Azerbaijan: Second Road Network Development Investment Program - Tranche 2

Sovereign Project | 45389-004

Summary

The project will finance construction of new motorway between Jalilabad and Shorsulu and provide capacity development. With progress having been made in the implementation of the first tranche, the land acquisition and resettlement plan (LARP) implemented, and works contractor mobilized, the government is now requesting ADB in the second PFR for Tranche 2 to help finance Project 2. Project 2 aims to develop Jalilabad to Shorsulu motorway section and provide sector capacity development. Tranche 2 will be the last tranche of the MFF.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Second Road Network Development Investment Program - Tranche 2
Project Number 45389-004
Country Azerbaijan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3144-AZE: Second Road Network Development Investment Program - Tranche 2
Ordinary capital resources US$ 250.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Transport - Road transport (non-urban) - Transport policies and institutional development
Gender Equity and Mainstreaming No gender elements
Description The project will finance construction of new motorway between Jalilabad and Shorsulu and provide capacity development. With progress having been made in the implementation of the first tranche, the land acquisition and resettlement plan (LARP) implemented, and works contractor mobilized, the government is now requesting ADB in the second PFR for Tranche 2 to help finance Project 2. Project 2 aims to develop Jalilabad to Shorsulu motorway section and provide sector capacity development. Tranche 2 will be the last tranche of the MFF.
Project Rationale and Linkage to Country/Regional Strategy The tranche 2 Project is a high priority of the government and is included in the Road Network Development Program under the Transport Sector Development Strategy. It forms part of the country's primary north south highway linking the country's capital, Baku, to the neighboring countries. Currently, parts of the existing road section are in poor condition, resulting in high transport costs, long delivery times, and road traffic crashes. This constitutes an impediment to non-oil sector growth and poverty reduction in Azerbaijan, as well as regional trade development. Construction of the proposed motorway section completes the southern corridor and will promote national and regional trade, thus contributing to the achievement of the objectives of the state program on poverty reduction and economic development.
Impact sustainable economic growth in Azerbaijan and expanded trade with neighboring countries.
Project Outcome
Description of Outcome an adequate, efficient, safe, and sustainable motorway corridor between Shorsulu and Jalilabad in Azerbaijan.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

About 30 km of a newly constructed motorway between Jalilabad and Shorsulu, and open to traffic;

Improved program management and implementation capacities of AzerRoadService; and

Improved transport sector governance.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Masalli-Shorsulu
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

An environmental assessment and review framework was prepared for the entire MFF as required by ADB s Safeguard Policy Statement (2009). According to the MFF, each tranche is to be assessed and categorized separately. The proposed motorway is a new alignment, tranche 1 passes through settled areas, while the proposed tranche 2 section passes through wetlands. The Project, as Project 1, is also classified as environment Category A.

An environmental impact assessment (EIA) report was prepared for the entire alignment covering both sections under Project 1 and the Project. The EIA was approved by ADB and disclosed on the ADB website in 2012. The EIA recommends specific mitigation measures with regard to motorway design and construction and a robust long-term monitoring program. The contracts for the supervision consultant, program management consultant, and civil works will include stringent provisions for compliance with environmental safeguards. An ecological expert and environmental specialist will be engaged to ensure implementation of the environmental management plan. Assurances to mitigate potential harm to the wetlands are also included in the framework financing agreement and loan agreements.

Involuntary Resettlement

The Project is categorized B for resettlement. A LARF for the Program was prepared and approved in July 2012. The LARP was prepared for the Project and land acquisition is complete. A due diligence report was prepared in July 2013, and the LARP was reviewed and updated in March 2014. Except for 6 vulnerable households who lose more than 10% of their land and will be provided employment when construction commences all compensation payments have been made and no outstanding issues are identified.

The construction of the Project requires the acquisition of approximately 172.5 ha in 3 villages within the districts of Neftchala, Bilasuvar, and Jalilabad including 55.22 ha of private land, 21.99 ha of municipality-owned land and 95.29 ha of State reserve land. There is no impact to structures and trees. In total, 86 households will be affected. ARS will submit internal monitoring reports once the construction work commences. Grievance will be monitored through the supervision consultant.

Indigenous Peoples

The Project has no adverse impact on indigenous peoples.

Ethnic Azeri accounts for most of the population in the project area; few other nationalities include Talysh, who are not negatively affected by the Project. Project is thus classified as Category C for indigenous peoples as defined under ADB s SPS (2009).

Stakeholder Communication, Participation, and Consultation
During Project Design Conducted in 2012 and also updated in 2014 while updating the LARP.
During Project Implementation Will be conducted as soon as contractor mobilizes, and any recommendation will be considered for implementation.
Business Opportunities
Consulting Services Consultant recruitment financed will follow ADB's Guidelines on the use of Consultants (2013, as amended from time to time). Recruitment of construction supervision consultant is at an advance stage.
Procurement Procurement of goods and works will follow ADB's Procurement Guidelines (2013, as amended from time to time). Procurement of civil works is ongoing.
Responsible ADB Officer Zheng Wu
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of TransportPANAHOV@MINTRANS.AZ1054, Tbilisi Avenue
Baku, AZ1122
Republic of Azerbaijan
Timetable
Concept Clearance -
Fact Finding -
MRM 28 May 2014
Approval 29 Jul 2014
Last Review Mission -
Last PDS Update 17 Mar 2015

Loan 3144-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jul 2014 29 Dec 2014 16 Jun 2015 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 332.00 Cumulative Contract Awards
ADB 250.00 29 Jul 2014 0.00 0.00 0%
Counterpart 82.00 Cumulative Disbursements
Cofinancing 0.00 29 Jul 2014 0.00 0.00 0%

Evaluation Documents

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No documents found.


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