Azerbaijan: Road Network Development Program - Tranche 1

Sovereign Project | 39176-023 Status: Approved

Summary

ADB is helping Azerbaijan finance a comprehensive road network program. The first project under the multitranche financing facility will construct a 22.1 kilometer expressway between Masalli and Astara on the southern corridor, rehabilitate local roads in the project area and along East-West highway, install vehicle weighing stations in selected locations, and provide project support and capacity building.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Road Network Development Program - Tranche 1
Project Number 39176-023
Country Azerbaijan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2354-AZE: Road Network Development Program-Project I
Ordinary capital resources US$ 190.00 million
Loan 2355-AZE: Road Network Development Program-Project I
Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description

Project 1 of the Road Network Investment Program aims to develop an adequate, efficient, safe, and sustainable road network, linking the country domestically and internationally.

Project 1 has four components: (i) construction of about 22.1 km of a new expressway between Masalli and Astara on the southern corridor, (ii) rehabilitation of local roads in the project area and along East-West highway, (iii) installation of four vehicle weighing stations in selected locations, and (iv) project support and capacity building for road network management.

Project Rationale and Linkage to Country/Regional Strategy The road subsector is a priority area for ADB assistance, which is identified in its Country Strategy and Program Update for Azerbaijan.
Impact

Project Outcome

Description of Outcome An efficient, safe, and sustainable southern road corridor from Baku
Progress Toward Outcome To be assessed after completion.
Implementation Progress
Description of Project Outputs

Section A of 4-lane expressway between Masalli and Astara on the southern corridor built, with access roads rehabilitated

Road network management capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) The contractor fully stopped all site works/activities in September 2015 without any prior notice. Contract termination took effect on 29 October 2015. Procurement of a new contractor to take over the balance of works (about 36% of total volume) is ongoing.
Geographical Location Masalli, Lenkaran and Astara rayons in southern Azerbaijan

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Project 1 of the Program is classified category A. An environmental impact assessment (EIA) was undertaken, and the summary environmental impact assessment (SEIA) circulated to the Board and publicly disclosed through the ADB website on 16 January 2007. The environmental assessment and review framework for the Program is included in the SEIA.
Involuntary Resettlement Project 1 is classified Category A, because construction of the new expressway between Masalli and Astara entails significant land acquisition. The Resettlement Plan for the core subproject-Section A of the Masalli-Astara expressway (km 0-km 22.1)-was prepared and is in Supplementary Appendix E. The drafts of the resettlement framework and the Resettlement Plan for Section A of Project 1 are found satisfactory. The Ministry of Transport endorsed these two draft resettlement documents and disclosed them to affected pesons on 11 June 2007.
Indigenous Peoples An assessment of impact on indigenous peoples was undertaken in accordance with ADB's Policy on Indigenous Peoples (1998). The Program will primarily affect Azeri people, though some scattered members of other ethnic groups-particularly Talysh-may be affected. As Talysh people have the same rights as other Azerbaijan groups and habe been fully integrated into institutional, cultural, and economic processes in the country, they do not display sufficient features to classify them indigenous peoples. The Program is classified category C.
Stakeholder Communication, Participation, and Consultation
During Project Design During the preparation of Project 1, extensive consultations were held with various stakeholders -- including representatives of central and local governments, civil society, local communities, the private sector, road users, and external aid agencies. The public consultation were held through meetings, interviews, surveys, group discussions, and written communications, with the participation of about 3,000 people. The results showed a high degree of public support for the Project. The design of Project 1 incorporated the views of stakeholders.
During Project Implementation Active participation of stakeholders during implementation contributed to achieving considerable project impact. The strategy enabled raising stakeholders' awareness of the impacts, outcome, outputs and activities of the Project, using multiple methods such as public meetings, interviews, surveys, newspapers and local announcements.

Business Opportunities

Consulting Services A total of 860 person-months (182 international and 678 national) of services from consulting firms will be required. This comprises (i) 766 person-months (146 international and 620 national) for construction supervision, project monitoring and evaluation, and preparation of Project 2; (ii) 70 person-months (30 international and 40 national) for strengthening the database for secondary roads; and (iii) 24 person-months (6 intenational and 18 national) for developing legal and regulatory frameworks and operational procedures for toll roads.
Procurement ADB-financed goods and services were procured according to ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding procedures will be followed for contracts with an amount above $3 million for civil works and at least $1 million for goods. National competitive bidding will be conducted under Azerbaijan's legislation on state procurement, subject to modification and clarification set forth in the individual loan agreements.

