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ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of April 1, 2011 No. 165

About approval of the State target development program of transport complex of the Republic of Tajikistan till 2025

According to article 7 of the Law of the Republic of Tajikistan "About transport", for the purpose of ensuring development of transport complex and determination of the priority directions of industry the Government of the Republic of Tajikistan decides:

1) to Approve the State target development program of transport complex of the Republic of Tajikistan till 2025 it (is applied).

2) to the Relevant ministries and departments, local actuators of the government of areas, cities and areas of the republic in case of development of the state forecasts, concepts and programs of social and economic development to consider this Program and to provide information on the course of its accomplishment in the Government of the Republic of Tajikistan no later than March 5 every year.

3) to the Ministry of transport of the Republic of Tajikistan to develop the actions plan on implementation of this Program and to annually provide information on the course of its accomplishment in the Government of the Republic of Tajikistan.

Prime Minister of the Republic of Tajikistan

Emomalii Rahmon

Approved by the Order of the Government of the Republic of Tajikistan of April 1, 2011 No. 165

The state target development program of transport complex of the Republic of Tajikistan till 2025

1. Preface

The Republic of Tajikistan with area in one thousand 143,1. sq.km it is located in mountain part of Central Asia, in the center of the intersection binding the developed transportation networks of the North (transportation networks of Russia and Kazakhstan) with major international commercial harbors of the South (port cities of the coast of the Indian Ocean), and on the way of the shortest trade highway connecting the East (including the People's Republic China with its high rate of development of economy) with the West (the countries of Europe and other states of the basin of the Mediterranean).

The transport infrastructure of the country created generally in 60-80 years of last century as constituent of transportation network of the USSR had property of one-sided territorial deadlockness, and in the 90th years quickly degraded for the objective reasons.

Because, in new historical stage of development of economy the existing transport infrastructure did not correspond to strategic tasks of economic development in respect of domestic and external transports, there was need of determination of new tendency of development of infrastructure along with other strategic tasks of development of national economy.

The transport complex of the Republic of Tajikistan combines automobile, railway and aviation modes of transport, and also includes highways. In specific climatic conditions of the republic which about 93% of the territory occupy mountains the road transport has important strategic provision among other types of vehicles, especially regarding ensuring permanent domestic transports and scope of all regions of the country. Therefore special significance is attached to development of highway network and its objects providing year-round communication of the center with other regions of the republic.

With development of road transport expansion of network of the railroads as largest carrier in respect of international carriages, It is also determined as important factor of transport structure of the country. In this direction special significance is attached to construction of new lines of the railroads connecting the center to strategically important regions of the republic, and their transformation into the main highway of transit international deliveries is evaluated further by railway nets of neighboring states as the main basis of the international transport backgrounds.

In increase in the service level and competitiveness of the companies of air transport of the republic at the international level realization of structural reforms, updating and strengthening of technical base, creation of airport constructions and modern terminals of this industry, and also ensuring independent aeronautical servicing of the country are of great importance.

The state target program "Development of Transport Complex of the Republic of Tajikistan till 2025" (further - the Program) is developed on the basis of multiple factor analysis, projection and the development program of all components of transport complex of the Republic of Tajikistan taking into account that the transport complex is motive force in the relation with other real production sectors of the country.

2. Purposes, tasks and principles of the Program

1) Purposes and tasks of the Program:

- development of package of measures for consecutive development of the transport complex of the Republic of Tajikistan capable to meet requirements of the population of the Republic of Tajikistan in economic and safe transport servicing, both in short-term, and in the long term;

- creation of infrastructure transportation network of the Republic of Tajikistan promoting satisfaction of economic and household requirements with observance of the established safety regulations.

2) Consecutive development of transport industry of the Republic of Tajikistan promotes development of all related sectors of economy, creation of lump of new workplaces and improvement of the social sphere of society. In this regard it is necessary to pay special attention to development of all sectors of transport complex of the republic that can be reached as a result of state regulation of industry. It is obvious that such process shall be performed within the single program of macroeconomic and intra-branch development.

The main objective of the program consists in ensuring the credible, effective, efficient and integrated work of transport and infrastructure promoting social and economic development of the region. It is reached by increase in level of field service and minimization of transportation costs, improvement of quality automobile and the railroads, airlines.

