Geographic Focus: Cabinets of Ministers of Tajikistan, Turkmenistan, Uzbekistan

Project Budget : EURO 1,500,000

Contractor : to be contracted in 2001

Implementation timetable : 12 months

REPORTS ON LINE FOR THIS PROJECT (If needed, instructions for download here)

Background and Objectives. There is much scope, and need, for external support to modernise railway communications on a regional basis.

Technically, such support would reduce railway maintenance costs, improve safety and reliability, facilitate the introduction of MIS, and eventually provide spare capacity to the non-railway telecommunications sector.This spare capacity will represent between 20 % up to 40% of the non-railway telecommunications market.

The TRACECA Central Asia Railways Restructuring project completed in 1998 identified these possibilities and placed a high priority on the modernisation of railway telecommunications. In particular Module E of this report, prepared by the UIC (Union Internationale des Chemins de Fer), analysed in detail the existing situation and opportunities. It was calculated that returns on their recommended investments in this domain generally exceeded 20%. The TRACECA programme has made direct grant assistance of 14 MEURO, to install a fibre optic cable backbone for the three CIS railways in the Caucasus. Project costs in Central Asia would be higher (potentially exceeding 50MEURO), because of the more extensive railway network.

The Asian Development Bank has been approached to sound out their interest as a project partner and has an agreement with the Uzbek Government to finance rehabilitation of telecommunication system of a first section of the Uzbek railways between Tachkent and Bukhara (621 km). Eventually other development banks such as EBRD could be involved in additional sections. Both of these institutions have studied UIC report and expressed preliminary interest in railway telecommunications as a potential future investment. The objective of the present project will be to prepare a detailed feasibility study of a railway information communication system, including a fiber optic cable backbone, and ancillary equipment, for the Central Asian Railways.

The present focus of investments for railway provided by ADB and EBRD is on Kazakhstan and Uzbekistan. These are the major Central Asian networks, and their relations with IFI are best developed. This project would have a similar geographic focus, but would also provide links to the other three Central Asia states, whatever the position of the other co-financing partners.

Key Issues.

The tasks to be undertaken by the project would depend largely on any eventual negotiations between TRACECA, the IFI, and the lender/beneficiary countries involved in the project.

The main task of the project will be the preparation of a detailed feasibility study of a railway information communication system, including a fiber optic cable backbone, and ancillary equipment, for the Central Asian Railways.

The project will define also a balanced investment and related institutional development and training programme including the following scope :

• Railway operations telecommunication.
• Automated traffic monitoring and management applications.
• Support to implementation of MIS.
• Eventual leasing of spare capacity to non railway operators.
• Compatibility with existing hardware and software, for progressive modernisation and maintening functional links between the interconnected railways.

The project will present :

• A detailed survey of present networks and systems.
• Technical proposals for modernisation.
• A prioritised implementation timetable.
• Economic and financial justification.
• A financing plan, worked out with interested development banks, and beneficiaries.
• Recommendations on institutional reforms required to fully realise the advantages of the investment.

.Latest updated version February 2000