Armenia : North-South Road Corridor Investment Program - Tranche 3

Sovereign Project | 42145-043

The project aims to achieve efficient, safe and sustainable north-south corridor linking the Republic of Armenia domestically and internationally. The project will comprise:

(a) reconstruction of the two-lane road section between towns of Talin and Landjik of approximately 18.7 km and widening such section to a four-lane dual carriageway; (b) preparation and implementation of a long term road subsector plan and road asset management and road maintenance administration system; (c) preparation of feasibility study for Artashat-Qajaran section (304 km) of the North-South corridor; and (d) project implementation support and preparation of a subsequent tranche under the Investment Program, including preparation of the related feasibility study and detailed engineering design.

Project Details

  • Project Officer
    Herz, Thomas
    Central and West Asia Department
    Request for information
  • Country/Economy
    Armenia
  • Sector
    • Transport
Project Name North-South Road Corridor Investment Program - Tranche 3
Project Number 42145-043
Country / Economy Armenia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Loan 2993-ARM: North-South Road Corridor Investment Program, Tranche 3
Ordinary capital resources US$ 100.00 million
Grant: North-South Road Corridor Investment Program - Tranche 3
Neighborhood Investment Facility US$ 7.90 million
Loan: North-South Road Corridor Investment Program - Tranche 3
European Investment Bank US$ 79.20 million
Loan: North-South Road Corridor Investment Program - Tranche 3
Eurasian Development Bank US$ 150.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Some gender elements
Description

The project aims to achieve efficient, safe and sustainable north-south corridor linking the Republic of Armenia domestically and internationally. The project will comprise:

(a) reconstruction of the two-lane road section between towns of Talin and Landjik of approximately 18.7 km and widening such section to a four-lane dual carriageway; (b) preparation and implementation of a long term road subsector plan and road asset management and road maintenance administration system; (c) preparation of feasibility study for Artashat-Qajaran section (304 km) of the North-South corridor; and (d) project implementation support and preparation of a subsequent tranche under the Investment Program, including preparation of the related feasibility study and detailed engineering design.

Project Rationale and Linkage to Country/Regional Strategy Rehabilitation of the road network is a top priority for Armenia. Improving logistics increases trade, investment flows and jobs. Better connectivity aids regional cooperation and integration and increases the country's competitiveness. The government of Armenia has developed a North-South Road Corridor Investment Program for 2009-2017. The program, which includes an investment component and a non-investment component, aims to develop an adequate, efficient, safe, and sustainable road network in the country in support of economic growth and regional cooperation. The North-South road is part of a transport network for trade flow between Central Asia to the European markets. The road extends from Agarak to Bavra through Kapan and Yerevan, and plays an important role in this regard because it is linked to the east-west highway in Georgia that leads to Poti and Batumi on the Black Sea, two key shipment points for Central Asia's exports. Upon implementation, the investment program will: (i) facilitate efficient subregional road transport transit; (ii) increase trade flows and competitiveness; (iii) lower transport costs; (iv) increase mobility and accessibility to markets, jobs, and social services; (v) enhance tourism; and (vi) improve governance.
Impact

Socioeconomic development in Armenia and expanded regional trade

Project Outcome
Description of Outcome

Efficient, safe and sustainable north-south road corridor, linking Armenia domestically and internationally

Progress Toward Outcome ADB approved on 12 September 2019 the Government's request to extend the loan closing date from 14 September 2019 to 31 December 2023 to ensure completion of works.
Implementation Progress
Description of Project Outputs

Reconstructed 18.7 km two-lane road section between the towns of Talin and Landjik

Road Subsector Plan completed and Road Asset Management and Road Maintenance System implemented

Feasibility studies and detailed design for Tranche 4 prepared

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

About 75% of the total volume of earthworks and about 70% of the total volume of concrete structures was accepted by the Engineer so far. Financial civil works progress is at 46.63%. The variation order (VO) for the switch from concrete to asphalt pavement has been endorsed by the Governing Council and has been signed by EA and contractor. Time of completion for the works is extended to 14 September 2022 according to the VO.

Road Subsector Plan will possibly financed by other donors. The recruitment of consultant for preparing the road subsector plan has been postponed as the assignment may need to be revised due to budget constraint and the outcome of the government's coordination with other donors.

The procurement of goods for road asset management and maintenance system has been delayed as similar equipment might be procured through other donor.

