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Georgia: East-West Highway (Khevi-Ubisa Section) Improvement Project

Sovereign (Public) Project | 49257-001 Status: Active

The proposed project will improve the Khevi-Ubisa section and improve operations and maintenance of the road network, as well as road safety. Further, the project's focus on climate resilient design will contribute to mainstreaming the sustainability of Georgia's road network.

Project Details

Project Officer
Naqvi, Zaigham Ali Akbar Central and West Asia Department Request for information
Country
  • Georgia
Sector
  • Transport
 
Project Name East-West Highway (Khevi-Ubisa Section) Improvement Project
Project Number 49257-001
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3715-GEO: East-West Highway (Khevi-Ubisa Section) Improvement Project
Ordinary capital resources US$ 300.00 million
Loan: East-West Highway (Khevi-Ubisa Section) Improvement Project
World Bank US$ 140.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project will improve the Khevi-Ubisa section and improve operations and maintenance of the road network, as well as road safety. Further, the project's focus on climate resilient design will contribute to mainstreaming the sustainability of Georgia's road network.
Project Rationale and Linkage to Country/Regional Strategy

Located at the crossroads of Central West Asia and Eastern Europe and bounded to the west by the Black Sea, Georgia has historically been a trade center. It has played a key role in the movement of peoples and goods from Russia in the north to Armenia, Azerbaijan and Turkey onwards to Iran in the south, and from Europe in the west to Asia in the east. The road network in Georgia extends to about 22,000 km with 6,835 km of international and secondary roads managed by the Road Department (RD) under the Ministry of Regional Development and Infrastructure (MRDI) and about 15,000 km of local roads managed by district administrations. Following its Development Strategy of _Georgia 2020_, the government is committed to develop the country as a regional transport and logistics hub for trade. The 2014 Enabling Trade Index--an assessment of market access, border administration, transport and communications infrastructure and business environment--ranked Georgia 56th out of 138 countries, indicating substantial rooms for improvement especially in its quality of infrastructure.

The East West Highway (EWH), stretching 410 km from Sarpi on the Black Sea, at the border with Turkey, through the center of the country to the capital Tbilisi and on to the border with Azerbaijan, is at the top priority of Government's transport infrastructure development. Representing about 2 percent of Georgia's road network length and one fourth of its international road network, the EWH serves 8,000 to 10,000 vehicles per day and carries over 60 percent of the country's international trade. Today, EWH dominates and carries most of sub-regional and international traffic, with a traffic growth rate of over 10% per annum since 2005. In anticipation of admission of Georgia to the Central Asia Regional Economic Cooperation (CAREC) program in 2016, the EWH will be an integral part of one of the six key CAREC corridors providing the shortest transit link to connect Central Asia with Europe and East Asia.

To minimize the overall cost of transport and logistics, EWH needs to rid all bottlenecks constraining traffic capacity. The current 2-lane section between Chumateleti and Argveta is located in the most difficult mountainous terrain: improvements are either completed or underway on each side of this section. Completed EWH improvement will advance Georgia's Enabling Trade Index ranking substantially. It will be not only crucial for the connectivity of international trade between the Caspian and Black Seas, but also of paramount importance for Georgia''s global market access and socioeconomic development. A World Bank study shows it has wider impacts too--the reduction in transportation costs after corridor improvements will be more beneficial for the rural population who are much more reliant on transportation and sensitive to price changes. Over the last decade, the Government and development partners have joint hands to upgrade most of the EWH to a dual 2 lane carriageway international motorway standards.

In 2009, ADB financed a western end section of the EWH, the Kuboleti bypass, and is now preparing a new project to construct a continuation of this section along the major Black Sea port Batumi. Georgia has also been successful in mobilizing financing from other development partners including World Bank (WB), the European Investment Bank (EIB) and the Japanese International Cooperation Agency (JICA). For instance, about 155 km had been upgraded and 113 km are under construction out of the EWH by the end of 2015. Its remaining last section is located at geologically challenging mountainous terrain of the alignment, which will cost substantially higher than the earlier works. Needless to say, developing the EWH is of great significance to the landlocked countries of Central Asia. Once the bottlenecks are removed, it will provide a competitive corridor serving both domestic and international transportation needs.

Impact Georgia is a regional and logistics hub and more attractive for businesses
Project Outcome
Description of Outcome Efficiency and safety of road transport along the EWH improved
Progress Toward Outcome As of 31 October 2020, cumulative physical progress for F2 road section is about 13.2%. Works are ongoing on tunnels, bridges, and highway.
Implementation Progress
Description of Project Outputs

12 km section of EWH between Khevi and Ubisa constructed

Road safety awareness increased

Capacity of Roads Department for operation and maintenance and project management improved

Status of Implementation Progress (Outputs, Activities, and Issues)

Civil works contract for Khevi-Ubisa F2 road was signed on 20 November 2018 (Hunan Road and Bridge Construction Group Co. Ltd., PRC).

