Preparation of Central Asia Regional Economic Cooperation Corridors 5 and 6 (Salang Corridor) Projec (ADB-49229-003)

Countries
  • Afghanistan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 26, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 31.37 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Aug 8, 2017

Disclosed by Bank Aug 26, 2016


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Project Description
DESCRIPTION The proposed project will assist the Government of Afghanistan in preparing the Central Asia Regional Economic Cooperation (CAREC) Corridors 5 and 6 (Salang Corridor) Project (ensuing project). The ensuing project will rehabilitate and upgrade the Salang Corridor one of the few viable land routes linking the north and south of Afghanistan. The project will support the government in (i) studying the feasibility of three alignment options for the rehabilitation and upgrade of the Salang Corridor; and (ii) completing the detailed engineering design, procurement documentation, and project and safeguard documents for the selected option. PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY Planned and designed over many years, construction of the 2.7-kilometer Salang Tunnel was completed in 1964. During more than 50 years of service, proper maintenance and rehabilitation did not occur regularly, if at all, as a result of the 30 years of internal conflict and associated effects on sector governance. Road crashes, fires, conflict-related acts, and constant usage have contributed to the tunnel falling into a state of severe disrepair. Present conditions within the tunnel are dangerous to users because of inadequate ventilation, poor lighting, lack of proper modern safety features, and a failing road surface all of which constrain the traffic flow and incur an estimated economic cost of $60 million per year. If the tunnel completely fails, the costs to the Afghan economy would be substantial and could pose an additional risk to the stability of the fragile and conflict-affected state (FCAS). The ensuing project will (i) reduce the cost of passenger and cargo transportation between the southern and northern regions of Afghanistan and Central Asia by reducing travel times; (ii) ensure the security, reliability, and year-round use of the Salang Corridor by providing some redundancy through the availability of two alternative routes; and (iii) promote trade and investment. Additionally, the ensuing project will produce road safety benefits and may be a vehicle for introducing private sector participation in the transport sector through possible partial financing of construction and future operations and maintenance. IMPACT Accelerated implementation of the ensuing project, contributing to improved efficiency and safer movement of goods and people in Afghanistan and across Central and West Asia.
Investment Description
  • Asian Development Bank (ADB)
Grant 0490-AFG: Preparation of Central Asia Regional Economic Cooperation Corridors 5 and 6 (Salang Corridor) Project Concessional ordinary capital resources / Asian Development Fund US$ 15.45 million Grant 0491-AFG: Preparation of Central Asia Regional Economic Cooperation Corridors 5 and 6 (Salang Corridor) Project Afghanistan Infrastructure Trust Fund US$ 15.92 million
Contact Information
ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main CONTACTS Responsible ADB Officer Soetantri, Nana S R H Responsible ADB Department Central and West Asia Department Responsible ADB Division Transport and Communications Division, CWRD Executing Agencies Ministry of Finance Pashtunistan Watt, Kabul, Islamic Republic of Afghanistan