Azerbaijan: Second Road Network Development Investment Program - Tranche 2

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

2016: A midterm review mission was fielded on 13-21 October 2016 to review the implementation progress of ongoing road works and agree with the government a time-bound action plan to improve the portfolio performance. The estimated overall work progress is about 29.1% completed.

2017:The physical progress is 76% against 65% elapsed time. Estimated completion date is in January 2019.

Q2 2018: Civil works for the new motorway Jalilabad-Shorsolu is 100% completed, taking over certificate issued on 1 June 2018. Major change in tranche scope approved; procurement actions for M5/R57 and tolling system ongoing.

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.

Road safety audit and design improvements not yet due.

Road standards, specifications, and pavement design specifications not yet due.

Feasibility study on tolling system completed in July 2018.

Procurement actions for the tolling system ongoing.

2014-2016: 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.

Procurement actions for M5/R57 ongoing.

Q1-Q4 2016: Civil works contract was signed on 20 August 2015 and mobilized on 19 January 2016. Construction supervision consultant contract was signed and team was mobilized on 29 October 2015.

2017: No issues in the implementation of the contract.

Q2 2018: Procurement actions for M5/R57 ongoing.

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

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).