ADB is helping Azerbaijan finance a comprehensive road network program. Under the third tranche of the multitranche financing facility, the project will build two sections of the four-lane expressway between Masalli and Astara on the southern corridor. It will also rehabilitate access roads.
|Project Name||Road Network Development Program - Tranche 3|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Transport - Road transport (non-urban)
|Gender Equity and Mainstreaming||No gender elements|
The objective of the Project is to build an adequate, efficient, safe and sustainable road network linking the Republic of Azerbaijan domestically and internationally. The Project shall consist of the following:
i) construction of approximately 39.3 km of a new four-lane category I expressway between km 22.1 to km. 61.4 (the Project Road) on the Masalli-Astana highway, comprising: Section B of the Project Road from km 22.1 to km. 45.1 and Section C of the Project Road from km 45.1 to km 61.4; and
ii) project management support and consulting services for construction supervision, financial audit, social and environmental assessments, and institutional capacity development.
|Project Rationale and Linkage to Country/Regional Strategy||The Project 3 road is a high priority of the Government and is included in the Road Network Development Program for 2006-2015 under the Transport Sector Development Strategy. It forms part of the country's primary north-south highway linking the capital, Baku, to the southern border. However, it is in poor condition, resulting in high transport costs, long delivery times, and traffic accidents. This constitutes impediments to non-oil sector growth and poverty reduction in Azerbaijan, as well as regional trade development. The improvement of the project road will promote domestic and regional trade, thus contributing to the achievement of the objectives of the State Program on Poverty Reduction and Economic Development.|
|Impact||Greater economic development in Azerbaijan and expanded trade with neighboring countries|
|Description of Outcome||An efficient, safe, and sustainable southern road corridor from Baku.|
|Progress Toward Outcome||
A review mission was fielded on 1-9 March 2017 to review the implementation progress of ongoing road works and agree with the government a time-bound action plan to improve the portfolio performance.
As of 1 March 2017, cumulative physical work progress is about 76% for Section B and 70% for Section C.
|Description of Project Outputs||Sections B and C of 4-lane expressway between Masalli and Astara on the southern corridor built, with access roads rehabilitated|
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Section B contract was signed on 29 March 2013. The civil works for Section B (km 22.15 41.5) commenced on 18 June 2013 and has undergone three contract variations. The revised contract completion date is 18 June 2017.
Due to changes in legislation in Azerbaijan which resulted in increased prices for fuel (diesel) and bitumen, adjustment to contract price was endorsed by ADB on 17 June 2016 at the request of "Azeravtoyol". As of March 2017, physical progress is about 76% with 17.3 km section asphalt base and binder course and 4.3 km asphalt wearing course completed.
Section C contract was signed on 31 October 2013. The civil works for Section C (km 41.5 61.4) commenced on 27 January 2014 and has undergone two contract variations. Adjustment to contract price in lieu of increased prices for fuel (diesel) and bitumen due to changes in legislation in Azerbaijan was endorsed by ADB on 24 May 2016 at the request of "Azeravtoyol". The contract completion date for Section C was extended from Oct 2016 to July 2017 per approved Variation No. 2 on account of unforeseen ground conditions discovered during the construction and additional BOQ items/quantities necessary to complete the works. The last 2.8-km segment (with embankment and few drainage culverts completed so far) has been dropped from the project scope due to the change of border crossing location for the road corridor between Azerbaijan and Iran. On 28 February 2017, AAY proposed to use the contract savings to rehabilitate the last 6.2 km of the existing road up to the current border crossing location, the proposal is under review by ADB. As of March 2017, physical progress reached about 70% with 11.1 km asphalt base and binder course completed and most of the road structure work (bridges and culverts) substantially completed.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||A due diligence has been carried out on the EIA and SEIA prepared in 2007 which confirms that (i) the scope of the Project is has not changed significantly from that described in the 2007 EIA and SEIA; (ii) the environmental impacts described in the 2007 EIA and SEIA are still relevant; and (iii) the 2007 EIA and SEIA reflect the requirements of ADB's Safeguards Policy Statement, 2009.|
|Involuntary Resettlement||ARS, with support from the Supervision Consultant, has finalized the LARPs for Sections B and C.|
|Indigenous Peoples||Project 3 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 3 is thus classified as Category C for indigenous people. Project 3 will also have a positive impact on gender because the civil works contracts will include provisions to encourage employment of women during project implementation, and Project 3 will promote women's participation in activities to monitor project impacts on local communities.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||During the preparation of Project 1, extensive consultations were held with various stakeholders -- including representatives of central and local governments, civil society, local communities, the private sector, road users, and external aid agencies. The public consultation were held through meetings, interviews, surveys, group discussions, and written communications, with the participation of about 3,000 people. The results showed a high degree of public support for the Project. The design of Project 1 incorporated the views of stakeholders.|
|During Project Implementation||Active participation of stakeholders during implementation contributed to achieving considerable project impact. The strategy enabled raising stakeholders' awareness of the impacts, outcome, outputs and activities of the Project, using multiple methods such as public meetings, interviews, surveys, newspapers and local announcements.|
|Consulting Services||No new consulting services are envisaged to be recruited under Project 3 as all consulting services will be provided by the consultants engaged under the Loan 2355-AZE (Project 1). However, $1.0 million additional provision has been included for extending existing consultancy contracts if required to cover Project 3 duration. TOR of existing consultants under Project 1 will be expanded to include further services as required to complete the Project 3. Additional consulting services if required will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).|
|Procurement||ADB-financed goods and services will be procured according to ADB's Procurement Guidelines (2013, as amended from time to time). International competitive bidding procedures are followed for the contract for civil works for the Project 3 road.|
|Responsible ADB Officer||Faraj, Huseynbeyov|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Azerbaijan Resident Mission|
"Azeravtoyol" Open Joint-Stock Company
Mr. Saleh Mammadov
Block 2025, R. Ismayilov Str.,
Bilajari Settlement, Binagadi Distr.,
Baku, Azerbaijan Republic, AZ1117
|Concept Clearance||09 Nov 2006|
|MRM||30 Aug 2011|
|Approval||14 Dec 2011|
|Last Review Mission||-|
|PDS Creation Date||28 Jan 2009|
|Last PDS Update||24 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|14 Dec 2011||27 Jul 2012||23 Oct 2012||31 Dec 2014||28 Sep 2017||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||250.00||Cumulative Contract Awards|
|ADB||200.00||14 Dec 2011||174.89||0.00||87%|
|Cofinancing||0.00||14 Dec 2011||165.23||0.00||83%|
|Status of Covenants|
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 Public Communications Policy (PCP) 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.
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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|
|Road Network Development Program - Tranche 3: Procurement Plan||Procurement Plans||Apr 2017|
|Road Network Development Program - Tranche 3: Audited Project Financial Statements (January-December 2015)||Audited Project Financial Statements||Mar 2017|
|Loan Agreement for the Road Network Development Program-Project 3||Loan Agreement (Ordinary Resources)||Jul 2012|
|Amendments to the Loan Agreement for Road Network Development Program between Republic of Azerbaijan and Asian Development Bank dated 08 August 2007||Framework Financing Agreement||Nov 2011|
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.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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