Project Name East-West Highway Improvement Project
Project Number 35457-013
Country Azerbaijan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2205-AZE: East-West Highway Improvement Project
Ordinary capital resources US$ 49.00 million
Loan 2206-AZE: East-West Highway Improvement Project
Asian Development Fund US$ 3.00 million
Loan: East-West Highway Improvement Project
Saudi Fund for Development US$ 11.00 million
Islamic Development Bank US$ 10.40 million
Strategic Agendas Regional integration
Drivers of Change
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The objective of the Project is to promote domestic and cross-border movements of people and goods on the east-west road corridor in Azerbaijan. The purpose is to improve the efficiency of transport on the project sections of the east-west road corridor. The Project has four components: (i) reconstruction of a total of 127 km of the two-lane paved road on the Yevlakh-Ganja and the Qazakh-Georgian border sections of Azerbaijan's primary east-west road transport corridor, (ii) improvement of local roads connecting to the east-west road corridor totaling about 65 km, (iii) institutional strengthening for the road sector reform, and (iv) cross-border facilitation at the border with Georgia at Red Bridge.
Project Rationale and Linkage to Country/Regional Strategy

The Yevlax-Ganja road is part of the east-west road corridor between Baku and the Georgian border, which is one of Azerbaijan's main routes for external trade and forms part of the Asian highway network. The Project will facilitate road transport on the east-west road corridor by improving the road infrastructure between Yevlax and Ganja and thus contribute to sustainable, inclusive economic growth in Azerbaijan and regional cooperation. Improvement of other sections of the east-west road corridor is financed by other external aid agencies including the World Bank and the European Bank for Reconstruction and Development.

The Project is consistent with ADB's Country Strategy and Program for Azerabijan. Given Azerbaijan's location and reliance on transport links with neighboring countries, the last country strategy and program update identifies transport as a strategically important sector for ADB assistance.


Accelerated socioeconomic development in the 6 rayons (regions)a of west Azerbaijan

Enhanced cooperation between Azerbaijan and other countries in the region

Project Outcome

Description of Outcome Increased traffic and improved quality and efficiency of transport on the east-west highway and selected local roads
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Improved two-lane paved road on the Yevlakh Ganja section and Qazakh Georgian border section of the east west highway

2. Improved local roads in the project area

3. Strengthened institutional capacity in the road subsector

3.1 Road maintenance

3.2 Axle-load control

3.3 Road safety

3.4 Project management and implementation

4. Improved facilities and capacity for border crossing at Red Bridge

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Yevlakh-Ganja, and Qazakh-Georgian border section

Safeguard Categories

Environment B
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services A total of 984 person-months of consulting services (99 international and 885 domestic) will be required to assist in Project implementation. Under the road improvement component, (i) a consulting firm for detailed design and construction supervision for reconstruction of the Yevlax-Ganja section and Qazax-Georgia border section (64 person-months for international and 805 person-months for domestic consultants), and (ii) a consulting firm to assist in implementing the road sector institutional strengthening component (25 person-months for international and 60 person-months for domestic consultants). For the latter, the scope includes capacity building in road maintenance, axle load control, road safety, financial management, environmental and social management of road development, and project implementation management. The consulting firm will also help the executing agency monitor and verify compliance with resettlement action plans and environment mitigation and management plans. Under the cross-border facilitation component, individual consultants for border post infrastructure development and capacity building (10 person-months for international and 20 person-months for domestic consultants), will be engaged.
Procurement Procurement of goods and services to be financed out of the proposed loan will be carried out in accordance with ADB's Guidelines for Procurement. All contracts for civil works and supply of equipment will be divided into suitable contract packages. Contracts valued in excess of $1.0 million equivalent for civil works and $500,000 equivalent for goods will be procured through international competitive bidding (ICB). Civil work contracts valued at $1.0 million or less will follow local competitive bidding procedures acceptable to ADB. For equipment contracts ranging between $100,000 - $500,000, international shopping procedures will be used; and for contracts not exceeding $100,000, direct purchase procedures will be followed. Advance procurement action for civil works was approved by ADB on 10 May 2005.

Responsible Staff

Responsible ADB Officer Balabhaskara Bathula
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Azeravtoyol Open Joint-Stock Company
Mr. Adil Gojayev
[email protected]
72/4 Uzeyir Hajibeyov Street AZ1010 Baku


Concept Clearance 08 Mar 2005
Fact Finding 24 Jan 2005 to 04 Feb 2005
MRM 10 May 2005
Approval 08 Dec 2005
Last Review Mission -
PDS Creation Date 05 Dec 2006
Last PDS Update 22 Apr 2010

LoanĀ 2205-AZE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2005 01 Jun 2006 27 Oct 2006 31 May 2010 - 15 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 90.20 Cumulative Contract Awards
ADB 49.00 08 Dec 2005 39.35 0.00 100%
Counterpart 19.80 Cumulative Disbursements
Cofinancing 21.40 08 Dec 2005 39.35 0.00 100%

LoanĀ 2206-AZE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2005 01 Jun 2006 27 Oct 2006 31 May 2010 - 15 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.00 Cumulative Contract Awards
ADB 3.00 08 Dec 2005 1.05 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2005 1.05 0.00 100%

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