Completion Report Project Number: 30457 Loan Number: 1631-UZB April 2006 Uzbekistan: Railway Rehabilitation Project CURRENCY EQUIVALENTS Currency Unit – sum (SUM) At Appraisal At Project Completion (August 1998) (October 2005) SUM1.00 = $0.00997 $0.00087 $1.00 = SUM100.24 SUM1,148.87 ABBREVIATIONS ADB – Asian Development Bank CCR – certificate of contract registration EA – executing agency EIRR – economic internal rate of return ERSF – elastic rail-sleeper fastenings FIRR – financial internal rate of return ICB – international competitive bidding IDC – interest and other charges during construction IS – international shopping MFER – Ministry of Foreign Economic Relations O&M – operation and maintenance PCR – project completion review PIU – project implementation unit PPTA – project preparatory technical assistance TA – technical assistance TMD – Track Maintenance Department URM – Uzbekistan Resident Mission UTY – Uzbekistan Temir Yullari WACC – weighted average cost of capital NOTE In this report, "$" refers to US dollars. 2 Vice President S.L. Greenwood Jr., Operations 2 Director General H.S. Rao, East and Central Asia Department Country Director S.M. O’Sullivan, Uzbekistan Resident Mission Team leader D.A. Walton, Senior Portfolio Management Specialist, Uzbekistan Resident Mission Team member R.R. Nadyrshin, Portfolio Management Officer, Uzbekistan Resident Mission CONTENTS Page BASIC DATA i MAP vi I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 2 C. Project Costs 5 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 7 G. Conditions and Covenants 8 H. Related Technical Assistance 8 I. Consultant Recruitment and Procurement 9 J. Performance of Consultants, Contractors, and Suppliers 11 K. Performance of the Borrower and the Executing Agency 12 L. Performance of ADB 13 III. EVALUATION OF PERFORMANCE 13 A. Relevance 13 B. Efficacy in Achievement of Purpose 13 C. Efficiency in Achievement of Outputs and Purpose 14 D. Preliminary Assessment of Sustainability 14 E. Environmental, Sociocultural, and Other Impacts 15 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 15 A. Overall Assessment 15 B. Lessons Learned 15 C. Recommendations 16 APPENDIXES 1. Project Framework 1 2. Chronology of Major Events 3 3. Track Rehabilitation Completed Works 8 4. Appraisal and Actual Project Costs 9 5. Currency Equivalents 10 6. Summary of Contracts Funded by Asian Development Bank 11 7. Projected and Actual Disbursements 12 8. Implementation Schedule 13 9. Organization Charts of Uzbekistan Temir Yullari 14 10. Status of Compliance with Major Loan Covenants 16 11. Financial Statements 23 12. Reform Framework for the Railway Sector 25 13. Actual Procurement Schedule 28 14. Performance Targets at Appraisal and Actual 29 15. Traffic Forecasts at Appraisal and Actual 30 16. Financial and Economic Reevaluation 31 17. Quantitative Assessment of Overall Project Performance 36 BASIC DATA A. Loan Identification 1. Country Uzbekistan 2. Loan Number 1631-UZB 3. Project Title Railway Rehabilitation Project 4. Borrower Republic of Uzbekistan 5. Executing Agency Uzbekistan Temir Yullari 6. Amount of Loan $70.0 million 7. Project Completion Report Number B. Loan Data 1. Appraisal – Date Started 27 May 1998 – Date Completed 9 June 1998 2. Loan Negotiations – Date Started 10 August 1998 – Date Completed 13 August 1998 3. Date of Board Approval 15 September 1998 4. Date of Loan Agreement 9 December 1998 5. Date of Loan Effectiveness – In Loan Agreement 9 March 1999 – Actual 23 February 1999 – Number of Extensions - 6. Closing Date – In Loan Agreement 31 December 2003 – Actual 13 April 2005 – Number of Extensions 1 7. Terms of Loan – Interest Rate Pool-based variable lending rate for US dollars – Service Charge 0.75% – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending – Interest Rate 0% – Maturity (number of years) 25 – Grace Period (number of years) 5 – Second-Step Borrower Uzbekistan Temir Yullari ii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 26 August 1999 13 April 2005 5 years, 8 months Effective Date Original Closing Date Time Interval 23 February 1999 31 December 2003 4 years, 10 months b. Amount ($ ’000) Categorya Last Amount Net Amount Or Subloan Original Revised Increased/ Available Amount Undisbursedb Allocation Allocation (Decreased) Disbursed Balance 01 25,900 35,400 9,500 35,400 32,105.4 3,294.6 02 35,500 32,800 (2,700) 32,800 29,470.8 3,329.2 03 1,800 1,800 0 1,800 1,034.2 765.8 04 6,800 0 (6,800) 0 0 0 Total 70,000 70,000 0 70,000 62,610.4 7,389.6 a 01 = equipment, 02 = materials, 03 = consulting services, 04 = unallocated. b An undisbursed loan amount of $7,389,622.32 was cancelled at loan closing date on 13 April 2005. 