The Investment Program will promote economic development and subregional trade, and accelerate subregional cooperation and integration. It will create better trade corridors, and thus facilitate the cross-border movement of people and cargo. The outcome will be an improved subregional road network. Successful implementation of the Investment Program will (i) improve the efficiency of subregional road traffic through Georgia; (ii) increase trade flows and competitiveness; (iii) lower transport costs; (iv) increase mobility and accessibility to markets, jobs, and social services; and (v) improve governance.
|Project Name||MFF - Road Corridor Investment Program|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Transport / Road transport (non-urban)
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The Investment Program will promote economic development and subregional trade, and accelerate subregional cooperation and integration. It will create better trade corridors, and thus facilitate the cross-border movement of people and cargo. The outcome will be an improved subregional road network. Successful implementation of the Investment Program will (i) improve the efficiency of subregional road traffic through Georgia; (ii) increase trade flows and competitiveness; (iii) lower transport costs; (iv) increase mobility and accessibility to markets, jobs, and social services; and (v) improve governance.|
|Project Rationale and Linkage to Country/Regional Strategy||
The development of subregional multi-corridors supports the Government's objective of exploiting Georgia's locational advantage as a transit hub for the Caucasus and for Euro-Asia road transport, particularly by providing a more efficient route for Turkey- and Armenia-realted traffic. It will ensure Government's new strategic vision of the transport network security as well. Efficiently functioning multi-corridors will reduce the cost of subregional and international transport, benefiting both the local economy and the economy of the subregion, and thereby stimulating the development of Euro-Asia trade links. The subregional multi-corridors also serve as principal domestic corridors linking the major cities, ports and tourist centres, and their development will enhance economic growth through more efficient passenger and freight transport, while enhancing safety.
The MFF will help the Government achieve its sector roadmap to develop subregional road multi-corridors, particularly focusing on alternative cross-border routes connecting surrounding South Caucasus countries and Turkey.
|Impact||The Investment Program will promote economic development and subregional trade, and accelerate subregional cooperation and integration. It will create better trade corridors to facilitate the cross border movement of people and cargo.|
|Description of Outcome||Improvement of subregional road network.|
|Progress Toward Outcome||Outcome linked to the Kobuleti bypass (Tranches 1 and 3 (Loans 2560 and 2843-GEO) will be measured at completion of the civil works. The Batumi bypass (Loan 2716, Tranche 2 of the MFF) was cancelled on 25 November 2011.|
|Description of Project Outputs||
About 120 to 200 km of subregional roads improved
Strengthening of asset management capacity of the Roads Department
Improvement of Road Safety
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Civil works financed under Loans 2560 (Tranche 1) and 2843 (additional financing, Tranche 3) are ongoing. Lot 1 contract (km 0 to 12.4 and km 30 to 33) and three access roads are now open to traffic and serving their functions better than expected. About 79% of the civil works under the Lot 2 contract (km 12.4 to km 31.2) have been completed as of January 2017. The project is behind schedule due to delays in land acquisition. The remaining land acquisition issue is expected to be resolved soon.
The loans are expected to be extended to allow sufficient time for completion of the civil works and all activities envisaged to be financed under the loans.
