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Georgia: Batumi Bypass Road Project

Sovereign (Public) Project | 50064-001 Status: Active

The Asian Development Bank is helping Georgia build a new bypass road skirting the busy port city of Batumi, which will cut traffic congestion and support smoother transport movements along a key east-west highway near the city. Along with construction of the 14.3 km two-lane bypass road, the project will also support repairs and maintenance work on about 200 km of secondary connecting roads.

Project Details

Project Officer
Shanny Campbell Central and West Asia Department Request for information
Country
  • Georgia
Modality
  • Loan
Sector
  • Transport
 
Project Name Batumi Bypass Road Project
Project Number 50064-001
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3520-GEO: Batumi Bypass Road Project
Ordinary capital resources US$ 114.00 million
Loan 8328-GEO: Batumi Bypass Road Project
Asian Infrastructure Investment Bank US$ 114.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The project will (i) construct a new two-lane bypass road of 16.2 km skirting Batumi; and (ii) contract out routine and periodic maintenance work for about 200 km of international roads combined with connecting secondary roads based on performance-based maintenance (PBM) contract. Batumi is a major port city in the southwest part of Georgia, bordered by the Black Sea to the west and Turkey to the south. The existing main road connecting Sarpi at the border with Turkey to Poti, a major port at the Black Sea, is a key transit route along the coastline of the Black Sea for heavy goods and passenger traffic from Turkey to Tbilisi and then onto Azerbaijan and the Caspian Sea.
Project Rationale and Linkage to Country/Regional Strategy

The Caucasus subregion is a land bridge between the Black Sea and the Caspian Sea. It is the shortest transit link from Central Asia to Europe and Turkey. The subregion, which once served caravans from the People's Republic of China to the West along the historic Silk Road, is a major conduit for crude oil from Central Asia and the Caucasus to Europe. The east-west highway between Azerbaijan and Georgia is already a major route for oil exports from Azerbaijan and Central Asian countries, in both cases relying on the ports of Poti and Batumi on the Balck Sea as the exit points.

Two international roads, E60 and E70 of the European network, form Georgia's East West Highway (EWH)-part of the Europe-Asia corridor through the Caucasus. It runs north from the Turkey border at Sarpi, serving the Black Sea ports of Batumi and Poti, then east to Tbilisi, and then southeast to the border with Azerbaijan, a total distance of 412 km. It will constitute the Central Asia Regional Economic Cooperation (CAREC) road corridor after Georgia joined the CAREC program in 2016. The EWH carries over 60% of the total foreign trade and is seen as a central piece in the government's strategy of playing the role of a transport and logistics hub in the region.

The government aims to leverage Georgia's transit and trade potential to boost private sector competitiveness and inclusive economic growth. The Socio-economic Development Strategy of Georgia (Georgia 2020) emphasizes environmental sustainability and integrating Georgia within regional and international transport systems. The broad strategic directions are to improve the transport system to link all parts of the country, and to connect its ports and airports to neighboring countries and beyond, aiming to make Georgia a regional and logistical hub and business platform, upgrade multimodal infrastructure, and ultimately transform Georgia into the preferred gateway between Asia and Europe.

Since 2004, supporting the government strategic thinking, development partners (World Bank, European Investment Bank, Japan International Cooperation Agency, and ADB) have jointly extended their assistance in government's rehabilitating and upgrading the EWH, the backbone of regional connectivity. Through their assistance and government's focused effort, as of 2015, about 155 km of the EWH were already upgraded and about 113 km were under rehabilitation. Out of remaining 144 km, about 94 km have already secured development partners' commitment for further financing. The government aims to complete the entire EWH rehabilitation and upgrading by 2020.

The Batumi Bypass road is a part of EWH running E70 and connecting Sarpi, the border with Turkey to Poti and further to Tbilisi and to the border with Azerbaijan. As transit traffic from Turkey keeps growing, the congestion cost in Batumi city reached an intolerable level (aggravating traffic congestion caused by transit traffic's running through heavily built up tourist and residential areas inside the city and mixing with dense urban traffic). The heavy transit traffic not only causes congestion problem but also poses serious social, environmental, and safety problems to local population and tourists in resort areas. It is urgently needed to reroute transit traffic outside of the Batumi city.

