fbpx 45389-002: Second Road Network Development Investment Program - Tranche 1 | Asian Development Bank

Azerbaijan: Second Road Network Development Investment Program - Tranche 1

Sovereign (Public) Project | 45389-002 Status: Active

ADB is helping Azerbaijan with road upgrades along a route running from its border with the Russian Federation down to the border with Iran. The first project under the multitranche financing facility will fund a 30-kilometer section between Masalli and Jalilabad and support project implementation.  The project will boost trade and improve access to services for poor rural communities.

Project Details

Project Officer
Faraj, Huseynbeyov Central and West Asia Department Request for information
Country
  • Azerbaijan
Modality
  • Loan
Sector
  • Transport
 
Project Name Second Road Network Development Investment Program - Tranche 1
Project Number 45389-002
Country Azerbaijan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2921-AZE: Second Road Network Development Investment Program - Tranche 1
Ordinary capital resources US$ 250.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description Project 1 will fund two components: i) Infrastructure Development Component - construction of an approximately 30 km section of the new motorway between Masalli and Jalilabad of the Masalli-Shorsulu road; rehabilitation of the R32 Ujar Zardab Agjabedi road, and ii) Project Implementation Support Components - project implementation support to ARS for construction supervision and program management covering planning, procurement, project preparation and implementation.
Project Rationale and Linkage to Country/Regional Strategy

The Southern Corridor is a major transportation artery for Azerbaijan. The existing southern corridor road, from Alyat to Astara (M3) is a 240 km two-lane road. Current road section is in poor condition, resulting in high transport costs, long delivery times and traffic accidents due to limited capacity, and has a high roughness index and is in need of major rehabilitation. Previous analyses have concluded that improvements on the southern corridor required building a totally new 4-lane road in order to minimize the resettlement problem that widening the existing road would have created.

A major change in scope was approved on 6 June 2018 to utilize about $90 million of loan savings for the rehabilitation of the R32 Ujar-Zardab-Agjabedi road. The expanded project outputs include (i) construction of an approximately 30 km four-lane road section between the cities of Masalli and Jalilabad as part of the new Alat-Astara Road; (ii) project implementation support for construction supervision and program management covering planning, procurement, project implementation, financial management and compliance with safeguard requirements; and (iii) Rehabilitation of approximately 70 km of the R32 Ujar-Zardab-Agjabedi road.

Improvement of the southern road corridor will (i) provide a good road connection with Iran with expanded capacity and facilitate bilateral trade and transit trade at a faster rate; (ii) reduce the cost of transportation of agricultural products to Baku markets; and (iii) bring savings in travel time and transportation cost for all road users in general and for the local population in particular.

Impact Trade with neighboring countries expanded and economic growth of Azerbaijan improved.
Project Outcome
Description of Outcome Efficient, adequate, safe, and sustainable road corridors in Azerbaijan achieved.
Progress Toward Outcome

Civil works for the Alat-Astara Motorway Masalli to Jalilabad Intersection (km 142.89 to km 110.7) is 100% completed (30 km), road is opened to traffic in September 2018.

Major change in scope of T1 approved on 6 June 2018, civil works contracts for R32 signed on 31 Oct 2018.

The R32 Ujar-Zardab-Agjabadi Road (70.5 km) comprises two lots: (i) Lot 1 contract (km 0-37) was awarded to JV Korpu Bina Tikiti and Mehmet Gunes on 31 October 2018, and (ii) Lot 2 contract (km 37-70.5) was awarded to Polat Yol Yapi Sanayi ve Ticaret A.S on 19 November 2018. A contract variation under Lot 1 contract was approved on 28 October 2019. The implementation of contracts is on schedule: as of 29 February 2020 (i) Lot 1 contract's physical and financial progress reached 54% and 57%, respectively; and (ii)Lot 2 contract's physical and financial progress reached 61% and 70%.

Implementation Progress
Description of Project Outputs

A new motorway between Masalli and Jalilabad constructed and key sections of R32 rehabilitated.

Support to AAY on program management, supervision and implementation provided.

Due diligence requirements for new road sections R32 and M5/R57 completed.

