The Asian Development Bank (ADB) approved the multitranche financing facility (MFF) in an aggregate amount not exceeding $500 million for the North-South Road Corridor Investment Program (the investment program) on 29 September 2009. The investment program will contribute to economic development and regional trade. Its outcome will be a more efficient, safe, and sustainable transport network. Expected outputs are: (i) 550-km of improved road sections in the corridor, (ii) modernized border and customs infrastructure and related facilities, and (iii) more efficient and effective road corridor management.
|Project Name||North-South Road Corridor Investment Program|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Transport - Road transport (non-urban)
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The Asian Development Bank (ADB) approved the multitranche financing facility (MFF) in an aggregate amount not exceeding $500 million for the North-South Road Corridor Investment Program (the investment program) on 29 September 2009. The investment program will contribute to economic development and regional trade. Its outcome will be a more efficient, safe, and sustainable transport network. Expected outputs are: (i) 550-km of improved road sections in the corridor, (ii) modernized border and customs infrastructure and related facilities, and (iii) more efficient and effective road corridor management.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Agarak-Kapan-Yerevan-Bavra route (M1 and 2 roads) crossing Armenia from south to north is further connected to Georgia's east-west highway that leads to Poti and Batumi at the Black Sea. This route provides Armenia with the shortest access to the seaports linked to Europe, the Russian Federation, and Turkey. Meanwhile, the government of Georgia is improving the east-west highway and plans to improve the Bavra-Zhdanov-Akhaltskha-Batumi road as an alternative connectivity to Black Sea ports from Tbilisi. This will enable the Armenia cargoes to be transported to Black Sea ports easily through a shorter route. On the basis of this potential, the Government has developed a North-South Road Corridor Development Program as a priority and ADB will support it through an MFF.
The investment program will promote regional cooperation and trade by improving the north-south road corridor and related border crossings in Armenia. It is the Government's top priority to stimulate the national economy and gain shorter and more efficient access to nearest sea ports of the Black Sea. It will be complemented by the ADB-assisted regional road corridor development programs in Azerbaijan and Georgia to link the subregion to international markets more closely. It is thus in line with ADB's regional cooperation and integration theme under the Strategy 2020, country operations business plan for Armenia, and the regional cooperation strategy in Central Asia and Caucasus.
|Impact||Increased subregional trade and accelerated economic development in Armenia|
|Description of Outcome||Efficient, safe, and sustainable transport on the north -south road corridor|
|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.|
|Description of Project Outputs||
550 km north- south road corridor improved
Border and customs facilities modernized and a cross-border agreement with Georgia in place
Road subsector plan implemented
Road subsector management and institutional capacities improved
Road safety improved
|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|
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.
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.|
|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 ADB Officer||Herz, Thomas|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Transport and Communications Division, CWRD|
Ministry of Transport, Communication and Information Technologies
Vahan Martirosyan, Minister
Nalbandyan Str. PO Box 69, 0010 Yerevan, Armenia
|Concept Clearance||14 Jul 2009|
|Fact Finding||18 Jul 2009 to 30 Jul 2009|
|MRM||19 Aug 2009|
|Approval||29 Sep 2009|
|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|
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.
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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 for MFF 0035-ARM: North-South Road Corridor Investment Program||Framework Financing Agreement||Mar 2017|
|Framework Financing Agreement for North-South Road Corridor Investment Program between the Republic of Armenia and Asian Development Bank dated 15 September 2009||Framework Financing Agreement||Sep 2009|
|North-South Road Corridor Development Program||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.
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
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