Responsible Staff

Responsible ADB Officer Faraj Huseynbeyov
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Azerbaijan Resident Mission
Executing Agencies
Ministry of Transport
Musa Panahov
PANAHOV@MINTRANS.AZ
1122 Tbilisi Avenue, Baku AZ1000

Timetable

Concept Clearance -
Fact Finding 09 Nov 2006 to 22 Nov 2006
MRM 22 Jun 2007
Approval 04 Oct 2007
Last Review Mission -
PDS Creation Date 12 Jan 2007
Last PDS Update 31 Mar 2016

Loan 2354-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Oct 2007 15 Jan 2008 03 Mar 2008 30 Jun 2010 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 239.00 Cumulative Contract Awards
ADB 190.00 04 Oct 2007 125.84 0.00 66%
Counterpart 49.00 Cumulative Disbursements
Cofinancing 0.00 04 Oct 2007 131.52 0.00 69%

Loan 2355-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Oct 2007 15 Jan 2008 03 Mar 2008 30 Jun 2010 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 04 Oct 2007 9.35 0.00 95%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 04 Oct 2007 8.59 0.00 87%
Title Document Type Document Date
Road Network Development Program - Project 1: Procurement Plan Procurement Plans Mar 2016
Road Network Development Program - Projects 1 and 2: Project Procurement-Related Review Project Procurement-Related Reviews Dec 2014
Amendments to the Loan Agreement for Road Network Development Program Loan Agreement (Ordinary Resources) Aug 2011
Loan Agreement for Road Network Development Program Loan Agreement (Ordinary Resources) Jan 2008
Loan Agreement for Road Network Development Program Loan Agreement (Special Operations) Jan 2008
Road Network Development Program - Project I Project/Program Administration Manual Dec 2007

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Road Network Development Program - Tranche 1: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Jan 2016
Road Network Development Program - Project 1: Masalli to Astara Motorway Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Road Network Development Program – Projects 1 and 3 (Masalli–Astara Road): Land Acquisition and Resettlement Plan Monitoring Report Social Monitoring Reports Jan 2015
Road Network Development Program - Project 1: Masalli to Astara Motorway - Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Road Network Development Program - Projects 1 and 3 (Masalli-Astara Road): Quarterly Monitoring Report for the Land Acquisition and Resettlement Plan Social Monitoring Reports Oct 2014
Road Network Development Program - Projects 1 and 3: Masalli-Astara Road External Monitoring Report on Resettlement Plan Implementation Social Monitoring Reports Sep 2014
Road Network Development Program - Projects 1 and 3: Masalli-Astara Road Social Monitoring Reports Jul 2014
Road Network Development Program - Tranche 1 and 3: Masalli-Astara Road Project 1 and Project 3 Monitoring Report Social Monitoring Reports Jun 2014
Road Network Development Program - Project 1: Masalli to Astara Motorway - Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
Road Network Development Program - Tranche 1 and 3: Masalli-Astara Road Project 1 and Project 3 Monitoring Report Social Monitoring Reports Dec 2013
Road Network Development Program - Tranche 1 and 3: Masalli-Astara Motorway Internal Monitoring Report Social Monitoring Reports Oct 2013
Road Network Development Program - Project 1: Masalli to Astara Motorway - Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Aug 2013
Road Network Development Program - Project 1: Masalli to Astara Motorway: Environmental Monitoring Report (June-December 2012) Environmental Monitoring Reports Mar 2013
Road Network Development Program - Project 1: Masalli to Astara Motorway Environmental Monitoring Report (September 2011-May 2012) Environmental Monitoring Reports Jun 2012
Road Network Development Program - Project I (Masalli to Astara Motorway) Environmental and Social Monitoring Reports Dec 2011
Road Network Development Program Masalli-Astara Motorway (Project 1) Environmental Assessment and Review Framework Oct 2011
Road Network Development Program Masalli-Astara Motorway (Project 1) Environmental Impact Assessments Oct 2011
Road Network Development Program - Tranche 1: Due Diligence Report for the External Monitoring of Resettlement Plan Implementation Social Monitoring Reports Jun 2011
Road Network Development Program: Masalli-Astara Motorway (Project 1) Resettlement Plans Jun 2011
Road Network Development Program: Masalli-Astara Motorway (Project 1) Resettlement Plans Sep 2007
Road Network Development Investment Program - Tranche 1: Southern Road Corridor Improvement Summary Environmental Impact Assessments Jan 2007

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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