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 Name||Second Road Network Development Investment Program - Tranche 2|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Transport / Road transport (non-urban) - Transport policies and institutional development
|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.|
|Description of Outcome||Efficient, adequate, safe, and sustainable road corridors in Azerbaijan achieved.|
|Progress Toward Outcome||
2018: Civil works for the new motorway Jalilabad-Shorsolu is 100% completed, taking over certificate issued on 1 June 2018. Major change in scope of T2 approved on 6 June 2018; construction supervision contract signed on 8 Nov 2018; civil works contracts for M5/R57 signed on 28 Nov 2018.
2019: Construction along key sections of M5/R57 ongoing.
2020: Works completed for Lot 1 (46.5 km) and Lot 2 (11 km) on 30 Nov 2020. Minor change and extension of T2 approved on 29 Sep 2020.
Q1 2021: MOF concurrence on amendments to FFA and LA received on 14 Jan 2021. Variation no. 2 of works contract approved on 1 February 2021. Progress on works on local roads reached 35% against the target of 41% as of end March 2021. Delay was due to unfavorable weather condition (rain and snowfall).
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.
|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)||
Local roads rehabilitation: Achieved progress reached 35% against the target of 41% as of end March 2021. Delay was due to unfavorable weather condition (rain and snowfall).
Jalilabad and Shorsolu motorway: Civil works contract was signed on 20 August 2015. Civil works commenced in January 2016 and completed, taking over certificated issued on 1 June 2018.
M5/R57 road sections: Civil works contracts were signed on 28 Nov 2018. Civil works completed on 30 Nov 2020.
Project management: Construction supervision consultant contract was signed on 29 October 2015 for Jalilabad-Shorsolu motorway. Construction supervision contract signed on 8 Nov 2018 for M5/R57 road sections. Required report preparation and submission are attended to during project implementation.
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.
|Summary of Environmental and Social 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.
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.
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.|
|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|
State Agency of Azerbaijan Automobile Roads
Mr. Saleh Mammadov
Block 2025, R. Ismayilov Str.,
Bilajari Settlement, Binagadi Distr.,
Baku, Azerbaijan Republic, AZ1117
|MRM||28 May 2014|
|Approval||29 Jul 2014|
|Last Review Mission||-|
|Last PDS Update||29 Apr 2021|
|Approval||Signing Date||Effectivity Date||Closing|
|29 Jul 2014||29 Dec 2014||16 Jun 2015||31 Dec 2020||30 Jun 2021||-|
|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||225.41||0.00||90%|
|Cofinancing||0.00||29 Jul 2014||219.34||0.00||88%|
|Status of Covenants|
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.
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.
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.
|Tender Title||Type||Status||Posting Date||Deadline|
|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|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|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||CONSULTANCY||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||CONSTRUCTION||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||CONSTRUCTION||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||Consulting Services||7,605,530.00||7,605,530.00|
|Title||Document Type||Document Date|
|Second Road Network Development Investment Program - Tranche 2: Procurement Plan||Procurement Plans||Aug 2019|