Georgia: MFF - Road Corridor Investment Program

Sovereign Project | 41122-013

Summary

The Investment Program will promote economic development and subregional trade, and accelerate subregional cooperation and integration. It will create better trade corridors, and thus facilitate the cross-border movement of people and cargo. The outcome will be an improved subregional road network. Successful implementation of the Investment Program will (i) improve the efficiency of subregional road traffic through Georgia; (ii) increase trade flows and competitiveness; (iii) lower transport costs; (iv) increase mobility and accessibility to markets, jobs, and social services; and (v) improve governance.

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Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name MFF - Road Corridor Investment Program
Project Number 41122-013
Country Georgia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0034-GEO: MFF - Road Corridor Investment Program
Ordinary capital resources US$ 381.20 million
Asian Development Fund US$ 118.80 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The Investment Program will promote economic development and subregional trade, and accelerate subregional cooperation and integration. It will create better trade corridors, and thus facilitate the cross-border movement of people and cargo. The outcome will be an improved subregional road network. Successful implementation of the Investment Program will (i) improve the efficiency of subregional road traffic through Georgia; (ii) increase trade flows and competitiveness; (iii) lower transport costs; (iv) increase mobility and accessibility to markets, jobs, and social services; and (v) improve governance.
Project Rationale and Linkage to Country/Regional Strategy

The development of subregional multi-corridors supports the Government's objective of exploiting Georgia's locational advantage as a transit hub for the Caucasus and for Euro-Asia road transport, particularly by providing a more efficient route for Turkey- and Armenia-realted traffic. It will ensure Government's new strategic vision of the transport network security as well. Efficiently functioning multi-corridors will reduce the cost of subregional and international transport, benefiting both the local economy and the economy of the subregion, and thereby stimulating the development of Euro-Asia trade links. The subregional multi-corridors also serve as principal domestic corridors linking the major cities, ports and tourist centres, and their development will enhance economic growth through more efficient passenger and freight transport, while enhancing safety.

The MFF will help the Government achieve its sector roadmap to develop subregional road multi-corridors, particularly focusing on alternative cross-border routes connecting surrounding South Caucasus countries and Turkey.

Impact The Investment Program will promote economic development and subregional trade, and accelerate subregional cooperation and integration. It will create better trade corridors to facilitate the cross border movement of people and cargo.
Project Outcome
Description of Outcome Improvement of subregional road network.
Progress Toward Outcome Outcome linked to the Kobuleti bypass (Tranches 1 and 3 (Loans 2560 and 2843-GEO) will be measured at completion of the civil works. The Konbuleti bypass (Tranche 2, Loan 2716 of the MFF) was cancelled on 25 November 2011.
Implementation Progress
Description of Project Outputs

About 120 to 200 km of subregional roads improved

Strengthening of asset management capacity of the Roads Department

Improvement of Road Safety

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

ADB financing will construct about 30 km and several other donors have already financed or are currently financing the construction of about 150km. These will be completed by 2020. Civil works financed under Loans 2560 (Tranche 1) and 2843 (additional financing, Tranche 3) are ongoing. Lot 1 contract (km 0 to 12.4 and km 30 to 33) and three access roads added to the scope of the project in April 2014 are now open to traffic and serving their functions better than expected. These outputs were two major milestones of the project. About 40% of the civil works under the Lot 2 contract (km 12.4 to km 30) have been completed as of May 2015. The project is behind schedule due to delays in acquiring the right of way. Land expropriation is ongoing.

Capacity development is on-going and safety improvements to the Kobuleti bypass are planned for 2016.

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An environmental assessment and review framework was prepared to provide a basis for preparing the EIA for the first and second tranche projects, and for subsequent tranches. The summary EIA was circulated to the Board and publicly disclosed through the ADB website on 29 May 2009.
Involuntary Resettlement LARP will be finalized for each construction package under phased construction.
Indigenous Peoples The investment program will primarily affect Georgians, who make up almost 93% of the population. Other ethnic groups in the project area mostly Armenian, Azeri, and Russian are insignificant in number. These groups have been fully integrated into institutional, cultural, and economic processes in the country, and do not display sufficient features to be classified as indigenous peoples according to the ADB definition.
Stakeholder Communication, Participation, and Consultation
During Project Design Two types of consultations were conducted, (i) stakeholder consultation, and (b) public consultation. Stakeholder consultations were performed mainly with selected individuals and organizations with professional expertise in assessing various impacts of road projects at the national and provincial levels. The public consultations were conducted in Batumi with various stakeholders including the representatives from the affected community. The consultation involved a wide range of participants representing affected people, community leaders, civil society, NGOs, environmental professionals, and central and regional government officials. The stakeholder consultations were held in Tbilisi and Batumi in March, April and June 2009. The objective was to share information on the project and obtain feedback on its design.
During Project Implementation Stakeholder participation and consultation will continue during implementation phase of the Program and under each tranche. The terms of reference of supervision consultants require regular stakeholders and public consultations. RD will work with local governments to conduct stakeholders and public consultations.
Business Opportunities
Consulting Services

Consulting services will be required for capacity development, road safety improvement, and project implementation. Key tasks include (i) detailed design, (ii) construction supervision, (iii) monitoring of project performance and reporting, (iv) road safety training, amendment of road safety regulations, and development of intelligence traffic system standards, and (iv) capacity development of Roads Department. The consulting services will be financed from ADB loans. Roads Department will select and engage the consultants following ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality-based selection method for detailed design and supervision consultants and the quality- and cost-based selection method (80:20) for capacity development and road safety improvement consultants.

Project 1 will require a total of 1,330 person-months (230 international and 1,100 national) of services from consulting firms. This comprises (i) 1,056 person-months (164 international and 892 national) for detailed design of Project 1 and Project 2, construction supervision, and project monitoring and evaluation; (ii) 31 person-months (11 international and 20 national) for road safety; and (iii) 243 person-months (55 international and 188 national) for RD's capacity development.

For Project 2, consulting services will be required for (i) construction supervision, (ii) feasibility study and detailed design for Project 3, and (iii) cross-border facilitation.

Additional consulting services, if necessary, will be procured under subsequent projects. The consulting services will be financed from ADB loans.

Procurement Procurement will be carried out following ADB's Procurement Guidelines. International competitive bidding procedures will be followed for contracts with an amount above $1 million for civil works and $500,000 for goods. The upper limit for a civil works contract through national competitive bidding procedures will be set at $1 million. National competitive bidding will be conducted under Georgia's legislation on state procurement, subject to modification and clarification set forth in the procurement plan.
Responsible ADB Officer Prianka Seneviratne
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Road Dept-Min.of Reg. Devt. and Infrastructure Irakli Litanishviliroaddepirakli@yahoo.com12 Khazbegi Str. 0160 Tbilisi
Georgia
Timetable
Concept Clearance 29 May 2009
Fact Finding 01 Jun 2009 to 12 Jun 2009
MRM 07 Jul 2009
Approval 29 Sep 2009
Last Review Mission -
PDS Creation Date 28 Jan 2009
Last PDS Update 30 Apr 2015

MFF Facility Concept 0034-GEO

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2,333.00 Cumulative Contract Awards
ADB 500.00 - 0.00 0.00 %
Counterpart 1,833.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
MFF 0034 - Subregional Road Corridors Development Program (Updated) Environmental Assessment and Review Framework Dec 2011
Subregional Road Corridors Development Program Environmental Impact Assessments Aug 2009
Subregional Road Corridors Development Program Summary Environmental Impact Assessments May 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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