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

Consulting service to deliver due diligence requirements for 2 new road sections completed in Q1 2018.

Required report preparation and submission are attended to during project implementation.

All civil works and consulting services contracts under the project have been awarded. The works for Masalli-Jalilabad motorway section successfully completed, taking over certificate issued on 18 Aug 2017.

The R32 Ujar-Zardab-Agjabadi Road (70.5 km) comprises two lots: (i) Lot 1 contract (km 0-37) in the amount of AZN67,960,100.67 ($40,013,765.24 equivalent) was awarded to JV Korpu Bina Tikiti and Mehmet Gunes on 31 October 2018 (contract no. 01/ICB/2018/L1), and (ii) Lot 2 contract (km 37-70.5) for AZN59,604,647.11 ($35,079,450.02 equivalent) was awarded to Polat Yol Yapi Sanayi ve Ticaret A.S on 19 November 2018. The implementation of contracts is on schedule: as of 29 February 2020 (i) Lot 1 contract's physical and financial progress reached 54% and 57%, respectively; and (ii)Lot 2 contract's physical and financial progress reached 61% and 70%.

Construction supervision and program management consultants continues to provide services to support the PIU/ARS.

Geographical Location Dzhalilabad, Jalilabad District, Masally, Masally District
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An environment assessment and review framework for the investment program was prepared following ADB's Safeguard Policy Statement (2009) and relevant laws and regulations in Azerbaijan. The proposed motorway is on a new alignment with a 7 km section passing through wetlands. The sections to be financed by tranche 1 and 2 are classified as environment category A. The environmental impact assessment (EIA) reports were prepared in 2007; in 2011, the World Bank prepared an addendum that looked more closely into the wetlands and its environmental implications. Based on these reports, a single updated EIA was prepared that reflects compliance with the requirements of ADB's Safeguard Policy Statement. The EIA recommends specific mitigation measures with regard to motorway design and construction and a robust long-term monitoring program. The contracts for the supervision consultant, program management consultant, and civil works will include stringent provisions for compliance with environmental safeguards. An ecological expert and environmental specialist will be engaged to ensure implementation of the environmental management plan. Assurances to mitigate potential harm to the wetlands are also included in the loan agreement, framework financing agreement, and facility administration manual.
Involuntary Resettlement

A resettlement framework for the investment program was prepared following ADB's Safeguard Policy Statement and relevant laws and regulations in Azerbaijan, and adopting the rehabilitation strategy in the resettlement policy framework. LAR activities were substantially completed based on the World Bank's resettlement plan, which the government agreed upon under the earlier World Bank-assisted highway project. A due diligence assessment confirmed that compensation payments were made following the resettlement policy framework agreed upon with the World Bank and are consistent with the requirements of ADB's Safeguard Policy Statement. Outstanding LAR activities include compensating the remaining 2% (15 privately owned plots) of households losing portions of their agricultural lands, paying compensation for affected municipal land, and providing additional rehabilitation assistance for severely affected and vulnerable households by prioritizing them for civil works jobs. Tranche 1 is classified as category A for involuntary resettlement. For tranche 1, a land acquisition and resettlement plan was prepared to cover the remaining LAR activities, including rehabilitation measures and actions to address temporary impacts and emerging LAR issues during implementation. Both the LAR framework and plan were disclosed on the ADB website on 23 July 2012. Implementation of the LAR plan was monitored internally and externally. The program management consultant conducted refresher training for the land acquisition department of ARS and respective district administrative staff on safeguards, and monitored LAR-related activities.

The final LARP implementation report for R32 road was disclosed on ADB website on 9 January 2020. LARP completion validation mission took place during 30 January 6 February 2020. Subsequently, the updated LARP implementation report was provided on 10 April 2020.

