Azerbaijan: Second Road Network Development Investment Program - Tranche 2

Sovereign Project | 45389-004 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 second project under the multitranche financing facility will fund a 30-kilometer section between Jalilabad and Shorsulu, and support project implementation and capacity development for the transport sector.

Project Details

Project Officer
Wu, Zheng Central and West Asia Department Request for information
  • Azerbaijan
  • Loan
  • Transport
Project Name Second Road Network Development Investment Program - Tranche 2
Project Number 45389-004
Country Azerbaijan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3144-AZE: Second Road Network Development Investment Program - Tranche 2
Ordinary capital resources US$ 250.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

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

Gender Equity and Mainstreaming No gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome Project implementation is ongoing. Outcome will be assessed accordingly.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

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.

Geographical Location Masalli-Shorsulu

Summary of Environmental and Social Aspects

Environmental Aspects

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.

Involuntary Resettlement

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.

Indigenous Peoples

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).

Stakeholder Communication, Participation, and Consultation
During Project Design Conducted in 2012 and also updated in 2014 while updating the LARP.
During Project Implementation Consultation will be conducted during project implementation, when required.

Business Opportunities

Consulting Services Consultant recruitment financed follows ADB's Guidelines on the use of Consultants (2013, as amended from time to time).
Procurement Procurement of goods and works follows ADB's Procurement Guidelines (2013, as amended from time to time).

Responsible Staff

Responsible ADB Officer Wu, Zheng
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
"Azeravtoyol" Open Joint-Stock Company
Mr. Saleh Mammadov
Block 2025, R. Ismayilov Str.,
Bilajari Settlement, Binagadi Distr.,
Baku, Azerbaijan Republic, AZ1117


Concept Clearance -
Fact Finding -
Approval -
Last Review Mission -
Last PDS Update 20 Mar 2017

Loan 3144-AZE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jul 2014 29 Dec 2014 16 Jun 2015 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 332.00 Cumulative Contract Awards
ADB 250.00 29 Jul 2014 103.75 0.00 42%
Counterpart 82.00 Cumulative Disbursements
Cofinancing 0.00 29 Jul 2014 71.87 0.00 29%
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.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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.

Requests for information may also be directed to the InfoUnit.


Tender Title Type Status Posting Date Deadline
AZE: Second Road Network Development Investment Program, Tranche 2 Advance Notice Archived 13 May 2014

Contracts Awarded

No contracts awarded for this project were found