The Asian Development Bank is working with Azerbaijan to build an efficient and safe southern highway to the capital city of Baku. The project is building about 63 kilometers of road sections on the new Masalli-Shorsulu road and about 33 kilometers of road between the cities of Jalilabad and Shorsulu. These new and improved roads are increasing trade within Azerbaijan and helping the country trade with its neighbors.
|Project Name||Second Road Network Development Investment Program|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Transport - Road transport (non-urban)
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The MFF is intended to finance projects under the Investment program. The projects intended to be financed include: a) construction of a total of approximately 63 km of road sections on the new Masalli-Shorsulu road, comprising (i) an approximately 30 km section between the cities of Masalli and Jalilabad (Project 1) and (ii) an approximately 33 km section between the cities of Jalilabad and Shorsulu (Project 2); b) project implementation support for construction supervision and project management covering planning, procurement, project implementation, financial management and safeguard compliance; c) capacity development for MOT comprising support for improving the sustainable management of the road network.|
|Project Rationale and Linkage to Country/Regional Strategy||
The development of transport infrastructure is one of the key tasks of the Government to sustain GDP growth and promote trade with neighbouring countries. The poor condition of the national road network poses a challenge. Approximately 56% of the main road network is in a poor state and needs urgent repair, and the majority of lower category roads are in an extremely poor condition. The road sector in Azerbaijan faces four main problems: (i) poor road conditions, (ii) inadequate program delivery due to weak institutional capacity, (iii) inadequate maintenance of roads, and (iv) poor quality of construction. These bottlenecks lead to higher than average construction and maintenance costs.
The Second Road Network Development Program will promote regional cooperation and integration, and widen access to social and economic opportunities via improved road infrastructure in Azerbaijan. The program will also strengthen the government's capacity in strategic planning, project preparation and implementation, maintenance and governance in the road subsector.
|Impact||Greater economic growth in Azerbaijan and expanded trade with neighboring countries|
|Description of Outcome||An efficient, adequate, safe, and sustainable southern motorway corridor from Baku in Azerbaijan|
|Progress Toward Outcome||To be determined at completion.|
|Description of Project Outputs||
About 63 km of newly constructed motorway between Masalli and Shorsulu.
Improved program management and implementation capacities of ARS
Improved transport sector governance.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Two tranches have been approved under the MFF. Project 1 (Loan 2921-AZE) is under implementation, while Project 2 (Loan 3144-AZE) is not yet effective.
For Project 1, all contracts have been awarded and are ongoing. Civil works progress is low but is expected to improve in the coming months as delays in the preparation and approval of construction drawings has been largely solved. Safeguard monitoring is ongoing and no major issues were identified.
For Project 2, procurement of civil works and recruitment of construction supervision consultant are at an advance stage.
|Geographical Location||Masalli - Shorsulu|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The projects under tranches 1 and 2 are classified as environment category A. The EIA report recommends specific mitigation measures with regard to highway design and construction and a robust long-term monitoring program, and also proposes an offset program. The contracts for the supervision consultant, program management consultant, and the civil works contractors will include stringent provisions for compliance with environmental safeguards.|
Tranche 1 is classified as category A for involuntary resettlement.
Tranche 2 is classified as category B for involuntary resettlement.
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Coordination with NGOs monitoring construction activities in the corridor will continue and be improved.|
|During Project Implementation||Public consultation will continue as a means to achieve maximum beneficiary buy-in during implementation.|
|Consulting Services||All consulting services to be financed under the Facility will be procured in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).|
|Procurement||All goods and services to be financed under the Facility will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). Procurement plans will be developed for each tranche project.|
|Responsible ADB Officer||Wu, Zheng|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Transport and Communications Division, CWRD|
"Azeravtoyol" Open Joint-Stock Company
Mr.Saleh Mammadov, Chairman
Block 2025, R. Ismayilov Str., Bilajari Settlement, Binagadi Distr., Baku, Azerbaijan Republic, AZ1117 Baku
|Concept Clearance||13 Apr 2012|
|Fact Finding||25 Jun 2012 to 29 Jun 2012|
|MRM||24 Jul 2012|
|Approval||04 Oct 2012|
|Last Review Mission||-|
|Last PDS Update||17 Mar 2015|
MFF Facility Concept 0071-AZE
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||625.00||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.
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|
|Layihə Məlumat Cədvəli: ÇMM – Yol Şəbəkəsinin İnkişafı üzrə İkinci İnvestisiya Proqramı||Translated PDS||Oct 2012|
|Second Road Network Development Investment Program||Reports and Recommendations of the President||Sep 2012|
|Second Road Network Development Investment Program||Facility Administration Manual||Sep 2012|
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|
|MFF - Second Road Network Development Investment Program||Environmental Assessment and Review Framework||Aug 2012|
|Second Road Network Development Investment Program: Masalli (Sarcuvar) Interchange to Shorsulu (Bilasuvar) Interchange||Environmental Impact Assessments||Aug 2012|
|MFF-Second Road Network Development Investment Program||Resettlement Frameworks||Jul 2012|
|MFF-Second Road Network Development Investment Program: Project 1 (Alat-Masalli Section) (Draft)||Resettlement Plans||Jul 2012|
|Second Road Network Development Program (Draft)||Environmental Impact Assessments||Apr 2012|
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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