TRACECA Investment Forum ID: TAJ2 Brussels, 28th February 2012

TRACECA PROJECT FICHE RAILROAD – KARAMIK (KYRGYZ BORDER)

1. BASIC INFORMATION

TITLE: Railroad Vahdat – Karamik (Kyrgyz border)

SECTOR: Intermodal Transport

LOCATION: The start of the route is located at the Vahdat/Ilyak station in the in the Regions of Republican Subordination (RRS) on the existing railway section – Vahdat–Ilyak. The end of the route is the border of with Kyrgyz Republic.

2. GOALS

2.1 GENRAL PURPOSES

The proposed railway will connect Kyrgyz Republic with the People’s Republic of China (PRC) along the route Jalalabad–Osh–Saritash–Irkeshtam–PRC border. Construction of a new railway will create a seamless railway route from neighbour states China and Kyrgyz Republic, passing through Tajikistan to Afghanistan and Iran.

2.2 GOAL OF THE PROJECT

Construction of the railroad is a strategic move that will increase the transit potential in the Republic of Tajikistan.

2.3 CONTRIBUTION OF THE NATIONAL DEVELOPMENT PLAN

Construction of the railroad Vahdat-Karamik (Kyrgyz border) has been included in the State targeted program as part of the ongoing development to transport systems in the Republic of Tajikistan for 2025.

2.4 TRANSBOUNDARY IMPACTS

Railroad construction will positively influence infrastructure development at the cross-border areas of Tajikistan and Kyrgyzstan. The project will create employment and thus improve the welfare of the population. Commodity turnover between the neighbouring countries will be also improved through railroad development.

3. DESCRIPTION

The route will start at Ilyak station and will pass in the direction of the existing highway through the valleys of the Ilyak and Obigarm rivers and through many urban areas. The entire railway line is characterized by irregular mountainous terrain with altitudes from 850- 1900m above sea level. There are many side channels carrying out mudflows. Mountains along several sections (Dubeda–Subulak district) are prone to landslides.

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TRACECA Investment Forum ID: TAJ2 Brussels, 28th February 2012 The section from Obi Garm to Nurabad is the most complex section due to both its landscape and as a result of its geological and hydrogeological conditions. Here, the proposed highway follows the Vahdat-Rasht-Djirgatal-Kyrgyz border highway, crossing many waterways, torrential channels and mountain ranges so it is necessary to construct bridges, viaducts, flyover bridges, tunnels and other engineering facilities. The route of the proposed railroad is located 50 km to the south of a unique coal deposit at Nazarailok, which has large resources. The coal at this site is considered to belong to the category of high-energy metallurgical coal. By constructing a 50 km underground highway to the deposit coal has the potential to be transported via the railroad not only to the regions of Tajikistan, but also to export to the neighboring countries. At this coal deposit it will be possible to construct a heat power station, as well as factories for the conversion of coal to liquid fuel.

3.1 PREPARATION AND JUSTIFICATION

The following steps are required for the preparation and rehabilitation stages: form a state committee, study the area for laying the highway, choose and approve highway direction; find resources for PFS (Project Feasibility Study) elaboration; announce tender for the selection of a general design engineer; approve the general design engineer and conclude a contract; develop terms of reference for PFS elaboration.

3.2 ACTIONS

It is necessary to provide technical assistance (in the form of a grant) for the PFS elaboration on railroad construction. In 2010, the Memorandum of Understanding was signed between the Governments of Republic of Tajikistan and Islamic Republic of Iran. The Memorandum included the allocation of 1,000,000 US dollars to study the possibilities for the construction of a standard railroad (1,435 km) in the territory of Tajikistan. The Iranian company “METRO” has since started to fulfill certain project activities.

3.3 LESSON/EXPERIENCE

In 1999, during the years of state independence in Republic of Tajikistan, the Kurgan-Tyube- Kulyab railroad with the length of 132 km was constructed and put into commission. Currently, this railroad is used for passengers’ conveyance and goods transportation. Stations such as Sargazon, Gulistan and Kulyab were also constructed. In 2008, State Unitary Enterprise in the Scientific Research/Planning and Surveying Institute of the Ministry of Transport of Republic of Tajikistan developed a PFS for the construction of the Vahdat-Yavan railroad. In 2010 this was developed into a working project for a route with an overall length of 46 km. Construction is carried using the resources of Tajik railroad.