Contract for construction supervision consultant was signed on 30 April 2019 (UBM, Turkey). The consultant mobilized in May 2019.

The Contractor officially mobilized in July 2019.

In spite of the COVID-19 pandemic, the F2 works have not been stopped and site works are underway even when movement of any vehicle had been stopped. Special permits were given by the government in order to continue the works.

As of 31 October 2020, cumulative physical progress for F2 road section is about 13.2%. Works are ongoing on tunnels, bridges, and highway.

Road safety awareness and capacity building activities have not yet started.

Geographical Location Khevi, Ubisi
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project has been classified as environment category A as the project will have significant adverse impacts that are irreversible and diverse. A draft Environmental Impact Assessment (EIA), including an Environmental Management Plan (EMP) has been prepared to meet the requirements of SPS (2009).
Involuntary Resettlement The project is categorized as A for involuntary resettlement. As per the preliminary inventory, 307 land parcels will be affected due to land acquisition. Of these, 218 are private registered parcels, 87 are private unregistered (legalizable) parcels and 2 are state owned. Details of the project's land acquisition and resettlement is set out in the project's land acquisition and resettlement plan (LARP).
Indigenous Peoples The project is classified as category C for indigenous people. No indigenous peoples are present in the project area, as defined by the SPS (2009).
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out with all the stakeholders during the project preparation. The needs of the local population will be considered in project implementation.
During Project Implementation Civil society does not have a specific role in the project design and implementation. The project has ensured adequate participation of civil society organizations in project implementation through consultation meetings and discussions during site visits.
Business Opportunities
Consulting Services The selection of consultants will follow the new procurement framework as set out in ADB's Procurement Policy for the procurement of goods, works, consulting services and non-consulting services (2017) and the Procurement Regulations for ADB Borrowers (2017). Open competitive bidding (OCB) will be adopted for recruitment activities. Advance contracting and retroactive financing has been applied to ensure the readiness of the project.
Procurement The procurement of works will follow the new procurement framework as set out in ADB's Procurement Policy for the procurement of goods, works, consulting services and non-consulting services (2017) and the Procurement Regulations for ADB Borrowers (2017). Open competitive bidding (OCB) will be adopted for procurement activities. Advance contracting and retroactive financing has been applied to ensure the readiness of the project.
Responsible ADB Officer Naqvi, Zaigham Ali Akbar
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Regional Development and Infrastructure of Georgia
12 Khazbegi Str. 0160 Tbilisi
Georgia
Timetable
Concept Clearance 21 Oct 2016
Fact Finding 23 Apr 2018 to 04 May 2018
MRM 22 Jun 2018
Approval 27 Sep 2018
Last Review Mission -
Last PDS Update 29 Dec 2020

Loan 3715-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Sep 2018 05 Oct 2018 28 Nov 2018 31 Dec 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 569.53 Cumulative Contract Awards
ADB 300.00 27 Sep 2018 211.55 0.00 71%
Counterpart 129.53 Cumulative Disbursements
Cofinancing 140.00 27 Sep 2018 82.38 0.00 27%

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.

Title Document Type Document Date
East-West Highway (Khevi–Ubisa Section) Improvement Project: Procurement Plan Procurement Plans Apr 2021
Amendment to the Loan Agreement for Loan 3715-GEO: East-West Highway (Khevi-Ubisa Section) Improvement Project Loan Agreement (Ordinary Resources) Feb 2020
East–West Highway (Khevi–Ubisa Section) Improvement Project: Audited Project Financial Statements (5 October 2018–31 December 2018) Audited Project Financial Statements Aug 2019
East–West Highway (Khevi–Ubisa Section) Improvement Project: Gender Action Plan Gender Action Plans Oct 2018
Loan Agreement (Ordinary Operations) for Loan 3715-GEO: East-West Highway (Khevi-Ubisa Section) Improvement Project Loan Agreement (Ordinary Resources) Oct 2018
East–West Highway (Khevi–Ubisa Section) Improvement Project: Report and Recommendation of the President Reports and Recommendations of the President Sep 2018
East–West Highway (Khevi–Ubisa Section) Improvement Project: Project Administration Manual Project/Program Administration Manual Aug 2018
საქართველო: აღმოსავლეთ-დასავლეთის დამაკავშირებელი ავტომაგისტრალის (ხევი-უბისას მონაკვეთის) გაუმჯობესების პროექტი - პროექტის მონაცემთა აღწერის Translated PDS Mar 2017
East-West Highway (Khevi–Ubisa Section) Improvement Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Oct 2016
East-West Highway (Khevi–Ubisa Section) Improvement Project: Project Preparatory Technical Assistance Report Project Preparatory Technical Assistance Reports Oct 2016

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.

