and other structures and necessitated additional rehabilitation works. The project was completed at 99.5% of its original estimated cost. The government counterpart funds were released on time. The project was rated “on track” throughout its implementation period; this reflected the proactive administration and supervision of the project by the executing agency (the MOT), the PIU, and ADB, as well as a close and continued dialogue among project stakeholders.

37. Based on the above, the project is rated efficient in achieving its intended outcome and key outputs.

D. Sustainability

38. The project is rated likely sustainable. This rating considers the institutional and financial arrangements in place for road construction and maintenance, traffic patterns in the project area, road safety, and potential environmental and social impacts.

39. Road construction and maintenance. The MOT is responsible for road construction and maintenance in Tajikistan. After the expiry of the defect liability period in January 2018, responsibility for maintenance of the project roads, including main roads and feeder roads, passes to the MOT’s regional road maintenance depots in Panjakent and Ayni districts. 25 Road maintenance depots typically have staffs of about 70 and own the required road maintenance equipment and machinery, including those purchased under the project (Appendix 2). Temporary laborers carry out daily road cleaning. The PCR mission observed that the depots were functioning and routine maintenance of the project roads was in place. The budget for road maintenance is allocated through state fiscal allocations. Under the national strategy, the state budget for road maintenance in the country has increased steadily from 2013 to 2016. For the Panjakent depot, the expected budget for 2018 is TJS0.943 million, while for the Ayni depot the expected budget is TJS0.979 million for 2018. However, these sums are insufficient to maintain the project road by international standards, especially taking into account new roads and increasing traffic in the country. Other steps can be taken to sustainably address challenges pertaining to roads in Tajikistan. The government should mobilize more funds for road

24 At appraisal, the benefits of mining and agriculture development were included in the economic evaluation. However, because data was not available to gauge the benefits of these industries, they were not included in the economic reevaluation. 25 The Panjakent depot maintains 291.8 km of roads and the Ayni depot maintains 327.1 km of roads.

12 maintenance, especially for roads in remote areas. Data must also improve: the government and the MOT require more data, better monitoring tools and systems, and strengthened capacity to make evidence- and needs-based investment and planning decisions.

40. Border reopening and traffic growth. Along the Tajikistan–Uzbekistan border are 16 border crossings. The border crossing at Sarazm reopened in March 2018 after being closed for 8 years. Infrastructure at the Sarazm border post has substantially improved, and facilities constructed and/or rehabilitated under the project are fully operational. Traffic on the main project road is still light, consisting mostly of passenger vehicles shuttling commuters between Ayni and Panjakent. The reopening of the border crossing at Sarazm will lead to a sharp increase in traffic, especially for large trucks. According to MOT’s estimates, traffic on the project road would jump at least 20% per year; this rapid rate of traffic growth will create work opportunities for locals, simulate socioeconomic development in the project area, and strengthen links between communities in the project area.

41. Long-term environmental and social sustainability. At appraisal, due diligence confirmed that the project would not pass through any environmentally sensitive areas and would not result in significant negative environmental impacts. The anticipated environmental impacts would be temporary and reversible. During implementation, the MOT, with assistance from the ECSPMC, complied with the environment safeguards and no serious issues were identified. The main negative environmental impact associated with operation of the new infrastructure was projected to be vehicle emissions. However, traffic volume remained low on the project roads at the time of this report. Nevertheless, the government should pay attentions to this issue and implement measures to minimize potential negative impacts arising from increased vehicle emissions. At appraisal, it was anticipated that project’s major social impact would be relocation of three residential houses and possible temporary loss of income during road construction. During implementation, the MOT carefully implemented the LARP, and affected people were compensated in advance for demolition of their structures and/or land loss in the form of new structures and/or land plots. No negative social impacts have been identified.

E. Development Impact

42. The project’s development impact is rated satisfactory. During implementation, the ECSPMC developed a project performance monitoring system based on the DMF and carried out monitoring and evaluation surveys. The surveys focused on villages near the project road. A summary of the findings follows, and more details are in Appendix 14.

(i) The project has significantly promoted economic growth in Tajikistan and facilitated regional cooperation. Gross domestic product grew at an average rate of 6.9% during 2012–2016. The project road has generated extensive job opportunities for local people, and rapidly increasing traffic has been a boon to roadside businesses. Many households surveyed in the villages expressed a desire to work for such business, which is a positive indication that the project will improve livelihoods. (ii) The average vehicle speed on the main project road has increased from 30–40 km/hour before the project to 60–80 km/hour. Vehicle traveling times have declined by more than 50%. The drivers interviewed on the project road during PCR mission confirmed that the improved road has led to a substantial reduction in vehicle operation costs. The surveys revealed that 71%, of households in project-impacted villages were highly satisfied with the ease and convenience of travel along the newly rehabilitated project road. (iii) Poverty was alleviated in the project area through (i) increased income for the poor

13

in the project area because of increased access to employment opportunities in roadside businesses, road construction, and road maintenance; (ii) improved access for the poor to markets and social services; and (iii) reduced prices of transport services, food, and other daily necessities because of lower transport costs. (iv) During implementation, 29 out of the total 538 local employees hired by the project were women, which was significant considering cultural restrictions for women in Tajikistan and considering that much of the work was in construction (para. 22). (v) Public health workshops held during project implementation included (i) several seminars on HIV awareness and protection, and (ii) seminars on first aid, environmental protection in road construction, and health and safety. The project team distributed manuals and booklets to intensify distribution of HIV prophylaxis, promote healthy lifestyles, and increase knowledge of HIV and AIDS. (vi) The nongovernment organization engaged by the ECSPMC conducted training activities in line with the project objective of improving institutional capacity related to road safety. As a result, accidents and deaths and injuries on project roads have declined drastically. However, the flip side is that many vehicles travel at higher speeds, creating risks to local people. The government should further enforce the road safety policy and implement measures for road safety improvement as defined in the National Road Safety Strategy and Action Plan (para. 32).

43. The implementation and operation of the project has contributed significantly to the ADB results framework (Appendix 15). 26 Traffic volume reached 255,209 vehicle-km per day on the main project road in 2017 (the first year that the main project road was fully operational), which far exceeded the 165,347 vehicle-km anticipated at appraisal. Traffic volume on the feeder roads was 52,680 vehicle-km per day in 2017 (no target was provided at appraisal).

F. Performance of the Borrower and the Executing Agency

44. The performance of the borrower and the MOT as executing agency were satisfactory. The government established an adequate organizational framework for efficient and timely project management and implementation. Government agencies such as the Ministry of Finance, the Customs Service, and the MOT worked closely together during project formulation and implementation. The MOT coordinated the project well and regularly monitored project progress. The PIU was responsible for day-to-day project management and, with assistance from the ECSPMC, prepared the required monthly and semi-annual progress reports. External chartered auditors acceptable to ADB audited the project financial accounts and statements and submitted audit reports to ADB on time. The government provided the required counterpart funds, while the MOT and the PIU supported ADB’s review missions during project preparation and implementation, and at completion.

G. Performance of Cofinanciers

45. The project was cofinanced by an OFID loan of $14 million. The loan agreement was signed on 30 December 2012 and made effective on 3 December 2012 with a closing date of 30 September 2016. The OFID loan was used exclusively to fund civil works for the rehabilitation of the Ayni–Panjakent–Uzbekistan border road. The OFID loan was partially administered by ADB and its disbursement was in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time). Upon project completion, the OFID loan was duly closed by 30

26 ADB. 2012. Review of the ADB Results Framework. Manila.

14

September 2016 with the loan proceeds having been fully dispersed. The loan financial account was closed on 8 November 2016. No major issues were experienced working with OFID, although disbursement of some funds was delayed because OFID required the EA to submit original withdrawal applications.

H. Performance of the Asian Development Bank

46. The performance of ADB was satisfactory. The project in its early stages was administered and supervised by ADB headquarters, with assistance from ADB’s Tajikistan Resident Mission. Responsibility for overall project administration was transferred to the resident mission effective December 2014, which helped foster closer coordination between ADB and the MOT, and strengthened project monitoring and administration. During implementation, ADB conducted seven project review and administration missions, including an inception mission in 2012 and a midterm review mission in 2015. ADB missions and staff supported the government and the PIU in all aspects of project implementation. ADB support included approving advance actions, reviewing and approving procurement procedures and documents, and responding to government requests in a timely fashion. With ADB headquarters and the Tajikistan Resident Mission working effectively together, ADB was able to quickly identify and resolve potential problems related to project implementation. In borrower’s completion report, the government recognized ADB’s role in supporting project implementation and advice on technical issues. The ADB project team also coordinated closely with the Organization of Petroleum Exporting Countries (OPEC) in managing the OFID loan.

I. Overall Assessment

47. Overall the project is rated successful (Appendix 16). The project is relevant to both the government’s development objectives and to ADB’s country partnership strategy. The project was designed appropriately and implemented without major changes in scope. The project is rated effective in achieving its outcomes. The project’s outputs and outcomes demonstrate that it was an effective intervention that substantially improved the efficiency of the country’s highway network and enhanced the MOT’s capacity in road development. The project is rated efficient in achieving its outcomes and outputs. The recalculated EIRR indicated that the project is economically viable. The completed main project road has substantially improved connectivity and supported rapid socioeconomic development in the project area. The project has brought and will continue to bring socioeconomic benefits to the project areas. The project is rated likely sustainable. The institutional and financial arrangements for road maintenance established under the project are sound. Traffic along project roads is growing rapidly and this is having a positive impact on economic development in the project area. Meanwhile, ADB continues to provide financial and technical support for roads and highways in Tajikistan.

IV. ISSUES, LESSONS AND RECOMMENDATIONS

A. Issues and Lessons

48. Design and build contract. Civil works contracts were on a design-and-build basis. While design-and-build contracts tend to suit governments, they can also lead to scope changes during implementation and a prolonged preconstruction period. Fortunately, the scope changes for this project were not major and the extra costs were fully covered by the project contingency. For similar projects in the future, project preparation at appraisal should be strengthened, especially for projects that present topographic and geological challenges. Adequate contingencies should also be built into the cost estimations for such projects, and the selected contractors should be

15 skilled at carrying out detailed design.

49. Financial Management. The project procurement-related review (PPRR) mission conducted by ADB’s Office of Anticorruption and Integrity in 2015 identified several shortcomings in the PIU’s financial management. Those included payments being made without sufficient supporting documentation under ECSPMC’s contract and delayed processing of payments under civil works and consultancy contracts. The PPRR mission made recommendations to ensure that funds would be disbursed properly, and the PIU duly took these recommendations on board. Financial management capacity within the MOT and PIU shall be addressed under subsequent ADB transport projects in Tajikistan.27 The lesson learned is that financial management capacity should be assessed at appraisal, and that project’s should have robust mitigation measures built into the design to address capacity gaps.

