Armenia: North-South Road Corridor Investment Program - Tranche 2

Sovereign Project | 42145-033 Status: Active

Summary

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.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name North-South Road Corridor Investment Program - Tranche 2
Project Number 42145-033
Country Armenia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2729-ARM: North-South Road Corridor Investment Program - Project 2
Ordinary capital resources US$ 170.00 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
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

Project Outcome

Description of Outcome Reconstructed and widened Ashtarak to Talin road is safe and efficiently operated
Progress Toward Outcome

Implementation of the land acquisition and resettlement plan has been completed.

Progress of construction works remain slow. Trial sections have been completed and mix formula has been approved. Paving works are expected to start by 23 September 2016.

Implementation Progress
Description of Project Outputs Upgraded 44 km section between Ashtarak and Talin
Status of Implementation Progress (Outputs, Activities, and Issues)

Implementation of the land acquisition and resettlement plan has been completed.

Progress of construction works remain slow. Trial sections have been completed and mix formula has been approved. Paving works are expected to start by 23 September 2016.

Geographical Location Ashtarak-Talin Road Section

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

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 and Communication 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 LARP implementation compliance report for the last subsection was endorsed by ADB on 14 October 2014.
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.

Business Opportunities

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 Staff

Responsible ADB Officer Thomas Herz
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Transport & Communication
[email protected]
Nalbandyan Str.
PO Box 69, 0010
Yerevan, Armenia

Timetable

Concept Clearance 14 Jul 2009
Fact Finding -
MRM -
Approval 21 Dec 2010
Last Review Mission -
PDS Creation Date 21 Apr 2010
Last PDS Update 21 Sep 2016

Loan 2729-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Dec 2010 30 May 2011 18 Jul 2011 30 Jun 2015 30 Jun 2017 -
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%
Counterpart 40.00 Cumulative Disbursements
Cofinancing 0.00 21 Dec 2010 67.92 0.00 40%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

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 - Tranches 1, 2, and 3: Social Monitoring Report (January-June 2016) Social Monitoring Reports Aug 2016
North-South Road Corridor Investment Program - Tranches 1 and 2: Biannual Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jul 2016
North-South Road Corridor Investment Program - Tranches 2 and 3: Social Monitoring Report (July-December 2015) Social Monitoring Reports Mar 2016
North-South Road Corridor Investment Program - Tranches 1 and 2: Biannual Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Feb 2016
North-South Road Corridor Investment Program - Tranches 2 and 3: Social Monitoring Report (January-June 2015) Social Monitoring Reports Aug 2015
North-South Road Corridor Investment Program - Tranches 1 and 2: Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jun 2015
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
North-South Road Corridor Investment Program - Tranches 2 and 3: Social Monitoring Report (October 2013-December 2014) Social Monitoring Reports Dec 2014
North-South Road Corridor Investment Program, Tranche 2 - Final Compliance Report for Subsections 2 (Talin) and 3 (Agarak, Aghdzq, Ujan, and Kosh): Social Monitoring Report Social Monitoring Reports Oct 2014
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Aug 2013
North-South Road Corridor Investment Program - Tranche 2: Final Compliance Report for Subsection 2 Social Monitoring Reports Jul 2013
North-South Road Corridor Investment Program-Proposed Tranche 2: Ashtarak-Talin Section Social Monitoring Reports Mar 2013
North-South Road Corridor Investment Program, Tranches 1, 2 and 3: Bi-annual Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Feb 2013
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Feb 2013
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (July-December 2011) Environmental Monitoring Reports Nov 2012
North-South Road Corridor Investment Program Tranche 2 (Ashtarak–Talin Section): Land Acquisition and Resettlement Plan Resettlement Plans Sep 2012
North-South Road Corridor Investment Program, Tranches 1 and 2: Bi-annual Environmental Monitoring Report (January-June 2011) Environmental Monitoring Reports Oct 2011
North-South Road Corridor Investment Program Tranches 2: Ashtarak-Talin road Environmental Impact Assessments Mar 2011
North-South Road Corridor Investment Program Resettlement Frameworks Dec 2010
North-South Road Corridor Investment Program Resettlement Plans Dec 2010
North-South Road Corridor Investment Program Tranches 2 & 3 Environmental Impact Assessments Aug 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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