Project Administration Memorandum Project Number: 38236 Loan Number: 2196 May 2009 TAJ: Dushanbe–Kyrgyz Border Road Rehabilitation Project (Phase II) The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes. CONTENTS Page Loan Processing History i Key Persons Involved in the Project ii Design and Monitoring Framework iii I. PROJECT DESCRIPTION 1 A. Project Area and Location 1 B. Impact and Outcome 1 C. Project Components 1 D. Special Features 3 II. ORIGINAL COST ESTIMATES AND FINANCING PLAN 5 A. Detailed Cost Estimates 5 B. Financing Plan 6 C. Allocation of Loan Proceeds 6 III. REVISED COSTS AND NEW FINANCING PLAN 7 IV. IMPLEMENTATION ARRANGEMENTS 8 A. Executing Agency and Project Management 8 V. IMPLEMENTATION SCHEDULE 8 VI. COST ESTIMATES AND FINANCING PLAN DURING IMPLEMENTATION 8 VII. CONSULTANT RECRUITMENT 9 VIII. PROCUREMENT 9 IX. DISBURSEMENT PROCEDURES 9 X. ASSURANCE 10 A. Specific Assurances 10 B. Condition for Disbursement 12 XI. PROJECT MONITORING AND EVALUATION 12 A. Project Performance Monitoring Evaluation 12 B. Project Review 13 XII. REPORTING REQUIREMENTS 13 XIII. AUDITING REQUIREMENTS 13 XIV MAJOR LOAN COVENANTS 13 XV. IMPLEMENTATION OF THE ASIAN DEVELOPMENT FUND IX GRANT 13 COMPONENT ON HIV/AIDS AND MIGRATION XVI. ANTICORRUPTION 14 XVII. PROJECT ADMINISTRATION MEMORANDUM FOR SUPPLEMENTARY GRANT 15 XVIII. CONCURRENCE 15 APPENDIXES 1. List of Rural Roads 16 2. Consultation with Stakeholders 17 3. Detailed Cost Estimates and Financing Plan 18 4. Project Organization Chart 19 5. Revised Implementation Schedule 20 6. Detailed Cost Estimates and Financing Plan During Implementation 21 7. Quarterly and Yearly Contract Awards and Disbursements 22 8. Terms of Reference for Consulting Services for Construction Supervision and 23 Monitoring and Evaluation 9. Procurement Plan 27 10. Contract Packages 28 11. Suggested Topics for Borrower's Project Completion Report 29 12. Financial Reporting and Auditing Requirements 31 13. Major Loan Covenants 34 SUPPLEMENTARY APPENDIX Copy of ADB’s Anticorruption Policy ADDENDUM Project Administration Memorandum for Supplementary Grant i ORIGINAL LOAN PROCESSING HISTORY Loan 2196-TAJ a. Approval of Project Preparatory TA 31 August 2004 b. Completion of Feasibility Study 05 October 2005 c. Loan Fact-Finding 29 June–10 July 2005 d. Management Review Meeting 18 August 2005 e. Loan Appraisal 23–31 August 2005 f. Staff Review Committee Meeting 21 September 2005 g. Loan Negotiations 05–08 October 2005 h. Board Circulation 21 October 2005 i. Board Approval 17 November 2005 j. Signing of Loan Agreement 14 February 2006 k. Loan Effectiveness 13 March 2006 SUPPLEMENTARY LOAN PROCESSING HISTORY Loan ___-TAJ a Grant Fact-Finding 20 – 23 March 2009 b Management Review Meeting 29 April 2009 c Grant Appraisal waived d Staff Review Committee Meeting waived e Grant Negotiations 04 June 2009 f Grant Effectiveness g Signing of Grant Agreement ii KEY PERSONS INVOLVED IN THE PROJECT The Borrower 1. Mr. S. Nadjmuddinov Tel. No.: (992 372) 211417 Minister, Ministry of Finance Fax No.: (992 372) 213764/214205 2. Mr. S. S. Saidshoev Tel. No.: (992 372) 215706 Deputy Minister of Finance Fax No.: The Executing Agency 4. Mr. A. Ashurov Minister, Ministry of Transport No.: (992 372) 211713 Fax No.: (992 372) 212003 5. Mr. Kh. Khudoyorov Deputy Minister, Ministry of Transport No.: (992 372) 211713 Fax No.: (992 372) 212003 5. Mr. Nizom Hakimov Executive Director for Project Implementation Unit (PIU) Tel. No.: 215673 Fax No.: (992 372) 215673 6. Mr. Goibnazar Boronov Deputy Executive Director for PIU Tel. No.: (992 372) 215673 Fax No.: (992 372) 215673 Asian Development Bank 7. Mr. Sean O’Sullivan Director, Infrastructure Division Central and West Asia Department Tel. No.: (632) 632-6765 Fax No.: (632) 636-2428 8. Mr. Rustam Ishenaliev Transport Specialist Transport and Communications Division Tel. No.: (632) 632-6515 Fax No.: (632) 636-2428 8. Ms. Hee Young Hong Financial Analysis Specialist Transport and Communications Division Tel. No. (632) 632-5940 Fax No. (632) 636-2428 9. Ms. Celia B. Africa Assistant Project Analyst Transport and Communications Division Tel. No.: (632) 632-6399 Fax No.: (632) 636-2428 iii DESIGN AND MONITORING FRAMEWORK Loan 2196-TAJ Data Design Performance Assumptions Sources/Reporting Summary Targets/Indicators and Risks Mechanisms Impact Trade in the region and Tajikistan–People’s From the Government Assumption economic growth in the Republic of China (PRC) of Tajikistan and • Continued commitment by project area increase. trade increases from international regional governments to 75,000 tons in 2003 to organizations facilitate trade and improve 2,200,000 in 2015 (the border-crossing procedures PRC’s share of Tajikistan’s total trade increases from 1.9% to 20%). Tajikistan–Kyrgyz Republic trade increases from 50,000 tons in 2003 to 160,000 in 2015. PRC–Afghanistan trade increases from 2,500 tons in 2003 to 2,000,000 in 2015 (the PRC’s share of Afghanistan’s total trade increases from 0.04% to 10%). Production of fruit and Government statistics Risk potatoes in the project reports, household • Significant adverse weather or area increases from surveys by consultants environmental conditions could 71,000 tons in 2004 to affect production. 