50. Procurement: The PPRR mission also reviewed the process for procurement of civil works and contractors. For the civil works contracts, the mission identified weaknesses in how proposals were evaluated. Weaknesses included unclear documentation of evaluation results and line of credit concerns. For the consultancy contacts, the main issues were (i) application of shortlisting criteria was not clear, (ii) inconsistent ratings for few national experts, and (iii) lack of relevant supporting documentation to substantiate the eligibility of experts. To help ensure smoother procurement in future projects in Tajikistan, the PPRR mission has proposed several recommendations. These recommendations include holding training courses on ADB procurement procedures and providing regular updates on changes to the procurement guidelines to the MOT and PIU staff.

B. Recommendations

51. Economic corridor development. The primary objectives of the project were to increase regional connectivity and cooperation by improving access to markets and social services for impoverished local communities, and to ultimately turn this transport corridor into an economic corridor. The government should design and conduct a set of interventions to facilitate and accelerate the growth of this economic corridor by taking advantage of the newly reopened border post. Such interventions should be aimed at improving cross-border trade, financing related to export oriented industrial and agricultural projects, establishing local markets and trade centers in the project area, promoting transport and logistics services, and ultimately alleviating poverty along this corridor.

52. Timing of the project performance evaluation report. The project performance evaluation report should be prepared in the second half of 2019. By then the project road will have been in operation for about 2 years and the border post will have been opened for about 1 year. This time frame will allow the evaluation team to realistically assess traffic volume on the project road, road conditions, maintenance requirements, and socioeconomic benefits and impacts in the project area.

27 Asian Development Bank (ADB). 2016. Report and Recommendation of the President to the Board of Directors: Proposed Loan, Grant, and Administration of Grant to the Republic of Tajikistan for the Central Asia Regional Economic Cooperation Corridors 2, 5, and 6 (Dushanbe–Kurgonteppa) Road Project. Manila; Asian Development Bank (ADB). 2018. Report and Recommendation of the President to the Board of Directors: Proposed Grant for Additional Financing Republic of Tajikistan: Central Asia Regional Economic Cooperation Corridors 2, 5, and 6 (Dushanbe–Kurgonteppa) Road Project. Manila.

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Performance Project Achievements Design Summary Targets/Indicators Impact By 2020 Enhanced regional cooperation Sample-based poverty Not yet due. In 2015, 32% of the and inclusive economic growth headcount ratio in the Sughd population lives below the in Tajikistan, particularly in the province declined to 25% from national poverty line in Sughd province 48% in 2009 Tajikistan.

Per capita GDP (nominal) Not yet due. Per capita GDP increased to $1,600 from $830 increased from TJS3,898 in in 2011 2011 to TJS6,300 ($804 equivalent) in 2016. Outcome By 2016 Improved connectivity and Travel time between Ayni– Achieved. Upon completion, the mobility along the CAREC Panjakent and the Uzbekistan vehicle travel time reduced to 1.4 Corridor 6 (Ayni–Uzbekistan border reduced to 2 hours from hour for car/taxi and 1.8 hour for border road) 3.5 hours in 2010 bus/trucks.

Reported traffic accidents on the Achieved. The recorded road project road reduced by 10 from accidents in the project areas 20 in 2010 reduced from 20 times in 2010 to 8 times in 2015.

Cross-border traffic via the Delayed. Sarazm border post Sarazm border crossing point was reopened on 1 March 2018. restored to 900 vehicles/day, The actual cross-border traffic is from zero in 2011 not available yet. Outputs By 2016 1. 113 km of rehabilitated and 113 km road rehabilitated and Achieved. Upon completion, reconstructed road between reconstructed, with the 112.7 km of the regional road Ayni–Panjakent and the border international pavement from Ayni to Uzbekistan Border with Uzbekistan roughness index reduced to less was rehabilitated or than 4.0 meters per km from reconstructed with the pavement 11.0 meters per km in 2011 roughness around IRI 4.

2. Improved road safety Road safety audit and Achieved. A national road safety awareness training completed action plan was developed. (30% women), and national road Road safety audits were carried safety action plan developed out. Substantial trainings and public campaigns on road safety were provided to the local communities in the project areas (60 women out of 124 participants, or 48.4%).

Road maintenance equipment Achieved. 32 units of road and weighbridges procured and maintenance vehicles and operational equipment, including 2 sets of weighbridges, were procured and used.

Passenger crossings, road Achieved. Substantial signage, speed humps and passenger crossings, pedestrian

Appendix 1 17

Performance Project Achievements Design Summary Targets/Indicators 3. Upgraded Sarazm border street lighting installed for lanes, road signage, and street post infrastructure and improved settlements along the road lights were installed under the local communities project.

Border administrative building Achieved. Upon completion, the with separate facilities for border infrastructure was newly women constructed constructed including administrative building, customs control building, parking lots, checkpoints, external toilet building, water reservoir, fire water reservoir, septic tank, street lighting, landscaping, etc. Separate facilities for women included separate toilet and washing facilities, as well as separate room for women traveling with babies for breastfeeding and changing.

60 km village feeder roads Achieved. About 60 km of improved feeder roads were constructed, including 30 km each in Ayni and Panjakent district.

Roadside rest areas with Achieved. Roadside rest areas sanitary facilities for women with sanitary facilities (including constructed separate toilets for men and women, three mother and child rooms) were constructed in Panjakent city. Many bus shelters were provided along the project road.

Training on financial literacy, Achieved. Significant numbers business skills, and prevention of meetings and trainings were and care of HIV/AIDS and other conducted in both Panjakent and sexually transmitted infections Ayni districts, covering more 200 conducted in selected roadside women participants on civil rights communities (100 women by target groups and 100 trained) participants on basic business and finance literacy. ADB = Asian Development Bank, IRI = international roughness index, OFID = OPEC Fund for International Development Source: The ADB project completion review mission.

18 Appendix 1

SUMMARY OF PROJECT OUTPUTS

Original Scope Actual Output A. Rehabilitation and Rehabilitate and reconstruct 113 km of road between Ayni–Panjakent and the border with Uzbekistan: reconstruction of the Improve a 47-km category IV mountainous road section (from Total 112.7 km of the Ayni–Uzbekistan border road was rehabilitated Ayni–Panjakent- Ayni roundabout to km 47) and a 66-km category III plain or reconstructed, including 55.0 km category IV mountainous road Uzbekistan border section with minor rolling (from km 47 to the border with section (from Ayni roundabout to km 55+000) and 57.7 km category road Uzbekistan). III plain section road (from km 55+000 to km 112+692). A total of 31 bridges will be rehabilitated and/or reconstructed. A total of 31 bridges were rehabilitated and/or reconstructed

B. Road safety Promote community road safety awareness and improve MOT’s road safety management capacity through: improvement (i) development of a national road safety action plan A National Road Safety Strategy and Action Plan was developed, which was approved by MOT and is under implementation. (ii) project road safety audits Road safety audits were carried out for the project road in 2013 and 2017, which focused on largely on safety concerns during construction. (iii) traffic safety-related training and public campaigns Substantial trainings and public campaigns on road safety were provided to the local communities in the project areas Procure: (i) mobile weighbridges to enhance control of vehicle 2 sets of mobile weighbridges were procured to enhance control of overloading on the project road vehicles overloading on the project road. (ii) routine and periodic maintenance equipment to handle 32 units of equipment were procured under the project, which are traffic disruptions and/or road damage caused by extreme mainly routine and periodical road maintenance vehicles and natural events. equipment. C. Border infrastructure Improve the Sarazm border post infrastructure, including: upgrade and (i) constructing an administration building with amenities for The border infrastructure was improved with construction of an community travelers administrative building, a customs control building (terminal), 2 development (ii) parking areas, a warehouse checkpoints, 1 external toilet building, 1 water reservoir, 1 fire water reservoir, 1 septic tank, parking lots, street lighting, landscaping, etc. (iii) vehicle weighing scales. Contribute to the social development of local communities (i) improving approximately 60 km of village feeder roads 60 km of village feeder roads were rehabilitated, about 30 km each in Ayni and Panjakent district. (ii) constructing roadside rest areas for male and female Roadside rest areas was constructed in Panjakent city. 2 more small vendors and travelers bridges were rehabilitated in Dupula and Urmetan for expanding the benefits to women and roadside communities. (iii) providing entrepreneurship and business development The project provided variety trainings on improving institutional training for women in local communities, and anti-harassment capacity related to road project management, road maintenance and training for border staff. safety, and project monitoring and evaluation Source: the project appraisal document, the Project Implementation Unit

Appendix 2 19

List of Equipment Procured under the Project

No Description Quantity 1 Front Loader, bucket capacity 3 m3 2 2 Bulldozer 160 KW / 220 HP, 20 t operating weight 2 Wheel Excavator 108 KW / 148 HP, bucket capacity 0,8 m3, 3 2 operating weight 21 t Motor Grader 120 KW / 165 HP, blade dimension of 3.9 to 4 2 4.3m 5 Vibroroller, 10 t, 10 t static weight 2 6 Dual Drum Roller, 10 t 2 7 Crane-manipulator 1 8 Dump Truck 20t 6x4 200 KW / 275 HP 4 9 Prime Mover and 60t Trailer 1 set 10 Snow Crab 4 Excavator – Loader, excavator bucket capacity 0,2 m3, 11 2 Loader bucket capacity 1,0 m3 12 Mobile Weighing Machine for axle load control 2 set 13 Goudronator, Bitumen Sprayer, tank volume > 10 m3 1 14 Drilling Rig 1 15 Sand/Salt Distribution to be mounted to Position 8 4 Source: the Project Implementation Unit

20 Appendix 3

PROJECT COST AT APPRAISAL AND COMPLETION

Table A3: Project Costs ($ million) Appraisal Estimate Actual

Foreign Local Total Foreign Local Total Cost item Exchange Currency Cost Exchange Currency A. Base Cost Rehabilitation and reconstruction of the Ayni– 1 85.40 85.40 103.45 103.45 Panjakent-Uzbekistan border road 2 Road safety improvement 2.50 2.50 2.37 2.37 Border infrastructure upgrade and community 3 2.50 2.50 2.88 2.88 development Consulting services for engineering, supervision and 4 5.60 5.60 5.28 5.28 project management, and project auditing 5 Land acquisition and resettlement 0.20 0.20 0.18 0.18 6 Project management 0.80 0.80 0.46 0.46 7 Taxes and duties 20.70 20.70 20.70 20.70 Subtotal (A) 96.00 21.70 117.70 113.99 21.34 135.33 B. Contingencies 1 Physical 13.90 13.90 2 Price 4.10 0.30 4.40 Subtotal (B) 18.00 0.30 18.30 Total (A+B) 114.00 22.00 136.00 113.99 21.34 135.33 Note: Numbers may not sum precisely because of rounding

