Armenia: North-South Road Corridor Investment Program

Sovereign Project | 42145-013 Status: Active


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Procurement Documents

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Project Name North-South Road Corridor Investment Program
Project Number 42145-013
Country Armenia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept: North-South Road Corridor Investment Program
Neighborhood Investment Facility US$ 7.90 million
MFF Facility Concept 0035-ARM: North-South Road Corridor Investment Program
Asian Development Fund US$ 60.00 million
Ordinary capital resources US$ 440.00 million
MFF Facility Concept: North-South Road Corridor Investment Program
European Investment Bank US$ 79.20 million
Eurasian Development Bank US$ 150.00 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
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome Three tranches have been approved and are under implementation. Improvement of approximately 150 km of road financed from the MFF is likely to completed by December 2019, after which the outcomes will be measured.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

All works and major consulting contracts under Tranches 1 and 2 have been awarded. Civil works have been progressing, but started later than expected. Procurement of works, land acquisition, and unforeseen archaeological sites in the right-of-way contributed to the delay. Procurement of civil works and goods and recruitment of consultants under Tranche 3 are underway.

Three crossings points on the Georgian border have been or will be improved by 2017.

Consultant selection for the road subsector plan and capacity building will be completed by 2016.

Safety improvements are part of the civil works to be completed in 2016.

Geographical Location Bavra, Yerevan, Ashtarak, Talin, Gyumri, Mekhri, Armenia

Summary of Environmental and Social Aspects

Environmental Aspects

An environmental assessment and review framework (EARF) covering environment safeguard tasks for the Investment Program in compliance with national laws and ADB's Environment Policy (2002) has been prepared and was approved by the Government.

Project 1 is classified as environmental category B and thus an initial environmental examination (IEE) was prepared. Project 2 is classified as environmental category A due to the widening of the Ashtarak-Talin road section to 4 lanes and several significant impacts to archaeological sites. An environmental impact assessment (EIA) was prepared. All recommendations of the EIA, including the environment management plan (EMP), were incorporated in the bidding documents and consultants' contracts. Project 3 is classified as environmental category A. An updated EIA was prepared and posted on the ADB website on 26 July 2012. The EIA concludes that the impact on archaeological, historical, and cultural sites and monuments is widespread and requires special consideration. The EIA identifies 10 previously unknown archaeological sites. To safeguard the most important sites, the EMP contains mitigation measures. The EIA also determines that there is a potential impact on some rare flora and fauna. To mitigate those impacts, the EMP outlines a flora and fauna plan. All recommendations in the EMP are incorporated in the detailed design and bidding documents for the civil works contract to ensure proper mitigation and protection measures are taken.

Involuntary Resettlement

A land acquisition and resettlement framework (LARF) regulating land acquisition and resettlement activities for the Investment Program in compliance with national laws and ADB's Involuntary Resettlement Policy (1995) has been prepared and was approved by the Government.

Project 1 is classified as involuntary resettlement category C. Although no land acquisition is expected, impacts like loss of access for businesses have been identified. Consultations with community leaders were carried out and mitigation measures were developed to address such impacts. Project 2 is classified as involuntary resettlement category A due to significant land acquisition impact from the construction and widening of the Ashtarak Talin road section. Project 3 is classified as category A for involuntary resettlement. The existing right-of-way will be widened to approximately 30 meters, which will cause significant land acquisition and resettlement impacts. MOTC prepared a draft LARP based on the substantially completed detailed engineering design.

Indigenous Peoples Projects 1, 2, and 3 are classified as category C for indigenous peoples due to the absence from the project area of social groups qualifying as indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design

The concerned stakeholders are grouped into (i) project sponsors - a central government represented by the ministries of economy (MOE), finance (MOF), and transport and communications (MOTC); (ii) regional administrations of the five marzpetaran (regional subdivision) where the road corridor lies, (iii) community leaders and councils of Avagani (council of elderly), (iv) community members, land owners and road users, (v) international organizations working in the project areas, (vi) local and international NGOs, and other donor/funding organizations.

These groups were consulted through interviews, group discussions, questionnaires and surveys to identify and incorporate their individual concerns in the project and overall program design and subsequent implementation with regard to detailed engineering designs, social development, resettlement and environment related issues.

During Project Implementation The MFF includes social and environment frameworks that outline principles for engaging affected people and communities and addressing social and environment related issues during the project implementation. In addition, bidding documents for civil works will include specific measures to ensure that the Program is implemented with gender, ethnic minority and environment concern in mind and creates equal opportunities for all social groups for employment and benefits.

Business Opportunities

Consulting Services Services of consulting firms and/or individuals working jointly with national firms and/or individuals will be required to (i) prepare detailed designs and supervise civil works; (ii) monitor project performance, benefits and social and environment safeguards; (iii) help implement individual tranche components; (iv) prepare subsequent tranches; and (v) conduct technical and financial audits. EA/IA will select firms in accordance to ADB's Guidelines on the Use of Consultants, using the quality- and cost-based selection (QCBS), quality-based selection (QBS), or consultant qualification selection (CQS) method depending on individual needs of project components and procurement plan. ADB and MOTC will perform due diligence before any of the methods and identify suitable weighting system for evaluating the firm's proposals.
Procurement Procurement of works and goods to be financed under the ADB loan will be conducted in accordance with ADB's Procurement Guidelines.

Responsible Staff

Responsible ADB Officer Jiangbo Ning
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Transport & Communication
Gagik Beglaryan, Minister
Nalbandyan Str. PO Box 69, 0010 Yerevan, Armenia


Concept Clearance 14 Jul 2009
Fact Finding 18 Jul 2009 to 30 Jul 2009
MRM 19 Aug 2009
Approval -
Last Review Mission -
PDS Creation Date 31 Jul 2009
Last PDS Update 30 Apr 2015

MFF Facility Concept 0035-ARM

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 892.00 Cumulative Contract Awards
ADB 500.00 - 0.00 0.00 %
Counterpart 392.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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.

Title Document Type Document Date
North-South Road Corridor Investment Program Resettlement Frameworks Sep 2009
North-South Road Corridor Investment Program Environmental Assessment and Review Framework Aug 2009

Evaluation Documents See also: Independent Evaluation

None currently available.

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.

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