10. Local Costs (Financed) Item Appraisal Actual - Amount ($ million) 0.0 0.0 - Percent of Local Cost 0.0 0.0 - Percent of Total Cost 0.0 0.0 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 100.00 92.97 Local Currency Cost 26.00 23.87 Total 126.00 116.84 iii 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Foreign Local Total Foreign Local Total Implementation Costs ADB Financed 70.00 0.00 70.00 62.61 0.00 62.61 UTY 19.30 26.00 45.30 16.83 23.87 40.70 Total 89.30 26.00 115.30 79.44 23.87 103.31 IDC Costs 10.70 0.00 10.70 13.53 0.00 13.53 Total 100.00 26.00 126.00 92.97 23.87 116.84 ADB = Asian Development Bank, IDC = interest during construction, UTY = Uzbekistan Temir Yullari. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual Foreign Local Total Foreign Local Total A. Base Cost 1. Track Rehabilitation 48.00 14.30 62.30 40.17 20.29 60.46 2. Maintenance Track Equipment 29.50 3.30 32.80 38.17 3.08 41.25 3. Consulting Services, 3.20 2.40 5.60 1.10 0.50 1.60 Administration, and Miscellaneous Subtotal (A) 80.70 20.00 100.70 79.44 23.87 103.31 B. Contingencies 1. Physical 2.40 1.00 3.40 0 0 0 2. Price 6.20 5.00 11.20 0 0 0 Subtotal (B) 8.60 6.00 14.60 0 0 0 C. Interest During Construction 10.70 0.00 10.70 13.53 0.00 13.53 Total Project Cost 100.00 26.00 126.00 92.97 23.87 116.84 iv 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants C02 – Supervision Consultancy Services Start of Recruitment Jun 1998 22 Jul 1998 End of Recruitment Dec 1998 6 Jul 1999 Date of Contract Jan 1999 8 Feb 2000 Construction Supervision Jan 1999–Jul 2002 7 Jul 1999–6 Jul 2002 C023 – Elastic Rail-Sleeper Fastening Consultants Not Envisaged at Appraisal Start of Recruitment - 5 Mar 1999 End of Recruitment - 5 Apr 1999 Date of Contract - 2 Jul 1999 Consultant Services - 27 Sep 1999–24 Sep 2002 Procurement: B01 – Rails Jan 1999–Mar 2000 22 Jul 1998–27 Nov 2000 B021 – Base Plates, Clamps, Bolts Jan 1999-–Mar 2000 25 Nov 1998–4 Mar 2002 B022 – Rail Fastenings Jan 1999–Mar 2000 23 Sep 1999–29 Sep 2001 B03 – Weld Finishing Machinery Jan 1999–Oct 2000 11 Aug 1998–18 Sep 2003 B04 – Track Machines Jan 1999–Oct 2000 13 Nov 1998–4 Apr 2002 B05 – Track Maintenance Machines Jan 1999–Oct 2000 8 Jun 1999–20 Jan 2003 B06 – Concrete Sleepers Jan 1999–Dec 2001 11 May 1999–20 Sep 2001 B07 – Wooden Sleepers Jan 1999–Oct 2000 25 Jun 1999–17 Oct 2001 B081, B082, and B083- Experimental Fastenings Jan 1999–Mar 2000 24 Dec 1999–Jul 2001 B09 – Inspection Services Jan 1999–Feb 2000 20 Aug 1999–10 Apr 2000 B10 – Earthmoving Equipment Jan 1999–Oct 2000 23 Mar 2001–21 Jun 2002 B11 – Sleeper Changing Machine Jan 1999–Oct 2000 14 Aug 2001–18 Dec 2003 B12 – Spare Parts and Measurement Equipment Jan 1999–Oct 2000 18 Jun 2001–25 Sep 2003 Construction Start of Construction Jan 2000 Jan 2000 Completion of Construction Dec 2002 June 2004 . 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 15 September 1998 to 31 December 1998 Satisfactory Highly Satisfactory From 1 January 1999 to 31 December 1999 Satisfactory Highly Satisfactory From 1 January 2000 to 31 December 2000 Satisfactory Highly Satisfactory From 1 January 2001 to 31 December 2001 Satisfactory Satisfactory From 1 January 2002 to 31 December 2002 Satisfactory Partially Satisfactory From 1 January 2003 to 31 December 2003 Satisfactory Satisfactory From 1 January 2004 to 31 December 2004 Satisfactory Satisfactory From 1 January 2005 to 13 April 2005 Satisfactory Satisfactory v D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Fact-Finding Mission 20 November–10 December 1997 5 89 a, b, c, d, h Appraisal Mission 27 May–9 June 1998 4 56 a, c, d, f Inception 1–7 December 1998 1 7 a Review Mission 1 6–13 September 1999 2 12 a, d Review Mission 2 15–23 November 1999 2 17 a, d Review Mission 3 (Mid-Term) 9–19 October 2000 2 22 b, d Review Mission 4 27 June–6 July 2001 1 10 d Review Mission 5 14–21 April 2003 2 16 g, i Review Mission 6 23 August–3 September 2004 2 24 e, i Project Completion Review 24 October–3 November 2005 2 16 i, j Notes: a a – financial analyst, b – programs officer, c – economist, d – engineer, e – economist (Uzbekistan Resident Mission), f – counsel, g – senior portfolio management specialist (Uzbekistan Resident Mission), h – social development specialist, i – portfolio management officer (Uzbekistan Resident Mission), j – staff consultant.