Appendix 4 21

PROJECT COST BY FINANCIER

Table A4.1: Project Financing ($ million) At Appraisal Actual Source Total Cost % of Total Total Cost % of Total Asian Development Bank 100.00 73.53% 99.99 73.89% OPEC Fund for International Development 14.00 10.29% 14.00 10.35% Government 22.00 16.18% 21.34 15.77% Total 136.00 100.00% 135.33 100.00% Source: the Project Implementation Unit; the ADB grant financial information system

Table A4.2: Project Cost at Completion by Financier

ADB OFID GOT % of Cost % of Cost % of Cost Total Amount Amount Amount Category Category Category A. Base Cost Rehabilitation and reconstruction of 1 the Ayni–Panjakent-Uzbekistan 89.45 86.5% 14.00 13.5% 103.45 border road 2 Road safety improvement 2.37 100.0% 2.37 Border infrastructure upgrade and 3 2.88 100.0% 2.88 community development Consulting services for engineering, 4 supervision and project 5.28 100.0% 5.28 management, and project auditing 5 Land acquisition and resettlement 0.18 100.0% 0.18 6 Project management 0.46 100.0% 0.46 7 Taxes and duties 20.70 100.0% 20.70 Subtotal (A) 99.99 73.9% 14.00 10.3% 21.34 15.8% 135.33 B. Contingencies 1 Physical 2 Price Subtotal (B) Total (A+B) 99.99 73.9% 14.00 10.3% 21.34 15.8% 135.33 Note: Numbers may not sum precisely because of rounding ADB = Asian Development Bank, OFID = OPEC Fund for International Development, GOT = government of Tajikistan Source: the Project Implementation Unit; the ADB grant and loan financial information systems

22 Appendix 5

DISBURSEMENT OF ADB GRANT AND LOAN PROCEEDS

Table A5.1: Annual and Cumulative Disbursement of ADB Grant Proceeds ($ million) Annual Disbursement Cumulative Disbursement Amount Amount Year ($ million) % of Total ($ million) % of Total 2012 10.62 10.6% 10.62 10.6% 2013 15.65 15.7% 26.27 26.3% 2014 15.83 15.8% 42.10 42.1% 2015 26.92 26.9% 69.02 69.0% 2016 19.61 19.6% 88.64 88.6% 2017 11.36 11.4% 99.99 100.0% Total 99.99 100.0% ADB = Asian Development Bank. Source: Asian Development Bank.

Figure A5.1: Projectiona and Cumulative Disbursement of ADB Grant Proceeds ($ million)

a eOps baseline projections at effectiveness Source: Asian Development Bank. eOps Baseline Projections. Remark: There were no projection changes apart from those related to bank-wide cleanup exercises.

Appendix 5 23

Table A5.2: Annual and Cumulative Disbursement of OFID Loan Proceeds ($ million) Annual Disbursement Cumulative Disbursement Amount Amount Year ($ million) % of Total ($ million) % of Total 2013 4.97 35.5% 4.97 35.5% 2014 2.36 16.9% 7.33 52.4% 2015 4.37 31.2% 11.70 83.6% 2016 2.30 16.4% 14.00 100.0% Total 14.00 100.0% OFID = OPEC Fund for International Development Source: ADB Loan Financial Information System

Figure A5.2: Projectiona and Cumulative Disbursement of OFID Loan Proceeds ($ million)

16.00 14.00 12.00 10.00 8.00

$ million 6.00 4.00 2.00 ‐ 2012 2013 2014 2015 2016 2017 Year

Projection Actual

a No baseline projections were available at project effectiveness OFID = OPEC Fund for International Development Source: the ADB grant financial information system

24 Appendix 6

CONTRACT AWARDS OF ADB GRANT PROCEEDS

Table A6.1: Annual and Cumulative Contract Awards of ADB Loan Proceeds ($ million) Annual Contract Awards Cumulative Contract Awards Amount Amount Year ($ million) % of Total ($ million) % of Total 2012 88.94 89.0% 88.94 89.0% 2013 5.29 5.3% 94.23 94.2% 2014 0.01 0.0% 94.25 94.3% 2015 5.26 5.3% 99.51 99.5% 2016 0.01 0.0% 99.52 99.5% 2017 0.48 0.5% 99.99 100.0% Total 99.99 100.0% ADB = Asian Development Bank. a Classified by contract signing dates. Source: Asian Development Bank.

Figure A6.1: Projection a and Cumulative Contract Awards of ADB Loan Proceeds ($ million)

a eOps baseline projections at effectiveness Source: Asian Development Bank. eOps Baseline Projections. Remark: There were no projection changes apart from those related to bank-wide cleanup exercises.

Appendix 7 25

APPRAISAL AND ACTUAL IMPLEMENTATION SCHEDULES COMPARED

2012 2013 2014 2015 2016 2017 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A Ayni-Uzbekistan Border Road

Procurement

Implementation

B Road Safety

Strategy and action plan

Road safety audit

Training and campaign

Equipment procurement

C Border Infrastructure

Procurement

Construction

D Feeder Roads

Procurement

Implementation

At appraisal At actual liability period

Source: The Asian Development Bank project completion review mission. The Project Implementation Unit.

26 Appendix 8

CHRONOLOGY OF MAJOR EVENTS

Date Main Event 2011 2 October ADB approval of retroactive financing and advance procurement 28 November–7 December ADB project consultation Mission 2012 31 May–13 June ADB project fact-finding mission 6–7 August Grant Negotiations (G0301) 11 September Board approval of the grant (G0301) 2 October Grant signing 10 October Contract awarded for the civil works of the main road 22 – 31 October ADB Project inception mission 30 October Signing of agreement for the OFID loan (L1463P) 5 November Grant effectiveness 9 November 2012 Commencement of the civil works for the main road 3 December 2012 Effectiveness of OFID loan (1463P) 10 December Initial disbursement of the grant 2013 Contract signed with engineering, construction supervision and 28 February project management consultant 15–28 April ADB project review mission 23 September–7 December ADB project review mission 26 November–7 December ADB project consultation mission 2014 30 May Contract signed with the financial auditor for 2013 16 December–20 January 2015 ADB project review mission 2015 Contract awarded for the civil works of the feeder road 9 June improvement Commencement of the civil works for the feeder road 23 June improvement 6 July Contract signed with the financial auditor for 2014

7–25 September ADB project midterm review mission Contract awarded for the civil works of the border infrastructure 20 October improvement Commencement of the civil works for the border infrastructure 3 November improvement 2016 25 April – 20 May ADB project review mission

Appendix 8 27

Date Main Event 21 June Contract signed with the financial auditor for 2015 and 2016 30 September Original grant closing date 30 September Original and actual closing date for the OFID loan Extended completion date for the civil works contracts of border 30 November infrastructure and the feeder roads 2017 31 January Extended completion date for civil works contract of the main road The Taking Over Certificate was issued for the civil works of the 23 February main road Extended completion date for the engineering, construction 31 March supervision and project management consultant 31 March Actual grant closing date 7 August Financial closure of the ADB grant 18–30 December ADB project completion review mission ADB = Asian Development Bank, OFID = OPEC Fund for International Development Source: The ADB project completion mission

28 Appendix 9

ORGANIZATION STRUCTURE FOR PROJECT IMPLEMENTATION

OPEC ADB Ministry of Transport Custom Service

Local Governments

PIU Executive Director Lawyer

Head Accountant Deputy Chief Administrator Executive Engineer Director

Chief Financier Procurement Supporting Engineers Staff Staff

Cashiers Resettlement Project Staff Manager at field

Project Civil Work Equipment Management Contractors Supplier

ADB = Asian Development Bank. OPEC = Organization of the Petroleum Exporting Countries, PIU = Project Implementation Unit Source: The project implementation unit.

Appendix 10 29

SUMMARY OF CONTRACT PACKAGES

Consultant/Contractor Procurement Contract Contract Actual Cost ADB Financing ($) No. Package /Supplier Mode Dates Cost ($) ($) Grant 0301 Loan 8259 A. Civil Works Rehabilitation and reconstruction of Xinjiang Beixin Road and G08743 the Ayni–Panjakent-Uzbekistan ICB 10/10/2012 103,454,946 103,454,946 89,454,946 14,000,000 Bridge Group Co. Ltd border road Xinjiang Beixin Road and G13454 Rural roads repairing in Ayni region NCB 09/06/2015 974,409 974,409 974,409 Bridge Group Co. Ltd

Rural roads repairing in Panjakent Xinjiang Beixin Road and G13455 NCB 09/06/2015 960,769 960,769 960,769 city Bridge Group Co. Ltd

Sarazm border infrastructure G14158 LTD SOHTMON NCB 20/10/2015 946,831 946,831 946,831 improvement

B. Equipment Xinjiang South China Procurement of road maintenance G13456 Construction Machinery ICB 10/06/2015 2,372,700 2,372,700 2,372,700 equipment Co. C. Consulting services for engineering, construction supervision and project management, and project auditing Engineering, construction Kocks Consult GmbH, G09270 supervision and project QCBS 28/02/2013 5,253,402 5,253,402 5,253,402 Germany management service HODA VASI G11611 Financial audit for fiscal year 2013 others 30/05/2014 11,038 11,038 11,038 CHOWDHURY & CO.

G13695 Financial audit for fiscal year 2014 GRANT THORNTON others 06/07/2015 5,637 5,637 5,637

JV HODA VASI Financial audit for fiscal year 2015- G15717 CHOWDHURY & CO. IN others 21/06/2016 13,534 13,534 13,534 2016 ASSOCIATE WITH *** Total (A+B+C) 113,993,266 113,993,266 99,993,266 14,000,000 ADB = Asian Development Bank, ICB = international competitive bidding, NCB = national competitive bidding, QCBS = quality- and cost-based selection. Source: The ADB loan financial information system; the Project Implementation Unit

30 Appendix 11

ACHIEVEMENT OF THE GENDER ACTION PLAN

1. Women in Tajikistan are frequently abandoned when their husbands migrate out of the country in search for employment, leaving women alone with limited support for their new role as a household head. This leads to women having double burden of productive and reproductive roles mainly unpaid and being mainly involved in low paid work in the agriculture and social sectors.28

2. Project Compliance with the National Strategies and Programs to prevent HIV/AIDS in Tajikistan. The existence of HIV/AIDS in Tajikistan is recognized at the governmental level29, as evidenced by a number of actions taken and aimed at creating a legal framework and a set of socio - economic measures to resist the spread of HIV infection, reduce stigma and discrimination against people living with HIV. There are risks related to HIV/AIDS and sexually transmitted infections from the increased mobility of people, the increased numbers of drivers of international and transiting vehicles, and the influx of labor during construction. Due to little knowledge on HIV/AIDS labor migrants ignore to check their health. The project was timely and effective allowing HIV/AIDS awareness raising campaigns to bring migrants returns to the HIV/AIDs centers to take a HIV/AIDS tests for further action and prevention of spreading the disease.

