ADB is helping Armenia upgrade its main road corridor as part of a broader thrust to promote regional cooperation and trade in the Caucasus and Central Asia. The second project under the program will upgrade a 41-kilometer section of the road between Ashtarak and Talin.
|Project Name||North-South Road Corridor Investment Program - Tranche 2|
|Project Type / Modality of Assistance||Loan
|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||Project 2 of the investment program will contribute to socioeconomic development in Armenia and expanded regional trade. The outcome will be an efficient, safe, and sustainable north-south road corridor, linking Armenia domestically and internationally. The project output will be an upgraded 44 km section between Ashtarak and Talin.|
|Project Rationale and Linkage to Country/Regional Strategy||The project will finance the reconstruction and widening of the Ashtarak-Talin road section of the North-South Road Corridor to 4 lanes as well as consulting services for construction supervision, project management and preparation of subsequent tranches. The transport corridor is vital because the Caucasus connect Central Asia to Europe and is a major transit route for crude oil and other exports from Central Asia.|
|Impact||Efficient, safe and sustainable north-south road corridor, linking Armenia domestically and internationally|
|Description of Outcome||Reconstructed and widened Ashtarak to Talin road is safe and efficiently operated|
|Progress Toward Outcome||The loan is ongoing. It is expected that the current closing date of 30 June 2017 will be further extended to allow for completion of works.|
|Description of Project Outputs||Upgraded 44 km section between Ashtarak and Talin|
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Physical progress of works at the end of 2016 was assessed at 24%. As of 15 March 2017, works are suspended because of winter conditions and will start up once weather improves.
Employer and the Contractor are currently settling outstanding differences, including physical completion date of the outstanding works.
While land acquisition issues have been settled, utility relocation is only partially completed and is currently being addressed.
|Geographical Location||Ashtarak-Talin Road Section|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is classified as environmental Category A. An environmental impact assessment (EIA) was prepared and posted on the ADB website on 7 August 2010. All recommendations of the EIA, including the environmental management plan (EMP) were incorporated in the bidding documents and consultants' contracts. The government and the project management consultant monitor the EMP implementation and prepare monitoring reports as required by ADB's Safeguard Policy Statement (SPS) 2009. The environmental compliance auditing showed their general compliance with the loan covenants and SPS 2009 requirements at the pre-construction stage. However, some corrective measures and further monitoring will be required in relation to environmental resources, coordination on safeguard issues, grievance redress, and preliminary construction works such as utility relocation. ADB has emphasized the importance of cooperation among the contractor, the project management consultant, the project implementation unit, and the Ministry of Culture on programming and implementation of archaeological excavations. This will minimize the risk for possible delays. Furthermore, the Ministry of Transport, Communication and Information Technologies has a Governing Council to improve coordination, highlight potential issues/risks and take respective actions.|
|Involuntary Resettlement||The project is classified as involuntary resettlement Category A, as it will widen the existing right-of-way to approximately 30 meters and will thus have significant land acquisition and resettlement impact. The final land acquisition and resettlement plan (LARP) was approved in September 2012. The Ministry of Transport and Communication and the project implementation unit, in cooperation with related government agencies, are responsible for implementation. The grievance redress mechanism is in place. Phased access to the site was given to the Contractor as and when the plots were acquired. The Revised Post-project Impact Assessment Report was approved by ADB on 21 October 2016.|
|Indigenous Peoples||The project does not have an impact on indigenous peoples and is classified as Category C in terms of indigenous peoples. The population in the project area consisted of 99% Armenians; other nationalities such as Kurds and Russians have lived in the same area for a long time and have been integrated in the same economic and social structure.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultation was carried out with all the stakeholders during the program preparation. Consultations were held at various levels such as the Armenian Roads Directorate, the Ministry of Transport and Communication, the State Committee of Real Estate Cadastre, Municipality of Yerevan, Real World Real People (a nongovernment organization providing HIV/AIDS prevention and education services), and local communities to be directly affected by the Investment Program.|
|During Project Implementation||The grievance redress mechanism is functioning well. The project implementation unit, the Engineer, and the Contractor have social development specialists on their teams and have periodic consultations. Views and concerns of all stakeholders are being taken into account and addressed whenever necessary.|
|Consulting Services||The project management consultant for Tranche 1 and Tranche 2 (financed by Tranche 2) was recruited according to ADB's Guidelines on the Use of Consultants using quality- and cost-based selection method (90% for quality and 10% for cost). An external financial auditing firm was also recruited according to ADB's Guidelines on the Use of Consultants using least cost selection method.|
|Procurement||The ADB-financed works were procured according to ADB's Procurement Guidelines. The civil works, comprising reconstruction and improvement of the M1 Ashtarak to Talin road from km 29+600 to km 71+500 (Section 1) were let in April 2012 under one contract that also covers civil works financed from Tranche 1. No further procurement is anticipated.|
|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
PO Box 69, 0010
|Concept Clearance||14 Jul 2009|
|Approval||21 Dec 2010|
|Last Review Mission||-|
|PDS Creation Date||21 Apr 2010|
|Last PDS Update||16 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|21 Dec 2010||30 May 2011||18 Jul 2011||30 Jun 2015||14 Sep 2019||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||210.00||Cumulative Contract Awards|
|ADB||170.00||21 Dec 2010||161.78||0.00||95%|
|Cofinancing||0.00||21 Dec 2010||82.59||0.00||49%|
|Status of Covenants|
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|
|North-South Road Corridor Investment Program - Tranche 2: Procurement Plan||Procurement Plans||Jun 2016|
|Amendment to Loan Agreement for North-South Road Corridor Investment Program - Project 2||Loan Agreement (Ordinary Resources)||Jun 2014|
|North-South Road Corridor Development Program||Facility Administration Manual||Jan 2013|
|North-South Road Corridor Development Program||Facility Administration Manual||Nov 2011|
|Loan Agreement for North-South Road Corridor Investment Program - Project 2 between the Republic of Armenia and Asian Development Bank dated 30 May 2011||Loan Agreement (Ordinary Resources)||May 2011|
|North-South Road Corridor Investment Program (Tranche 2)||Design and Monitoring Frameworks||Dec 2010|
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.
Requests for information may also be directed to the InfoUnit.