96,000 in 2015. Poverty rate in the project Household surveys by Assumptions area decreases from 67% consultants • Remittances from residents in 2005 to 50% in 2015. working in the Russian Federation continue at least at current level. Number of children in the Household surveys by • There is no deterioration in the project area attending consultants availability and quality of secondary school secondary education in the increases by 20% in 2015. project area. Percentages of babies in Household surveys by • There is no deterioration in the the project area delivered consultants availability and quality of health in hospitals increase from care in the project area. 30% in 2005 to 45% in 2015. Average number of per Household surveys by • Availability of transport capita annual trips on consultants services continues at present project road increases level. from three trips in 2005 to five trips in 2015. Outcome Transport on the regional and International traffic Ministry of Transport Assumption national road networks increases from 21 (MOTC) surveys • Other road improvement becomes more efficient vehicles per day in 2005 projects on the network are to 1,020 in 2015. implemented as planned. Domestic traffic increases MOTC surveys Risk from 560 vehicles per day • Forecast of international on the section south of generated traffic may not be Garm in 2005 to 1,106 in realized. iv Data Design Performance Assumptions Sources/Reporting Summary Targets/Indicators and Risks Mechanisms 2015. Traffic accident growth MOTC statistics Assumptions rate on project road • The Ministry of Internal Affairs sections kept to 5.8–7.9% (traffic police) works in during 2005–2015 (half cooperation with MOTC growth rate of total traffic) • There is continued MOTC emphasis on improving road safety. Travel time for kilometer MOTC surveys • The project road is maintained (km) 140–km 217 adequately. decreases from 1.5 to 1.0 hours by 2010. Road is kept open MOTC statistics Risks continuously except for • Extraordinary environmental required maintenance incidents occur, e.g., operations. landslides. Annual road maintenance Project administration • Departure of trained staff from plans are prepared and missions (PAMs) and MOTC fully implemented. progress reports (PRs) Outputs 1. Dushanbe–Kyrgyz border 77 km of the central Project completion Risk road and associated rural section and 12 km of the report (PCR), PAMs, • Environmental occurrences, roads are improved. border section of short resettlement e.g., landslides, could damage Dushanbe–Kyrgyz border plan, monitoring and/or delay civil works. road, as well as 60 km of reports, and PRs. rural roads are improved. Potential impact of HIV Assumption and other infectious • Continued commitment of the diseases, and other social Ministry of Health to HIV and environmental risks prevention are mitigated. Ten households are compensated for resettlement effects. 2. Conditions necessary for Financing of road PAMs, PRs Risk the sustainability of the maintenance increases at • Other government expenditure road network in Tajikistan same rate as national categories are given higher are improved. budget during 2008–2009. priority. Financing of $90,000 per year is provided for maintenance of the project road. Vehicle-weighing systems are installed and operational on road projects rehabilitated by Asian Development Bank (ADB) by project completion. Road maintenance equipment is procured and operating. Pilot cases of tendering out road maintenance completed by 31 December 2008. v Data Design Performance Assumptions Sources/Reporting Summary Targets/Indicators and Risks Mechanisms 3. MOTC’s institutional MOTC’s Road Planning PAMs, PRs Assumption capacity is strengthened and Assessment Unit and • Trained staff do not leave Economic Policy Division MOTC for other employment. are fully operational, with four and five staff, adequate office space, and three and four computers, respectively. MOTC reaches agreement on a training program with the Tajikistan Transport Institute by 31 December 2006. 4. Governance in MOTC Financial