DUSHANBE, June 19, 2009, Asia-Plus — Asian Development Bank (ADB) and the Government of Tajikistan completed negotiations on a proposed supplementary grant for the Dushanbe-Kyrgyz Border Road Rehabilitation Project, according to the ADB Resident Mission in Tajikistan.
The target road is part of the Transport Corridor III identified under the Central Asia Regional Economic Cooperation Program. It connects Kazakhstan, Kyrgyzstan, China, Tajikistan, Afghanistan, and Uzbekistan. The project aims to reduce transport costs, foster regional trade and cooperation, and improve access to markets and social services.
Traffic volume on the Dushanbe-Kyrgyz border road has increased over the years, surpassing initial forecasts for the project. The excess traffic has led to premature deterioration of the road.
Press release issued by the ADB Resident Mission cited Hee Young Hong, Financial Analysis Specialist at ADB”s Central and West Asia Department, as saying, “The supplementary financing will address the technical and financing gaps resulting from the premature deterioration, update previous assumptions, extend the economic life of the road, and bolster the project”s development impacts.”
ADB is considering a $20 million grant for the project. The grant is scheduled for consideration by ADB’s Board of Directors in July 2009. The Government will contribute $5 million for the project, which will be implemented over a 30-month period ending December 2011. The Ministry of Transport and Communications of Tajikistan will be the executing agency.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.
