46375-002: Secondary Road Improvement Project | Asian Development Bank

Georgia: Secondary Road Improvement Project

Sovereign (Public) Project | 46375-002 Status: Active

The Asian Development Bank is helping Georgia upgrade a 50 km stretch of secondary road linking the centers of Dzirula, Chumateleti and Kharagauli. It will also improve feeder roads, giving communities in the project area better access to markets and social services, along with new economic opportunities as a result of a pickup in traffic and tourism. About 30,000 people are expected to benefit.

Project Details

Project Officer
Kiziria, George Central and West Asia Department Request for information
  • Georgia
  • Loan
  • Transport
Project Name Secondary Road Improvement Project
Project Number 46375-002
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3524-GEO: Secondary Road Improvement Project
Ordinary capital resources US$ 80.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The secondary road improvement project will rehabilitate a road which extends for about 50 kilometers from Dzirula to Chumateleti via Kharagauli in Central Georgia to two-lane all-weather standard, including several short access roads to the nearby national park and to Kharagauli and other railway stations. The project impact will be aligned with the increased economic activity in Kharagauli municipality and surrounding regions and national connectivity. The outcome will be increased mobility and accessibility of the residents of Kharagauli municipality and tourists visiting the project area by reducing vehicle operating costs and providing time savings for road users.
Project Rationale and Linkage to Country/Regional Strategy

There is a need to improve connectivity to remote poor areas. The project will focus on about 50 km of a secondary road in central Georgia that provides access to about 23,000 people living in the municipality of Kharagauli, and an additional 7,000 people in the 13 villages along the road alignment. The project road connects Kharagauli to the East West Highway, which is subject to occasional closure because of landslides, in which event the project road provides an alternative road for traffic using the highway. In future, the project road could serve as an alternative route, as required by Georgian legislation, in the event that the parallel section of the East West Highway is to be tolled.

The project road has deteriorated considerably and many sections of it are now irreparable and impassable during rain and snow. This clearly suppresses the development of the poor region that the road serves. Villages along the road are not accessible during winter and are suffering from substantial out-migration and lack of employment opportunities. The poor condition of the road also prevents emergency vehicles from accessing the villages during most adverse weather conditions.

This area has the highest regional poverty level of any region in the country. The project will help alleviate isolation of rural communities in this area, strengthen domestic trade, and

expand opportunities for more inclusive economic growth. Upgrading of the road to an all-weather standard will provide better opportunities of the local population to sell their products and better access to social facilities such as schools and medical services. The improved road will also facilitate access to the nearby Borjomi Kharagauli National Park and Nunisi Health Resort, resulting in new opportunities for tourism development in the region.

Impact Increased economic activity in the Kharagauli municipality and surrounding regions and national connectivity
Project Outcome
Description of Outcome Improved efficiency and increased mobility and accessibility of the residents of the Kharagauli municipality and tourists visiting the project area
Progress Toward Outcome Civil works for Section 1 (Dzirula-Moliti Road) was awarded in December 2017. Procurement of civil works for Section 2 (Moliti-Chumateleti Road) and recruitment of construction supervision consultants are ongoing.
Implementation Progress
Description of Project Outputs Dzirula-Chumateleti road section improved and open to traffic
Status of Implementation Progress (Outputs, Activities, and Issues)

Civil works for Section 1 (Dzirula-Moliti Road) was awarded in December 2017. LARP 1 implementation is still ongoing and works have not started.

Procurement of civil works for Section 2 (Moliti-Chumateleti) is ongoing.

Geographical Location Kharagauli
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized as B. An initial environmental examination (IEE) report has been prepared for the project and this includes an environmental management plan (EMP). As part of the IEE preparation process community level consultations were held in the villages along the alignment in November 2014. The recommended environmental mitigation measures and monitoring activities set out in the EMP cover the preconstruction, construction, and operation stages of the project. The EMP, which also defines the institutional arrangements and responsibilities for implementation of the plan, will be included in the bidding documents and in the ensuing contracts. The contractors will be required to prepare site-specific EMPs before commencing construction.
Involuntary Resettlement The project is categorized as B. LARP for section one has been prepared and is under implementation. LARP for section 2 is under preparation. Community consultations have been conducted during project preparation and will be continued throughout LARP implementation. A grievance redress mechanism has been established.
Indigenous Peoples There are no indigenous people as defined in the Safeguard Policy Statement in the project area, and the project is classified category C.
Stakeholder Communication, Participation, and Consultation
During Project Design Since the project requires land acquisition, community-based organizations, affected people and/or any other stakeholders were consulted during preparatory stage, and during design. There are no known CSOs operating in the area.
During Project Implementation Consultations will continue during the project implementation. A grievance redress mechanism has been established to hold regular meetings and involve the local civil society and NGOs in the discussions.
Business Opportunities
Consulting Services All consultants financed from ADB loan will be recruited and engaged according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time) and the procurement plan for the project. Consulting firms will be selected and engaged using the quality- and cost-based selection (QCBS) method (except the financial auditor which will be selected using the least-cost selection (LCS) method) with 90:10 ratio and full technical proposals for the construction supervision package will be solicited. Individual consultants, including project management and safeguards consultants, to augment the RD will be engaged using the individual consultant selection method. An output based contract will be used for project audit services under LCS method for recruitment.
Procurement Procurement of works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). International competitive bidding procedures will be used for civil works contracts. There are 2 civil works packages (no procurement of goods) expected under the project.
Responsible ADB Officer Kiziria, George
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Georgia Resident Mission
Executing Agencies
Ministry of Regional Development and Infrastructure of Georgia
12 Khazbegi Str. 0160 Tbilisi
Concept Clearance 30 Jul 2013
Fact Finding 30 May 2016 to 10 Jun 2016
MRM 02 Sep 2016
Approval 30 Mar 2017
Last Review Mission -
Last PDS Update 07 Mar 2018

Loan 3524-GEO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Mar 2017 19 Jun 2017 16 Oct 2017 28 Feb 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 93.80 Cumulative Contract Awards
ADB 80.00 30 Mar 2017 18.10 0.00 23%
Counterpart 13.80 Cumulative Disbursements
Cofinancing 0.00 30 Mar 2017 2.64 0.00 3%

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.

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
National External Monitoring Consultant Individual - Consulting Closed 27 Mar 2018 02 Apr 2018
Loan No. 3524-GEO: Secondary Road Improvement Project [SRIP/CW/ICB-02] CORRIGENDUM Invitation for Bids Closed 20 Mar 2018 13 Apr 2018
Loan No. 3524-GEO: Secondary Road Improvement Project [SRIP/CW/ICB-02] Invitation for Bids Closed 13 Feb 2018 28 Mar 2018
Supervision of Rehabilitation of Dzirula-Kharagauli-Moliti-Pona-Chumateleti Secondary Road Firm - Consulting Closed 13 Sep 2017 12 Oct 2017
Loan No. 3524: Secondary Road Improvement Project [SRIP/CW/ICB-01] Invitation for Bids Closed 16 Aug 2017 27 Sep 2017
GEO: Secondary Road Improvement Project Advance Notice Archived 31 Oct 2016

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)

Procurement Plan