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Concept Paper Proposed Grant Republic of Tajikistan

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Concept Paper Proposed Grant Republic of Tajikistan Concept Paper Project Number: 46543 May 2013 Proposed Grant Republic of Tajikistan: Central Asia Regional Economic Cooperation Corridors 3 and 5 Enhancement Project CURRENCY EQUIVALENTS (as of 30 April 2013) Currency unit – somoni (TJS) TJS1.00 = $0.2099 $1.00 = TJS4.7651 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund AH – Asian Highways CAREC – Central Asia Regional Economic Cooperation km – kilometer MOT – Ministry of Transport PAM – project administration manual PIU – project implementation unit PPTA – project preparatory technical assistance RRP – report and recommendation of the President to the Board of Directors NOTE In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General K. Gerhaeusser, Central and West Asia Department (CWRD) Director X. Yang, Transport and Communications Division, CWRD Team leader Z. Wu, Transport Specialist, CWRD Team members N. Djenchuraev, Environment Specialist, CWRD D. Hill, Senior Transport Specialist, CWRD G. Jurado, Operations Assistant, CWRD M. Mamayson, Associate Project Analyst, CWRD V. Medina, Social Development Specialist (Safeguards), CWRD F. Nuriddinov, Project Officer, CWRD D. Perkins, Counsel, Office of the General Counsel S. Soetantri, Transport Specialist, Regional and Sustainable Development Department J. Stickings, Senior Social and Gender Development Specialist, CWRD C. Tiangco, Energy Specialist, CWRD Peer reviewer J. Procak, Regional Cooperation Specialist, East Asia Department 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 I. THE PROJECT 1 A. Rationale 1 B. Impact, Outcome, and Outputs 2 C. Investment and Financing Plans 3 D. Indicative Implementation Arrangements 3 II. DUE DILIGENCE REQUIRED 3 III. PROCESSING PLAN 4 A. Risk Categorization 4 B. Resource Requirements 4 C. Processing Schedule 4 IV. KEY ISSUES 4 APPENDIXES 1. Basic Project Information 6 2. Problem Tree 7 3. Design and Monitoring Framework 8 4. Project Preparatory Technical Assistance 10 5. Initial Poverty and Social Analysis 15 o 69 o 00'E 73 00'E PROOF ONLY TAJIKISTAN CAREC CORRIDORS 3 AND 5 ENHANCEMENT PROJECT Shaydon Taboshar Buston UZBEKISTAN Kayrokkum Reservoir Khujand N Kayrokkum Konibodom Zafarobod Chkalovsk Gafurov o Nov Isfara o 40 00'N Gonchi Proletar 0 50 100 40 00'N Vorukh Istaravshan Kilometers KYRGYZ REPUBLIC Shakhriston Cleared/Updated by : JOJI TOKESHI, TJRM Panjakent SUGD NINA FENTON, CWRD Shakhristan Pass REGION 24 February 2012 Karamik Ayni Mehron Edited by: RICARDO CHAN, OSEC Jirgatol Kizil-Art 24 February 2012 Sayron Pass Anzob Pass Note : First Proof, 9 January 2013 Second Proof, 9 January 2013 Garm Tojikobod REGIONS Third Proof, 25 February 2013 UNDER DIRECT Darband Lake Karakul Fourth Proof, 4 March 2013 REPUBLICAN Fifth Proof, 30 April 2013 Varzob JURISDICTION Sixth Proof, 3 May 2013 Seventh Proof, 3 May 2013 Shahrinav Tavildara DUSHANBE Rogun Eight Proof, 6 May 2013 Tursunzoda Akbaytal Pass Fayzobod Ninth Proof, 16 May 213 Hissor Vakhdat Kalaikhumb Khovaling Somoniyon Norak GORNO-BADAKHSHAN PEOPLE'S Baljuvon Vanch AUTONOMOUS REGION REPUBLIC OF Yovon Nulvand Murgob CHINA UZBEKISTAN KHATLON REGION Lake Sarez Kulma Pass Obikiik Dangara Muminobod Kuybishev Sovet Kulob Rushon Kurgonteppa Sarband Vose Shuroobod Ismoili Somoni Moskva Vakhsh Isoev Farkhor Jilikul Khorug o Kubodiyon 37 00'N Dusti 37 o 00'N Panj Shakhrituz Roshtkala Panji Poyon A F G H A N I S T A N National Capital CAREC Corridor 5 Regional Center CAREC Corridor 6 Ishkoshim Autonomous Regional Center Asian Highway 66 This map was produced by the cartography unit of the Asian Development Bank. District Center/Town Proposed Road The boundaries, colors, denominations, and any other information shown on this Railway Planned Road 13-0046b map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, River Existing Road colors, denominations, or information. CAREC Corridor 3 International Boundary o o Boundaries are not necessarily authoritative. A 73 00'E V 69 00'E I. THE PROJECT A. Rationale 1. Tajikistan is landlocked and depends on transport corridors for investment, job creation, trade, and ultimately economic growth and poverty reduction. High transport costs, owing to ailing transport infrastructure and low network connectivity coupled with geographic isolation and mountainous terrain, pose a significant barrier to the country’s economic and social development. The proposed project1 will improve the Central Asia Regional Economic Cooperation (CAREC) Corridors 3 and 5 and their associated sub-network by enhancing the 89 kilometer (km) Sayron– Karamik section, rehabilitating the 88 km Vose–Khovaling road, and strengthening road safety and maintenance. It will also extend access to local communities through improving rural access roads and public facilities, providing solar power solutions for villages with winter electricity deficiencies and conducting associated trainings. This will improve national road network connectivity and quality of service, promote trade and facilitate the economic and social development in Tajikistan, and contribute to reducing isolation. The basic project information is in Appendix 1. 