Azerbaijan: East-West Highway Improvement Project

Sovereign Project | 35457-013

Summary

The objective of the Project is to promote domestic and cross-border movements of people and goods on the east-west road corridor in Azerbaijan. The purpose is to improve the efficiency of transport on the project sections of the east-west road corridor. The Project has four components: (i) reconstruction of a total of 127 km of the two-lane paved road on the Yevlakh-Ganja and the Qazakh-Georgian border sections of Azerbaijan's primary east-west road transport corridor, (ii) improvement of local roads connecting to the east-west road corridor totaling about 65 km, (iii) institutional strengthening for the road sector reform, and (iv) cross-border facilitation at the border with Georgia at Red Bridge.

Latest Project Documents

Project Results

 

94

kilometers of road that have been built or upgraded

 

429,419

average daily vehicle-kilometers using roads built or upgraded in the first full year of operation


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Project Name East-West Highway Improvement Project
Project Number 35457-013
Country Azerbaijan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2205-AZE: East-West Highway Improvement Project
Ordinary capital resources US$ 49.00 million
Loan 2206-AZE: East-West Highway Improvement Project
Asian Development Fund US$ 3.00 million
Loan: East-West Highway Improvement Project
Saudi Fund for Development US$ 11.00 million
Islamic Development Bank US$ 10.40 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming
Description The objective of the Project is to promote domestic and cross-border movements of people and goods on the east-west road corridor in Azerbaijan. The purpose is to improve the efficiency of transport on the project sections of the east-west road corridor. The Project has four components: (i) reconstruction of a total of 127 km of the two-lane paved road on the Yevlakh-Ganja and the Qazakh-Georgian border sections of Azerbaijan's primary east-west road transport corridor, (ii) improvement of local roads connecting to the east-west road corridor totaling about 65 km, (iii) institutional strengthening for the road sector reform, and (iv) cross-border facilitation at the border with Georgia at Red Bridge.
Project Rationale and Linkage to Country/Regional Strategy

The Yevlax-Ganja road is part of the east-west road corridor between Baku and the Georgian border, which is one of Azerbaijan's main routes for external trade and forms part of the Asian highway network. The Project will facilitate road transport on the east-west road corridor by improving the road infrastructure between Yevlax and Ganja and thus contribute to sustainable, inclusive economic growth in Azerbaijan and regional cooperation. Improvement of other sections of the east-west road corridor is financed by other external aid agencies including the World Bank and the European Bank for Reconstruction and Development.

The Project is consistent with ADB's Country Strategy and Program for Azerabijan. Given Azerbaijan's location and reliance on transport links with neighboring countries, the last country strategy and program update identifies transport as a strategically important sector for ADB assistance.

Impact

Accelerated socioeconomic development in the 6 rayons (regions)a of west Azerbaijan

Enhanced cooperation between Azerbaijan and other countries in the region

Project Outcome
Description of Outcome Increased traffic and improved quality and efficiency of transport on the east-west highway and selected local roads
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Improved two-lane paved road on the Yevlakh Ganja section and Qazakh Georgian border section of the east west highway

2. Improved local roads in the project area

3. Strengthened institutional capacity in the road subsector

3.1 Road maintenance

3.2 Axle-load control

3.3 Road safety

3.4 Project management and implementation

4. Improved facilities and capacity for border crossing at Red Bridge

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Yevlakh-Ganja, and Qazakh-Georgian border section
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services A total of 984 person-months of consulting services (99 international and 885 domestic) will be required to assist in Project implementation. Under the road improvement component, (i) a consulting firm for detailed design and construction supervision for reconstruction of the Yevlax-Ganja section and Qazax-Georgia border section (64 person-months for international and 805 person-months for domestic consultants), and (ii) a consulting firm to assist in implementing the road sector institutional strengthening component (25 person-months for international and 60 person-months for domestic consultants). For the latter, the scope includes capacity building in road maintenance, axle load control, road safety, financial management, environmental and social management of road development, and project implementation management. The consulting firm will also help the executing agency monitor and verify compliance with resettlement action plans and environment mitigation and management plans. Under the cross-border facilitation component, individual consultants for border post infrastructure development and capacity building (10 person-months for international and 20 person-months for domestic consultants), will be engaged.
Procurement Procurement of goods and services to be financed out of the proposed loan will be carried out in accordance with ADB's Guidelines for Procurement. All contracts for civil works and supply of equipment will be divided into suitable contract packages. Contracts valued in excess of $1.0 million equivalent for civil works and $500,000 equivalent for goods will be procured through international competitive bidding (ICB). Civil work contracts valued at $1.0 million or less will follow local competitive bidding procedures acceptable to ADB. For equipment contracts ranging between $100,000 - $500,000, international shopping procedures will be used; and for contracts not exceeding $100,000, direct purchase procedures will be followed. Advance procurement action for civil works was approved by ADB on 10 May 2005.
Responsible ADB Officer Balabhaskara Reddy Bathula
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
AzerRoadService Open Joint-Stock CompanyMr. Adil Gojayevinfo@piu-ahp.az72/4 Uzeyir Hajibeyov Street AZ1010 Baku
Timetable
Concept Clearance 08 Mar 2005
Fact Finding 24 Jan 2005 to 04 Feb 2005
MRM 10 May 2005
Approval 08 Dec 2005
Last Review Mission -
PDS Creation Date 05 Dec 2006
Last PDS Update 22 Apr 2010

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 41.20 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 19.80 Cumulative Disbursements
Cofinancing 21.40 - 0.00 0.00 %

Loan 2205-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2005 01 Jun 2006 27 Oct 2006 31 May 2010 - 15 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 90.20 Cumulative Contract Awards
ADB 49.00 08 Dec 2005 39.35 0.00 100%
Counterpart 19.80 Cumulative Disbursements
Cofinancing 21.40 08 Dec 2005 39.35 0.00 100%

Loan 2206-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2005 01 Jun 2006 27 Oct 2006 31 May 2010 - 15 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.00 Cumulative Contract Awards
ADB 3.00 08 Dec 2005 1.05 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2005 1.05 0.00 100%

Safeguard Documents

See also: Safeguards

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Azerbaijan: East–West Highway Improvement Project Validations of Project Completion Reports Dec 2013

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Requests for information may also be directed to the InfoUnit.

  • 22 Aug 2011 | Project Result / Case Study

    Roads and Overland Travel Between Azerbaijan and Georgia

    For years, the bad road stretching between the city of Gazakh in western Azerbaijan and the Georgian border has hampered the local economy. Farmers have faced high costs transporting produce to the nearby town of Ganja, the capital Baku, or to cities in Georgia. In a region famed for its natural beauty, sacred monuments and unique tea houses, precious tourist dollars have also been lost. ADB's funding of the rehabilitation of the 35 kilometer stretch highway between Gazakh and Georgia border has led to enormous changes in the area.
  • 31 Jan 2009 | Project Result / Case Study

    Improved Transport Links Help Azerbaijan on the Road to Recovery

    A rehabilitated East-West corridor has a vital role as Azerbaijan develops a fledgling non-oil industrial base that was wrecked after markets vanished along with the disintegration of the former Soviet Union. Azerbaijan's oil boom underscores the contrast between Baku and the rest of the country. A new generation of grand hotels and buildings is springing up in the capital beside the palatial residences and civic structures built during the oil bonanza of a century ago.