Title Document Type Document Date
East–West Highway (Khevi–Ubisa Section) Improvement Project: Social Monitoring Report (January-June 2020) Social Monitoring Reports Oct 2020
East-West Highway (Khevi-Ubisa Section) Improvement Project: Segments 10 to 12 Social Monitoring Report No. 5 Social Monitoring Reports Jul 2020
East-West Highway (Khevi-Ubisa Section) Improvement Project: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jul 2020
East–West Highway (Khevi–Ubisa Section) Improvement Project: Social Monitoring Report (July-December 2019) Social Monitoring Reports Jul 2020
East-West Highway (Khevi-Ubisa Section) Improvement Project: Segments 5 to 9 Social Monitoring Report No. 4 Social Monitoring Reports Apr 2020
East-West Highway (Khevi-Ubisa Section) Improvement Project: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Jan 2020
East-West Highway (Khevi-Ubisa Section) Improvement Project: Segment 4 Social Monitoring Report No. 3 Social Monitoring Reports Dec 2019
East-West Highway (Khevi-Ubisa Section) Improvement Project: Section F2 of the Khevi-Ubisa-Shorapani-Argveta Road (E60 Highway) Updated Environmental Impact Assessment Environmental Impact Assessments Nov 2019
East-West Highway (Khevi–Ubisa Section) Improvement Project: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Aug 2019
East-West Highway (Khevi-Ubisa Section) Improvement Project: Segment 3 Social Monitoring Report No. 2 Social Monitoring Reports Jul 2019
East-West Highway (Khevi-Ubisa Section) Improvement Project: Segment 1 Social Monitoring Report No. 1 Social Monitoring Reports May 2019
East-West Highway (Khevi–Ubisa Section) Improvement Project: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jan 2019
East-West Highway (Khevi-Ubisa Section) Improvement Project: Section F2 of the Khevi-Ubisa-Shorapani-Argveta Road (E60 Highway) Final Environmental Impact Assessment Environmental Impact Assessments Sep 2018
East–West Highway (Khevi–Ubisa Section) Improvement Project: Section F2 of the Khevi–Ubisa–Shorapani–Argveta Road (E60 Highway) Draft Environmental Impact Assessment Environmental Impact Assessments Sep 2018
East-West Highway (Khevi-Ubisa Section) Improvement Project: E60 Highway Route, Section F2 Land Acquisition and Resettlement Plan Resettlement Plans Sep 2018
East-West Highway (Khevi-Ubisa Section) Improvement Project: Construction of Khevi-Ubisa-Shorapani-Argveta Section (E60 Highway Route) Resettlement Plan Resettlement Plans Jun 2018
East–West Highway (Khevi–Ubisa Section) Improvement Project: Environmental Impact Assessment Environmental Impact Assessments May 2018

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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.

Tenders

Tender Title Type Status Posting Date Deadline
National Procurement Consultant Individual - Consulting Closed 01 Apr 2021 07 Apr 2021
National Gender Specialist Individual - Consulting Closed 21 Jun 2019 27 Jun 2019
RESETTLEMENT EXTERNAL MONITORING CONSULTANT Individual - Consulting Closed 01 Mar 2019 07 Mar 2019
Loan No. 49257-GEO: East-West Highway (Khevi-Ubisa Section) Improvement Project [KURP/CW/OCB-01] Invitation for Bids Closed 24 Jul 2018 19 Sep 2018
Construction Supervision Consultant for the E60 Highway F2 Khevi-Ubisa Project Firm - Consulting Closed 08 Jun 2018 07 Jul 2018
GEO: East-West Highway (Khevi-Ubisa Section) Improvement Project Advance Notice Active 24 May 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PREPARATION OF DETAILED DESIGN FOR E-60 HIGHWAY SE SECTION FRM NATAKHTARI TO RUSTAVI (TBILISI BYPASS) Loan 3715 28 Dec 2020 JV ANAS INTL, GESTIONE PROGETTI & IRD ENGR VIA GIOVANNI GIOLITTI 00185 ROME ITALY Min. of Regional Dev't.& Infrastructure of Georgia CONSULTANCY 9,465,866.10 2,746,817.54
CONSTRUCTION SUPERVISION CONSULTANT FOR THE E60 HIGHWAY F2 KHEVI-UBISA PROJECT Loan 3715 07 May 2019 UBM ULUSLRRSI BIRLSMS MUSVRLR MUSVRLK HIZMTLR RIHTIM CADDESI RASIMPASA MAHALLESI PET- ROL IS HANI 1 KAT NO:2 KADIKOY, ISTANBUL TURKEY Min. of Regional Dev't.& Infrastructure of Georgia CONSULTANCY 5,483,879.01 5,481,993.95
CONSTRUCTION OF KHEVI-UBISA SECTION (E60 HIGHWAY ROUTE) Loan 3715 04 Dec 2018 HUNAN ROAD & BRIDGE CONSTRUCTION GROUP CO LTD NO. 239-SOUTH SHAOSHAN ROAD CHANGSHA CHINA,PEOPLE'SREP.OF Min. of Regional Dev't.& Infrastructure of Georgia CONSTRUCTION 272,229,173.99 213,842,241.02