Georgia : Road Corridor Investment Program - Tranche 3 (Additional Financing)

Sovereign Project | 41122-043

The Project, financed from the multitranche finance facility (MFF) for Georgia Road Corridor Investment Program, provides additional financing of $140 million for Loan 2560-GEO (the original project). Its main components are: (i) constructing Kobuleti Bypass (a new 28 km two-lane bypass road skirting Kobuleti and expanding to four lanes, a 6 km section of an existing two-lane road between Kobuleti and Batumi, along the Black Sea coast toward the Turkish border); (ii) strengthening asset management capacity of the Roads Department; and (iii) improving road safety.The additional financing will be used for expenditures related to civil works (road construction component), consulting services for construction supervision, and project administration by the executing agency.

Project Details

  • Project Officer
    Lisack, Valerie
    Central and West Asia Department
    Request for information
  • Country/Economy
    Georgia
  • Modality
  • Sector
    • Transport
Project Name Road Corridor Investment Program - Tranche 3 (Additional Financing)
Project Number 41122-043
Country / Economy Georgia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2843-GEO: Road Corridor Investment Program - Tranche 3 (Additional Financing)
Ordinary capital resources US$ 140.00 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)

Gender No gender elements
Description The Project, financed from the multitranche finance facility (MFF) for Georgia Road Corridor Investment Program, provides additional financing of $140 million for Loan 2560-GEO (the original project). Its main components are: (i) constructing Kobuleti Bypass (a new 28 km two-lane bypass road skirting Kobuleti and expanding to four lanes, a 6 km section of an existing two-lane road between Kobuleti and Batumi, along the Black Sea coast toward the Turkish border); (ii) strengthening asset management capacity of the Roads Department; and (iii) improving road safety.The additional financing will be used for expenditures related to civil works (road construction component), consulting services for construction supervision, and project administration by the executing agency.
Project Rationale and Linkage to Country/Regional Strategy The additional financing for the Project will be used for completing the original project's civil works (i.e., Kobuleti Bypass), construction supervision, and contract administration. Completing this road is vital for realizing the full value of its first 15 km, currently under construction (Contract 1). Moreover, the return on other transport investments in Batumi and Poti ports, and the East-West highway connecting Tbilisi to the ports and the Black Sea beaches, will be lower without completing the Bypass.
Impact

Increase in subregional trade and tourism revenues

Project Outcome
Description of Outcome

Improvement of the subregional road network

Progress Toward Outcome

The loan was closed on 29 September 2019. Any expenditures incurred after the loan closing date was financed by the government.

Lot 2 (km 12.4 - km 31.2) main construction works have been completed and the project road was opened to traffic on 25 June 2018. The Taking Over Certificate was issued in August 2018. The defects notification period (DNP) was extended until 31 March 2020.

Lot 1 road lighting works were completed on 15 April 2019. DNP was completed on 15 May 2020.

Lot 2 road lighting works which started on 18 April 2019 were completed in September 2019. DNP was completed on 18 December 2020.

Implementation Progress
Description of Project Outputs

A 33.6 km two-lane bypass road detouring Kobuleti

Strengthening of asset management capacity

Improvement of road safety

Detailed design of Kharagauli-Chumateleti road

Feasibility study, detailed engineering design, and safeguard works for Batumi Bypass-Sarpi section (E-70 road)

Detailed design and safeguard works for Khevi-Argveta section (E-60 highway)

Feasibility study, detailed design, and safeguard works for Tbilisi Bypass road

Rehabilitation of approximately 12.18 km of local roads

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

Lot 2 (km 12.4 - km 31.2) main construction works have been completed and the project road was opened to traffic on 25 June 2018. The Taking Over Certificate was issued in August 2018. The defects notification period (DNP) was extended until 31 March 2020.

Lot 1 road lighting works were completed on 15 April 2019. DNP was completed on 15 May 2020.

Lot 2 road lighting works which started on 18 April 2019 were completed in September 2019. DNP was completed on 18 December 2020.

A national Road Asset Management Specialist (RAMS) consultant was engaged in Dec 2018 (contract partly financed from L3520-GEO) to carry out the development of the road asset management system, PBM, bridge maintenance, iRAP and national tolling strategy.

Detailed design of Kharagauli-Chumateleti road: The contract with Kocks Consult Gmbh (GER) was signed on 13 February 2017 and the contract was completed on 31 October 2018. Under Loan 3524-GEO, the contract for Section 1 was signed in December 2017 and contract for Section 2 was signed in December 2018.

Feasibility study, detailed engineering design, and safeguard works for Batumi Bypass-Sarpi section (E-70 road): The contract with JV Spea Engineering S.p.A. and IRD Engineering S.R.L. (ITA) was signed on 24 October 2017. The final report for Activity 1 was submitted in September 2019. Since L2843-GEO will be closing on 29 Sep 2019, a minor change was approved under L3520-GEO in March 2019 to transfer the financing of Activity 2 (detailed design and preparation of EIA and LARP). Due to COVID-19 pandemic, completion of Activity 2 (detailed design) has been delayed.