3. The project also aimed to construct the “Sarazm” border crossing building with all necessary infrastructure and facilities with consideration of gender needs and demands, including washing facilities for men and women, room for women traveling with babies for breastfeeding, separate customs checking line for men and women.

4. Despite the numerous small and micro enterprises functioning in the rural areas, women face discrimination and harassment from officials and other male entrepreneurs30,due to the lack of business knowledge and skills, their legal rights and access to resources, which discourages them from running their own businesses.

5. To address the causes hampering female entrepreneurship in the rural areas and enabling rural women’s access to business knowledge and skills, the Project was designed with gender inclusive approach to make sure women also benefit from the project. The Gender Action Plan developed for the Project envisaged that women’s role as household decision-makers and effective income contributors is strengthened through (i) capacity building on citizen rights, (ii) skills building to start small business and facilitate income-generating opportunities and (iii) a training program for HIV/AIDs and sexually transmitted infections.

6. The Gender and Development Analysis is based on the literature review, study of the outcomes of the implemented GAP, including the progress reports of the national nongovernment organizations (NGOs) involved in implementation of the outputs of the GAP. The analysis is also supported by the secondary data, and project records maintained by ADB and the executing agency.

7. The Committee on Women and Family Affairs of the Republic of Tajikistan - national women machinery, was the leading partner in implementing the GAP.

8. The analysis found out that in general the project was highly relevant to address women

28Asian Development Bank (ADB), 2006, Tajikistan Country Gender Assessment. ADB. Manila 29The law of the Republic of Tajikistan On Combating Human Immunodeficiency Virus and Acquired Immunodeficiency Syndrome, enacted 28 December 2005 30Asian Development Bank (ADB), 2006, Tajikistan Country Gender Assessment. ADB. Manila

Appendix 11 31 needs and problems they face. Involvement of national women NGOs with successful track records in gender mainstreaming, into implementation of the Project’s gender component significantly contributed to effectiveness of achieving the GAP outputs. Financial management training, skills/vocational training, training on civil rights and distribution of small grants for income generation activities had positive impacts on the lives of women.

9. Strong gender profile of the involved women NGOs along with the commitment showed by the Committee of Women and Family Affairs under the Government of Tajikistan, positively impacted the project performance as well as rural women in the Project area.

10. The analysis of GAP targets suggests that majority of them are successfully achieved as planned. The details of the GAP targets and achieved results are shown in the Table 1 given at the end of the appendix.

11. Based on the ex-post analysis of the GAP, its implementation has been successfully implemented with 14 out of 17 of GAP gender targets and activities achieved by the end of the Project. Women benefited from the project, improved their economic situation, and were able to participate in and contribute to the project activities. The project opened opportunities for vulnerable women to start their own businesses, be self-employed and launch income-generating activities.

12. To Implement one the main GAP's part by the local with local civil society organization in close partnership with the State Executive Local Power Authorities (Hukumats) of Ayni and Panjakent districts, Departments on Women and Family Affairs of Ayni and Panjakent districts, pilot roadside jamoats in both regions were conducted consecutive trainings to the target groups of women of roadside communities on civil rights, HIV/AID prevention and on safe migration, as well as on business development, financial literacy and grant proposal writing. All the tasks for the Project’s GAP implementation were successfully completed.

13. Together with the committees for women and families of both regions and the pilot jamoats Ayni and Dar-Dar of Ayni district, LoikSherali, Chinor and Sarazm of Panjakent district women - participants from marginal groups of the population were selected.

14. In order to identify the needs of rural women in education, focus groups were conducted in both districts, in which women identified what training they needed.

15. According to the GAP indicators and certain needs, more than 200 women from the Ayni and Panjakent districts were trained on Civil rights, and more than 100 of them were trained on "Business development, Financial literacy", "Project and business plan development", "Prevention of HIV / AIDS and on safe migration".

16. As a result, more than 200 women from the roadside communities in Ayni and Panjakent districts have increased their legal knowledge, and out of them more than 100 women have learned the basics of entrepreneurship and business, while they have received broad information about HIV / AIDS and ways to prevent them, migration risks: human trafficking and sexually transmitted infections.

17. After training, the training participants worked with business consultants who provided them with business advice, how to open their own business and make it profitable. They were able to realize their ideas in business projects and business plans, which they plan to implement in order to improve the social and economic life of their families and communities.

32 Appendix 11

18. It should be noted that many trained women of roadside communities in the Ayni and Panjakent districts, after consultations with business consultants, opened their businesses: 38 women are selling agricultural products at roadside season stalls, 8 women are providing catering services, 20 women are tailoring and sewing, 3 women are selling their dairy products, 8 women are preserving and selling their agricultural products and 2 women are opened teaching centers for children, moreover, 15 women were employed by the beneficiaries to work in their tailoring workshops. Women are very gratitude to the project as it provided them good basis to start income generating activities and improve their and their families’ life conditions. For example, Rahimova Salomat, widow with six children, after completion of training got credit from Micro Deposit Organization and opened her own business. She and her daughters in law are sewing national gown and doing patchwork. Within five months her business starts to bring good profit. As she says now she can educate her grandchildren, buy them proper food and renovate her house. Because of good road conditions she can easily deliver her things to Dushanbe and Khujand city to sell them there. The other beneficiary Bibirajab is the mother of four daughters, she is abandoned wife of migrant worker. Her husband migrated as labor migrant to Russia and she has not heard from him for several years. Her life condition was very difficult. After participating in business training, she developed business plan and got credit from MDO. She is growing rice and already got good yield. As she says she is very happy now as she is economically independent and can educate her daughters and improve her life condition. This project has opened the way for great work on the development of women's entrepreneurship among rural women in the roadside communities of the Ayni and Panjakent districts. As results of its implementation, business projects and business plans have been developed through which rural women plan to realize their ideas for improving the lives of their communities.

19. Women, on a par with men, want to take an active part in improving the social and economic standards of their families and communities.

20. Constructed border crossing point “Sarazm” with its infrastructure and facilities contributed to gender sensitive border crossing. Along with general road improvement in the border communities, improvement of 3 access roads at 3 resettlement sites enabled increased mobility of women from those villages. The project led improvements facilitated easy access to market and social service facilities for rural women. Women with babies will feel comfortable in cross- border point as the separate room for women travelling with baby is built to provide space for breastfeeding and changing diapers. Separate washing facilities built for women and men greatly contributed to increase women mobility, including the cross-border mobility.

21. The project has positive impact on women from the strategic perspective. The rehabilitated road enables women to seek job beyond their communities as the time spent for travel is shorter now which opens wider employment opportunities for them. The practices show that women who started income generating activities either through starting businesses or through jobs become decision maker not only in their families but also in the communities, they are respected, their voices are heard and are taken into consideration. Women who led business have an easy access to two big cities where they can expand their business, sell their goods, provide their services and thus, increase their profit. In addition, they can enrich their knowledge by attending different thematic training to fill gap they may have in running business. Anecdotal evidence says that women spend their profit on household needs and their children education which is important for the family with daughters. As different studies show if family is limited in finance the preference to attend school is given to son. There is positive outcome from the feeder roads as well, especially for girls as before due to bad road conditions they did not attend schools regularly. For girls graduating school are more opportunities to continue their further education in the

Appendix 11 33

Universities or Vocational Institutions. Roads are an important artery to people to access to educational and healthcare institutions, especially in the winter time. Easier access to healthcare facilities decrease number of home deliveries and as a result mortality rate among mothers and children will decline.

Overall the project has positive impact on women lives in rural areas and it is highly relevant to include similar initiatives in the future projects.

22. Lesson Learnt:

(i) It is important to get qualitative data post construction survey with sex disaggregated data should be included into GAP with budget allocation for it. (ii) It’s crucial to ensure access of migrants and members of their families to the information and services to reduce HIV cases risk.

23. Recommendations:

(i) To maximize usage of government resource, e.g. lawyers from information centers of branches of the CWFA; (ii) To improve capacity and understanding of the national and local government officials of the actual needs of vulnerable women and their children, and support to local and central level authorities to develop improved gender responsive planning and budgeting; (iii) To create more jobs for women, it is recommended to introduce special requirement to contractors to allocate xx% of jobs for women as they are the main employee. Jobs allocation can be done in administration and finance units as well as along the project area. Also recommend to contractor to sign agreement with mini-tailoring workshop on tailoring outfits for road workers with condition that 60% of workshop workers are women. (iv) Along to conducting needs assessment to conduct also market assessment to train women new vocational skills in order their product or business to be market demanding; (v) To include mandatory qualitative surveys/data collections in to the GAP to ensure solid basis for findings and assure adequate corrective measures where needed; (vi) Continue to develop the specific knowledge and practical skills of women to increase women’s self-efficiency and to develop and sustain income generating activities; (vii) To ensure the access to HIV infection testing with pre and post consultancy and facilitate access of population to medical services, including diagnostics and treatment of STDs; (viii) To ensure access of labor migrants and the family members to social, psychological and legal services.

34 Appendix 11

Table 1: Achievements of the Gender Action Plan

Design summary Performance Indicators/Target Achievements at Completion

Impact/Goal By 2020

Enhanced regional cooperation and Sample-based poverty headcount inclusive economic growth in Tajikistan, ratio in the Sughd province declined In 2015, 32% of the population lives below the national poverty line in Tajikistan. particularly in the Sughd province to 25% from 48% in 2009

Per capita GDP (nominal) increased Per capita GDP increased from TJS3,898 in 2011 to TJS6,300 ($804 equivalent) in to $1,600 from $830 in 2011 2016.

