Armenia : Sustainable Urban Development Investment Program - Tranche 2

Project Name

Sustainable Urban Development Investment Program - Tranche 2

Project Number

42417-033

Country / Economy

• Armenia

Project Status

Closed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 3293-ARM: Sustainable Urban Development Investment Program - Tranche 2

Source	Amount
Ordinary capital resources	US$ 112.97 million

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Partnerships

Sector / Subsector

• Transport / Urban roads and traffic management

Gender

Some gender elements

Description

The national government and YM have invested more than $280 million from 2005 to 2014 in upgrading infrastructure. But these investments, except for Tranche 1 of the Investment Program and some other piecemeal actions, are only addressing immediate problems. Tranche 1 and the proposed Tranche 2 will give a long-term approach to the traffic and urban infrastructure by diverting traffic from the city center through the creation of a new, reliable, and efficient bypass of the city of Yerevan. This is part of the strategic framework for urban renewal that YM has undertaken. The project is backed by a roadmap, policy framework, and long-term investment plan until 2025 split into short, medium, and long-term actions.

Project Rationale and Linkage to Country/Regional Strategy

The turbulent conditions experienced by Armenia since independence has led to a wide range of problems in the urban transport subsector, including physical challenges due to the degraded state of the road network, sidewalks, and poor quality of public transport infrastructure and services including metro, bus and trolleybus. Other non-physical challenges include limited institutional capacity to provide an integrated transport network, a deteriorating road safety record and a lack of passenger information or integrated fares system. Improved urban road and street connections throughout the country is a priority for the government, as it is essential to improving the quality of life, attracting investment, raising productivity and competitiveness, and reducing pollution.

The sector roadmap prepared within the MFF includes a list of actions which aim to deal with different identified issues. These actions are integrated and inter-related projects, in order to implement a coherent development of the urban infrastructure and urban transport network in Yerevan and in subsequent tranches in other municipalities. The different infrastructures are developed in a holistic vision: the key issue is to propose complementary projects for all transport modes, especially road and public transport networks.

Impact

improved road traffic safety and enhanced local economy in Yerevan.

Project Outcome

Description of Outcome

Efficient, reliable, and affordable urban infrastructure and services provided in Yerevan.

Progress Toward Outcome

Due to the high debt to GDP ratio the Government has slowed down requests for loans from IFIs and other external sources.

Political changes happened in the central government and Yerevan Municipality.

Implementation Progress

Description of Project Outputs

Urban transport infrastructure extended, rehabilitated, and improved in Yerevan.

Appropriate institutional capacity strengthened in Yerevan.

Skilled and efficient program implementation system established.

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

Completed.

Being achieved, but with limitations set by the government.

Being complied with.

Civil works contract signed on 11 December 2017. Works are expected to be completed in January 2020.

Civil works contract signed in December 2016. Works are expected to be completed in October 2018.

Not yet implemented.

Not yet implemented.

Evaluation of bids is in progress. Bid validity extended to October 2018.

Geographical Location

Yerevan

Safeguard Categories

Environment

B

Involuntary Resettlement

A

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

Project 2 is categorized 'B as it will not have significant irreversible environmental impacts during or after construction. Most of the predicted impacts are common during construction such as dust, noise, vibration and other disturbance to residents' livelihood and traffic. Contractors prepare, and implement the site specific environmental management plans for each subproject in order to implement the environmental impact mitigation requirements of the environmental impact assessment and IEEs, which will also form an integral part of construction contracts. The site specific environmental management plans are endorsed by the construction supervision consultants, and subsequently reviewed and approved by supervision engineer and YM. The construction supervision consultants assist YM in monitoring the project's compliance with environmental requirements.

Involuntary Resettlement

Tranche 2 has major impact from LARP perspective. The approximate total number of people who will suffer significant impacts (relocation or loss of >10% of productive assets) is more that 200, thus is categorized as Category A. The total number of properties affected is 347. Tranche 2 includes the following areas/Land Acquisition and Resettlement Plans (LARPs): (i) Argavand-Shirak Road Link; (ii) Babajanyan-Ashtarak Road Link. LARPs for all Sections were approved by ADB and the Government of Armenia, completed and compliance reports approved by ADB.

Indigenous Peoples

The investment program area does not include communities that may be defined as indigenous peoples under ADB's SPS (2009).

Stakeholder Communication, Participation, and Consultation

During Project Design

Consultations are and will be carried out with all stakeholders during the planning, design phase, and includes project affected persons. Stakeholders, will be informed about the project, entitlements, obligations and compensation procedure for those affected by resettlement. Effective and meaningful communication and information sharing are and will be ensured.

During Project Implementation

During project implementation more detailed consultations are being held, covering safeguards (environment, resettlement), the project, safety, and complaints.

Business Opportunities

Consulting Services

Contract for construction supervision consultant to oversee the implementation of the works contracts under the Project 2 is signed in April 2017. Consultancy contracts for audit and independent monitoring are also signed.

Procurement

Three civil works contracts are signed. One is completed and two are ongoing.

Contact

Responsible ADB Officer

Karapetyan, Vardan

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Armenia Resident Mission (ARRM)

Executing Agencies

Ministry of Territorial Administration and Infrastructure

Timetable

Concept Clearance

-

Fact Finding

-

MRM

25 Jun 2015

Approval

29 Sep 2015

Last Review Mission

-

Last PDS Update

28 Sep 2018

Funding

Loan 3293-ARM