Detailed design and safeguard works for Khevi-Argveta section (E-60 highway): The contract with JV IRD Engineering S.R.L. and Spea Engineering S.p.A. (ITA) was signed on 27 March 2017 and the contract was completed on 29 September 2019.

Feasibility study, detailed design, and safeguard works for Tbilisi Bypass road: The contract with JV Anas International Enterprise S.p.A., Gestione Progetti Ingegneria srl, and IRD Engineering S.R.L. (ITA) was signed on 1 June 2017. Activity 1 (feasibility study) and Activity 3 (develop an optimal financing strategy) have been completed. Since L2843-GEO will be closing on 29 Sep 2019, a minor change was approved under L3715-GEO in September 2019 to transfer the financing of Activity 2 (detailed design). Completion of detailed design is expected by 2021.

Rehabilitation of approximately 12.18 km of local roads connected to the Kobuleti Bypass road project completed in 2018.

Geographical Location Ajaria, Batumi, K'obulet'i, Kobuletis Raioni
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Same as principal Loan 2560-GEO.
Involuntary Resettlement Same as principal Loan 2560-GEO.
Indigenous Peoples Project is classified as Category C (same as in principal Loan 2560)
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out with all the stakeholders during program preparation. As an integral part of the safeguards planning, affected communities and affected persons were directly and fully involved in the project preparation and during the design. All stakeholders were informed about the project, and the stream of information will continue during the implementation of the project. Extensive consultation events were arranged at various stages of social and resettlement project preparationalternative alignment feasibility study, cadastral survey of affected lands, land census survey, socioeconomic survey, and targeted consultation meetings with affected people and local stakeholder organizations and individuals. Consultations were also held at various levels of government offices such as the Department of Roads (including its resettlement division), the National Agency for Public Registry under the Ministry of Justice, local governments at the rayon (district municipality) level, gamgebeli (governors), property recognition committees in the rayon, and sacrebulo (representative local autonomous bodies).
During Project Implementation Stakeholder participation and consultation is continuing. The Roads Department has consultants to regularly monitor the activities of the contractor in relation to the LARP and EMP, to coordinate with the local governments, and ensure that the grievance redress mechanism is properly functioning. An independent external monitor conducts biannual consultations with local people and reports to RD and ADB. A grievance redress mechanism is in place and RD has appointed two field officers for regular consultation with the communities and other parties and report the outcomes to ADB through the monthly progress reports. Implementation progress are disclosed at the ADB website.
Business Opportunities
Consulting Services Same consulting services requirements as that of the principal Loan 2560 GEO.
Procurement Same procurement requirements as that of the principal Loan 2560 GEO.
Responsible ADB Officer Lisack, Valerie
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
Timetable
Concept Clearance 29 May 2009
Fact Finding -
MRM 16 Dec 2011
Approval 22 Dec 2011
Last Review Mission -
Last PDS Update 28 Dec 2020