Outcome By 2016:

Improved connectivity and mobility along Travel time between Ayni– Upon completion, the vehicle travel time reduced to 1.4 hour for car/taxi and 1.8 hour the CAREC Corridor 6 (Ayni–Uzbekistan Panjakent and the Uzbekistan for bus/trucks. border road) border reduced to 2 hours from 3.5 hours in 2010

Reported traffic accidents on the The recorded road accidents in the project areas reduced from 20 times in 2010 to project road reduced by 10 from 20 8 times in 2015. in 2010

Cross-border traffic via the Sarazm At PCR mission, Sarazm border post has not re-opened yet. border crossing point restored to 900 vehicles/day, from zero in 2011

Outputs

Output 2: Improved road safety for men and women travelers and safe access to schools for girls

Design street lighting, passenger  1 In every settlement along the Achieved. There are 89 passengers crossing along the road in Ayni and Panjakent crossings, and signage road one passenger crossing districts. indicated -

 2 Adequate street lighting Achieved. There are 48239 m street lighting installed along the road in settled areas erected along the road in in Ayni and Panjakent districts. settled area-

Appendix 11 35

Design summary Performance Indicators/Target Achievements at Completion

Road safety audit and awareness  3 Road safety audit and Achieved. During the distribution of the information materials through focus groups training completed awareness training completed to women of roadside jamoats were informed about importance and relevance of compliance with traffic safety rules (pedestrian crossings, vehicle speed limit signs) so that they also informed the population of local communities, especially car owners men and women, pupils of schools and children over 6 years of roadside communities living along the Ayni- -Uzbekistan border road. In addition, within the framework of the signed contract "Eastern Alliance for Secure and Sustainable Transport" Project between the ECSPMC (Kocks Consult GmbH) and the Republican Public Organization "Young Generation of Tajikistan" for teachers, pupils, and parents in schools of roadside pilot communities - Dar-Dar of Ayni district ,and Gusar, Navobod, Sujina, Sufiyon of Panjakent, an information and agitation company was conducted by conducting trainings with distribution handouts, leaflets for the observance of traffic safety rules. The total numbers of training participants were 124 people, including 60 women or (48.4%). The purpose of this company is to ensure that the trained beneficiaries, in general, also shared the information received among the roadside communities population on road traffic accident prevention.  4 Women consulted and their concerns addressed in national National road safety action plan plan Achieved. At the beginning of road construction women actively participated in developed consultation meeting, their concerns on road safety facilities (such as road signs, speed bumps etc.) addressed in national plan

Output 3: Upgraded Sarazm border post infrastructure, and benefits to local communities

Gender sensitive border crossing point in place

Design separate sanitary facilities for  5 Separate washrooms for Achieved. There are separate washing facilities for men and washing facilities for men and women employees and for men and women in place women built in border crossing point “Sarazm”. men and women travelers

Design separate room for women  6 Separate baby room in Achieved. 3 mother and child rooms were built in the following kilometers: 0 + 100 traveling with babies for place (Ayni district), 54 + 960 and 88 + 660 and in border crossing point "Sarazm". In breastfeeding and changing addition, 4 public separately toilets and parking lots were built in the following kilometers: 0 + 100 and 15 + 400 (Ayni district), 54 + 960 and 88 + 660 (Panjakent district).

36 Appendix 11

Design summary Performance Indicators/Target Achievements at Completion

Design separate customs checking 7. Separate customs checking lines Achieved. There are two common customs checking line and the officers check men lines for women and men for men and women travelers in and women separately. place

Conduct training of border crossing personnel on antiharassment  8 100% of border control staff Not achieved. The permission to conduct training from customer department was trained on anti-harassment - 2 received after completion of project.

Design adequate resting area for  9 Canteen with appropriate Achieved. There is separate room for rest for the staff of custom border with border staff winter facilities in place separate washing facilities and canteen.

Achieved. Feeder roads were improved in the following settlements: Ayni district:  10 60 km village feeder roads Hushekat-Iskodar-8.1 km, Zerobod-2 km, Vashan-4 km, Khairobod-Kum - 2,4 km, improved connecting Urmetan-6 km, Madm-2 km, Revad-6 km Total - 30.5 km Population of settlements communities with the highway – - 23077 people, including 11400 men, 11677 (50.6%) -women. Panjakent district: Khurramobod-5 km, Yori (Mingdon, Veist) -7 km, Panjakent - Zebon-3km, Kuktosh-1.5 km, Kolkhozchiyon-Mazor-2.5 km, Ruknobod-Rudaki-9 km, Shashkat- 2 km Total-30 km. The population of settlements is 85475 people, including 42037 men, 43438 (50.8%) are women, Total in 2 districts 60.5 km were repaired.

Not achieved. It should be noted that the labor legislation of the RT does not allow  11 Allocation of at least 20% to the women to perform heavy physical work and road rehabilitation is one of them. of jobs to women; equal pay In this regard about 96% of workers were men. Women were involved in office work, for equal work - 4 canteen, and other work not requiring heavy physical work.

Achieved. 3 rest area with set up stalls were built for women to sell agricultural  12 3 rest areas constructed products. They are located in the following kilometers: 0 + 100 - 6 pieces for 24 along the road - 5 people, 54 + 960 - 6 pieces for 24 people, 88 + 660 - 6 pieces for 24 people. It should be noted that more than 50% of users of these facilities are women.

 13 At least 3 bus stops with Achieved. There are 62 new bus stops built in the following roadside communities waiting area constructed - 6 and units: Ayni district: Ayni-1, Khushekat-1, Novdonak-1, Khayrobod-1, Madm-1, Vashan-1, Urmetan-2, Revad-1. Yovon-1, Vota-1, Revadi poyon-1; Panjakent district: Kishtudak-1, Dashti Kozi-1, Ruziobnok-1, Ruknobod-2, Shashkati Nav-1, Margedar-2, Warzikanda-1, Bogcha-1, Gusar-4, Yori-2, Dashti

Appendix 11 37

Design summary Performance Indicators/Target Achievements at Completion

Mala-2 , Sujina-2, Sufiyon-2, Panjakent-18, Chinor-1, Nuriston-3, Chimkal-2, Kamar- 1, Sarazm-1. Total 48 units. The population of roadside communities is 96291 people, including 47816 men, 48475 (50.3%) are women.

Achieved. 220 women participated in trainings on civil rights Conduct training on civil rights2,  14 At least 50% of female

entrepreneurship, and business members of Mahallas are

development, for women at Mahalla trained on civil rights - 7

level in Panjakent, Ayni and two other

centers.

Achieved. 109 women participated in trainings on business development, financial Conduct training on HIV/AIDS,STI  15 100 women are trained on literacy and grant proposal writing and other health issues and on business development,

safe migration financial literacy and grant

proposal writing- 8

 16 100 women and men trained Achieved. 105 women participated in trainings on HIV/AIDS,STI and other on health issues- 9 health issues and on safe migration

Agree with private bus companies on  17 MOU signed with private bus Not achieved. According to information on the routes along the Ayni-Panjakent- reliable bus routes, etc. companies. Uzbekistan border road, 52 routes operate in the region, including 6 routes in the Ayni district, 46 routes in the Panjakent district of which 5 are urban, 34 between the district center of Panjakent and the countryside and 7 long-distance. After the construction of the border crossing point "Sarazm" and the recent opening of the Tajik-Uzbek border, regular bus services between the Panjakent and Samarkand are planned in the nearest future.

38 Appendix 12

STATUS OF COMPLIANCE WITH MAJOR GRANT COVENANTS

Reference Covenant in Grant Status of Compliance Agreement Particular Covenants In the carrying out of the Project and operation of GA, Complied with. the Project facilities, the Recipient shall perform, Article IV, The Recipient performed all obligations or cause to be performed, all obligations set forth sec. 4.01 set forth in the GA, including maintain in Schedule 4 to this Grant Agreement. separate account and records for the project, which were audited and the audited reports were submitted to ADB and disclosed on ADB’s website. The Recipient shall (i) maintain separate GA, Complied with. accounts and records for the Project; (ii) prepare Article IV, The acceptable Audit Report for FY2013 annual financial statements for the Project in sec. 4.02a was submitted to ADB on 30 June 2013, accordance with accounting principles acceptable i.e. within the period covenanted. to ADB; (iii) have such financial statements Submission of audited project financial audited annually by independent auditors whose statements (APFS) for FY 2014 was qualifications, experience and terms of reference delayed by 1.3 months due to late are acceptable to ADB, in accordance with recruitment of the auditor by SCISPM. international standards for auditing or the national While unqualified audit opinion was equivalent acceptable to ADB; (iv) as part of each issued, there was no clear opinion on use such audit, have the auditors prepare a report of Grant proceeds. Through its fax dated 8 (which includes the auditors opinion on the September 2015, ADB requested for the financial statements, the use of the Grant revised audit report, which shall reflect proceeds and compliance with the financial separate opinion on use of grant covenants of this Grant Agreement) and a proceeds. EA and audit firm re-submitted management letter (which sets out the the revised audit report on 6 October deficiencies in the internal control of the Project 2015, including audit opinion on use of that were identified in the course of the audit, if grant proceeds. The unqualified audit any); and (v) furnish to ADB, no later than 6 opinion on the APFS is acceptable. months after the end of each related fiscal year, The acceptable APFS for FY 2015 was copies of such audited financial statements, audit received by ADB on 26 July 2016 (i.e. with report and management letter, all in the English some delay). The acceptable APFSs for language, and such other information concerning FY 2016 and FY 2017 (final report) were these documents and the audit thereof as ADB received by ADB on 5 and 26 July 2017. shall from time to time reasonably request. ADB shall disclose the annual audited financial GA, Complied with. statements for the Project and the opinion of the Article IV, The audit report for FY2013 was auditors on the financial statements within 30 sec. 4.02b submitted to ADB on 30 June 2014. The days of the date of their receipt by posting them audited project financial statements and on ADBs website. auditors opinion were posted on ADBs website in July 2014, i.e. within 30 days of the date of their receipt. The acceptable APFS for FY 2014 was received by ADB on 6 October 2015 and disclosed on 15 October 2015. The acceptable APFS for FY 2015 was received by ADB on 26 July 2016 and disclosed on 8 September 2016. The acceptable APFSs for FY 2016 and FY 2017 (final report) were received by ADB on 5 and 26 July 2017, respectively, and disclosed on 1 September 2017.

