Road Asset Management Project - Additional Financing (ADB-50062-002)

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
Approved
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
Sep 19, 2017
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.
Borrower
Government of Afghanistan
The holder of the loan, grant, or other investment.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Loan Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 30.30 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 26, 2018

Disclosed by Bank Sep 29, 2017


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Project Description

The Road Asset Management project (RAMP) will finance priority maintenance works for part of Afghanistan''s regional highway sections from Kabul to Ghazni and from Kabul to Jalalabad, which are the economic lifeline of the country''s eastern region. The project will include a capacity development component to introduce sustainable road management practices, specifically in road asset management and road maintenance. The additional financing will help finance the gap arising from changes in financing arrangements and a change in scope of the RAMP, to include priority maintenance works for the Southern National Ring Road of Afghanistan''s regional highway, which is the economic lifeline of the country's eastern region. The project will include a capacity development component to introduce sustainable road management practices, specifically in road asset management and road maintenance. The overall project will facilitate regional connectivity, improve quality and efficiency of road transport services, and promote inclusive economic growth.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

In early 2016, ADB estimated about $55.0 to $ 60.0 million will be needed to address the maintenance work on Afghanistan''s national ring road section between Kabul and Kandahar; and the strategic highway section between Kabul and Jalalabad. ADB approved the current project of $25.5 million from ADB's Special Funds resources on 31 October 2016 with a grant effectiveness date of 5 January 2017. The current project was designed to (i) initiate the establishment of a sustainable road maintenance system for the country''s major highways and (ii) develop Ministry of Public Works' (MPW) O&M; capacity. The project''s two major components are road maintenance and a road asset management system (RAMS). Two sections of national highways were selected for maintenance because of their economic and strategic importance: (i) Kabul to Jalalabad Highway from Surubi to Jalalabad and (ii) the Kabul to Kandahar Highway from Kabul to Ghazni. The project will also develop a Road Asset Management System (RAMS) as the primary decision-making support tool to help MPW plan and manage road O&M.;

The current project intends to provide MPW with a RAMS that will support objective planning, improve road serviceability, and ensure cost-effective use of available resources. The prospect of additional financing was raised in the report and recommendation of the President for the current project (https://www.adb.org/projects/documents/afg-road-asset-management-project-rrp). The additional financing is needed to (i) fill the financing gap of $30.3 million; and (ii) include the section of Kabul to Kandahar Highway, between Ghazni and Kandahar in southeastern Afghanistan, which was part of the original scope of the 2016 need assessment for maintenance of the ring road.

The additional financing will support scaling up of O&M; practices. This will include overloading control by providing weighbridges in the key locations of Afghanistan's regional highway. It will help consolidate development outcomes by establishing sustainable road asset management and road maintenance practices. Overall, the project meets the eligibility criteria for additional financing. The additional financing will enhance the intended impact of the current project by utilizing the existing implementation arrangements, achieving results quickly.

The overall project is in line with the strategic objectives, as described in ADB's country operations business plan (COBP), 2017 2019, of ensuring continual support for road network O&M; in the short term and developing the government's O&M; capacity in the long term. The COBP identifies investments in developing a safe, reliable, and efficient transport network connecting urban and rural centers as priorities for the transport sector and are in line with the government's strategies for development of the sector.

 

Investment Description
  • Asian Development Bank (ADB)
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