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ROAD SECTOR STRATEGY 2015

Initiator: ADB / Ministry of Transports and Communications

Project description: Supported by ADB consultants, MOTC is drafting a Road Sector Strategy 2025. The first draft dated 28 April 2015 concludes that around US$ 2.6 billion is needed for the coming 10 years to upgrade and maintain the road network. However, based an current budget allocations and commitments from development partners, only US$ 1.4 billion is available, implying a gap of US$ 1.2 billion i.e. US$ 120 million per year. No strategy has yet been defined to address this gap (e.g. reduce ambitions, improve efficiency, increase funding from road user charges).

The draft road sector strategy already suggests 3 possible PPP projects.

Kubaky Bypass: A proposal to toll the recently (2013) rehabilitated 25km bypass on the Bishkek – Naryn – Torugart road. The proposed implementation scheme is an operations concession. The traffic today amounts up to some 2,500 vehicles per day. It is questionable whether this project is attractive for PPP i.e. whether users are willing to accept tolls on an existing road. MOTC will prepare a project brief, due 30 June 2015.

Uzgen Bypass: A proposed bypass around the town of Uzgen on the Bishkek – Osh road to reduce the urban traffic amounting up to some 25,000 vehicles per day. Initial estimates for construction costs are US$ 7-15 million and the proposed implementation scheme is BOT. MOTC will prepare a project brief, due 30 June 2015.

Almaty – Issuk-Kyl Lake: A proposed new more direct road between Almaty and Issuk-kyl Lake which will significantly reduce travel time (and strengthen the tourism potential of the Issuk-Kyl Lake region). A 2008 PFS estimated the construction costs at US$ 91 – 114 million. MOTC will prepare a project brief, due 30 June 2015.

In addition, the following 2 projects have also being discussed with MOTC and will be included in the Road Sector Strategy 2025.

Kemin Bypass: A proposed bypass around the city of Kemin on the Bishkek – Issuk-Kyl Lake road. This project would complete the parallel road connection between the capital and the lake. MOTC is preparing a project brief for this project, due 30 June 2015.

North – South Corridor Commercialization: The government of Kyrgyzstan is currently implementing an alternative North South corridor (as included in the CAREC program) with financial support from China and ADB. To ensure sustainability of the corridor it is considered upon completion to commercialise the road through an operations concession including tolling. MOTC will prepare a project brief, due 30 June 2015.