Appendix 12 39

Reference Covenant in Grant Status of Compliance Agreement GA, Complied with. The Recipient shall enable ADB’s representatives Article IV, The Recipient enabled and facilitated to inspect the Project, the Goods and Works, and sec. 4.03 ADB’s representatives to inspect the any relevant records and documents. project implementation and check the project records and documents. Implementation Arrangements The Recipient shall ensure that the Project is GA, Complied with. implemented in accordance with the detailed Sch. 4, The project was implemented in arrangements set forth in the PAM. Any para. 1 accordance with the arrangement set forth subsequent change to the PAM shall become in the PAM. No problems encountered to effective only after approval_ of such change by date the Recipient and ADB. In the event of any discrepancy between the PAM and this Grant Agreement, the provisions of this Grant Agreement shall prevail. The Recipient, through MOT, will ensure that the GA, Complied with. project implementation unit is established and Sch. 4, The PIU under the MOT, originally adequately staffed in accordance with the project para. 2 established for previous ADB-financed administration manual within one month from road projects, continued to be responsible grant effectiveness and such project for the project management and implementation unit is maintained until the Project implementation. The executive director of is completed. the PIU was supported by a group of professional and administrative staff with expertise and experience in financial accounting, road engineering, construction supervision, social aspects, contract management, etc. Counterpart funding The Recipient will allocate and make available on GA, Complied with. a timely basis all funds and resources necessary Sch. 4, The government provided the required for the implementation of the Project and for the para. 3 counterpart funds of total $0.56 million to operation and maintenance of the Project the project implementation. For the facilities. Panjakent and Ayni road maintenance depots, the expected budget in 2018 is TJS0.943 million and TJS0.979 million respectively The Recipient, through MOT, will take all GA, Complied with. necessary measures to implement the Project Sch. 4, The government took all necessary successfully and operate and maintain the Project para. 4 measures to implement the project facilities after completion. The Recipient will successfully. The related government ensure effective coordination among its agencies (mainly the MOT and the departments and agencies involved in the Custom Service) worked closely in project carrying out of the Project. Before the end of each formulation and implementation. All of the year the Recipient will furnish ADB with a public taxes and duties related to the project investment project plan for the succeeding year were exempted. demonstrating availability of funds necessary for the Project. As part of its counterpart funding commitment the Recipient will ensure that no taxes, duties or similar mandatory payments are levied on the Project expenditures within its territory or that it allocates the necessary amount of budgetary funds to MOT or other appropriate

40 Appendix 12

Reference Covenant in Grant Status of Compliance Agreement entity to bear the cost of such taxes, duties or similar mandatory payments that accrue on the Project expenditures. The Recipient shall allocate and make available GA, Partial Complied with. to MOT sufficient funds for the rehabilitation and Sch. 4, The total financial allocation to the road maintenance of roads, including the Project Road, para. 5 maintenance increased significantly in on a timely basis. Without limiting the generality recent years. But, it is still not adequate, of the foregoing, the Recipient shall ensure that especially considering the extended length the road maintenance budget is increased of road and fast increasing traffic. annually, from TJS3,000 per km in 2013 to According to the MOT’s statistics, the road TJS6,000 per km in by 2016. maintenance budget increased to average TJS4,345 per km in 2014, TJS4,333 per km in 2015, and TJS4,384 per km in 2016. Construction Quality; Operation and Maintenance The Recipient, through MOT, shall ensure that the GA, Complied with. Project is carried out in accordance with the Sch. 4, The project was carried out generally applicable design and technical specifications in para. 6 following the applicable design and accordance with national standards and technical specifications in accordance with satisfactory to ADB; and that the construction. national standards. During construction, Supervision, quality control, and contract the ECSPMC inspected and assessed civil management are in accordance with works to ensure that the specifications internationally accepted standards and practices. were met. Up to ADB’s project completion review (PCR) mission in December 2017, no serious quality issues were reported. The Recipient shall ensure that the Project Road GA, Complied with. and Project facilities (including in particular any Sch. 4, The project roads and facilities are being feeder roads rehabilitated under community para. 7 operated, maintained and repaired in development component of the Project) are accordance with sound administrative, operated, maintained and repaired in accordance financial, engineering, social, with sound administrative, financial, engineering, environmental, technological, operational social, environmental, technological, operational and maintenance practices. and maintenance practices. The Recipient, through MOT, shall ensure that all GA, Complied with. heavy commercial vehicles are weighed when Sch. 4, The government, through the MOT, entering and leaving Tajikistan at Sarazm, and all para. 8 carried out road safety audits and heavy commercial vehicles on the Project Road implemented all applicable measures of are routinely checked and for such purpose the road safety during construction and Recipient shall deploy mobile vehicle weighing operation. Two sets of mobile vehicle systems, according to applicable legislation and weighing systems were procured under international standards, for the Project Road by the project to ensure that all heavy the time of handover of the. Project Road by the commercial vehicles are weighed on the civil works contractor. The Recipient shall ensure project road. that the penalties under the legislation for vehicles found to be loaded in excess of the permitted maximum load are strictly imposed and transparently transferred to the state budget. Road Safety To ensure safety in the Project area during the GA, Complied with. implementation as well as after completion of the Sch. 4, As per the design and real needs, the Project, the Recipient shall ensure that para. 9 project road installed substantial road appropriate road safety measures such as safety facilities, including pavement

Appendix 12 41

Reference Covenant in Grant Status of Compliance Agreement pavement markings, warning signs, traffic signs markings, warning signs, traffic signs and and signals, communication facilities, hazard signals, communication facilities, hazard barriers, and traffic monitoring facilities are barriers, and traffic monitoring facilities. installed and adequately maintained. Border crossing The Recipient, through the MOT, shall provide GA, Complied with. updates of its actions taken to facilitate the re- Sch. 4, The government provided adequate opening of Sarazm and any progress in the re- para. 10 information on the re-opening of Sarazm opening of Sarazm in its semi- annual updates to border post during project implementation ADB. and at completion. The Recipient shall ensure strict border control to GA, Complied with. prevent the illegal trafficking of humans, wildlife, Sch. 4, The Sarazm border post was re-opened endangered species and illegal substances on para. 11 on 1 March 2018. The recipient has taken the Project Road. strict border control to prevent the illegal trafficking of humans, wildlife, endangered species and illegal substances on the project road. Environment The Recipient, through MOT, shall ensure that GA, Complied with. the preparation, design, construction, Sch. 4, The monitoring and mitigation measures implementation, operation and decommissioning para. 12 set forth in the Initial Environment of the Project and all Project facilities comply with Examination have been incorporated in (a) all applicable laws and regulations of the the bidding documents and government Recipient relating to environment, health and funds for the implementation of the land safety; (b) the Environmental Safeguards; and (c) acquisition and resettlement plan has all measures and requirements set forth in the been allocated. IEE, the EMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report. Land Acquisition and involuntary Resettlement The Recipient, through MOT, shall ensure that all GA, Complied with. land and all rights-of-way required for the Project Sch. 4, The land acquisition and resettlement of are made available to the Works contractor in para. 13 the project was implemented in accordance with the schedule agreed under the accordance with ADB’s policy as well as related Works contract and all land acquisition local application laws and regulations. The and resettlement activities are implemented in final LARP Report was submitted to ADB compliance with (a) all applicable laws and and approved in January 2015. LARP regulations of the Recipient relating to land Addendum on additional impact acquisition and involuntary resettlement; (b) the encountered in some sections of the involuntary Resettlement Safeguards; and (c) all project road was finalized in November measures and requirements set forth in the RP, 2015. and any corrective or preventative actions set forth in a Safeguards Monitoring Report. Without limiting the application of the involuntary GA, Complied with. Resettlement Safeguards or the RP, the Sch. 4, LARP Addendum on additional impact Recipient, through MOT, shall ensure that no para. 14 encountered in some sections of the physical or economic displacement takes place in project road was finalized in November connection with the Project until: 2015. Under the revised LARP, all a. RP is updated and finalized following the affected people and structures were given final engineering design to address any compensation prior to demolition of the newly identified impact on involuntary structures and in the form of new land

42 Appendix 12

Reference Covenant in Grant Status of Compliance Agreement resettlement in accordance with the SPS; plots. All affected persons who lost their b. compensation and other entitlements have residential structures were awarded lots in been provided to affected people in the Khalifa Hassan Jamoat Land Fund accordance with the updated RP; and with all relevant infrastructures, all affected c. A comprehensive income and livelihood business and structures were provided restoration program has been established in with stalls in Dehkon market. accordance with the updated RP. Indigenous Peoples The Recipient, through MOT, shall ensure that GA, Complied with. the preparation, design, construction, Sch. 4, At appraisal, the project was classified as implementation and operation of the Project and para.15 indigenous people category C (it would not all Project facilities comply with (a) all applicable affect indigenous peoples, as described in laws and regulations of the Recipient relating to ADB’s Safeguard Policy Statement indigenous peoples; (b) the indigenous Peoples (2009)). Safeguards; and (c) any corrective or During implementation, no indigenous preventative actions set forth in a Safeguards peoples identified. Monitoring Report. Resources to Implement Safeguards Requirements GA, Complied with. The Recipient shall make available necessary Sch. 4, Adequate budget human resources were budgetary and human resources to fully para. 16 duly allocated for LARP and EMP implement the EMP and the RP. implementation. Safeguards - Related Provisions in Bidding Documents and Works Contracts The Recipient, through MOT, shall ensure that all GA, Complied with. bidding documents and contracts for Works Sch. 4, The bidding documents and contracts for contain provisions that require contractors to: para. 17 the civil works included the provision of a. comply with the measures relevant to the social and environment safeguards contractor set forth in the IEE, the EMP and requirements and budgets. During the RP (to the extent they concern impacts implementation, no serious issues were on affected people during construction ), and identified and/or reported. any corrective or preventative actions set . forth in a Safeguards Monitoring Report; b. make available a budget for all such environmental and social measures; c. promptly provide MOT with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise from the final engineering design, during construction, implementation or operation of the Project that- were not considered in the IEE, the EMP and the RP; and d. Reinstate pathways, other local infrastructure, and agricultural land concerned· undergoing temporary impacts to at least their pre-project condition upon the completion of construction. Safeguards Monitoring and Reporting

Appendix 12 43

Reference Covenant in Grant Status of Compliance Agreement The Recipient, through MOT, shall do the GA, Complied with. following: Sch. 4, a. Submit semi-annual Safeguards Monitoring para. 18 Environmental monitoring reports were Reports which covers environmental and prepared by the ECSPMC and submitted social safeguards requirements to ADB and to ADB on bi-annual basis. The ECSPMC disclose relevant information from such and the PIU confirmed that the contractors reports to affected persons promptly upon had implemented their environmental submission; action plans in accordance with the b. Include the social safeguard compliance contract obligations and no serious issues monitoring section in the monthly project were identified. progress report submitted to ADB. The compliance monitoring section shall include The MOT submitted to ADB the final LAPP any complaints received from the project completion report for Panjakent city on 22 communities to the project grievance redress January 2015, which was disclosed at mechanism and the redress status of the ADB website. complaint; c. If any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered. in the IEE, the EMP and the RP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and d. Report any actual or potential breach of compliance with the measures and requirements set forth in the EMP or the RP promptly after becoming aware of the breach. Labor and Gender The Recipient, through MOT, shall ensure that GA, Complied with. the civil works contracts incorporate provisions to Sch. 4, The awarded contract included these the effect that the contractors shall: (a) comply para. 19 provisions of labor laws and equally with applicable core labor standards and labor payment to women laborers. The MOT laws, and incorporate applicable workforce with assistance from the ECSPMC closely occupational safety norms; (b) not differentiate monitored the implementation. No related payment between men and women for work of issues were reported during equal value; (c) not employ child labor; (d) abstain implementation. from forced or compulsory labor; (e) abstain from employment discrimination; (f) allow for freedom of association; (g) to the extent possible, maximize employment of local poor and disadvantaged persons for project construction purposes, provided that the requirements for job and efficiency are adequately met; and (h) provide safe working conditions. The Recipient, through MOT, shall ensure that the GA, Complied with. civil works contractors disseminate information (in Sch. 4, The relevant provisions were included in local languages) on the risks of sexually- para. 20 the bidding documents and civil works transmitted diseases, including HIV/AIDs, in contracts. The contractors were familiar health and safety programs for all construction with the awareness practices needed to

