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 Name||East-West Highway (Khevi-Ubisa Section) Improvement Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|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|
|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.|
|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|
|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.|
|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|
Ministry of Regional Development and Infrastructure of Georgia
12 Khazbegi Str. 0160 Tbilisi
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|Cofinancing||140.00||27 Sep 2018||82.38||0.00||27%|
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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
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ADB $300 Million Loan to Build New Section of Georgia's East–West HighwayADB's Board of Directors has approved a $300 million loan to finance the construction of a four-lane, 12-kilometer (km) road on the East–West Highway (EWH) between Khevi and Ubisa in Georgia.
|Tender Title||Type||Status||Posting Date||Deadline|
|National Procurement Consultant||Individual - Consulting||Closed||01 Apr 2021||07 Apr 2021|
|National Gender Specialist||Individual - Consulting||Closed||21 Jun 2019||27 Jun 2019|
|RESETTLEMENT EXTERNAL MONITORING CONSULTANT||Individual - Consulting||Closed||01 Mar 2019||07 Mar 2019|
|Loan No. 49257-GEO: East-West Highway (Khevi-Ubisa Section) Improvement Project [KURP/CW/OCB-01]||Invitation for Bids||Closed||24 Jul 2018||19 Sep 2018|
|Construction Supervision Consultant for the E60 Highway F2 Khevi-Ubisa Project||Firm - Consulting||Closed||08 Jun 2018||07 Jul 2018|
|GEO: East-West Highway (Khevi-Ubisa Section) Improvement Project||Advance Notice||Active||24 May 2018|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||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|
|Title||Document Type||Document Date|
|East-West Highway (Khevi–Ubisa Section) Improvement Project: Procurement Plan||Procurement Plans||Apr 2021|