Transport corridor 3 of the Central Asia Regional Economic Cooperation (CAREC) program runs from the People’s Republic of China (PRC) through Irkeshtam at the PRC–Kyrgyz Republic border and Karamyk at the Kyrgyz Republic–Tajikistan border toward several Central Asian countries, including Afghanistan and Pakistan to the south and Uzbekistan to the west. The project road is part of this corridor and of the broader Asian highway network that connects the ocean ports of Iran and Pakistan, through Afghanistan, to the PRC and the Russian Federation.
At appraisal, the condition of the road was poor, and the border-crossing facilities and procedures were outdated and inefficient, which obstructed international traffic and trade. To help the Kyrgyz Republic and Tajikistan overcome these obstacles and enable the smooth movement of people and goods through the region, the Asian Development Bank (ADB) approved in October 2007 (i) a grant of $25.6 million for the Kyrgyz Republic and (ii) a grant of $12.5 million and loan of $40.9 million-equivalent for Tajikistan for the CAREC Regional Road Corridor Improvement Project.
The project’s expected impact was stronger regional trade and cooperation among the countries connected by the corridor and other Central Asian countries. Its expected outcome was increased regional traffic and trade, as well as improved access to markets and social services for people living along the corridor. It had four planned outputs, at appraisal: (i) 263 kilometers (km) of improved two-lane road from Sary-Tash to the Kyrgyz Republic–Tajik border at Karamyk (about 142 km), and from the border at Karamyk to Nimich in Tajikistan (about 121 km); (ii) improved infrastructure and facilities at the Kyrgyz Republic–PRC border crossing at Irkeshtamand the Kyrgyz Republic–Tajikistan at border crossing at Karamyk; (iii) greater sustainability and capacity of the road subsectors in both countries through outsourcing maintenance operations to the private sector; and (iv) a cross-border agreement (CBA) between the Kyrgyz Republic, the PRC, and Tajikistan.
During implementation, two main modifications were made to output 1: (i) because of better alignments, the road length on the Kyrgyz Republic side was reduced to 136 km, while that on the Tajikistan side was reduced to 114 km; and (ii) to meet the requirements of increased traffic, the asphalt surfacing on the Kyrgyz Republic’s part of the road was lengthened, while the original single 6-centimeter base asphalt surfacing layer on the Tajikistan side was modified to two-layer asphalt surfacing. The second modification increased the project cost for the Kyrgyz Republic by $32 million, to help meet which, the government requested a loan approved by ADB for $23 million-equivalent in September 2010.
With funding from the PRC, all the facilities at the Irkeshtam border-crossing point were rehabilitated and well-equipped for functions related to inspection, quarantine, and cargo movement data. Infrastructure was upgraded, and a new customs hall and office and a large waiting area for vehicles were built. Improvements in the border crossing were financed by a $3.4 grant from the PRC. For Tajikistan, the border infrastructure at Karamyk was improved under a different ADB-financed project. Two entry check points, administrative buildings, examination equipment, and lifeline facilities were installed.
Targeted outputs on performance-based maintenance (PBM) contracts, particularly those to be delivered through ADB-financed consulting services, were successfully completed. Outputs in the Kyrgyz Republic included a survey and assessment of road maintenance practices; training on PBM contracting and related activities; private sector participation strategy in roads development and maintenance, with a focus on PBM outsourcing; and PBM bidding document and specifications. Awarding of government-funded pilot contracts was delayed but nevertheless implemented in a subsequent ADB-financed project. In Tajikistan, substantial PBM training was provided to the Ministry of Transport (MOT) staff and private contractors. PBM bidding documents were prepared. Two projects were selected for the pilot, and in May 2013, both PBM contracts were awarded, each with an implementation period of three years. As of project completion review, the PBM contracts were being implemented smoothly with intensive supervision from the MOT’s regional road maintenance unit.
The CBA component was implemented through an ADB regional technical assistance associated to the project, in coordination with the Kyrgyz State Customs Service, Tajikistan’s Customs Service, and relevant international and national agencies.
Substantial output deliveries led to the attainment of the project outcomes and impact. Travel time along the project road consequently decreased, while annual average daily traffic (AADT) increased. Cross-border passengers and freight traffic likewise grew, with trade between the Kyrgyz Republic and Tajikistan increasing from $26.7 million in 2006 to $55.1 million in 2013, and that between Tajikistan and the PRC soaring from $158.8 million in 2006 to $2 billion in 2012. PRC’s share in the total imports of Tajikistan consequently grew from 11% to 42%. Similarly, Afghanistan’s imports from the PRC rose from $110.7 million in 2006 to $510.9 million in 2012.
In Kyrgyz Republic, the project had the Ministry of Transport and Communications (MOTC) as executing agency (EA) for the road improvement and PBM components, and the State Customs Service for the border infrastructure component. A project implementation unit (PIU), renamed the Investment Projects Implementation Group in 2010, was created under the MOTC to supervise day-to-day operations. A parallel implementation arrangement was operationalized in Tajikistan. The MOT was the EA for the road improvement and PBM components, and the Customs Service was responsible for executing the CBA component. A PIU under the MOT performed functions like those of its counterpart in the Kyrgyz Republic, except that the Road Department was responsible for implementing the PBM component.
