Georgia: Road Corridor Investment Program - Tranche 3 (Additional Financing)

Sovereign Project | 41122-043

Summary

The Project, financed from the multitranche finance facility (MFF) for Georgia Road Corridor Investment Program, provides additional financing of $140 million for Loan 2560-GEO (the original project). Its main components are: (i) constructing Kobuleti Bypass (a new 28 km two-lane bypass road skirting Kobuleti and expanding to four lanes, a 6 km section of an existing two-lane road between Kobuleti and Batumi, along the Black Sea coast toward the Turkish border); (ii) strengthening asset management capacity of the Roads Department; and (iii) improving road safety. The additional financing will be used for expenditures related to civil works (road construction component), consulting services for construction supervision, and project administration by the executing agency.

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Project Name Road Corridor Investment Program - Tranche 3 (Additional Financing)
Project Number 41122-043
Country Georgia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2843-GEO: Road Corridor Investment Program - Tranche 3 (Additional Financing)
Ordinary capital resources US$ 140.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The Project, financed from the multitranche finance facility (MFF) for Georgia Road Corridor Investment Program, provides additional financing of $140 million for Loan 2560-GEO (the original project). Its main components are: (i) constructing Kobuleti Bypass (a new 28 km two-lane bypass road skirting Kobuleti and expanding to four lanes, a 6 km section of an existing two-lane road between Kobuleti and Batumi, along the Black Sea coast toward the Turkish border); (ii) strengthening asset management capacity of the Roads Department; and (iii) improving road safety. The additional financing will be used for expenditures related to civil works (road construction component), consulting services for construction supervision, and project administration by the executing agency.
Project Rationale and Linkage to Country/Regional Strategy The additional financing for the Project will be used for completing the original project's civil works (i.e., Kobuleti Bypass), construction supervision, and contract administration. Completing this road is vital for realizing the full value of its first 15 km, currently under construction (Contract 1). Moreover, the return on other transport investments in Batumi and Poti ports, and the East-West highway connecting Tbilisi to the ports and the Black Sea beaches, will be lower without completing the Bypass.
Impact Increase in subregional trade and tourism revenues
Project Outcome
Description of Outcome Improvement of the subregional road network
Progress Toward Outcome Travel time between Kobuleti to Batumi has already been lowered by about 15 minutes after the opening of the first part of the road of about 12 km.
Implementation Progress
Description of Project Outputs

A 33.6 km two-lane bypass road detouring Kobuleti

Strengthening of asset management capacity

Improvement of road safety

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

1. All works in Lot 1 completed, with minor roadside works ongoing; while Lot 2 works are ongoing with about 46% physical progress as of mid-June 2015.

2. The EA is planning to engage one consulting firm to design a bridge management system and another to modernize the road design and construction standards, and a guideline for supervising construction and maintenance of roads.

3. A consultant engaged by the EA has presented a safety improvement proposal for the Kobuleti Bypass and access roads in July 2015. A plan to include designing the countermeasures and correcting the safety deficiencies under the safety component is currently being discussed.

Geographical Location between Kobuleti and Batumi
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Same as Loan 2560-GEO.
Involuntary Resettlement Same as principal Loan 2560-GEO.
Indigenous Peoples Project is classified as Category C (same as in principal Loan 2560)
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out with all the stakeholders during program preparation. As an integral part of the safeguards planning, affected communities and affected persons were directly and fully involved in the project preparation and during the design. All stakeholders were informed about the project, and the stream of information will continue during the implementation of the project. Extensive consultation events were arranged at various stages of social and resettlement project preparation alternative alignment feasibility study, cadastral survey of affected lands, land census survey, socioeconomic survey, and targeted consultation meetings with affected people and local stakeholder organizations and individuals. Consultations were also held at various levels of government offices such as the Department of Roads (including its resettlement division), the National Agency for Public Registry under the Ministry of Justice, local governments at the rayon (district municipality) level, gamgebeli (governors), property recognition committees in the rayon, and sacrebulo (representative local autonomous bodies).
During Project Implementation Stakeholder participation and consultation is continuing. The Roads Department has consultants to regularly monitor the activities of the contractor in relation to the LARP and EMP, to coordinate with the local governments, and ensure that the grievance redress mechanism is properly functioning. An independent external monitor conducts biannual consultations with local people and reports to RD and ADB. A greivance redress mechanism is in place and RD has appointed two field officers for regular consultation with the communities and other parties and report the outcomes to ADB through the monthly progress reports. Progress reports are disclosed at the ADB website.
Business Opportunities
Consulting Services Same consulting services requirements as that of the principal Loan 2560 GEO.
Procurement Same procurement requirements as that of the principal Loan 2560 GEO.
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 Infrastructure12 Khazbegi Str. 0160 Tbilisi
Georgia
Timetable
Concept Clearance 29 May 2009
Fact Finding -
MRM 16 Dec 2011
Approval 22 Dec 2011
Last Review Mission -
Last PDS Update 28 Jul 2015

Loan 2843-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2011 18 Apr 2012 13 Jun 2012 31 Dec 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 165.00 Cumulative Contract Awards
ADB 140.00 22 Dec 2011 56.19 0.00 40%
Counterpart 25.00 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2011 18.68 0.00 13%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Road Corridor Investment Program - Tranches 1 and 3: Construction Supervision of Kobuleti Bypass Road Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Aug 2015
Road Corridor Investment Program - Tranches 1 and 3: Construction Supervision of Kobuleti Bypass Road Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Road Corridor Investment Program - Tranches 1 and 3: LARP Implementation Progress Report Social Monitoring Reports Jan 2015
Road Corridor Investment Program - Tranche 3 (Additional Financing): Social Monitoring Report (October 2014) Social Monitoring Reports Oct 2014
Road Corridor Investment Program - Tranche 3 (Additional Financing): Section 2: Kobuleti Bypass Road (km 12+400 - km 31+259) Resettlement Plans Jun 2014
Road Corridor Investment Program - Tranches 1 and 3: Construction Supervision of Kobuleti Bypass Road: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
Road Corridor Investment Program - Tranche 1 and Tranche 3 (Additional Financing): Final Compliance Report (Segment B of Section 2: Kobuleti Bypass Road) Social Monitoring Reports Sep 2013
Road Corridor Investment Program–Tranche 1 and Tranche 3 (Additional Financing) Social Monitoring Reports May 2013
Road Corridor Investment Program - Tranche 3 (Additional Financing): Section 2: Kobuleti Bypass Road (km 12+400 ~ km 31+259 Environmental Impact Assessments Sep 2012
Road Corridor Investment Program - Tranche 3 (Additional Financing): Section 2: Kobuleti Bypass Road (km 12+400 ~ km 31+259) Resettlement Plans Sep 2012
Road Corridor Investment Program - Tranche 3 (Additional Financing): Construction of Kobuleti Bypass Road Section Km 12+400~Km 31+300 (Draft) Environmental Impact Assessments Dec 2011
Land Acquisition and Resettlement Framework for Roads Corridor Investment Program Resettlement Planning Documents Dec 2011
Road Corridor Investment Program - Tranche 3 (Additional Financing) Resettlement Planning Documents Dec 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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