Armenia: North-South Road Corridor Investment Program - Tranche 1

Sovereign Project | 42145-023

Summary

The Project aims to improve road infrastructure, road network management capacity, and road safety along the Project Road.

It comprises the following main components:

(i) reconstruction and/or rehabilitation of approximately 18.4 km of four-lane road section between Yerevan and Ashtarak;

(ii) road safety enhancement of four-lane road section between Yerevan and Ararat;

(iii) project management support, including detailed design of subsequent project(s) proposed financing under the Investment Program, supervision consultancy, and preparation of tender documents and procurement, and

(iv) support for implementing road subsector plan under the transport sector strategy.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name North-South Road Corridor Investment Program - Tranche 1
Project Number 42145-023
Country Armenia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2561-ARM: North-South Road Corridor Investment Program - Project 1
Asian Development Fund US$ 60.00 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
Description

The Project aims to improve road infrastructure, road network management capacity, and road safety along the Project Road.

It comprises the following main components:

(i) reconstruction and/or rehabilitation of approximately 18.4 km of four-lane road section between Yerevan and Ashtarak;

(ii) road safety enhancement of four-lane road section between Yerevan and Ararat;

(iii) project management support, including detailed design of subsequent project(s) proposed financing under the Investment Program, supervision consultancy, and preparation of tender documents and procurement, and

(iv) support for implementing road subsector plan under the transport sector strategy.

Project Rationale and Linkage to Country/Regional Strategy

The Agarak-Kapan-Yerevan-Bavra route (M1 and 2 roads) crossing Armenia from south to north is further connected to Georgia's east-west highway that leads to Poti and Batumi at the Black Sea. This route provides Armenia with the shortest access to the seaports linked to Europe, the Russian Federation, and Turkey. Meanwhile, the government of Georgia is improving the east-west highway and plans to improve the Bavra-Zhdanov-Akhaltskha-Batumi road as an alternative connectivity to Black Sea ports from Tbilisi. This will enable the Armenia cargoes to be transported to Black Sea ports easily through a shorter route. On the basis of this potential, the Government has developed a North-South Road Corridor Development Program (the Investment Program) as a priority and ADB will support it through a MFF.

The Investment Program will promote regional cooperation and trade by improving the north-south road corridor and related border crossings in Armenia. It is the Government's top priority to stimulate the national economy and gain shorter and more efficient access to nearest sea ports of the Black Sea. It will be complemented by the ADB-assisted regional road corridor development programs in Azerbaijan and Georgia to link the subregion to international markets more closely. It is thus in line with ADB's regional cooperation and integration theme under the Strategy 2020, COBP for Armenia, and the regional cooperation strategy in Central Asia and Caucasus.

Impact Efficient, safe, and sustainable transport on the north-south road corridor
Project Outcome
Description of Outcome Reconstructed Yerevan to Ashtarak Road with increased traffic volume is safe and efficiently operated
Progress Toward Outcome Civil works are ongoing. Outcome will be measured on completion in June 2016.
Implementation Progress
Description of Project Outputs Yerevan-Ashtarak road reconstructed
Status of Implementation Progress (Outputs, Activities, and Issues)

Civil works contract was awarded in April 2012 and project management consultant's contract (financed under Tranche 2) in May 2012. The contractor was unable to complete the works as expected on 23 December 2014.

ADB review missions are fielded regularly to resolve all outstanding project implementation issues. The most recent mission was fielded on 13 to 18 March 2015 to (i) determine the status of the actions agreed between the PIU and the January 2015 mission; (ii) review the government's agreements with the Engineer and the Contractor; (iii) determine the level of compliance with covenants; and (iv) update the procurement plan.

Civil works were approximately 80% complete. Major part of the lighting, pavement marking and signs, guardrails, utilities, concrete structures (underpasses, culverts, bridges), expansion joints (repair and filling and refilling), rectification of defects (cracks in the concrete slabs, about 17 km of milled pavement), and shoulders and median remain incomplete. These works will take about four months to complete.

Geographical Location Yerevan, Ashtarak, Ararat
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
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 (Supplementary Appendix F).

The environmental classification for the Tranche 1 Project is category B. An initial environmental examination (IEE) was carried out in accordance with ADB's Environment Policy and Environmental Assessment Guidelines (2003). Regular environmental monitoring is carried out according to the environmental management plan and the bi annual monitoring reports are disclosed. The monitoring report for the period from January to June 2014 will be disclosed in the first week of August 2014. No major issues have been raised up to the end of May 2014.

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 (Supplementary Appendix E).

The resettlement classification of the Tranche 1 Project is C. Civil works will entail the improvement of an existing four-lane highway and will take place within the existing right-of-way or on unused state-owned land. No relocation of households or acquisition of productive land is expected. Borrow pits or quarries are also available in the state-owned empty land, within easy access and away from residential areas. Impacts during construction have been mitigated and the grievance redress mechanism continues to be an effective means of consultation.