Capacity development is on-going and safety improvements to the Kobuleti bypass are planned for 2017.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||An environmental assessment and review framework was prepared to provide a basis for preparing the EIA for the first and second tranche projects, and for subsequent tranches. The summary EIA was circulated to the Board and publicly disclosed through the ADB website on 29 May 2009.|
|Involuntary Resettlement||LARP will be finalized for each construction package under phased construction.|
|Indigenous Peoples||The investment program will primarily affect Georgians, who make up almost 93% of the population. Other ethnic groups in the project area mostly Armenian, Azeri, and Russian are insignificant in number. These groups have been fully integrated into institutional, cultural, and economic processes in the country, and do not display sufficient features to be classified as indigenous peoples according to the ADB definition.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Two types of consultations were conducted, (a) stakeholder consultation, and (b) public consultation. Stakeholder consultations were performed mainly with selected individuals and organizations with professional expertise in assessing various impacts of road projects at the national and provincial levels. The public consultations were conducted in Batumi with various stakeholders including the representatives from the affected community. The consultation involved a wide range of participants representing affected people, community leaders, civil society, NGOs, environmental professionals, and central and regional government officials. The stakeholder consultations were held in Tbilisi and Batumi in March, April and June 2009. The objective was to share information on the project and obtain feedback on its design.|
|During Project Implementation||Stakeholder participation and consultation will continue during implementation phase of the Program and under each tranche. The terms of reference of supervision consultants require regular stakeholders and public consultations. RD will work with local governments to conduct stakeholders and public consultations.|
Consulting services will be required for capacity development, road safety improvement, and project implementation. Key tasks include (i) detailed design, (ii) construction supervision, (iii) monitoring of project performance and reporting, (iv) road safety training, amendment of road safety regulations, and development of intelligence traffic system standards, and (iv) capacity development of Roads Department. The consulting services will be financed from ADB loans. Roads Department will select and engage the consultants following ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality-based selection method for detailed design and supervision consultants and the quality- and cost-based selection method (80:20) for capacity development and road safety improvement consultants.
Project 1 will require a total of 1,330 person-months (230 international and 1,100 national) of services from consulting firms. This comprises (i) 1,056 person-months (164 international and 892 national) for detailed design of Project 1 and Project 2, construction supervision, and project monitoring and evaluation; (ii) 31 person-months (11 international and 20 national) for road safety; and (iii) 243 person-months (55 international and 188 national) for RD's capacity development.
For Project 2, consulting services will be required for (i) construction supervision, (ii) feasibility study and detailed design for Project 3, and (iii) cross-border facilitation.
Additional consulting services, if necessary, will be procured under subsequent projects. The consulting services will be financed from ADB loans.
|Procurement||Procurement will be carried out following ADB's Procurement Guidelines. International competitive bidding procedures will be followed for contracts with an amount above $1 million for civil works and $500,000 for goods. The upper limit for a civil works contract through national competitive bidding procedures will be set at $1 million. National competitive bidding will be conducted under Georgia's legislation on state procurement, subject to modification and clarification set forth in the procurement plan.|
|Responsible ADB Officer||Kalliokoski, Ari|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Transport and Communications Division, CWRD|
Ministry of Regional Development and Infrastructure of Georgia
Irakli Matkava, First Deputy Minister
12 Khazbegi Str. 0160 Tbilisi Georgia Road Department - Ministry of Regional Development and Infrastructure
12 Khazbegi Str. 0160 Tbilisi
|Concept Clearance||29 May 2009|
|Fact Finding||01 Jun 2009 to 12 Jun 2009|
|MRM||07 Jul 2009|
|Approval||29 Sep 2009|
|Last Review Mission||-|
|PDS Creation Date||28 Jan 2009|
|Last PDS Update||21 Mar 2017|
MFF Facility Concept 0034-GEO
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||2,333.00||Cumulative Contract Awards|
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.
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|
|Amendment to the Framework Financing Agreement (Extension of Availability Period) for MFF 0034-GEO: Road Corridor Investment Program||Framework Financing Agreement||Nov 2015|
|Amendment to the Framework Financing Agreement for Road Corridor Investment Program between Georgia and Asian Development Bank dated 29 August 2009||Framework Financing Agreement||Dec 2011|
|Road Corridor Investment Program||Facility Administration Manual||Feb 2010|
|Road Corridor Investment Program||Reports and Recommendations of the President||Sep 2009|
|Framework Financing Agreement for Road Corridor Investment Program between Georgia and Asian Development Bank dated 29 August 2009||Framework Financing Agreement||Aug 2009|
|Subregional Road Corridors Development Program (Facility Concept)||Design and Monitoring Frameworks||Jul 2009|
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|
|MFF 0034 - Subregional Road Corridors Development Program (Updated)||Environmental Assessment and Review Framework||Dec 2011|
|Subregional Road Corridors Development Program||Environmental Impact Assessments||Aug 2009|
|Subregional Road Corridors Development Program||Summary Environmental Impact Assessments||May 2009|
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|Georgia: Road Corridor Investment Program–Tranche 2||Validations of Project Completion Reports||Sep 2015|
None currently available.
The Public Communications Policy (PCP) 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.
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