Armenia: Rural Road Sector Project

Sovereign Project | 40610-013

Summary

The Rural Road Sector Project (the Project) will (i) enhance the economic integration of selected rural communities, which make up about 10% of the total rural population, through improvement of high priority rural feeder roads totaling about 260 kilometers (km) connected to the national road network; and (ii) strengthen the transport sector management capability.

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Project Name Rural Road Sector Project
Project Number 40610-013
Country Armenia
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2351-ARM: Rural Road Sector Project
Asian Development Fund US$ 30.60 million
TA 4973-ARM: Transport Sector Development Strategy
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming
Description

The Rural Road Sector Project (the Project) will (i) enhance the economic integration of selected rural communities, which make up about 10% of the total rural population, through improvement of high priority rural feeder roads totaling about 260 kilometers (km) connected to the national road network; and (ii) strengthen the transport sector management capability.

The outcome will be increased mobility and improved accessibility to basic social service delivery institutions, employment opportunities, and domestic and international markets for communities and enterprises in rural and urban areas of the four regions. The feeder roads improved under the Project will lead to (i) higher and more frequent quality transport services available for road users; (ii) increased business opportunities for private sector in general, particularly agriculture (including agro-processing), industrial, and service sectors; and (iii) more synergetic benefits from close partnerships in the road and other sectors relevant to the Project. Furthermore, the Project will improve transport sector management through the TA that is attached to the Project

Project Rationale and Linkage to Country/Regional Strategy

About 38% (1.2 million) of the Armenian population lives in rural areas, of which more than 45% are poor. About 92%of a total of 947 communities in the country are located in rural areas. Although poverty was reduced form 55% in 1999 to 30% in 2005, the pace of poverty reduction was much slower in rural areas.

The Government considers rural infrastructure development as a cornerstone of the Governments Poverty Reduction Strategy Paper (PRSP). It has thus developed rural infrastructure development programs with the main purpose of reducing rural poverty. In the road sector, the Government has developed a lifeline roads network program (LLNP) which will improve access of rural communities to the national highway system in the most optimal manner. The Program targets high priority rural roads totaling about 2,700 km.

To maximize the impact of the first group of high priority rural roads totaling about 1,200 km the Government requested ADB's financing of priority rural roads totaling about 260 km .

The SSTA and RRRP I are in line with PRSP and ADB interim operational strategy for Armenia.

Impact Poverty reduction in the project area
Project Outcome
Description of Outcome Improved access of rural populations in the project area to jobs, markets, and social services, and the major trunk road networks through reduction in road transport costs.
Progress Toward Outcome Package 1 and 2 works were completed in September 2010. All works are expected to be completed by end August 2011.
Implementation Progress
Description of Project Outputs

Improved high priority roads

Improved Road Asset Management Capability of the Armenian Roads Directorate

Improved transport management capability of the Ministry of Transport and Communication

Status of Implementation Progress (Outputs, Activities, and Issues) Package 1 and 2 works were completed in September 2010. All Contractors for Package 3 Works have proceeded with their works during June 2011. All works are expected to be completed by end August 2011.
Geographical Location Ararat, Armavir, Kotayk, Sirak, and Geharkunik regions
Safeguard Categories
Environment B
Involuntary Resettlement C
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

About 31 person-months of international consultants and 161 person-months of national consutlants will be required to work with the PMU for subproject preparation (including detailed design and technical, environmental, economic, and social/resettlement due diligence) and project supervision, monitoring and evaluation (including technical, environmental, economic, social/resettlement monitoring and evaluation). One consulting firm will be engaged. The consultants will be recruited through the quality-and cost-based selection method by using the full technical proposal procedures in accordance with ADB's Guidelines on the Use of Consultants (2007) as amended from time to time.

RFP issued to 6 consulting firms on 16 November 2007.

Procurement Procurement under the project will be carried out in accordance with ADB's Procurement Guidelines (2207) as amended from time to time.
Responsible ADB Officer Arto T. Ahonen
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Transport & CommunicationAram Vardanyanahplu@netsys am28 Nalbandyan St. P. O. Box 69, 0010 Yerevan, Armenia
Timetable
Concept Clearance 17 Nov 2006
Fact Finding 07 May 2007 to 25 May 2007
MRM 28 Jun 2007
Approval 28 Sep 2007
Last Review Mission -
PDS Creation Date 27 Feb 2007
Last PDS Update 08 Jan 2013

Loan 2351-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2007 15 Nov 2007 07 Mar 2008 30 Jun 2011 30 Sep 2011 08 Dec 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 41.40 Cumulative Contract Awards
ADB 30.60 28 Sep 2007 31.02 0.00 100%
Counterpart 10.80 Cumulative Disbursements
Cofinancing 0.00 28 Sep 2007 31.02 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 4973-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2007 04 Feb 2008 04 Feb 2008 30 Sep 2008 12 Nov 2008 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 200,000.00 0.00 0.00 0.00 800,000.00 28 Sep 2007 555,599.58
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Rural Road Sector Project Project/Program Completion Reports Dec 2011
Rural Road Sector Project Project Procurement-Related Reviews Dec 2009
Transport Sector Development Strategy TA Completion Reports Mar 2009
Transport Sector Development Strategy (Financed by the ADB Technical Assistance Special Fund) Consultants' Reports Nov 2008
Loan Agreement for Rural Road Sector Project between Republic of Armenia and Asian Development Bank dated 15 November 2007 Loan Agreement (Special Operations) Nov 2007
Rural Road Sector Project Project/Program Administration Manual Oct 2007
Rural Road Sector Project Reports and Recommendations of the President Sep 2007
Proposed Loan and Technical Assistance Grant Rural Road Sector Project Procurement Plans Sep 2007
Rural Roads Rehabilitation Sector Project Design and Monitoring Frameworks Jul 2007

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Rural Road Sector Project Summary Initial Environmental Examination Jul 2007
Rural Roads Rehabilitation Sector Project: Resettlement Framework Resettlement Frameworks Jul 2007

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Armenia: Rural Road Sector Project Validations of Project Completion Reports Dec 2013

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