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TRACECA Investment Forum ID: TAJ2 Brussels, 28th February 2012 3.4 ACTIVITIES

Characteristic Unit Indicators Railroad technical category IV Construction length: km 296 Including tunnels km 16.1 Maximum longitudinal grade % 2.7 Minimum curve radius in the plan m 200

Major bridges (more than 100 m) pcs./running meter 21/2,500

Minor bridges (less than 100 m) pcs./running meter 47/1,410

Bridge through Rogunskaya HES reservoir pcs./running meter 1/800

Shore protection (SP) Running meter 6,400

Flyover bridges pcs./running meter 12/8,950 Running meter/thousands cubic Retaining walls 59,200/325.6 meters Conduit pipes pcs 1,180

Railway stations pcs 6

Repair stations pcs 5

Highways for railroad maintenance km 151

Railroad crossings pcs 18

Demolition of private building systems facilities 30

Alienation of irrigated plough land ha 54

Approximate scope of earthwork operations Millions of cubic meters 149.5

Including blast-hole drilling Millions of cubic meters 65.8

Construction of access highway to coal deposit km 50 Nazarailok Approximate construction cost: 3,200 Millions of US dollars Including tunnels 193.2

The proposed highway length is approximately 296 km.

3.5 RESULTS/CONCLUSION

Development of trade and economic relations with neighboring countries; Transportation of transit goods and passengers along the shortest possible direction, reducing overall transportation time; Development of industry, agriculture and tourism; Export of industrial products to neighbouring countries.

4. PROJECT MANAGEMENT

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TRACECA Investment Forum ID: TAJ2 Brussels, 28th February 2012 4.1 FIXED STRUCTURE

Tajik railway. Ministry of Transport of Republic of Tajikistan. The contract between the Ministry of Transport of Republic of Tajikistan and the future possible contractor will be selected on a tender basis and will be concluded in accordance with the order, specified under international contracts.

4.2 PROPERTY/IMPLEMENTING PARTNER

Ministry of Transport of Republic of Tajikistan. The project is at submission stage and PFS is not developed yet. A general design engineer for PFS elaboration will be chosen on tender basis.

4.3 ORGANISATIONAL STRUCTURE

A Center for project implementation will be established upon PFS elaboration and detailed engineering process. The Center’s structure and number of employees will depend on the scope of the work to be fulfilled.

5. DETAILED BUDGET (MILLION EUR)

Actions Description Investments Financing Co-financing Total 1 PFS elaboration Technical assistance 38.4 - 38.4 2 Elaboration of the Technical assistance, grant, 57.6 - 57.6 detailed project credit 3 Construction Credit, RT share participation 3,200 - 3,200.0 Overall 3,296.0 - 3,296.0 %

The cost for demolished facilities, forest planting and land allocation has not been included in the project cost.

6. RISKS

Will be known upon PFS elaboration.

7. IMPLEMENTATION PLAN

7.1 Attraction of external investments (grant, credit) for PFS elaboration and detailed design planning;

7.2 Conclude credit agreement;

7.3 Tender and implementation.

8. ENVIRONMENT

The project stipulates environmental protection should be fulfilled.

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TRACECA Investment Forum ID: TAJ2 Brussels, 28th February 2012 9. RETURN RATE

As the project is at proposal stage and as PFS has not been developed yet, economic indicators have not been identified. However, expert appraisal has been made on the basis of the available project and topographic materials at that time and on the results of the highway air-visual survey. Construction of a new railway will create a seamless railway route from neighbour states China and Kyrgyz Republic, passing through Tajikistan to Afghanistan and Iran. Construction of the railroad will increase the transit potential in the Republic of Tajikistan. Railroad construction will positively influence infrastructure development at the cross-border areas of Tajikistan and Kyrgyzstan. The project will create employment and thus improve the welfare of the population. Commodity turnover between the neighboring countries will be also improved through the railroad development. The transportation cost of goods will also be reduced due to mass shipment in large quantities.

10. INVESTMENTS REQUESTED:

10.1 SOURCES OF FINANCING

The project plans to attract foreign investments in the form of lax credits, grants, technical assistance, as well as shared participation from Republic of Tajikistan in the PFS elaboration and detailed design planning process.

10.2 CO-FINANCING

It is possible to attract investments from agencies for international cooperation from foreign countries, as well as international financial institutes and funds.

10.3 ADDITIONAL

Additional issues will be defined during the project implementation process.

10.4 PROJECT READINESS AND SCOPE

The project is at the proposal stage.

10.5 SUPPORT

The 2025 state target program on transport system development in Republic of Tajikistan seeks to attract capital investments in the amount of 1,485 million US dollars.

11. TERMS AND PLANNING

Within the state target program on transport system development in Republic of Tajikistan the Vahdat-Karamik railway is planned to be completed by 2025.

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