Indigenous Peoples Indigenous people: Category C - In Armenia there are no groups with characteristics fitting the definition of indigenous people of ADB s Policy on Indigenous Peoples (1998). Therefore, the entire Investment Program and all tranche projects will be categorized as C for impact on indigenous people.
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 A grievance redress mechanism for resettlement, managing environment, and addressing concerns of the road users, communities and other project stakeholders is in place. Public consultation is on-going. The project management unit and the supervision consultant have full-time specialists that monitor and report performance to ADB. Progress reports are disclosed at the ADB website.
Business Opportunities
Consulting Services A total of 72 person-months of international consulting services and 174 person-months of national consulting services were recruited for Construction Supervision and preparation of Tranches 2 and 3 Projects. Individual national and international consultatants to assist the project management unit of the ministry of transport and communications in project monitoring, contract administration and strategy development have been engaged according ADB's Guidelines on the Use of Consultants. No further consulting services are expected to be financed from Tranche 1.
Procurement ADB-financed works, goods, and services will be procured according to ADB's Procurement Guidelines and Guidelines on the Use of Consultants by ADB and its Borrowers. The Ministry of Transport and Communication and ADB have agreed that civil works under Tranche 1 and Tranche 2 will be combined in one contract with three sections, comprising reconstruction and improvement of the M1 Ashtarak to Talin road from km 29+600 to km 71+500 (Section 1), M2 Yerevan to Ararat road from km 9+312 to km 47+400 (Section 2) and M1 Yerevan to Ashtarak road from km 18+370 to km 29+773 (Section 3). The Government used international competitive bidding with post qualification and one-stage-one-envelope bidding procedure. The Contract was awarded in April 2012. No further works contracts are anticipated.
Responsible ADB Officer Prianka Seneviratne
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Transport & CommunicationG.GRIGORYAN@TRACECA.AMNalbandyan Str.
PO Box 69, 0010
Yerevan, Armenia
Timetable
Concept Clearance 14 Jul 2009
Fact Finding 18 Jul 2009 to 30 Jul 2009
MRM 19 Aug 2009
Approval 06 Oct 2009
Last Review Mission -
PDS Creation Date 31 Jul 2009
Last PDS Update 28 Jul 2015

Loan 2561-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Oct 2009 12 Oct 2009 24 Feb 2010 30 Jun 2014 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 70.00 Cumulative Contract Awards
ADB 60.00 06 Oct 2009 57.12 0.00 100%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 06 Oct 2009 46.85 0.00 82%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Satisfactory - - Satisfactory
Title Document Type Document Date
North-South Road Corridor Investment Program - Tranche 1: Procurement Plan Procurement Plans Jul 2015
Amendment to the Loan Agreement for North-South Road Corridor Investment Program - Project 1 between the Republic of Armenia and the Asian Development Bank Loan Agreement (Special Operations) Jun 2015
Amendment to Loan Agreement for North-South Road Corridor Investment Program - Project 1 Loan Agreement (Special Operations) Mar 2014
North-South Road Corridor Development Program Facility Administration Manual Jan 2013
North-South Road Corridor Development Program Facility Administration Manual Nov 2011
North-South Road Corridor Investment Program: Due Diligence Report - HIV/AIDS Documents Produced Under Grant/Loans/TA Jul 2011
Amendment to Framework Financing Agreement Framework Financing Agreement for North-South Road Corridor Investment Program between the Republic of Armenia and Asian Development Bank for the North-South Road Corridor Investment Program - Project 1 Framework Financing Agreement May 2011
Amendments to the Loan Agreement for North-South Road Corridor Investment Program - Project 1 between the Republic of Armenia and Asian Development Bank dated 3 May 2011 Loan Agreement (Special Operations) May 2011
North-South Road Corridor Development Program (Tranche 1) Design and Monitoring Frameworks Jul 2010
North-South Road Corridor Investment Program - Tranche 1 Facility Administration Manual Oct 2009
Loan Agreement for North-South Road Corridor Investment Program - Project 1 between Armenia and Asian Development Bank dated 12 October 2009 Loan Agreement (Special Operations) Oct 2009
North-South Road Corridor Investment Program Reports and Recommendations of the President Sep 2009

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
North-South Road Corridor Investment Program - Tranches 1 and 2: Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jun 2015
North-South Road Corridor Investment Program - Tranche 1: Environmental Management Plan Environmental Management Plans Jun 2015
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Aug 2013
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Feb 2013
North-South Road Corridor Investment Program, Tranches 1, 2 and 3: Bi-annual Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Feb 2013
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2011) Environmental Monitoring Reports Nov 2012
Preparing the North-South Road Corridor Development Program (Tranche 1 Roads Improvement Project-Two Road Sections: Yerevan to Ashtarak and Yerevan to Ararat) Environmental Assessment and Measures Nov 2011
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (January-June 2011) Environmental Monitoring Reports Oct 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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