Georgia: Loan 2716-GEO: Road Corridor Investment Program - Project 2

Sovereign Project | 41122-033

ADB is supporting Georgia’s program to overhaul vital roads between Central Asia and the Caucasus. The second project under the program will include constructing a 14-kilometer, two-lane bypass road skirting Batumi, improving border infrastructure at Sarpi, and a feasibility study and detailed design of Tranche 3 of the multitranche financing facility.

Project Name Loan 2716-GEO: Road Corridor Investment Program - Project 2
Project Number 41122-033
Country Georgia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2716-GEO: Road Corridor Investment Program - Project 2
Ordinary capital resources US$ 150.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Transport / Road transport (non-urban) - Transport policies and institutional development

Gender Equity and Mainstreaming
Description Project 2 will (i) construct a new 2-lane bypass road of 14 km skirting Batumi; (ii) improve border infrastructure at Sarpi for customs clearance, vehicle and passenger inspection, cross-border procedures and documentation; (iii) finance construction supervision; (iv) support for implementation; and (v) carry out a feasibility study and detailed design of tranche 3.
Project Rationale and Linkage to Country/Regional Strategy Low capacity of the current border infrastructure and road through the city of Batumi are causing major delays to people and goods. Residents adjacent to the road are affected by noise and pollution of the vehicles, and drivers are tempted to make risky passing maneuvers causing pedestrian and vehicle crashes.
Impact Increase in subregional trade and tourism revenues.
Project Outcome
Description of Outcome Improved subregional road network.
Progress Toward Outcome Civil works design and LARP are substantially complete and are under review by the Government. The Border Control Facility has been fully operational since June 2011.
Implementation Progress
Description of Project Outputs

A 14 km two-lane bypass road skirting Batumi

Improvement in cross-border infrastructure and procedures and documentation

Tranche 3 project prepared and ready for ADB approval

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

Civil works design is substantially complete. Current estimated cost is higher than the estimates at appraisal; how to cover the shortfall is under review.

The border control facility has been fully operational since June 2011.

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The summary EIA was publicly disclosed through the ADB website on 29 May 2009. The EIA concluded that the overall environmental impact would be both positive and negative, and that the negative impact could be minimized by adequate mitigation measures in the EMP. The EIA Report and EMP will be revised after the detailed design is completed. It will be reviewed by ADB and disclsed to the public before civil works commence.
Involuntary Resettlement Project 2 will entail substantial land acquisition and resettlement and, hence, is considered a Category A project. The LARP will be publicly disclosed to the public by 1 September 2011. The resettlement plan implementation will be completed by the end of 2011 when civil works is expected to commence.
Indigenous Peoples The impact on indigenous peoples was assessed as category C. Project 2 will pay particular attention to women, to ensure that they are rightly compensated for their activities and that women who are effectively household heads are clearly listed as beneficiaries of compensation and rehabilitation proceedings. It will also have a positive impact on gender, as the civil works contracts will include provisions to encourage employment of women during implementation, and women will be encouraged to participate in activities to monitor program impact.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out with all the stakeholders, local communities and affected during program preparation, and will continue during LARP implementation. The construction supervision firm and the Roads department are expected to engage additional public relations personnel to improve communication and information exchange during construction.
During Project Implementation Consultations with stakeholders will continue during the implementation of the project. Views and concerns of all stakeholders will be taken into consideration and addressed whenever feasible.
Business Opportunities
Consulting Services Individual national and internations consultants will be engaged as needed to assist the Roads Department in managing the project. The firms for engaged under Tranche 1 will prepare the detailed design and supervise the construction supervision for this Project.
Procurement Procurement will be carried out following ADB's Procurement Guidelines. International competitive bidding using single stage one envelope will be followed for one contract package for civil works. A general procuement notice will be issued in November 2011, and bidding is scheduled to commence in February 2012.
Responsible ADB Officer Idei, Rika
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Road Department - Ministry of Regional Development and Infrastructure
12 Khazbegi Str. 0160 Tbilisi
Concept Clearance 29 May 2009
Fact Finding -
MRM 06 Mar 2010
Approval 08 Dec 2010
Last Review Mission -
PDS Creation Date 15 Oct 2009
Last PDS Update 29 Jul 2011

Loan 2716-GEO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2010 24 Mar 2011 13 May 2011 30 Nov 2014 - 25 Nov 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 185.00 Cumulative Contract Awards
ADB 150.00 18 Nov 2021 0.18 0.00 100%
Counterpart 35.00 Cumulative Disbursements
Cofinancing 0.00 18 Nov 2021 0.18 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

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.

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
Road Corridor Investment Program Resettlement Plans Nov 2010
Road Corridor Investment Program Resettlement Plans Nov 2010
Road Corridor Investment Program Resettlement Plans Aug 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.