Impact Improving regional connectivity in Georgia so that it can play the role of regional transport and logistics hub
Project Outcome
Description of Outcome Efficiency for road transport along the EWH in Georgia improved
Progress Toward Outcome Actual progress of works executed since commencement (March 2018) to June 2018 amounts to 4% of the contract price. The delay in progress is mainly due to resettlement issues which are expected to be resolved before end of 2018.
Implementation Progress
Description of Project Outputs

New bypass road skirting Batumi constructed

Routine and periodic maintenance carried out using PBM contracts

Detailed design, EIA, detailed LARP and bidding documents for Batumi Bypass-Sarpi (Section of E-70 road)

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

Civil works contract for Batumi Bypass road was signed in August 2017 (JV Polatyol and Mapa). Construction supervision consultant for Batumi Bypass road was signed in September 2017 (SMEC International Pty. Ltd.). Construction works commenced in March 2018. Full access to site, except for the 6 problematic land plots, is expected to be given to the Contractor before end of 2018. Once full site access is provided, the contractor will provide a new work program to ensure all works are completed on time and within the budget.

Activities for routine and periodic maintenance using PBM contracts has not started.

Geographical Location Nation-wide, Batumi
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

In 2009, at the PPTA stage as required by ADB environment policy 2002, an environmental impact assessment (EIA) report was prepared and approved for the entire Adjara by-pass. Subsequently, in 2011, as part of detailed design, the EIA report was updated. In 2016, the EIA has again been revised to incorporate environmental impacts, new legislation, environmental management costs, new public consultations, climate change risks, and an assessment of the cumulative impacts. The updated EIA was disclosed on the ADB website on 2 November 2016.

The environmental impacts anticipated are largely concentrated in the construction phase and will result from the large scale of the project, and as the road passes through hilly terrain and the vicinity of settlements and water courses, soil erosion, noise, dust, vibration, air quality impacts are likely to be significant. Air quality, noise and vibration impacts are also expected during theeth operation phase. The environmental management plan (EMP) will include measures to minimize anticipated impacts during both construction and operation. Prior to construction, the EMP will be updated into a site specific EMP by the contractors. The site specific EMP will be prepared employing a risk assessment approach to select the impact and site appropriate mitigation measures.

Involuntary Resettlement

The project is categorized as A for involuntary resettlement. Based on the detailed inventory prepared during the feasibility study, 305 land parcels will be affected due to mostly small-scale land acquisition. Total private land to be acquired is 7.2 hectares.

There are 305 affected households comprising 803 affected people. Of these, 15 affected households will be physically displaced and 50 affected households, comprising 135 affected people, will be severely affected (either physically displaced and/or losing 10% or more of income producing assets). The project's draft land acquisition and resettlement plan (LARP) was prepared in 2015 and updated in 2016 based on the detailed design of the project. Community consultations have been conducted during project preparation and will be continued throughout LARP implementation.

Indigenous Peoples There are no indigenous peoples, as defined in Safeguard Policy Statement 2009, in the project area, and the project is classified as category C for indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design The main stakeholders of the project include public institutions (Ministry of Regional Development and Infrastructure and its Roads Department, Ministry of Finance) and project beneficiaries including business community and traders, freight forwarders, transport operators and the local community. The Project design has been prepared in consultation with all stakeholders.
During Project Implementation

Project preparation and implementation will include focus group discussions, workshops, community mobilization, in- depth interviews and consultations conducted for discussion on the environment and social safeguard issues, land acquisition and resettlement planning and implementation, and will address needs of the community and other social-related issues such as gender, HIV/AIDs, human trafficking, child labor etc.

Active CSOs/NGOs will be identified and, if required, engaged in consultative process during project preparation and implementation of LARP and during project implementation by Project Management Consultants and by Executing Agency.

The participation of the poor is important during implementation of land acquisition and resettlement plan to provide entitlements for assistance and livelihood restoration under LARP provisions. The EA will conduct meaningful consultation to ensure continued participation poor and excluded during LARP implementation.

Business Opportunities
Consulting Services Consulting services will be required for supervising construction and designing PBM contracts. Consultants will be recruited through firms in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Advance contracting and retroactive financing will be sought to ensure the readiness of the project.
Procurement Procurement of goods, civil works, and related services will be done in accordance with ADB's Guidelines for Procurement (2015, as amended from time to time). Advance contracting and retroactive financing has been applied to ensure the readiness of the project. The civil works contract was signed in August 2017.
Responsible ADB Officer Shanny Campbell
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 12 Oct 2016
Fact Finding 10 Oct 2016 to 19 Oct 2016
MRM 31 Jan 2017
Approval 28 Mar 2017
Last Review Mission -
Last PDS Update 25 Sep 2018

Loan 3520-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2017 12 Jun 2017 11 Oct 2017 31 Dec 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 201.20 Cumulative Contract Awards
ADB 114.00 28 Mar 2017 42.60 0.00 35%
Counterpart 87.20 Cumulative Disbursements
Cofinancing 0.00 28 Mar 2017 13.54 0.00 11%

Loan 8328-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jun 2017 17 Jun 2017 12 Oct 2017 30 Jun 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 114.00 Cumulative Contract Awards
ADB 0.00 15 Jun 2017 0.00 61.16 54%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 114.00 15 Jun 2017 0.00 18.53 16%

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.