Geographical Location Agarak, Aragatsotni Marz, Ararat, Ararati Marz, Ashtarak, Azatan, Bavra, Beniamin, Dzorakap, Goris, Gyumri, Hayrenyats', Horrom, Kapan, Lanjik, Lusakert, Maralik, Mastara, Meghri, Sarrnaghbyur, Shiraki Marz, Syunik'i Marz, Talin, Yerevan
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified as Category A. An updated environmental impact assessment (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 environmental management plan (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. Public consultations involving nongovernment organizations in Gyumri and Yerevan were conducted in May and July 2010. The consultant and project implementation unit held further discussions with community leaders during the preparation of the updated EIA in 2012 for relocation of cultural monuments.

The environmental compliance auditing in the construction stage showed their general compliance with the loan covenants and SPS 2009 requirements at the pre-construction stage. However, some corrective measures and further monitoring were requested concerning environmental resources, coordination on safeguard issues, grievance redress, construction works and management of borrow pits, dumping sites, construction camps. As a result, a new decree on the borrow pits' opening, utilization and management for the transport sector was developed and approved by the RA government. ADB has emphasized the importance of cooperation among the contractor, the project management consultant, the project implementation unit.

Involuntary Resettlement The project is classified as Category A. The existing right-of-way will be widened to approximately 30 meters, which will cause significant land acquisition and resettlement impacts. The Ministry of Transport, Communication and Information Technologies (MTCIT) has prepared a land acquisition and resettlement plan (LARP) that is implemented in 6 subsections. LARP for subsections 1 through 6 have been approved by ADB and have been implemented. The mitigation measures included in the LARP are consistent with the provisions of the land acquisition and resettlement framework for the MFF and the SPS (2009). The Transport Project Implementation Organization (TPIO) has 2 social development specialists, 1 environment specialist, and 1 lawyer, assisted by 2 resettlement consultants. A grievance redress mechanism has been established for the project. As the LARP is the second document of this kind prepared by MTCIT, resettlement training was provided during the preparation of LARP under Tranche 2 project, the MTCIT/TPIO's capacity for implementation of LARP under Tranche 3 project is considered adequate. The affected persons (APs) were consulted during the preparation of this LARP, and it was disclosed to the APs and on the ADB website. ADB endorsed the final LARP in June 2015, and the government approved it in September 2015. Addendums to the LARP, to accommodate utility relocation and provision of additional access roads to land plots are under preparation and expected to be completed in October 2021.
Indigenous Peoples The project is 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 Stakeholder participation has been achieved through consultation carried out with all the stakeholders during the program preparation. Consultations were held at various levels such as the project implementation unit, the Ministry of Transport and Communication (now Ministry of Territorial Administration and Infrastructure), the State Committee of Real Estate Cadastre, Municipality of Yerevan and different non-governmental organizations. Consultations were also conducted with local communities to be directly affected by the Investment Program.
During Project Implementation Stakeholders' participation and consultation is ongoing. LARP implementation is completed, and the environmental and resettlement specialists of the project implementation unit make regular site visits to review progress. Bi-annual environmental and social monitoring reports are published regularly.
Business Opportunities
Consulting Services All consulting services to be financed under Project 3 will be procured in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All procurement of works and goods will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Herz, Thomas
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Territorial Administration and Infrastructure
Ministry of Transport, Communication and Information Technologies
Timetable
Concept Clearance 14 Jul 2009
Fact Finding -
MRM 29 Nov 2012
Approval 12 Mar 2013
Last Review Mission -
Last PDS Update 12 Oct 2021

Loan 2993-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Mar 2013 11 Mar 2014 24 Jul 2014 30 Jun 2017 31 Dec 2023 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 141.50 Cumulative Contract Awards
ADB 100.00 28 Apr 2023 75.28 0.00 75%
Counterpart 41.50 Cumulative Disbursements
Cofinancing 0.00 28 Apr 2023 69.59 0.00 70%
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.

Title Document Type Document Date
Հյուսիս-Հարավ միջանցքի ներդրումային ծրագիր - Տրանշ 3 : Ծրագրի ամփոփ նկարագիր Translated PDS May 2014
North–South Road Corridor Investment Program – Tranche 3: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jun 2019
North–South Road Corridor Investment Program - Tranche 3: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Dec 2020
North-South Road Corridor Investment Program - Tranche 3: Procurement Plan Procurement Plans Aug 2018
North-South Road Corridor Investment Program - Tranche 3: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jul 2022
North-South Road Corridor Investment Program - Tranche 3: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jun 2021
North-South Road Corridor Investment Program - Tranche 3: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Jun 2018
North-South Road Corridor Investment Program - Tranche 3: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Nov 2017
North-South Road Corridor Investment Program - Tranche 3: Audited Project Financial Statements (24 July 2014-31 December 2015) Audited Project Financial Statements Nov 2017
North-South Road Corridor Investment Program - Tranche 3 Periodic Financing Request Reports Mar 2013
North-South Road Corridor Development Program Facility Administration Manual Jan 2013
Loan Agreement for North-South Road Corridor Investment Program - Project 3 Loan Agreement (Ordinary Resources) Mar 2014
Amendment to the Loan Agreements for Loan 2729-ARM and Loan 2993-ARM: North-South Road Corridor Investment Program - Projects 2 and 3 Loan Agreement (Ordinary Resources) Sep 2019
Amendment to the Loan Agreement for Loan 2993-ARM: North-South Road Corridor Investment Program - Project 3 Loan Agreement (Ordinary Resources) Apr 2017

