Armenia: North-South Road Corridor Investment Program

Sovereign Project | 42145-013 Status: Active
Project Name North-South Road Corridor Investment Program
Project Number 42145-013
Country Armenia
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
MFF Facility Concept 0035-ARM: North-South Road Corridor Investment Program
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Ordinary capital resources US$ 440.00 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 Equity and Mainstreaming Some gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome To allow for the completion of the projects under the MFF, particularly Projects 2 and 3, ADB approved the extension of the MFF availability period by about 21 months from 31 December 2017 to 14 September 2019. However, as of 15 March 2017, the Armenia government is still in the process of ratifying the letter agreement indicating the revised availability period, which will only take effect on the date of receipt by ADB of a signed original of the letter agreement together with the government's notification on the fulfillment of all legal procedures necessary for its entry into force.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

All works and major consulting contracts under Projects 1, 2, and 3 have been awarded.

Project 1 civil works is substantially completed and is in Defects Notification Period up to 16 June 2017. Projects 2 and 3 civil works are ongoing.

Three crossings points on the Georgian border will be improved by 2017.

Consultant selection for the road subsector plan and capacity building is expected to be completed by 2017.

Safety improvements are part of the civil works to be completed in 2017.

Geographical Location Bavra, Yerevan, Ashtarak, Talin, Gyumri, Mekhri, Armenia

Summary of Environmental and Social Aspects

Environmental Aspects

An environmental assessment and review framework (EARF) covering environment safeguard tasks for the Investment Program in compliance with national laws and ADB's Environment Policy (2002) has been prepared and was approved by the Government.

Project 1 is classified as environmental category B and thus an initial environmental examination (IEE) was prepared. Project 2 is classified as environmental category A due to the widening of the Ashtarak-Talin road section to 4 lanes and several significant impacts to archaeological sites. An environmental impact assessment (EIA) was prepared. All recommendations of the EIA, including the environment management plan (EMP), were incorporated in the bidding documents and consultants' contracts. Project 3 is classified as environmental category A. An updated EIA was prepared and posted on the ADB website on 26 July 2012. The EIA concludes that the impact on archaeological, historical, and cultural sites and monuments is widespread and requires special consideration. The EIA identifies 10 previously unknown archaeological sites. To safeguard the most important sites, the EMP contains mitigation measures. The EIA also determines that there is a potential impact on some rare flora and fauna. To mitigate those impacts, the EMP outlines a flora and fauna plan. All recommendations in the EMP are incorporated in the detailed design and bidding documents for the civil works contract to ensure proper mitigation and protection measures are taken.

Involuntary Resettlement

A land acquisition and resettlement framework (LARF) regulating land acquisition and resettlement activities for the Investment Program in compliance with national laws and ADB's Involuntary Resettlement Policy (1995) has been prepared and was approved by the Government.

Project 1 is classified as involuntary resettlement category C. Although no land acquisition is expected, impacts like loss of access for businesses have been identified. Consultations with community leaders were carried out and mitigation measures were developed to address such impacts. Project 2 is classified as involuntary resettlement category A due to significant land acquisition impact from the construction and widening of the Ashtarak Talin road section. Project 3 is classified as category A for involuntary resettlement. The existing right-of-way will be widened to approximately 30 meters, which will cause significant land acquisition and resettlement impacts. MOTIC prepared a draft LARP based on the substantially completed detailed engineering design.

Indigenous Peoples Projects 1, 2, and 3 are classified as category C for indigenous peoples due to the absence from the project area of social groups qualifying as indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design

The concerned stakeholders are grouped into (i) project sponsors - a central government represented by the ministries of economy (MOE), finance (MOF), and transport, communications and information technologies (MOTIC); (ii) regional administrations of the five marzpetaran (regional subdivision) where the road corridor lies, (iii) community leaders and councils of Avagani (council of elderly), (iv) community members, land owners and road users, (v) international organizations working in the project areas, (vi) local and international NGOs, and other donor/funding organizations.

These groups were consulted through interviews, group discussions, questionnaires and surveys to identify and incorporate their individual concerns in the project and overall program design and subsequent implementation with regard to detailed engineering designs, social development, resettlement and environment related issues.

During Project Implementation The MFF includes social and environment frameworks that outline principles for engaging affected people and communities and addressing social and environment related issues during the project implementation. In addition, bidding documents for civil works will include specific measures to ensure that the Program is implemented with gender, ethnic minority and environment concern in mind and creates equal opportunities for all social groups for employment and benefits.

Business Opportunities

Consulting Services Services of consulting firms and/or individuals working jointly with national firms and/or individuals will be required to (i) prepare detailed designs and supervise civil works; (ii) monitor project performance, benefits and social and environment safeguards; (iii) help implement individual tranche components; (iv) prepare subsequent tranches; and (v) conduct technical and financial audits. EA/IA will select firms in accordance to ADB's Guidelines on the Use of Consultants, using the quality- and cost-based selection (QCBS), quality-based selection (QBS), or consultant qualification selection (CQS) method depending on individual needs of project components and procurement plan. ADB and MOTC will perform due diligence before any of the methods and identify suitable weighting system for evaluating the firm's proposals.
Procurement Procurement of works and goods to be financed under the ADB loan will be conducted in accordance with ADB's Procurement Guidelines.

Responsible Staff

Responsible ADB Officer Herz, Thomas
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD


Concept Clearance -
Fact Finding -
Approval -
Last Review Mission -
PDS Creation Date 31 Jul 2009
Last PDS Update 16 Mar 2017

MFF Facility Concept 0035-ARM

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 892.00 Cumulative Contract Awards
ADB 500.00 - 0.00 0.00 %
Counterpart 392.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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.

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
North-South Road Corridor Investment Program Resettlement Frameworks Sep 2009
North-South Road Corridor Investment Program Environmental Assessment and Review Framework Aug 2009

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.