Geographic Focus: Republic of Kazakhstan, Kyrghyz Republic, Republic of Tajikistan, Turkmenistan, Republic of Uzbekistan

Project Budget : EURO 1,200,000

Contractor : DE-Consult

Implementation timetable : March 1996 through March 1997

Background and Objectives. The rail infrastructure has decayed through lack of maintenance. Some elements are of a strategic economic importance, and their under-performance can impose severe losses to regional economies. The general quality of service has to be improved to provide a level of service expected in a modern economy, and speed restrictions due to lack of maintenance need to be lifted. This project had three main objectives or Modules : (i) Feasibility study for the upgrading of the Aktau - Bejneu rail line in Kazakhstan (Aktau is the main port serving the fast developing Kazakh oil fields at Tenghiz); (ii) Survey of infrastructure condition on the TRACECA main rail routes east of the Caspian Sea; and (iii) Feasibility study for the development of a new crossing over the Amu Darya River (over 2,000 m long), for road and rail traffic, at Chardzhou, Turkmenistan.

Key Issues and Achievements. The first module generated traffic forecasts and carried out an economic and technical feasibility study according to Western standards, but based on governmental projections of freight. The inefficiency associated with the 18 km of rail connection between Aktau and Mangyshlak not being owned by Kazakhstan railways was highlighted. The project detailed the considerable investment that is required to keep the line operational into the 21^st century. The results were used by the Central Asian Railways Restructuring project. The second module detailed operational, marketing and commercial issues, including a breakdown of maintenance investment requirements and an estimate of the cost to modernise and rehabilitate the rail signalling and telecommunications equipment in the region. A study visit to EU countries demonstrated to participants the operations and commercial organisation needed and the performance expected by the customers of Western railways in international traffic. The third module made traffic forecasts for future road and rail traffic on the Chardzhoubridge, and identified the short-term measures needed to ensure continued operation of the bridge. The main recommendation is that there should be a combined road and rail bridge on the site of the pontoon bridge and that toll charges should be levied for the new bridge to cover the operating costs. A financial engineering project to identify potential future investors is ongoing, as part of the project "Traffic Forecasting and Feasibility Studies". International financial institutions have indicated preliminary interest.