44 Appendix 12

Reference Covenant in Grant Status of Compliance Agreement works at campsites. The Recipient, through combat HIV/AIDS and implemented MOT,·shall ensure that specific provisions to this appropriate program during construction. effect shall be included in the bidding documents and civil works contracts, and the Recipient shall ensure that compliance shall be strictly monitored by MOT. The Recipient, through MOT, shall ensure that GA, Complied with. the gender action plan for the Project is Sch. 4, The activities started in January 2015 and implemented in a timely manner, and that para. 21 completed in September 2016. More than adequate resources are allocated for this 200 women in Ayni and Panjakent districts purpose. In particular, the Recipient, through were covered by civil right trainings, while MOT, shall ensure that (a) at least 30% of the more than 100 women were trained in participants in the road safety audit and basic business and finance literacy, awareness training are women and (b) at least project and business plan development, 100 women participate in the training on business and HIV/AIDS, STI prevention, healthy skills and on prevention and care of sexually lifestyle and safe migration. In January to transmitted deseases provided as part of June 2015, more than 200 women in Ayni community development under the Project. and Panjakent districts were covered by civil right trainings, while more than 100 women were trained in basic business and finance literacy, project and business plan development, and HIV/AIDS, STI prevention, healthy lifestyle and safe migration. Under the training on road safety, the total numbers of training participants were 124 people, including 60 women or (48.4%). Governance and Anticorruption The Recipient shall (a), comply with ADB's GA, Complied with. Anticorruption Policy (1998, as amended to date) Sch. 4, Pursuant to ADB's Safeguard Policy and acknowledge that ADB reserves the right para. 22 Statement (2009) (SPS), it was required investigate directly, or through its agents, any that the ADB funds should not be applied alleged corrupt, fraudulent, collusive or coercive to the activities described on the ADB practice relating to the Project; and (b) cooperate Prohibited Investment Activities List set with any such investigation and extend all forth at Appendix 5 of the SPS. No necessary assistance for satisfactory completion problems encountered during project of such investigation. implementation. The Recipient shall ensure that the anticorruption GA, Complied with. provisions acceptable to ADB are included in all Sch. 4, The bidding documents and contracts bidding documents and contracts, including para. 23 included the provisions of anticorruption provisions specifying the right of ADB to audit and requirements and measures. ADB found examine the records and accounts of the that the financial audit reports for the executing and implementing agencies and all project were in order and the unqualified contractors, suppliers, consultants, and other audit opinions acceptable. service providers as they relate to the Project. ADB = Asian Development Bank, EMP = environment management plan, GA = grant agreement, IEE = initial environment examination, LARP = land acquisition and resettlement plan, MOT = Ministry of Transport, PAM = project administration Manuel, PCR = project completion review, PIU = project implementation unit, ECSPMC = engineering, construction supervision and project management consultant , RP = resettlement plan. Source: The ADB project completion review mission.

Appendix 13 45

ECONOMIC REEVALUATION

A. General

1. Guided by the ADB Project Administration Instructions (PAI 6.07A), economic reevaluation of the project was carried out by the ADB project completion review (PCR) mission using similar methodology as that at appraisal and the latest data collected. The actual traffic counts on the project road provided by the Ministry of Transport (MOT) were analyzed and the traffic forecast for future years was revised according to the actual traffic and latest socioeconomic development in the project area. Economic benefits of the project were calculated by comparing the “with- project” and “without-project” cases. Consequently, the economic internal rate of return (EIRR) was calculated and the sensitivity analysis was carried out for the project road.

B. Traffic Analysis and Forecast

2. Tajikistan is overcoming the impact of the global economic downturn, achieved the economic growth of 7.4% in 2013, 6.7% in 2014, 6.0% in 2015, and 6.0% in 2016. The foreign trade has increased sharply and the total value of the imports and exports reached $3.9 billion in 2016. Panjakent and Ayni are the major cities in the western Tajikistan. Along with the fast socioeconomic development, the traffic in the project areas has increased fast in recent years, especially after rehabilitation of the project road. According to the statistics of the MOT, the annual average daily traffic on the project road increased from 1,065 vehicles in 2013 to 2,265 vehicles in 2017, about average 20.8% increase per year. This actual traffic growth rate was much higher than that estimated at appraisal.1 Among the traffic in 2017, passenger vehicles took about 53.3% of the total traffic and the rest were freight vehicles. Following table is the summary of the traffic counts on the project road.

Table A13.1: Actual Traffic Counts on the Project Road (vehicles, AADT) Goods Vehicle Passenger Vehicle Up to 2,0 From 2,0 More than With Total Car Bus ton to 5,0 ton 5 ton Trailer 2013 56 82 300 10 598 20 1,065 2016 545 247 301 14 919 34 2,059 2017 387 336 322 13 1,173 35 2,265 AADT = annual average daily traffic Source: the Ministry of Transport

3. At the time of the PCR mission, the Sarazm border has just re-opened on 1 March 2018. The current traffic on the project road is mainly the vehicles for commuters between Ayni and Panjakent. Along with the border re-opening, the traffic will have a sharp increase, especially large trucks. It was estimated by local people that the traffic might jump at least by 20–30% per year after re-opening of the border. According to the actual traffic on the project road and potential socioeconomic and foreign trade development in the country, the traffic growth rates at appraisal were revised to be average 11.1% in 2018–2020, 8.0% in 2021–2025, and 4.0% in 2026 and onward. It was estimated that the large trucks would jump by 15% per year in 2018–2020. The following table is the results of the revised traffic growth rates for the next 20 years.

1 At appraisal, it was forecasted that the traffic on the project would be about 1,463 vehicles per day in 2017.

46 Appendix 13

Table A13.2: Existing Traffic Growth Rates and Revised Traffic Forecast (% per year) Freight Vehicle Passenger Vehicle Up to 2,0 From 2,0 More than With Average Car Bus ton to 5,0 ton 5 ton Trailer 2013-2017 62% 42% 2% 7% 18% 16% 20.8% 2018-2020 10% 12% 15% 15% 10% 10% 11.1% 2021-2025 7% 7% 10% 10% 8% 8% 8.0% 2025-2030 4% 4% 4% 5% 4% 4% 4.0% 2030-2035 3% 3% 3% 3% 3% 3% 3.8% Source: the Ministry of Transport, ADB estimates

C. Economic Costs and Benefits

4. Actual costs of the project were used in the economic reevaluation, including the annual investment costs and maintenance costs of the project road. Comparing with that at appraisal, the actual cost for the civil works of the main road was about 23.4% higher, which was mainly caused by scope changes and price adjustments of the civil works contracts. The expected financial allocations for road maintenance in Panjakent and Ayni districts is only TJS2,828.5 per kilometer in 2018, which is much lower than the national norm (TJS15,800 per kilometer for regional roads). Considering the economic development and enhancement of road maintenance, half of the national norm for routine maintenance of regional roads was considered in economic reevaluation (about $975 per kilometer per year). According to general practice and road condition, it was assumed that the routine maintenance cost would increase by 3% per year along with road deterioration. It was assumed that the periodical road maintenance would take place in every 6 years at 30% of the capital cost, which was mainly for resurfacing of the project road and rehabilitation of road furniture. All of these financial costs for capital and maintenance are in domestic muneraire and in 2017 prices, which were converted into economic costs by removing the costs for border infrastructure and community development, and then applying a conversion factor of 0.95 for the non-tradable cost items (mainly labor).

5. By comparing the “with-project” and “without-project” cases, the main sources of economic benefits were (i) savings in vehicle operation costs (VOCs), and (ii) savings in passenger travel time costs. The VOC savings were recalculated using the unit VOC data adopted from other project in the country, but adjusted by inflation rates. The VOC savings in per vehicle-kilometer were estimated at $0.07 for car, $0.11 for bus, $0.11 for light truck, and $0.32 for heavy truck (more than 5 tons) respectively. Average passenger vehicle speeds were assumed at 60–80 kilometer per hour for “with-project” case and 30–40 kilometer per hour for “without-project” case. The passengers’ travel time cost savings were calculated by different types of passenger vehicles (car and bus). The passenger time cost was derived from the per capita GDP in 2016.2 Other factors taken into account in the calculation for passenger time cost savings included average vehicle loads, percentage of work-related trips, time costs by different road users, and travel speeds for different types of passenger vehicles. It was assumed that the passenger time cost would increase by 3% per year along with the economic development and income increase. The benefits for the induced traffic (20% of total traffic) were also calculated and half of the benefits were considered. The benefit calculation results show that the VOC savings were about 87.2% of the total benefits in 2017, but the passenger time cost benefits increased rapidly along with socioeconomic development and income growth, and reached 18.8% of the total benefits in 2035.

2 The capita GDP of Tajikistan was TJS6,300 in 2016.

Appendix 13 47

D. Economic Reevaluation and Sensitivity Test

6. Based on above estimations and calculations of the economic costs and benefits, the EIRR was recalculated at 13.9% for the project, which is lower than that at appraisal (18.7%). The lower EIRR is mainly due to the higher investment cost for the main road and less benefits categories considered.3 The recalculated EIRR is above the ADB recommended discount rate of 12% at appraisal. The project is therefore still considered economically viable. The detailed EIRR calculation and cash flows for the project is in Table A12.4.

7. The EIRR was subjected to sensitivity analysis to test different scenarios of costs and benefits. The sensitivity analysis result shows that the project continued to be economically viable for all tested scenarios. If a 20% maintenance cost increase is to be combined with a 20% benefit reduction, the EIRR would be 10.5% for the project. The sensitivity analysis also revealed that the EIRR is more sensitive to changes in benefits. Therefore, the government needs to pay attention to socioeconomic development in the project area, promote cross-border transport, foster transport services, and increase incomes for the rural road users. The results of the sensitivity tests are summarized in the following table.