Indigenous Peoples The investment program area does not have any known social or cultural groups classified as indigenous peoples under ADB's Safeguard Policy Statement. Tranche 1 is classified as category C for indigenous peoples impact.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultation were undertaken with communities, government and non-governmental organisations (NGOs) in relation to the construction of the road. Most feedback received from communities related to land compensation and access matters with little comment on environmental issues. At a meeting with environmental NGOs and local biodiversity experts some concerns were expressed over potential impacts on wetland ecology and a number of design mitigation measures were agreed to be considered.
During Project Implementation Consultation will be conducted during project implementation, when required.
Business Opportunities
Consulting Services Consultant recruitment financed will follow ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement Procurement of goods and works will follow ADB's Procurement Guidelines (2013, as amended from time to time).
Responsible ADB Officer Faraj, Huseynbeyov
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Azerbaijan Resident Mission
Executing Agencies
State Agency of Azerbaijan Automobile Roads
Mr. Saleh Mammadov
[email protected]
Block 2025, R. Ismayilov Str.,
Bilajari Settlement, Binagadi Distr.,
Baku, Azerbaijan Republic, AZ1117
Baku
Timetable
Concept Clearance -
Fact Finding -
MRM 24 Jul 2012
Approval 25 Oct 2012
Last Review Mission -
Last PDS Update 23 Apr 2020

Loan 2921-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2012 22 Apr 2013 30 Jul 2013 31 Dec 2016 31 Dec 2020 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 312.00 Cumulative Contract Awards
ADB 250.00 25 Oct 2012 242.50 0.00 97%
Counterpart 62.00 Cumulative Disbursements
Cofinancing 0.00 25 Oct 2012 215.78 0.00 86%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - 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
Second Road Network Development Investment Program – Tranche 1: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jul 2019
Second Road Network Development Investment Program - Tranche 1: Procurement Plan Procurement Plans Nov 2018
Amendment to the Loan Agreements for Loan Nos. 2921/3144-AZE: Second Road Network Development Investment Program - Tranches 1 and 2 Loan Agreement (Ordinary Resources) Jun 2018
Second Road Network Development Investment Program - Tranche 1: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Apr 2018
Second Road Network Development Investment Program - Tranche 1: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jul 2017
Amendment to the Loan Agreement for Loan 2921-AZE: Second Road Network Development Investment Program - Project 1 Loan Agreement (Ordinary Resources) May 2017
Second Road Network Development Investment Program - Tranche 1: Audited Project Financial Statements (January-December 2015) Audited Project Financial Statements Mar 2017
Second Road Network Development Investment Program - Tranche 1: Audited Project Financial Statements (January-December 2014) Audited Project Financial Statements Feb 2016
Second Road Network Development Investment Program - Tranche 1: Audited Project Financial Statements (January-December 2013) Audited Project Financial Statements Jun 2014
Loan Agreement for Second Road Network Development Investment Program - Project 1 Loan Agreement (Ordinary Resources) Apr 2013

