Azerbaijan: Road Network Development Program - Project 2

Sovereign Project | 39176-033 Status: Closed


ADB is helping Azerbaijan finance a comprehensive road network program. The second project under the multitranche financing facility will rehabilitate about 37.5 kilometers of the two-lane Ganja bypass road. The road is part of the country's primary east-west highway linking the capital, Baku, to the Georgian border.

Latest Project Documents

Project Results



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



    kilometers of road that have been built or upgraded



    cross-border cargo volume facilitated

The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Road Network Development Program - Project 2
Project Number 39176-033
Country Azerbaijan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2433-AZE: Road Network Development Program - Project 2
Ordinary capital resources US$ 54.55 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 Some gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome About 90% of the civil works for Ganja bypass road were completed as of loan closing date of 31 December 2012, and fully completed by April 2013. PCR mission was fielded in July 2013 and the report is being compiled.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Environmental management plan was prepared by the Contractor, and is strictly followed in the course of civil works

Due to significant implementation delay, 90% of works completed under the loan by the loan closing date. Through govt's funding the remaining works will be completed by April 2013.

Geographical Location Ganja City,Goranboy, Goy-Gol, Shamkir rayons (administrative districts)

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

The Project is classified as Category B. An initial environmental examination concludes that the potential environmental impacts are likely to occur due to construction activities and much of these impacts are temporary in nature. Temporary use of land adjacent to the project road, removal of roadside vegetation, temporary land-take for the site of the contractor's yard, as well as the extraction and transport of construction material from borrow sites will have temporary impacts on the environment during project implementation. No protected or environmentally sensitive areas such as designated wetlands, forests, nature conservation areas, and places of archaeological importance are within or near the project area.

An environmental management and monitoring plan was prepared to mitigate the

potential environmental impacts of the Project. During construction, environmental monitoring

will ensure the protection of embankments from potential soil erosion, borrow pits restoration,

quarry activities, location of work sites and material storages, location of asphalt plants,

preservation of religiously sensitive locations, community relations, and safety provisions.

During operation, air, noise, and surface water quality monitoring and greening and landscaping

of project roads will be important parameters of the monitoring program. In cooperation with the

project implementation unit, the supervision consultant during project implementation will be required to (i) develop an environmental auditing protocol for the construction period and formulate a detailed monitoring and management plan; and (ii) supervise the civil works for road improvement and submit quarterly reports based on the monitoring data and laboratory analysis report.

Involuntary Resettlement

Measures will be taken to minimize impacts and keep construction activities within the road

reserve. The civil works contracts will require contractors to be responsible for the temporary acquisition and reinstatement of all land required outside the road reserve for construction camps, offices, borrow pits, materials storage sites, materials

processing sites, and haul roads.

Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design During project preparation, ADB held extensive consultations with various stakeholders including representatives of central and local governments, civil society, local communities, the private sector, road users, and external aid agencies. More than 500 people participated in these consultations. The consultations covered major issues such as project alternatives, potential benefits, and social and environmental impacts. The results showed a high degree of public support for the Project. The project design has incorporated the views of stakeholders.
During Project Implementation The Project Grievance committee has been set up to conduct regular stakeholder consultations in the project area. At the onset of the construction works, the Grievance Committee met with the representatives and residents of the villages along the project area. Communication lines have been established between the Committee and the village heads through mobile phones. The village representatives are expected to call the attention of the Committee on various complaints and issues raised by the community residents. Thereafter, the Committee schedules public consultancy meetings with the village residents to discuss their issues and complaints. Such issues and requests of the local residents are being discussed during the weekly or emergency meetings with the Project Supervision Consultant's Team, whereby solutions are being identified. The proposed solutions, especially those that involve technical changes in the road design are being discussed with the Executing Agency and the Contractor. When proven acceptable and approved, the solutions to the problems are being implemented. The Grievance Committee continually consults the local residents every month, or during their regular site inspections, to inquire about their problems and issues arising from the road construction activities in their areas.

Business Opportunities

Consulting Services Construction Supervision. A contract with KOCKS CONSULT GMBH was amended for additinal value of US$ 914,194.13 on 14 Dec 2011.
Procurement ICB for civil works. A US$ 51,907,444.14 contact (net of tax) awarded to IMPRESA S.P.A. on 26 Dec 2008. A contract amendment (variation order No.1) was made in Sep 2011 increasing the contract value by AZN 3,908,492.11 (about $5 million, net of tax) to cover additional utility shifting works.

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
1054, Tbilisi Avenue
Baku, AZ1122
Republic of Azerbaijan


Concept Clearance -
Fact Finding -
MRM 05 Mar 2008
Approval -
Last Review Mission -
PDS Creation Date 28 Jan 2009
Last PDS Update 30 Sep 2013

Loan 2433-AZE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Aug 2008 15 Dec 2008 03 Mar 2009 30 Apr 2012 31 Dec 2012 24 Apr 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 73.05 Cumulative Contract Awards
ADB 54.55 22 Aug 2008 54.55 0.00 100%
Counterpart 18.50 Cumulative Disbursements
Cofinancing 0.00 22 Aug 2008 54.55 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
Title Document Type Document Date
Road Network Development Program - Projects 1 and 2: Project Procurement-Related Review Project Procurement-Related Reviews Dec 2014
Road Network Development Program (Project 2) Project/Program Completion Reports Sep 2013
Loan Agreement for Road Network Development Program Loan Agreement (Ordinary Resources) Dec 2008

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Azerbaijan: Road Network Development Program (Project 2) Validations of Project Completion Reports Oct 2014

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.