Azerbaijan: Second Road Network Development Investment Program - Tranche 2
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
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Project Officer
Sluijter, Jurgen
Central and West Asia Department
Request for information -
Country/Economy
Azerbaijan -
Modality
- Loan
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Sector
- Transport
Related Projects
Project Name | Second Road Network Development Investment Program - Tranche 2 | ||||
Project Number | 45389-004 | ||||
Country / Economy | Azerbaijan |
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Project Status | Closed | ||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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Drivers of Change | Governance and capacity development Knowledge solutions Partnerships Private sector development |
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Sector / Subsector | Transport / Road transport (non-urban) - Transport policies and institutional development |
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Gender Equity and Mainstreaming | No gender elements | ||||
Description | The updated project design will finance the construction of new motorway between Jalilabad and Shorsulu, provide capacity development, rehabilitate M5/R57 road sections, and implement local roads rehabilitation program. Tranche 2 is the last tranche of the MFF. | ||||
Project Rationale and Linkage to Country/Regional Strategy | Tranche 2 is a high priority of the government and is included in the Road Network Development Program under the Transport Sector Development Strategy. It forms part of the country's primary north south highway linking the country's capital, Baku, to the neighboring countries. Currently, parts of the existing road section are in poor condition, resulting in high transport costs, long delivery times, and road traffic crashes. This constitutes an impediment to non-oil sector growth and poverty reduction in Azerbaijan, as well as regional trade development. Construction of the proposed motorway section completes the southern corridor and will promote national and regional trade, thus contributing to the achievement of the objectives of the state program on poverty reduction and economic development. | ||||
Impact | Trade with neighboring countries expanded and economic growth of Azerbaijan improved. |
Project Outcome | |
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Description of Outcome | Efficient, adequate, safe, and sustainable road corridors in Azerbaijan achieved. |
Progress Toward Outcome | Project was physically completed on 30 June 2021. Winding up activities ongoing. |
Implementation Progress | |
Description of Project Outputs | A new motorway between Jalilabad and Shorsolu constructed and M5/R57 road sections rehabilitated. Program management and implementation capacities of AAY improved. Transport sector governance improved. Local roads rehabilitation program implemented. |
Status of Implementation Progress (Outputs, Activities, and Issues) | 2014-2021: Civil works contract for the motorway was signed on 20 August 2015. Construction supervision consultant contract was signed and team was mobilized on 29 October 2015. Civil works for the motorway commenced in January 2016 and completed; taking over certificated issued on 1 June 2018. Civil works contracts for M5/R57 signed on 28 Nov 2018 and completed on 30 Nov 2020. Civil works for the local roads completed on 30 June 2021. EBRD grant financing developed the road safety study and a study on design standards and performance-based road maintenance contracts; the studies were completed in December 2018. Feasibility study on tolling system completed in July 2018. |
Geographical Location |
Safeguard Categories | |
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Environment | A |
Involuntary Resettlement | B |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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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 include stringent provisions for compliance with environmental safeguards. An ecological expert and environmental specialist was 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. LARP implementation for T2 has been completed, compensation payments have been paid since 2014. 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. AAY submits internal monitoring reports. Grievance is 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 | |
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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 ADB Officer | Sluijter, Jurgen |
Responsible ADB Department | Central and West Asia Department |
Responsible ADB Division | Transport and Communications Division, CWRD |
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 | |
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Concept Clearance | - |
Fact Finding | - |
MRM | 28 May 2014 |
Approval | 29 Jul 2014 |
Last Review Mission | - |
Last PDS Update | 22 Sep 2021 |
Loan 3144-AZE
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
29 Jul 2014 | 29 Dec 2014 | 16 Jun 2015 | 31 Dec 2020 | 30 Jun 2021 | 15 Dec 2021 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 332.00 | Cumulative Contract Awards | |||
ADB | 250.00 | 04 Feb 2022 | 223.69 | 0.00 | 100% |
Counterpart | 82.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 04 Feb 2022 | 223.69 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | 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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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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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Requests for information may also be directed to the InfoUnit.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Reconstruction of R-32 Ujar-Zardab-Agjabadi Section and Upgrading of M-5, Yevlakh-Zagatala-Georgian Border road and Rehabilitation of R-57 Regional Road | Firm - Consulting | Closed | 01 Feb 2018 | 02 Mar 2018 |
3144 AZE: Second Road Network Development Investment Program - Tranche 2 [02/2017/AZE Lot 1 and Lot 2] | Invitation for Bids | Closed | 26 Dec 2017 | 15 Feb 2018 |
AZE: Second Road Network Development Investment Program, Tranche 2 | Advance Notice | Archived | 13 May 2014 |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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AUDIT OF PROJECT ACCOUNTS FOR L2921 AND L3144 | Loan 3144 | 20 Mar 2019 | BAKER TILLY AUDIT AZERBAIJAN CJSC | DEMIRCHI TOWER, 16TH FLOOR 37 KHOJALI AVENUE,BAKU,AZERBAIJAN AZERBAIJAN, REP. OF | State Agency of Azerbaijan Automobile Roads | 121,335.10 | 102,826.41 |
UPGRADING YEVLAKH-ZAGATALA-GEORGIAN BORDER ROAD (R 57) SECTION SUCHMA-SHAKI ROUNDABOUT (KM 33 100 - 4 6 120) | Loan 3144 | 05 Dec 2018 | KOLIN INSHAAT TURIZM SANAYE VE TICARET A.S. | HORASAN SOKAK NO.14 GOP 06700 ANKARA TURKEY TURKEY | State Agency of Azerbaijan Automobile Roads | 36,884,530.33 | 31,246,260.51 |
UPGRADING YEVLAKH-ZAGATALA-GEORGIAN BORDER ROAD (M 5) SECTION KHALDAN-SUCHMA (KM 0 300 - 33 100) | Loan 3144 | 05 Dec 2018 | AZVIRT LIMITED LIABILITY COMPANY | BAKU CITY,SABUNCHU DISTRICT BAKIKHANOV SETTLEMT,B.BUNYADOV ST. 26B AZERBAIJAN, REP. OF | State Agency of Azerbaijan Automobile Roads | 32,770,183.34 | 27,759,637.94 |
CONSTRUCTION SUPERVISION FOR THE CIVIL WORKS FOR M 5/R57 AND R32 | Loan 3144 | 14 Nov 2018 | IRD ENGINEERING S.R.L. ITALY | LUNGOTEVERE DELLE NAVI 30 00196 ROME, ITALY ITALY | State Agency of Azerbaijan Automobile Roads | 7,605,530.00 | 7,605,530.00 |
Procurement Plan
Title | Document Type | Document Date |
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Second Road Network Development Investment Program - Tranche 2: Procurement Plan | Procurement Plans | Aug 2019 |