Title Document Type Document Date
Batumi Bypass Road Project: Initial Environmental Examination Initial Environmental Examination Jun 2019
Batumi Bypass Road Project: Poti-Grigoleti Road Section (Lot 2, Stage 1) Updated Environmental Impact Assessment Environmental Impact Assessments Jun 2019
Batumi Bypass Road Project: Poti-Grigoleti Road Section (Lot 2, Stage 1) Environmental Impact Assessment Environmental Impact Assessments Apr 2019
Batumi Bypass Road Project: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jan 2019
Batumi Bypass Road Project: Land Acquisition and Resettlement Plan Section 1 and Addendum No. 2 Compliance Report No. 5 Social Monitoring Reports Dec 2018
Batumi Bypass Road Project: Social Monitoring Report (August 2016-June 2018) Social Monitoring Reports Dec 2018
Batumi Bypass Road Project: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Aug 2018
Batumi Bypass Road Project: Land Acquisition and Resettlement Plan Section 1 and Addendum No. 2 Compliance Report No. 3 Social Monitoring Reports Jul 2018
Batumi Bypass Road Project: Land Acquisition and Resettlement Plan Section 1 and Addendum No. 2 Compliance Report No. 2 Social Monitoring Reports May 2018
Batumi Bypass Road Project: Land Acquisition and Resettlement Plan Section 2 and Addendum No. 1 Compliance Report No. 1 Social Monitoring Reports Apr 2018
Batumi Bypass Road Project: Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Dec 2017
Batumi Bypass Road Project: Land Acquisition and Resettlement Plan (Addendum) Resettlement Plans Sep 2017
Batumi Bypass Road Project: Environmental Impact Assessment Environmental Impact Assessments Jan 2017
Batumi Bypass Road Project: Section 2 Resettlement Plan Resettlement Plans Dec 2016
East-West Road Corridor (Batumi Bypass) Project: Environmental Impact Assessment Environmental Impact Assessments Oct 2016
Batumi Bypass Road Project: Section 1 (First 7 km) Resettlement Plan Resettlement Plans Aug 2016

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
Supervision of the Construction of Poti Bridge and Access Roads Firm - Consulting Active 19 Jul 2019 17 Aug 2019
National Environment Specialist Individual - Consulting Closed 01 May 2019 07 May 2019
National Project Implementation Specialist Individual - Consulting Closed 11 Mar 2019 17 Mar 2019
National Contract Manager Individual - Consulting Closed 15 Nov 2018 21 Nov 2018
National Road Asset Management Specialist Individual - Consulting Closed 15 Nov 2018 21 Nov 2018
National Project Implementation Specialist Individual - Consulting Closed 20 Mar 2018 26 Mar 2018
National Environmental External Monitoring Consultant Individual - Consulting Closed 18 Jan 2018 24 Jan 2018
National External Monitoring Consultant Individual - Consulting Closed 05 Oct 2017 18 Oct 2017
GEO: Batumi Bypass Road Project Advance Notice Archived 19 Oct 2016

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSTRUCTION OF BATUMI BYPASS ROAD, SECTION KM -1 000 - KM 13 325 Loan 3520 20 Oct 2017 JV POLATYOL & MAPA UZUNCAYIR YOLU CAD HAMZA POLAT IS MERKE- ZI NO.634722 HASANPASA KADIKOY, ISTANBUL TURKEY Min. of Regional Dev't.& Infrastructure of Georgia CONSTRUCTION 132,755,028.00 39,532,573.00
CONSTRUCTION SUPERVISION OF BATUMI BYPASS ROAD PROJECT Loan 3520 20 Oct 2017 SMEC INTL PTY LTD, SUBCON LEADER+&UNIPROFGUFI LEVEL 10, 71 QUEENS ROAD MELBOURNE VIC 3004 AUSTRALIA Min. of Regional Dev't.& Infrastructure of Georgia 8,693,716.00 3,611,969.00

Procurement Plan

Title Document Type Document Date
Batumi Bypass Road Project: Procurement Plan Procurement Plans May 2019