Ministry of Transport and Communications of the Kyrgyz Republic. 12-th Transport Sector Coordinating Committee meeting

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1 Ministry of Transport and Communications of the Kyrgyz Republic 12-th Transport Sector Coordinating Committee meeting Astana, June 5-7, 2013

2 Implementation of investment projects under the CAREC Program has had a positive impact on the economic situation in the Kyrgyz Republic through improvement of conditions for transit, passenger and cargo traffic, increased international trade (the People s Republic of China. The Republic of Kazakhstan and the Republic of Tajikistan), improved mobility of people and goods in road project areas, acceleration of further development of mountainous regions of the country.

3 Attraction of significant financial resources for road rehabilitation enables to improve road infrastructure, create new jobs, provide access for goods and services to neighboring markets and local markets. In additional to road rehabilitation, the following components have been/are implemented: - Construction of customs posts (Irkeshtam and Karamyk); - A master plan has been developed to serve as a basis for the Road Sector Strategy of the Kyrgyz Republic; - Improving knowledge and technical skills of the staff of the Ministry of Transport and Communications of the KR and university graduates with transport sector-related specialties; - Private road maintenance arrangements are under development.

4 International road corridors are practically the only way for the Kyrgyz Republic to have access to regional markets of goods, services and play an essential role in providing a link between economic centers both within the country and beyond. Road corridor preservation and improvement are a natural priority of the state in the road sector. Implementation of all investment projects has a strategic importance for social and economic development of regions throughout the republic as a whole.

5 CAREC Transport Corridor Alignments in the Kyrgyz Republic Corridor 1: Europe East Asia (PRC Torugart Bishkek - Chu- Astana Russian Federation) Corridor 2: Mediterranean East Asia (PRC - Irkeshtam Osh Andizhan Tashkent Samarkand Bukhara Corridor 3: Caspian ports) Russian Federation Middle East and South Asia (RF Semei Almaty Bishkek Osh Sarytash Karamyk Tajikistan Afghanistan Iran Persian Gulf ports) Corridor 5: East Asia Middle East and South Asia (PRC Irkeshtam Sarytash Karamyk Tajikistan Afghanistan Pakistan)

CAREC Transport Corridors in the Kyrgyz Republic Bishkek-Osh-Sarytash-Karamyk - 987 km, CAREC 3 & 5

6 CAREC Transport Corridors in the Kyrgyz Republic Bishkek-Osh-Sarytash-Karamyk km, CAREC 3 & 5 Osh-Sarytash-Irkeshtam km, CAREC 2 Bishkek-Naryn-Torugart km, CAREC 1 Sarytash-Karamyk km, CAREC 5

7 According to the CAREC Action Plan and Strategy the following corridor sections have been completed successfully: - CAREC 2 (Osh Sary-Tash Irkeshtam road), 258 km; - CAREC 5 (Sary-Tash Karamyk road), 136 km; - In 2006 CAREC 3 section was completed (543-km Bishkek Osh road, rehabilitation of the 130-km remaining part or Phase IV is expected to be started in 2014); - Implementation of the CAREC 1 section (539-km Bishkek Naryn Torugart road) is ongoing.

8 Transport Corridor Corridor Sections Length, km Implementation Progress (Performance) CAREC 3 Bishkek Osh % 100 % CAREC 3 & 1 Bishkek Georgievka % 100 % CAREC1 Bishkek Naryn Torugart % 100 % CAREC 2 Osh Sary-Tash Irkeshtam % 100 % CAREC 5 Sary-Tash Karamyk % 100 %

9 Road Before Rehabilitation After Rehabilitation Osh Sary-Tash - Irkeshtam and Sary-Tash - Karamyk Travel time from Osh to Karamyk hour 4 hours Bishkek - Osh Daily traffic flow Travel time 460 vehicles/day hours 3,200 vehicles/day hours Fuel saving Income of road-side business US$ mln. annually US$2,700-3,500

10 Growth, % Gross Domestic Product in market prices (mln. soms) 141, , % External Trade (mln. USD) 4, , % Average nominal monthly salary per workers in the country (soms) 3, , %

11 Financing Allocated for Road Maintenance in Years National annual budget, mln. soms Funds allocated for road maintenance, mln. soms Road budget to the national budget, % , , , , , , , , , , , , , ,445,6 1, , ,836,4 2,1

12 For further development of the sector we would like to propose for consideration some more priority projects, which are essential for Kyrgyzstan. We hope that these projects will be also included into the CAREC transport network: - Road Osh Batken Isfana to the Tajik border following the route to Khudjand city (the road length is 402 km) - North-South road (Balykchi Kochkor Aral across the junction of Naryn and Kokomeren rivers Kazarman Kok-Art pass Jalal-Abad, the road length is about 450 km)

Donor Eximbank, PRC Total cost US$91.45 million Contractor China Road, PRC Launching July, 2013 1. Section km 220-232; Length 12 km; Cost US$9.63 mln. 2. Section km 248-271 Pavement one-layer; Length 23.

