Azerbaijan: Road Network Development Program - Tranche 4

Sovereign Project | 39176-044 Status: Active


ADB is helping Azerbaijan finance a comprehensive road network program. Under the fourth tranche of the multitranche financing facility, the project will reconstruct four bridges and rehabilitate 30 kilometers of local roads in the Ganja-Qazax region. The improvement of transport infrastructure is expected to promote domestic and regional trade.

Latest Project Documents

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Procurement Documents

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Project Name Road Network Development Program - Tranche 4
Project Number 39176-044
Country Azerbaijan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3116-AZE: Road Network Development Program - Tranche 4
Ordinary capital resources US$ 45.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The Project will reconstruct 4 bridges and rehabilitate 30 km of local roads in the Ganja-Qazax region. All 4 bridges are in a very poor, nearly no longer maintable condition.
Project Rationale and Linkage to Country/Regional Strategy The tranche 4 Project 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 east west highway linking the country's capital, Baku, to the Georgian border. Currently, the bridges and local roads are in poor and critical condition, resulting in high transport costs, long delivery times, and road crashes. This constitutes impediments to non-oil sector growth and poverty reduction in Azerbaijan, as well as regional trade development. Reconstruction of these bridges and associated local roads improvement 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 Greater socioeconomic development in the Ganja region of Azerbaijan and its cooperation with neighboring countries

Project Outcome

Description of Outcome An efficient, safe, and sustainable road network in the Ganja region of Azerbaijan
Progress Toward Outcome

A review mission was fielded in 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.

Construction of 4 bridges are ongoing.

Implementation Progress
Description of Project Outputs

Four bridges reconstructed and associated infrastructure and local roads rehabilitated in the Ganja region

Project implementation support to ARS, timely and effectively provided

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

Cumulative progress for the four bridges is about 73.6 % completed as of 28 February 2017.

Procurement of laboratory upgrade and local roads not yet started.

Both the civil works and construction supervision consultant contracts were signed in November 2015.

Geographical Location Ganja-Qazax Region

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The overall environmental impacts are limited to the construction phase and could be minimized by adequate mitigation measures.
Involuntary Resettlement A due diligence report was prepared to assess potential involuntary resettlement impacts. Tranche 4, does not require land acquisition or resettlement.
Indigenous Peoples Tranche 4 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.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation sessions were conducted with the local residents in the project affected areas. The primary issues discussed were employment opportunities for the local residents, both skilled and unskilled.
During Project Implementation Consultation sessions will continue during project implementation.

Business Opportunities

Consulting Services Consultants will be recruited and engaged in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). A consulting firm will be selected to oversee the design review and construction supervision work, using ADB's modified quality- and cost-based (90:10 ratio) selection procedure with full technical proposal to ensure the quality of consulting services.
Procurement ADB-financed goods and services will be procured according to ADB's Procurement Guidelines (2013, as amended from time to time). International and national competitive bidding procedures are followed for the contracts for civil works for the Tranche 4.

Responsible Staff

Responsible ADB Officer San Miguel, Cesar M.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
"Azeravtoyol" Open Joint-Stock Company
Mr. Saleh Mammadov
[email protected]
Block 2025, R. Ismayilov Str.,
Bilajari Settlement, Binagadi Distr.,
Baku, Azerbaijan Republic, AZ1117


Concept Clearance -
Fact Finding -
MRM 18 Nov 2013
Approval 27 Mar 2014
Last Review Mission -
Last PDS Update 21 Mar 2017

Loan 3116-AZE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Mar 2014 05 May 2014 09 Sep 2014 28 Sep 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 58.00 Cumulative Contract Awards
ADB 45.00 27 Mar 2014 20.25 0.00 45%
Counterpart 13.00 Cumulative Disbursements
Cofinancing 0.00 27 Mar 2014 14.47 0.00 32%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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

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Related Publications

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