Azerbaijan : East-West Highway Improvement Project

Sovereign Project | 35457-013

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 Results

  • 94 kilometers of road that have been built or upgraded
  • 94 kilometers of road that have been built or upgraded

The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.

Project Details

  • Project Officer
    Bathula, Balabhaskara Reddy
    Central and West Asia Department
    Request for information
  • Country/Economy
    Azerbaijan
  • Modality
  • Sector
    • Transport

Related Projects

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

  • Transport / Road transport (non-urban)

Gender
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.

Impact

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 YevlakhGanja section and QazakhGeorgian border section of the eastwest 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

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.

Contact

Responsible ADB Officer
Bathula, Balabhaskara Reddy
Responsible ADB Department
Central and West Asia Department
Responsible ADB Division
Transport and Communications Division, CWRD
Executing Agencies
State Agency of Azerbaijan Automobile Roads

Timetable

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

Funding

Loan 2205-AZE

Milestones
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
  Total (Amount in US$ million)
Project Cost 68.80
ADB 49.00
Counterpart 19.80
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 39.35 0.00 100%
Cumulative Disbursements 17 Jun 2022 39.35 0.00 100%

Loan 2206-AZE

Milestones
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
  Total (Amount in US$ million)
Project Cost 3.00
ADB 3.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 1.05 0.00 100%
Cumulative Disbursements 17 Jun 2022 1.05 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
East-West Highway Improvement Project Project/Program Completion Reports Nov 2011
Amendments to Rebate and Surcharge Provisions of Loan Agreement for East-West Highway Improvement Project between Republic of Azerbaijan and ADB (1 Jul 2007) Loan Agreement (Ordinary Resources) Jul 2007
Loan Agreement for East-West Highway Improvement Project between Republic of Azerbaijan and ADB dated 1 June 2006 Loan Agreement (Special Operations) Jun 2006
Loan Agreement for East-West Highway Improvement Project between Republic of Azerbaijan and ADB dated 1 June 2006 Loan Agreement (Ordinary Resources) Jun 2006
East-West Highway Improvement Project Project/Program Administration Manual Jan 2006
East-West Highway Improvement Project Reports and Recommendations of the President Nov 2005

Safeguard Documents See also: Safeguards
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.

Title Document Type Document Date
East-West Highway Improvement Project: Resettlment Plan Resettlement Plans Jun 2005

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Azerbaijan: East–West Highway Improvement Project Project Performance Evaluation Reports Aug 2017
Azerbaijan: East–West Highway Improvement Project Validations of Project Completion Reports Dec 2013

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

  • 30 May 2017 | Project Result / Case Study

    In Azerbaijan, Road Upgrades Bring New Opportunity

    A smooth transport connection from Baku to the Georgian border means faster, safer, and more efficient travel, and improved lives in communities along the way.
  • 22 Aug 2011 | Project Result / Case Study

    Roads and Overland Travel Between Azerbaijan and Georgia

    For years, the bad road stretching between the city of Gazakh in western Azerbaijan and the Georgian border has hampered the local economy. Farmers have faced high costs transporting produce to the nearby town of Ganja, the capital Baku, or to cities in Georgia. In a region famed for its natural beauty, sacred monuments and unique tea houses, precious tourist dollars have also been lost.
  • 31 Jan 2009 | Project Result / Case Study

    Improved Transport Links Help Azerbaijan on the Road to Recovery

    An improved east-west corridor spreads wealth from the capital, Baku, through the countryside, as Azerbaijan develops its fledgling non-oil industrial base.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.