13 Donor Eximbank, PRC Total cost US$91.45 million Contractor China Road, PRC Launching July, Section km ; Length 12 km; Cost US$9.63 mln. 2. Section km Pavement one-layer; Length 23.5 km; Cost US$4.52 mln. 3. Section km ; Length 89 km; Cost US$77.28 mln. Khudjand Osh Batken Isfana Road Batken bypass, 32 km Total length Covered by financing Total investment Loan Grant KGZ Government Financing gap Not covered by financing: 132 km out of 402 km Batken bypass 32 km Isfana bypass 7 km Myrza-Patcha bypass 11 km With Batken bypass 164 km 360 km 254 km US$ mln. US$ mln. US$37.9 mln. US$5.7 mln. US$130 mln. 10 Suluktu Kairagach Isfana 402 Myrza-Patcha bypass, 11 km Isafana bypass, 7 km Discussions under underway with the ADB to include the section Osh-Batken- Isfana, including the additional section Isfana Khudjand (length is 50 km) Into the CAREC transport network. Donor EC Grant amount Euro 6.3 mln. Bypass road along the headrace channel to the Toktogul water reservoir Length 23.5 km ( ) Contractor Eastern European Alliance (Ukraine) Completed Donor EBRD Loan amount US$35 mln. (100%) KGZ Government No Length 65 km Contractor Xingjan-Beisin, PRC) Contract cost US$25.4 mln. Consultant EGIS BCEOM (France) Contract cost US$1.23 mln. Completion date November, 2012 MOCT budget 5 km (Sokh river bridge) Exempt from taxes Major civil works were completed in November, 2012 The section was commissioned for the guarantee maintenance period Nookat Donor World Bank 220 Amount US$16 mln. (100%) Loan US$8.8 mln. Grant US$7.2 mln. KGZ Government No Section km10-28 Length 18 km Launched March, 2013 Not exempt from taxes Donor World Bank Amount US$24.96 mln. (82%) Loan US$13.73 mln. Grant US$11.23 mln. KGZ Government US$5.7 mln. (18%) Total US$30.59 mln. (100 %) Length 32 km (km ) Contractor Xingjian-Beisin, PRC Contract cost US$21.48 mln. Consultant Kocks Consult (Germany) Contract cost US$1.41 mln. No tax exemptions Major civil works were completed in November, 2012 The section was commissioned for the guarantee maintenance period. Donor EC Section Kok Talaa - Pulgon (km ) Grant amount Euro 8.6 mln. Length 14.7 km Contractor China Road, PRC Amount Euro 7.095mln. Consultant Safege International (Belgium) Launched November, 2012

ALIGNMENT OF THE ROAD ENSURING NON-INTERRUPTED ROAD TRANSPORT LINK BETWEEN NORTH AND SOUTH OF THE KYRGYZ REPUBLIC The proposed North-South road section to be included into the CAREC transport

14 ALIGNMENT OF THE ROAD ENSURING NON-INTERRUPTED ROAD TRANSPORT LINK BETWEEN NORTH AND SOUTH OF THE KYRGYZ REPUBLIC The proposed North-South road section to be included into the CAREC transport network, (length 200 km) 61 Bishkek CAREC Corridor 3 (Bishkek-Osh road) Too-Ashuu village Balukchy L=200 km North-South road L=664 km Jalal-Abad L=448 km Aral village L=539 km CAREC Corridor 1 (Bishkek Naryn Torugart road) 66 4 Osh Torugart Bishkek Osh (CAREC 3) km Bishkek Naryn Torugart (CAREC 1) km Balykchi Kochkor Aral Kazarman Jalal-Abad (North- South road alignment) km 14 Kochkor Aral Suusamyr (the section proposed to be included into the CAREC transport network) km

15 Thank you for your attention

UNECE - UNESCAP. Euro-Asian Transport Linkages Project. Michalis P. Adamantiadis, Regional Adviser Transport Division, UNECE

UNECE - UNESCAP. Euro-Asian Transport Linkages Project. Michalis P. Adamantiadis, Regional Adviser Transport Division, UNECE UNECE - UNESCAP Euro-Asian Transport Linkages Project Michalis P. Adamantiadis, Regional Adviser Transport Division, UNECE 1 Structure of Presentation Introduction Objectives Organization Achievements