Armenia: North-South Road Corridor Investment Program - Tranche 3

Sovereign Project | 42145-043 Status: Approved


ADB is helping Armenia upgrade its main North-South Road Corridor. The third project under the program will improve and widen 46 kilometers of the road between Talin and Gyumri, develop and implement a long-term road subsector plan and a road asset management and road maintenance administration system, and prepare the feasibility study for the Artashat-Qajaran section of the corridor.

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Project Name North-South Road Corridor Investment Program - Tranche 3
Project Number 42145-043
Country Armenia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant: North-South Road Corridor Investment Program, Tranche 3
Neighborhood Investment Facility US$ 7.90 million
Loan 2993-ARM: North-South Road Corridor Investment Program, Tranche 3
Ordinary capital resources US$ 100.00 million
Loan: North-South Road Corridor Investment Program - Tranche 3
European Investment Bank US$ 79.20 million
Loan: North-South Road Corridor Investment Program - Tranche 3
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

The project aims to achieve efficient, safe and sustainable north-south corridor linking the Republic of Armenia domestically and internationally. The project will comprise:

(a) reconstruction of the two-lane road section between towns of Talin and Landjik of approximately 18.7 km and widening such section to a four-lane dual carriageway; (b) preparation and implementation of a long term road subsector plan and road asset management and road maintenance administration system; (c) preparation of feasibility study for Artashat-Qajaran section (304 km) of the North-South corridor; and (d) project implementation support and preparation of a subsequent tranche under the Investment Program, including preparation of the related feasibility study and detailed engineering design.

Project Rationale and Linkage to Country/Regional Strategy Rehabilitation of the road network is a top priority for Armenia. Improving logistics increases trade, investment flows and jobs. Better connectivity aids regional cooperation and integration and increases the country's competitiveness. The government of Armenia has developed a North-South Road Corridor Investment Program for 2009-2017. The program, which includes an investment component and a non-investment component, aims to develop an adequate, efficient, safe, and sustainable road network in the country in support of economic growth and regional cooperation. The North-South road is part of a transport network for trade flow between Central Asia to the European markets. The road extends from Agarak to Bavra through Kapan and Yerevan, and plays an important role in this regard because it is linked to the east-west highway in Georgia that leads to Poti and Batumi on the Black Sea, two key shipment points for Central Asia's exports. Upon implementation, the investment program will: (i) facilitate efficient subregional road transport transit; (ii) increase trade flows and competitiveness; (iii) lower transport costs; (iv) increase mobility and accessibility to markets, jobs, and social services; (v) enhance tourism; and (vi) improve governance.
Impact Socioeconomic development in Armenia and expanded regional trade
Project Outcome
Description of Outcome Efficient, safe and sustainable north-south road corridor, linking Armenia domestically and internationally
Progress Toward Outcome The loan has been effective since 24 July 2014. Consultant contract awarded on 30 March 2015. Consultant mobilized on 1 June 2015.
Implementation Progress
Description of Project Outputs

Reconstructed 18.7 km two-lane road section between the towns of Talin and Landjik

Road Subsector Plan completed and Road Asset Management and Road Maintenance System implemented

Feasibility studies and detailed design for Tranche 4 prepared

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

Procurement of works ongoing. Contract award scheduled for December 2015.

Rebidding for road asset management goods expected to start in December 2015.

Feasibility study of Tranche 4 project is expected to be completed by March 2016 and detailed design by August 2016.

Geographical Location Talin-Landjik Section of the North-South Road Corridor
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project classified as 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. Public consultations involving nongovernment organizations in Gyumri and Yerevan were conducted in May and July 2010. The consultant and PMU held further discussions with community leaders during the preparation of the updated EIA in 2012 for relocation of cultural monuments.
Involuntary Resettlement

Project Classified as Category A. 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. The assessment of land acquisition and resettlement impacts and current replacement costs, as well as the LARP budget, are derived from detailed estimates, and will be revised and updated with a detailed measurement survey and valuation of lost assets, once all land acquisition impacts are known. It is anticipated that Project 3 will affect about 1100 land plots with a total area of approximately 1.4 million square meters, including 0.6 million square meters of agricultural land, 91,695 square meters of residential/commercial land, and 731,750 square meters of community and government land, as well as 74 structures. Project 3 will affect 593 households with about 2,550 persons.

The mitigation measures included in the draft LARP are consistent with the provisions of the land acquisition and resettlement framework for the MFF and the SPS (2009). MOTC/PMU has 2 social development specialists, 1 environment specialist, and 1 lawyer, assisted by 2 resettlement consultants. A grievance redress mechanism has been established for Project 3. As the LARP is the second document of this kind prepared by MOTC/PMU and resettlement training was provided during the preparation of LARP under Project 2, the MOTC/PMU's capacity for implementation of LARP under Project 3 is considered adequate. The affected persons (APs) were consulted during the preparation of this draft LARP, and it was disclosed to the APs and on the ADB website. ADB has endorsed the final LARP and the government is expected to approve it by December 2015.

Indigenous Peoples Tranche 3 is 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

Stakeholder participation has been achieved through consultation carried out with all the stakeholders during the program preparation. Consultations were held at various levels such as the Project Management Unit, the Ministry of Transport and Communication, the State Committee of Real Estate Cadastre, Municipality of Yerevan and different non-governmental organizations. Consultations were also conducted with local communities to be

directly affected by the Investment Program.

During Project Implementation Stakeholders' participation and consultation is ongoing. LARP implementation is on-going, and the environmental and resettlment specialsits of the project management unit make regular site visits to review progress. Bi annual environmental and social monitoring reports published regularly.
Business Opportunities
Consulting Services All consulting services to be financed under the Project 3 will be procured in accordance with ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All procurement of works and goods will be undertaken in accordance with ADB''s Procurement Guidelines (2013, as amended from time to time).
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
Nalbandyan Str.
PO Box 69, 0010
Yerevan, Armenia
Concept Clearance 14 Jul 2009
Fact Finding -
MRM 29 Nov 2012
Approval 12 Mar 2013
Last Review Mission -
Last PDS Update 23 Oct 2015

Loan 2993-ARM

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Mar 2013 11 Mar 2014 24 Jul 2014 30 Jun 2017 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 141.50 Cumulative Contract Awards
ADB 100.00 12 Mar 2013 7.38 0.00 7%
Counterpart 41.50 Cumulative Disbursements
Cofinancing 0.00 12 Mar 2013 2.02 0.00 2%

Safeguard Documents

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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.

Evaluation Documents

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Related Publications

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