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–Tranche 3: Resettlement Framework Resettlement Frameworks Oct 2012
North-South Road Corridor Investment Program, Tranche 3: Talin-Gyumri Road - Environmental Impact Assessment Environmental Impact Assessments May 2016
North-South Road Corridor Investment Program – Tranche 3: Social Monitoring Report (July-December 2019) Social Monitoring Reports Dec 2020
North-South Road Corridor Investment Program – Tranche 3: Social Monitoring Report (January-June 2019) Social Monitoring Reports Dec 2019
North-South Road Corridor Investment Program – Tranche 3: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Aug 2020
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 - Tranches 2 and 3: Social Monitoring Report (July-December 2015) Social Monitoring Reports Mar 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 2 and 3: Environmental Impact Assessment Environmental Impact Assessments Aug 2010
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, 2 and 3: Bi-annual Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Feb 2013
North-South Road Corridor Investment Program - Tranche 3: Talin-Lanjik Section Social Compliance Audit Report and Corrective Action Plan Social Compliance Audit Report Dec 2019
North-South Road Corridor Investment Program - Tranche 3: Talin-Lanjik Road Land Acquisition and Corrective Action Plan Resettlement Plans May 2019
North-South Road Corridor Investment Program - Tranche 3: Talin-Lanjik Road Addendum to Land Acquisition and Resettlement Plan Resettlement Plans Aug 2022
North-South Road Corridor Investment Program - Tranche 3: Talin-Lanjik Road - Resettlement Plan Resettlement Plans Jun 2015
North-South Road Corridor Investment Program - Tranche 3: Talin-Gyumri Road (Draft) Environmental Impact Assessments Jul 2012
North-South Road Corridor Investment Program - Tranche 3: Talin-Gyumri Road Resettlement Plans Nov 2012
North-South Road Corridor Investment Program - Tranche 3: Talin-Gyumri Road Environmental Impact Assessments Nov 2012
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (July-December 2022) Social Monitoring Reports Apr 2023
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (July-December 2021) Social Monitoring Reports Apr 2022
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (July-December 2020) Social Monitoring Reports Apr 2021
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (July-December 2018) Social Monitoring Reports Oct 2019
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (July-December 2017) Social Monitoring Reports Jan 2018
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (January-June 2022) Social Monitoring Reports Oct 2022
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (January-June 2021) Social Monitoring Reports Nov 2021
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (January-June 2020) Social Monitoring Reports Mar 2021
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (January-June 2018) Social Monitoring Reports Sep 2018
North-South Road Corridor Investment Program - Tranche 3: Social Monitoring Report (January-June 2017) Social Monitoring Reports Jan 2018
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (July-December 2022) Environmental Monitoring Reports Apr 2023
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Apr 2022
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Mar 2021
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Mar 2020
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Apr 2019
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Jan 2018
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Sep 2022
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Sep 2021
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Dec 2019
North-South Road Corridor Investment Program - Tranche 3: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Dec 2018
North-South Road Corridor Investment Program - Tranche 3: Biannual Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
North-South Road Corridor Investment Program - Tranche 3: Biannual Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Nov 2017
North-South Road Corridor Investment Program - Tranche 3 (Talin-Gyumri Road): Due Diligence Report on HIV/AIDS, Trafficking, and Gender Safeguards Due Diligence Reports Aug 2012

Evaluation Documents See also: Independent Evaluation

None currently available.


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.

Tenders


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
TECHNICAL EXPERT SERVICES FOR TRANCHES 2 AND 3 Loan 2993 08 Sep 2021 EVGUENI STARTSEV | LG HENRIQUE PINTO 11 4-DTO ALMADA 2810-082 PORTUGAL Ministry of Territorial Administration and Infrastructure 130,000.00 130,000.00

Procurement Plan

Title Document Type Document Date
North-South Road Corridor Investment Program - Tranche 3: Procurement Plan Procurement Plans Aug 2018