Project Name
Armenia-Georgia Border Regional Road (M6 Vanadzor-Bagratashen) Improvement Project
Project Number
49244-002
Country / Economy
  • Armenia
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 3449-ARM: Armenia-Georgia Border Regional Road (M6 Vanadzor-Bagratashen) Improvement Project
Source Amount
Ordinary capital resources US$ 50.00 million
Loan: Armenia-Georgia Border Regional Road (M6 Vanadzor-Bagratashen) Improvement Project
Source Amount
European Investment Bank US$ 56.40 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)

Gender
No gender elements
Description
The proposed project will improve a strategic regional link between Armenia (Vanadzor) and Georgia Border (Bagratashen), one of the most heavily traveled roads for internal and external trade. It will rehabilitate and upgrade 51.5 kilometers (km) of the two-lane M6 highway from Vanadzor to the border with Georgia at Bagratashen, improve facilities and safety along and in the vicinity of this road section in northern Armenia, strengthen the institutional capacity of the Ministry of Transport, Communication and Information Technologies (MTCIT).
Project Rationale and Linkage to Country/Regional Strategy
Armenia's economy relies heavily on trade with neighboring countries through one border crossing with Iran at Meghri and two major border crossings with Georgia at Bavra and Bagratashen. Bavra is at the north end of the ongoing North-South Road Corridor Investment Program financed by Asian Development Bank (ADB). The North-South road corridor will mainly serve cross-border freight traffic to western Georgia and the Black Sea ports. Bagratashen is connected to the country's national network via the two-lane M6 highway, which will be upgraded by the proposed project. The M6 is a vital link connecting Armenia with Georgia and beyond. It is the shortest link between the respective capitals, Yerevan in Armenia and Tbilisi in Georgia. In 2014, the Bagratashen border crossing point handled 0.85 million tons of import and export freight, representing 49% of the total import freight tonnage and goods by road. Several international financial institutions are working jointly to improve border crossing efficiency and develop integrated border management systems in Armenia, including improvements at Bagratashen. The project is crucial to the country's trade and economy, and will be indispensable in the long term.
Impact

Accelerated deterioration of the road network prevented; and safe, quick, and easy transportation ensured.

Project Outcome

Description of Outcome

Transport efficiency and safety along the VanadzorBagratashen section of the M6 improved.

Progress Toward Outcome

All 3 lots are completed and opened to traffic.

The loan closing date has been extended until 31 August 2024.

Implementation Progress

Description of Project Outputs

Road in M6 Vanadzor-Bagratashen section totaling 51.5 km (Km 38+500Km 90+000) reconstructed

Institutional capacity of MOTC strengthened

Design of the rehabilitation of Dilijan and Pushkin tunnels prepared

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

Lot 1 works were completed on 21 November 2022. Lot 2 works were completed on 31 March 2023. Lot 3 works were completed on 28 February 2023. The roads are opened to traffic.

Trainings on Procurement and Contract Administration, Road Asset Management, and Project Scheduling and Management have already been delivered in Q4 2021, Q1 2022, and Q2 2022 respectively. FIDIC workshop was conducted in February 2019. Training on Blackspot Management is expected to be completed by Q3 2024.

The detailed design for the rehabilitation of Dilijan and Pushkin tunnels is ongoing, and completion of the design is expected by July 2024.

Geographical Location
Alaverdi, Bagratashen, Vanadzor

Safeguard Categories

Environment
B
Involuntary Resettlement
A
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
According to ADB's Safeguard Policy Statement (SPS), 2009, the project for the ADB-financed section is classified as category B for environment. Mitigation measures to address all construction and operational impacts have been included in the environmental management plan (EMP) prepared as part of the initial environmental examination (IEE) for the ADB-financed road section. The EMP has been included in the bidding document. The Road Department Fund is responsible for implementation of all safeguards requirements.
Involuntary Resettlement
The project for ADB-financed section has been updated from category B to category A for the Involuntary Resettlement. MTAI prepared and implemented land acquisition and resettlement plan (LARP) prior to commencement of the civil works. In addition to the main LARP, three Correction Action Plans (CAPs) have been prepared and implemented prior to the civil works in the relevant sections to address the design adjustments encountered during implementation. The 4th CAP is under preparation to address the revised design of Odzun junction.
Indigenous Peoples
IP for the proposed project is categorized C.

Stakeholder Communication, Participation, and Consultation

During Project Design

Stakeholders' participation in meetings during project design is encouraged.

During Project Implementation

Public consultations with relevant NGOs and local residents will be held regularly to ensure greater participation and information sharing.

Business Opportunities

Consulting Services
All consulting services to be financed by the loan will be recruited following ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement
All works to be financed by the loan will be procured following ADB's Procurement Guidelines (2015, as amended from time to time).

Contact

Responsible ADB Officer
Naqvi, Zaigham Ali Akbar
Responsible ADB Department
Sectors Group
Responsible ADB Division
Transport Sector Office (SG-TRA)
Executing Agencies
Ministry of Territorial Administration and Infrastructure
Ministry of Transport, Communication and Information Technologies

Timetable

Concept Clearance
30 Mar 2016
Fact Finding
15 Feb 2016 to 26 Feb 2016
MRM
29 Jul 2016
Approval
28 Oct 2016
Last Review Mission
-
Last PDS Update
27 May 2024

Funding

Loan 3449-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Oct 2016 09 Nov 2016 24 Apr 2017 31 May 2021 31 Aug 2024 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 62.00
ADB 50.00
Counterpart 12.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 42.53 0.00 92%
Cumulative Disbursements 06 Jun 2024 41.47 0.00 90%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory
 
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Source URL: https://www.adb.org/projects/49244-002/main