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
Second Road Network Development Investment Program – Tranche 1: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Jan 2020
Second Road Network Development Investment Program - Tranche 1: Reconstruction of R-32 Ujar-Zardab-Agjabadi Road Social Monitoring Report Social Monitoring Reports Jan 2020
Second Road Network Development Investment Program - Tranche 1: Environmental Monitoring Report (February-June 2019) Environmental Monitoring Reports Jul 2019
Second Road Network Development Investment Program - Tranche 1: Land Acquisition and Resettlement Plan Resettlement Plans Jul 2019
Second Road Network Development Investment Program - Tranche 1: Ujar-Zardab-Agjabedi (R32) Road Initial Environmental Examination Initial Environmental Examination Mar 2018
Second Road Network Development Investment Program - Tranche 1: Final Environmental Monitoring Report Environmental and Social Monitoring Reports Nov 2017
Second Road Network Development Investment Program - Tranche 1: Ujar-Zardab-Agjabadi Road Section Land Acquisition and Resettlement Plan Resettlement Plans Oct 2017
Second Road Network Development Investment Program, Tranche 1: Final External Resettlement Monitoring Report Environmental and Social Monitoring Reports Sep 2017
Second Road Network Development Investment Program - Tranche 1: Biannual Environmental Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jun 2017
Second Road Network Development Investment Program - Tranches 1 and 2: Jalilabad-Masalli, Jalilabad-Shorsulu Internal Monitoring Report Social Monitoring Reports Feb 2017
Second Road Network Development Investment Program - Tranche 1: Biannual Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Dec 2016
Second Road Network Development Investment Program - Tranche 1: Jalilabad–Masalli Section (km 110.7–km 142.9) Resettlement Monitoring Report Social Monitoring Reports Dec 2016
RNIDP II - Tranches 1 and 2: Alat-Astara Highway Social Monitoring Report Social Monitoring Reports Aug 2016
Second Road Network Development Investment Program - Tranche 1: Supplementary Land Acquisition and Resettlement Plan for Masalli–Jalilabad Section (km 110.700–km 142.9) Resettlement Plans Aug 2016
Second Road Network Development Investment Program - Tranche 1: Biannual Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jun 2016
Second Road Network Development Investment Program - Project 1: Biannual Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Dec 2015
Second Road Network Development Investment Program - Project 1: Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Second Road Network Development Investment Program - Project 1: Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2014
Second Road Network Development Investment Program - Tranche 1: Alat-Astara Motorway Masalli-Jalilabad Intersection Social Audit Report Social Compliance Audit Report Nov 2014
Second Road Network Development Investment Program: Alat-Masalli Section, Project 1 and Project 2 Social Monitoring Reports Jan 2014
Second Road Network Development Investment Program - Tranche 1: Addendum to Resettlement Plan (Jalilabad-Masalli Section) Resettlement Plans Aug 2013
Second Road Network Development Investment Program - Tranche 1: External Monitoring Report for the Land Acquisition and Resettlement Plan Implementation for Jalilabad–Masalli Section Project 1 (km 112.9–km 142.9) Social Monitoring Reports Jun 2013
Second Road Network Development Investment Program - Tranche 1: Internal Monitoring Report for Alat - Masalli Section (Km 112.9 - Km 142.9) Social Monitoring Reports Mar 2013

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

Tender Title Type Status Posting Date Deadline
Loan No. 2921-AZE: Second Road Network Development Investment Program - Tranche 1 [01/2018/AZE] Invitation for Bids Closed 16 Jan 2018 02 Mar 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CIVIL WORKS CONTRACT FOR THE RECONSTRUCTION OF ZAR DAB TO AGJABADI SECTION KM 37.00 TO KM 70.50 Loan 2921 21 Nov 2018 POLAT YOL YAPI SANAYI VE TICARET A.S. UZUNCHAYIR YOLU CAD.,HAMZA POLAT ISH MERKAZI NO.6,HASANPASHA,ISTANBUL, TUR TURKEY State Agency of Azerbaijan Automobile Roads CONSTRUCTION 41,617,446.00 35,088,187.00
CONSTRUCTION OF THE UJAR TO ZARDAB ROAD KM 0.00 TO KM 37.00 ALONG R32 Loan 2921 13 Nov 2018 JV KORPU BINA TIKINTI AND MEHMET GUNES INSAAT MAHATMA GANDHI CADDESI NO. 96/4 CANKAYA, ANKARA, TURKEY TURKEY State Agency of Azerbaijan Automobile Roads CONSTRUCTION 47,269,625.00 40,059,004.00
UPDATING FEASIBILITY STUDY, ENGINEERING DESIGNS, C OST ESTIMATE AND PREPARATION OF SAFEGUARDS REPORT AND BIDDING DOCUMENTS FOR CIVIL WORKS OF R32 ROAD Loan 2921 15 Sep 2017 BCL ASSOCIATES LIMITED JABBAR TOWER (10F),42 GULSHAN AVE GULSHAN-1,DHAKA-1212 BANGLADESH Azeravtoyol Open Joint-Stock Company 302,775.00 302,775.00
UPDATING FEASIBILITY STUDY,ENGINEERING DESIGNS,COS T ESTIMATE AND PREPARATION OF SAFEGUARDS REPORTS A ND BIDDING DOCUMENTS FOR CIVIL WORKS OF M5R57 RO Loan 2921 15 Sep 2017 KOCKS CONSULT GMBH STEGEMANNSTRASSE 32-38 D-56068 KOBLENZ GERMANY Azeravtoyol Open Joint-Stock Company 356,000.00 356,000.00