Azerbaijan: Second Road Network Development Investment Program - Tranche 2

Transport - Road transport (non-urban) - Transport policies and institutional development

A midterm review mission was fielded on 13-21 October 2016 to review the implementation progress of ongoing road works. A time-bound action plan was agreed with the government and its implementation is ongoing.

The civil works for Jalilabad-Shorsulu section (km 110+700 to km 80+600) commenced on 19 January 2016 with the contract completion date of 18 January 2019. The time elapsed ending 28 February 2017 is 406 days (37.0%) out of 1,095 days. The estimated overall work progress up to February 2017 is 36.7 % as against 43.4% of the planned progress.

Construction supervision consultant contract was awarded on 29 October 2015. Ongoing project management and implementation support by the PMC.

The road safety consultancy service is expected to start in Q2 2017. The consultancy service for development of road and pavement standards and guidelines is currently on hold. An EBRD-supported consultancy has carried out a study on the performance-based road maintenance contracts. The implementation of a pilot project is currently under discussion between EBRD and Government of Azerbaijan.

An environmental assessment and review framework was prepared for the entire MFF as required by ADB's Safeguard Policy Statement (2009). According to the MFF, each tranche is to be assessed and categorized separately. The proposed motorway is a new alignment, tranche 1 section passes through settled areas and tranche 2 section passes through wetlands. Project 2 is also classified as environment Category A.

An environmental impact assessment (EIA) report was prepared for the entire alignment covering both sections under Project 1 and Project 2. The EIA was approved by ADB and disclosed on the ADB website in 2012. 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 framework financing agreement and loan agreements.

The Project is categorized 'B' for resettlement. A LARF for the Program was prepared and approved in July 2012. The LARP was prepared for the Project and land acquisition is complete. A due diligence report was prepared in July 2013, and the LARP was reviewed and updated in March 2014. Except for 6 vulnerable households who lose more than 10% of their land and will be provided employment when construction commences all compensation payments have been made and no outstanding issues are identified.

The construction of the Project requires the acquisition of approximately 172.5 ha in 3 villages within the districts of Neftchala, Bilasuvar, and Jalilabad including 55.22 ha of private land, 21.99 ha of municipality-owned land and 95.29 ha of State reserve land. There is no impact to structures and trees. In total, 86 households will be affected. ARS will submit internal monitoring reports once the construction work commences. Grievance will be monitored through the supervision consultant.

The Project has no adverse impact on indigenous peoples.

Ethnic Azeri accounts for most of the population in the project area; few other nationalities include Talysh, who are not negatively affected by the Project. Project is thus classified as Category C for indigenous peoples as defined under ADB's SPS (2009).