Loan 2843-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2011 18 Apr 2012 13 Jun 2012 31 Dec 2015 29 Sep 2019 25 Mar 2020
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 165.00 Cumulative Contract Awards
ADB 140.00 17 Jun 2022 83.22 0.00 100%
Counterpart 25.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 83.22 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory 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 – Tranches 1 and 3: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Oct 2020
Road Corridor Investment Program – Tranches 1 and 3: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Feb 2020
Road Corridor Investment Program - Tranches 1 and 3: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Aug 2019
Road Corridor Investment Program - Tranches 1 and 3: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Apr 2019
Road Corridor Investment Program — Tranches 1 and 3: Section 2 Kobuleti Bypass Road Social Monitoring Report Social Monitoring Reports Dec 2018
Road Corridor Investment Program - Tranches 1 and 3: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Oct 2018
Road Corridor Investment Program - Tranches 1 and 3: Kobuleti Bypass Road Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Jan 2018
Road Corridor Investment Program - Tranches 1 and 3: Kobuleti Bypass Road Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Aug 2017
Road Corridor Investment Program - Tranche 3 (AF): Land Acquisition and Resettlement Plan 3 (Section C, Segment 1,3,5) Compliance Report Social Monitoring Reports Mar 2017
Road Corridor Investment Program - Tranches 1 and 3: Kobuleti Bypass Road Biannual Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Dec 2016
Road Corridor Investment Program - Tranches 1 and 3: Kobuleti Bypass Road Biannual Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Aug 2016
Road Corridor Investment Program - Tranches 1 and 3: Construction Supervision of Kobuleti Bypass Road Biannual Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Feb 2016
Road Corridor Investment Program - Tranche 3 (AF): Land Acquisition and Resettlement Plan 3 (Section C, Segment 1) Compliance Report Social Monitoring Reports Dec 2015
Road Corridor Investment Program - Tranches 1 and 3: Construction Supervision of Kobuleti Bypass Road Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Aug 2015
Road Corridor Investment Program - Tranche 3 (AF): Land Acquisition and Resettlement Plan 3 (Section C, Segment 8) Compliance Report Social Monitoring Reports Jun 2015
Road Corridor Investment Program - Tranches 1 and 3: Construction Supervision of Kobuleti Bypass Road Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Road Corridor Investment Program - Tranches 1 and 3: LARP Implementation Progress Report Social Monitoring Reports Jan 2015
Road Corridor Investment Program - Tranche 3 (Additional Financing): Social Monitoring Report (October 2014) Social Monitoring Reports Oct 2014
Road Corridor Investment Program - Tranche 3 (Additional Financing): Section 2: Kobuleti Bypass Road (km 12+400 - km 31+259) Resettlement Plans Jun 2014
Road Corridor Investment Program - Tranches 1 and 3: Construction Supervision of Kobuleti Bypass Road: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
Road Corridor Investment Program - Tranche 1 and Tranche 3 (Additional Financing): Final Compliance Report (Segment B of Section 2: Kobuleti Bypass Road) Social Monitoring Reports Sep 2013
Road Corridor Investment Program–Tranche 1 and Tranche 3 (Additional Financing) Social Monitoring Reports May 2013
Road Corridor Investment Program - Tranche 3 (Additional Financing): Section 2: Kobuleti Bypass Road (km 12+400 ~ km 31+259 Environmental Impact Assessments Sep 2012
Road Corridor Investment Program - Tranche 3 (Additional Financing): Section 2: Kobuleti Bypass Road (km 12+400 ~ km 31+259) Resettlement Plans Sep 2012
Road Corridor Investment Program - Tranche 3 (Additional Financing) Resettlement Plans Dec 2011
Road Corridor Investment Program - Tranche 3 (Additional Financing): Construction of Kobuleti Bypass Road Section Km 12+400~Km 31+300 (Draft) Environmental Impact Assessments Dec 2011
Roads Corridor Investment Program: Land Acquisition and Resettlement Framework Resettlement Frameworks Dec 2011

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Georgia: Road Corridor Investment Program, (Multitranche Financing Facility and Tranche 3) Validations of Project Completion Reports Dec 2022

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.

  • 29 Mar 2023 | Video

    Developing Georgia’s Transport Corridors

    ADB supports the development of Georgia’s transport corridors from the East-West Highway to the North-South Corridor to help grow its economy by improving local and regional connectivity and making travel faster and safer for locals and tourists.

Tenders

Tender Title Type Status Posting Date Deadline
International Design-Review Consultant Individual - Consulting Closed
Loan No. 2843-GEO: Road Corridor Investment Program - Tranche 3 (Additional Financing) [RCIP/CW/NCB-01] Invitation for Bids Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
LIGHTING OF KOBULETI BYPASS ROAD, KM0 000-KM12 400 Loan 2843 26 Sep 2018 JAVA LLC | KVISHKHETI STR. #6 TBILISI GEORGIA Road Dept-Min.of Reg. Devt. and Infrastructure 1,288,478.00 1,088,190.00
FS & DED, EIA, DETAILED LARP, & BID DOCS FOR CONST RUCTION OF BATUMI BYPASS-SARPI (BORDER OF TURKEY) SECTION OF INTERNATIONAL E-70 ROAD Loan 2843 24 Nov 2017 JV SPEA ENGINEERING SPA & IRD ENGINEERING SRL | VIA ALBERTO BERGAMINI 50 ROME ITALY Road Dept-Min.of Reg. Devt. and Infrastructure 3,557,738.00 2,786,223.00
Preparation of Feasibility Study & Detailed Design for E-60 Hway Section from Natakhtari to Rustavi (Tbilisi Bypass) Loan 2843 09 Jun 2017 JV Anas Intl, Gestione Progetti & IRD Engr | Via Giovanni Giolitti, 00185 Rome, Italy Road Dept-Min.of Reg. Devt. and Infrastructure 9,675,880.00 8,321,519.00
Preparation of Detailed Design for Rehabilitation of Dzirula-Kharagauli-Moliti-Pona-Chumateleti Secondary Road Section (50 Km) Loan 2843 15 Mar 2017 Kocks Consult GmbH | Stegemannstr 32-38 D-56068 Koblenz Germany Road Department - Ministry of Regional Development and Infrastructure 2,175,507.00
Preparation of Detailed Design for New Construction of Khevi-Ubisa-Shorapani-Argveta Section (E60 Highway Route), Bidding Documents, EIA, and Detailed LARP Loan 2843 31 Mar 2017 IRD Engineering SRL JV Spea Engineering Spa | 51 Via Michele Mercati 00197 Rome Italy Road Department - Ministry of Regional Development and Infrastructure 14,552,552.15

Procurement Plan

Title Document Type Document Date
Road Corridor Investment Program - Tranche 3 (Additional Financing): Procurement Plan Procurement Plans Sep 2019