Table A13.3: Results of Sensitivity Test

Tests ENPV @12% EIRR (%) Case Maint. Cost Benefits ($ million) Base Case 13.9% 27.3 Changes (+/-) +10% 13.7% 24.1 +20% 13.5% 20.8 +10% 15.2% 47.5 +20% 16.4% 67.7 -10% 12.5% 7.2 -20% 11.0% -13.0 +10% -10% 12.3% 3.9 +20% -20% 10.5% -19.5 Switching Point +100% 12.0% -15% 12.0% EIRR = economic internal rate of return, ENPV = economic net present value Source: the ADB project completion review mission

3 At appraisal, the benefits of Mining and Agriculture development were included in the economic evaluation. Due to unavailability of required data, such benefits were not included in the economic reevaluation.

48 Appendix 13

Table A13.4: Economic Reevaluation of the Project ($ million) Cost Benefit Net Normal Traffic Induced Traffic Net Maint Present Capital Total Time Time Total Benefit enance VOC VOC Value Cost Cost 2012 10.22 10.22 -10.22 -18.01 2013 18.70 18.70 -18.70 -29.43 2014 17.38 17.38 -17.38 -24.42 2015 30.44 30.44 -30.44 -38.19 2016 19.04 19.04 -19.04 -21.33 2017 10.36 10.36 10.05 1.47 1.26 0.18 12.96 2.60 2.60 2018 0.10 0.10 11.27 1.70 1.41 0.21 14.60 14.49 12.94 2019 0.11 0.11 12.66 1.97 1.58 0.25 16.45 16.34 13.03 2020 0.11 0.11 14.21 2.27 1.78 0.28 18.54 18.43 13.12 2021 0.11 0.11 15.41 2.57 1.93 0.32 20.23 20.12 12.79 2022 31.85 0.10 31.95 16.71 2.92 2.09 0.36 22.08 -9.87 -5.60 2023 0.11 0.11 18.12 3.31 2.27 0.41 24.11 24.00 12.16 2024 0.11 0.11 19.66 3.75 2.46 0.47 26.34 26.23 11.86 2025 0.11 0.11 21.33 4.26 2.67 0.53 28.78 28.67 11.58 2026 0.12 0.12 22.17 4.65 2.77 0.58 30.17 30.05 10.84 2027 0.12 0.12 23.05 5.08 2.88 0.63 31.64 31.52 10.15 2028 31.85 0.10 31.95 23.97 5.54 3.00 0.69 33.20 1.25 0.36 2029 0.11 0.11 24.92 6.05 3.11 0.76 34.84 34.73 8.91 2030 0.11 0.11 25.90 6.61 3.24 0.83 36.58 36.47 8.36 2031 0.11 0.11 26.90 7.22 3.36 0.90 38.38 38.27 7.83 2032 0.12 0.12 27.94 7.88 3.49 0.99 40.30 40.18 7.34 2033 0.12 0.12 29.01 8.61 3.63 1.08 42.32 42.20 6.88 2034 31.85 0.10 31.95 30.13 9.40 3.77 1.17 44.47 12.52 1.82 2035 0.11 0.11 31.29 10.26 3.91 1.28 46.75 46.64 6.07 2036 0.11 0.11 32.50 11.21 4.06 1.40 49.17 49.06 5.70 Economic Net Present Value (ENPV): 27.35 Internal Rate of Return (EIRR): 13.9% Discount Rate: 12%

Source: ADB estimates

Appendix 14 49

SUMMARY OF THE SOCIOECONOMIC IMPACTS

1. During project implementation, the engineering, construction supervision and project management consultant (ECSPMC) developed a project performance monitoring system based on the DMF and carried out monitoring and evaluation on the socioeconomic impacts of the project. The surveys focused on villages near the project road. Following are the main findings.

2. Community consultations. At appraisal, intensive public consultations were held, covered major project issues such as project alternatives, selection of local roads, potential benefits, and social and environmental impacts. Consultations revealed a high degree of public support to the project. The design of the project well incorporated the views of stakeholders. Special attention was given to the needs and constraints faced by women, internally displaced people, refugees, and other vulnerable groups. The consultations also helped identify the role of each stakeholder. Stakeholder participation and consultations were sustained in the course of project implementation.

3. Economic development and livelihood improvement. Improvement of the Ayni– Panjakent–Uzbekistan Border road has significantly promoted the economic growth in Tajikistan and facilitated cooperation in the region. All of these have resulted in the increase of Tajikistan´s GDP. The average GDP growth rate was about 6.9% in the period of 2012–2016. The project also stimulated the rural economic growth through providing closer access of remote areas to the capital and intermediate cities, and allowing more efficient exchange of goods and service within and among them. The implementation of the project road has generated large amount of working opportunities to local people, ranging from technical, administrative, skilled, semi-skilled works and manual labor. The fast traffic development on the project road has also promoted the roadside business development, including restaurant, store and cafe, gas station, garage, etc. Many households surveyed in the villages expressed their desire to work for such business, which is an indication of a positive prospective on improving livelihood.

4. Connectivity and mobility improvement in the project areas. On the improved roads, the vehicle speed has increased from 30–40 km/hour before the project to 60–80 km/hour now. The vehicle traveling time reduced by more than 50%. This has led to substantial reduction in vehicle operation cost. The taxi fares from Ayni to Panjakent reduced from TJS18–25 to just TJS12–15 respectively over the period prior and after the project. This has also led to sharp traffic increase, especially the public transport services. It was told that there were about 50–60 small bus/van/taxi on the project road to provide transport service. Such public transport service has well facilitated the fast socioeconomic development in the project areas. The surveys revealed that a great proportion, 71%, of the households in the impact villages, were highly satisfied with the current ease and convenience of travel along the Ayni–Panjakent–Uzbekistan Border road and majority of villagers responded positively on the improved mobility as convenient travel to any destination and easy to transport farm products.

5. Displacement and resettlement. The project required only minor land acquisition and temporary land occupation. The MOT prepared a resettlement plan to ensure that fair compensation and assistance would be provided for affected people or businesses. According to the surveys and interviews, there were no serious complains concerning the land acquisition and resettlement. All affected people and structures were given compensation prior to demolition of the structures and in the form of new land plots. All affected persons who lost their residential structures were awarded lots in the Khalifa Hassan Jamoat Land Fund with all relevant infrastructures, all affected business and structures were provided with stalls in Dehkon market.

50 Appendix 14

The project implementation had no impact on indigenous peoples. On the temporary impacts (e.g., vibration, noise, dust, etc.), the contractor was required to come up with appropriate measures such as the use of new rollers which causes minimal vibration and noise, and the water spraying of the road section under construction from time to time.

6. Poverty reduction. The poverty status in the project area was alleviated through (i) increased access to employment and income for the poor residents in roadside businesses and work related to road improvement and maintenance; (ii) improved access of the poor to markets and social services; and (iii) reduced prices of transport services, food, and other daily necessities due to lower transport costs. During implementation, the project was able to provide local employment including unskilled and manual labor. The traveling time for most of the villagers was reduced by half and the frequency of travel to town centers increased from 5–6 times a year to 1.4 times a month.

7. Women empowerment. Significant numbers of meetings and trainings were conducted in both Panjakent and Ayni districts, covering more 200 women participants on civil rights by target groups and 100 participants on basic business and finance literacy. Contracts for civil works and consulting services included provisions to encourage employment of women laborers. During implementation, 23 women out of the total local employments were hired by the project, which was significant by considering the nature of the construction work as well as the cultural restrictions for women in the country. It was noticed that there was significant amount women working in the roadside business, operating small shops at the border area, and selling farm products along the project road. And, women now have more chance to access social service and facilities, especially to attend hospital and go to school. Women were generally the ones managing the ancillary businesses that catered to the Project staff and workers (e.g., restaurant and lodging houses), and thus derived direct financial benefits from them.

8. Health and human safety. During project implementation, seminars on public health were held, including (i) several seminars on HIV awareness and protection among project staff and construction workers, as well community meetings on the same topics in villages traversed by the road being rehabilitated; and (ii) seminars on first aid, road environment, environmental protection in road construction, health and safety among the staff of the project management, contractor and subcontractors. Manuals and booklets were distributed to both workers and people in order to intensify HIV/AIDS prophylaxis, promote healthy lifestyle, and increase knowledge level on HIV/AIDS. With the improved connectivity and mobility, the local people now may access further variety health services with more frequency.

9. Road safety improvement. The project has conducted training activities in line with its objective of improving institutional capacity related to road safety. The project also helped the government to implement the road safety program. As a result, the number of accidents and the number of deaths and injuries have drastically reduced after the project. The recorded road accidents in the project areas reduced from 20 times in 2010 to 8 times in 2015. This is also due to stricter speed limit enforcement by the police. Besides providing safer drive ability along the four lane road, the project has included a series of road safety measures along the road and during crossing of villages and intersections (guard rail, protected pedestrian crossing, traffic lights at major junctions). However, there are still many vehicles intended to run at faster speed, which has brought some threaten to the local people. The road safety policy and measures should be further enforced.

Appendix 15 51

CONTRIBUTION TO THE ADB RESULTS FRAMEWORK

Level 2 Result Framework Revised Target Aggregate Output Methods/Comments No. Indicator Target Transport 1 Use of roads built or upgraded - 165,347 vehicle- Total 255,209 vehicle- Actual traffic counts for 2016 and 2017 Expressways and national kilometers per day kilometers per day in were provided by the MOT. highways (average daily in 2017 2017 vehicle-kilometers in the first full year of operation) 2 Roads built or upgraded - 113 kilometers of 112.7 kilometers of Upon completion, 112.7 kilometers of Expressways and national regional road from regional road from regional road from Ayni to Panjakent to highways (kilometers) Ayni to Uzbekistan Ayni to Uzbekistan Uzbekistan border was rehabilitated or border border improved. The improvement included sub- base enhancement, asphalt surfacing, slope and riverbank protection, safety engineering, and bridge construction and improvement. 3 Use of roads built or upgraded (no target was Total 52,680 vehicle- Actual traffic counts of the project road in – rural road (average daily provided in the kilometers in 2017 2017 were provided by the MOT. vehicle-kilometers in the first full project appraisal year of operation) document) 4 Roads built or upgraded – rural 60 kilometers of 60 kilometers of village Upon completion, total 60 kilometers of roads (kilometers) rural road in Ayni feeder roads rural road (feeder roads) was constructed and Panjakent (30 kilometer each in Ayni and Panjakent district district) MOT = Ministry of Transport Source: The Asian Development Bank project completion review mission

52 Appendix 16

PROJECT RATINGS

Criteria Rating Relevance Relevant Effectiveness Effective Efficiency Efficient Sustainability Likely sustainable Overall Assessment Successful Development impact Satisfactory Borrower and executing agency Satisfactory Performance of ADB Satisfactory ADB = Asian Development Bank. Source: Asian Development Bank.