2. The backbone of Tajikistan’s national road network, comprising three CAREC corridors and three Asian Highways (AH), has been largely improved with assistance from the Asian Development Bank (ADB) and other development partners.2 This enables Tajikistan to serve as an important transit route in the Central Asian region. With continued trade facilitation supports from ADB3 and other development partners, and the planned rail line extension to connect with the Afghanistan railway network, the synergistic effect will offer new opportunities to intensify regional cooperation and trade, particularly with Tajikistan’s admission to the WTO on 2 March 2013. 3. The overlapping portion of CAREC Corridors 3 and 5—Dushanbe to the border with Kyrgyz Republic—is a two-lane highway of about 340 km. Around 160 km of the road passes along deep riverbanks and is difficult to widen as constrained by mountainous topography. Because of the government’s stretching limited budget for longer road coverage at the time of project design in 2006 and the low traffic forecasted at the time, design for the Sayron-Karamik section adopted one asphalt concrete layer.4 Additionally, other rehabilitation work such as rock excavation, drainage and concrete retaining walls was reduced in quantity due to a lack of funds. Rehabilitation of the section was completed in August 2011. Presently, the traffic has surged in both volume and axle loading along the section, degrading the pavement condition faster than initially designed. There is an imminent need to enhance the Sayron-Karamik section to extend road service life, and strengthen road safety and maintenance for better serviceability. Moreover, the traffic capacity on CAREC Corridors 3 and 5 is likely to be realized earlier than planned, necessitates improving connectivity and capacity of associated sub-network.5 1 The Asian Development Bank will provide a project preparatory technical assistance, as detailed in Appendix 4. 2 CAREC Corridor 3 (concurrently AH65) runs east-west from the border with Uzbekistan through Dushanbe to the border with Kyrgyz Republic; CAREC Corridor 6 (concurrently AH7) runs north-south from the border with Uzbekistan through Dushanbe to the border with Afghanistan; CAREC Corridor 5 overlaps with Corridor 3 from the border with Kyrgyz Republic up to Dushanbe, and with Corridor 6 from Dushanbe to the border with Afghanistan; AH66 starts at Dushanbe, passing through Vakhdat, Dangara, Vose, Kulob, Khorug, Murgob, before reaching Kulma Pass (to China). 3 ADB. 2013. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Grants to Kyrgyz Republic and the Republic of Tajikistan for the Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project. Manila. 4 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Asian Development Fund Grant to the Republic of Tajikistan for the CAREC Regional Road Corridor Improvement Project. Manila. The project will be closed in September 2013 upon completion of the institutional strengthening component. 5 For example, rehabilitation of the Kurgonteppa-Dangara road is largely completed; extensional rehabilitation work for Dangara-Khovaling road is ongoing. Improvement of the Darband-Kalaikhumb road that links CAREC Corridors 3 and 5 to AH66 is planned for 2014, of which the project feasibility study is near completion. Various sections of the AH66 between Kulob and Murgob are being rehabilitated or planned for improvement in next 3 to 5 years. 2 4. Vose-Khovaling-Tavidara road extends the first ADB-assisted road in Tajikistan, starting at AH66 and connecting through the Darband-Kalaikhumb road to the CAREC Corridors 3 and 5. This road was a republican road during the Soviet Union time but has seriously deteriorated due to prolonged inadequate maintenance and recent flood damage, causing transport difficulty and safety concerns. The government prioritized rehabilitating the Vose-Khovaling road, with the Khovaling-Tavidara
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