Azerbaijan: Road Network Development Program - Tranche 4

Sovereign Project | 39176-044 Status: Approved


ADB is helping Azerbaijan finance a comprehensive road network program. Under the fourth tranche of the multitranche financing facility, the project will reconstruct four bridges and rehabilitate 30 kilometers of local roads in the Ganja-Qazax region. The improvement of transport infrastructure is expected to promote domestic and regional trade.

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Procurement Documents

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Project Name Road Network Development Program - Tranche 4
Project Number 39176-044
Country Azerbaijan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3116-AZE: Road Network Development Program - Tranche 4
Ordinary capital resources US$ 45.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The Project will reconstruct 4 bridges and rehabilitate 30 km of local roads in the Ganja-Qazax region. All 4 bridges are in a very poor, nearly no longer maintable condition.
Project Rationale and Linkage to Country/Regional Strategy The tranche 4 Project is a high priority of the government and is included in the Road Network Development Program for 2006 2015 under the Transport Sector Development Strategy. It forms part of the country's primary east west highway linking the country's capital, Baku, to the Georgian border. Currently, the bridges and local roads are in poor and critical condition, resulting in high transport costs, long delivery times, and road crashes. This constitutes impediments to non-oil sector growth and poverty reduction in Azerbaijan, as well as regional trade development. Reconstruction of these bridges and associated local roads improvement will promote national and regional trade, thus contributing to the achievement of the objectives of the state program on poverty reduction and economic development.
Impact Greater socioeconomic development in the Ganja region of Azerbaijan and its cooperation with neighboring countries
Project Outcome
Description of Outcome An efficient, safe, and sustainable road network in the Ganja region of Azerbaijan
Progress Toward Outcome Last review mission was fielded in May 2015. The procurement of design-build contract for four bridges followed two-stage bidding procedure.
Implementation Progress
Description of Project Outputs

Four bridges reconstructed and associated infrastructure and local roads rehabilitated in the Ganja region

Project implementation support to ARS, timely and effectively provided

Status of Implementation Progress (Outputs, Activities, and Issues)

Procurement of design and build contract of four bridges in the Ganja-Gazakh region is ongoing. Public opening of the price bid has been completed and copy of the minutes sent to ADB in July 2015. EA's submission of price bid evaluation report is awaited.

Recruitment of construction supervision consultant is near completion. ADB approved the Submission 4 (supervision consultant recruitment) in March 2015. The project executing agency/implementation agency plan to synchronize the consultants mobilization with civil works contract award.

Geographical Location Ganja-Qazax Region
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The overall environmental impacts are limited to the construction phase and could be minimized by adequate mitigation measures.
Involuntary Resettlement A due diligence report was prepared to assess potential involuntary resettlement impacts. Tranche 4, does not require land acquisition or resettlement.
Indigenous Peoples Tranche 4 has no adverse impact on indigenous peoples. Ethnic Azeri accounts for most of the population in the project area; few other nationalities include Talysh, who are not negatively affected by the project.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation sessions were conducted with the local residents in the project affected areas. The primary issues discussed were employment opportunities for the local residents, both skilled and unskilled.
During Project Implementation Consultation sessions will continue during project implementation.
Business Opportunities
Consulting Services Consultants will be recruited and engaged in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). A consulting firm will be selected to oversee the design review and construction supervision work, using ADB's modified quality- and cost-based (90:10 ratio) selection procedure with full technical proposal to ensure the quality of consulting services.
Procurement ADB-financed goods and services will be procured according to ADB's Procurement Guidelines (2013, as amended from time to time). International and national competitive bidding procedures are followed for the contracts for civil works for the Tranche 4.
Responsible ADB Officer Zheng Wu
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Transport
1054, Tbilisi Avenue
Baku, AZ1122
Republic of Azerbaijan
Concept Clearance -
Fact Finding -
MRM 18 Nov 2013
Approval 27 Mar 2014
Last Review Mission -
Last PDS Update 21 Sep 2015

Loan 3116-AZE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Mar 2014 05 May 2014 09 Sep 2014 28 Sep 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 58.00 Cumulative Contract Awards
ADB 45.00 27 Mar 2014 20.33 0.00 45%
Counterpart 13.00 Cumulative Disbursements
Cofinancing 0.00 27 Mar 2014 2.54 0.00 6%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

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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.

Evaluation Documents

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