It should be noted that implementation of this Program will also create real premises for achievement of the main indicators of national development strategies and decrease in level of poverty in the country.

The major indicator characterizing the importance of this or that industry for economy and the social sphere is the industry contribution to forming of the Gross domestic product (further - GDP).

Growth of real investments into development of transport complex is necessary condition of providing strategic task of acceleration of GDP growth of the Republic of Tajikistan. The specific weight of transportation expenses in the cost of products fluctuates from 5 to 35 percent depending on industry of the national economy.

Technically and the obsolete transport park interferes with cost reduction of the address and leads to marked weakening of level of competitiveness of transport services in economy of Tajikistan.

The major social and economic parameter exerting impact on passenger traffic capacity railway and air transport. growth rate of real incomes per capita is. The analysis shows that in case of growth of real cash incomes of the population by 1 percent the amount of airborne passenger traffic increases on average on percent 1,6.

3) This Program is based on the this researches of the international financial institutions and specialists of industry and is intended:

- provision of infrastructure which reduces total transportation expenses to minimum;

- ensuring development of separate modes of transport within their effective activities;

- contribution to increase in transit opportunities of the country and its transformation into the tourist region;

- contribution to ensuring free competition in the internal and international markets of transport servicing.

4) the Program is prepared on the basis of the following reasonable assumptions:

- GDP will have strong growth in the short-term period development of economy about 5 percent a year, in the long-term period to 4 percent;

- growth rates of amount of transport activities will be advanced by GDP growth and will constitute for road transport of 1,4 of percent to 1 percent of GDP growth, air and rail transport - percent 1,6.

5) When scoping the necessary investments for implementation of measures specified in the Program the following criteria are used:

- cost efficiency of investments - 15 percent;

- risk level in case of program implementation - the smallest;

- it is more attention to pay to regions where the level of poverty of the population and social requirements the highest;

- focus attention to the international highways.

6) the Program will be realized within the following three important restrictions, namely:

- increases in contribution of the Government only in case of increase in budget incomes;

- not concessional loans (and some concessional loans) within the limits set from the point of view of the international financial institutions;

- external loans are performed only on the basis of GDP growth.

7) Therefore:

a) in the motor transportation sector:

- for upgrade of the park of railway vehicles possibilities of private sector and regional authorities will be used;

- the network of the logistic centers (transport terminals) will be created generally due to preferential crediting and own means of carriers;

b) in the railway sector:

- projects implementation will be enabled at the expense of own income and attraction of private equity;

c) in the air sector:

- airlines shall be capable on selling interest rates to buy the necessary equipment, airplanes and helicopters;

- activities of the airports, terminals and flight management will be provided on the basis of servicing improvement of the quality;

d) in the road sector (automobile and railway): in the short-term and medium-term period the program of rehabilitation shall be financed completely by grants and soft credits of the international financial institutions. Necessary funds for reconstruction, construction and road maintenance will go to the long-term period completely at the expense of domestic users of roads.

3. Analysis of present condition of industries

8) Transition to the free market relations, disintegration of the Soviet Union, liquidation of centralized system of activities of transport complex were reflected in the main indicators of activities of transport complex. So, during the period from 1991 to 1996 carriages of goods by all modes of transport were reduced in time 2,7, cargo turnover more than in 3,7 of time, public conveyance - in time 4,3.

Liberalization of economy and structural transformations in transport complex led to development of the free market of transport services and their integration into the developing market economy of Tajikistan. The regulatory framework and management system transport changed.

Forming since 1999 of growth trends and improvement of welfare of the population created natural increase in solvent demand for transport services. According to official statistics in 2000-2008 the transport complex of the Republic of Tajikistan in general met the growing demand for carriages of goods and passengers.

The major factor influencing growth of amount of cargo transportation is growth of amount of construction and industrial production. It should be noted that nearly 70 percent of economic loads of industries of economy fall to the share of road transport.

9) At the same time, it should be noted availability of number of serious problems which can level further, in general, positive tendencies of the last years. Treat the specified problems:

- high (50-70 percent in a number of areas and subindustries) depreciation of railway vehicles (trains, cars);

- the price dynamics of transport services which is steadily exceeding the rate of inflation;

- high amounts of construction in progress and untimely commissioning of objects of the main transport infrastructure;

- rather low degree of safety of functioning of transport complex.

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