Georgia : Batumi Bypass Road Project
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 Details
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Project Officer
Naqvi, Zaigham Ali Akbar
Sectors Group
Request for information -
Country/Economy
Georgia -
Modality
-
Sector
- Transport
| Project Name | Batumi Bypass Road Project | ||||||||
| Project Number | 50064-001 | ||||||||
| Country / Economy | Georgia |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Transport / Road transport (non-urban) |
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| Gender | 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 EastWest 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. |
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| Impact | Improving regional connectivity in Georgia so that it can play the role of regional transport and logistics hub |
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| Project Outcome | |
|---|---|
| Description of Outcome | Efficiency of road transport along the EWH in Georgia improved |
| Progress Toward Outcome | A review mission fielded from 26 September to 10 October 2022 to review the implementation progress of the project. |
| Implementation Progress | |
| Description of Project Outputs | New bypass road skirting Batumi constructed Detailed design, EIA, detailed LARP and bidding documents for Batumi Bypass-Sarpi road endorsed New Poti Bridge and approach roads, and new Bakurtsikhe-Tsnori road constructed |
| Status of Implementation Progress (Outputs, Activities, and Issues) | As of 31 October 2022, cumulative works progress for the Batumi Bypass Road section is about 75.7%. Extension of the works' contract is under discussion. Works is expected to be completed by 2023. The government requested to cancel the procurement for rehabilitation works of the 21 km road and 7 landslide sections under the loan. Due to urgent rehabilitation needs, the government will finance the works under the State budget financing. The Design Consultant for the Batumi-Sarpi Bypass Road remobilized in September 2022. Detailed design activities are expected to be completed in 8 months. The works for the Bakurtsikhe-Tsnori Road commenced in March 2022. As of 31 October 2022, cumulative works progress is about 2.3%. The works for the Poti Bridge and Approach Road commenced in May 2022. Contractor's mobilization is ongoing. |
| Geographical Location | Nation-wide, Batumi |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | A |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| 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 the 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 | |
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| 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 | Naqvi, Zaigham Ali Akbar |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Transport Sector Office (SG-TRA) |
| Executing Agencies |
Ministry of Regional Development and Infrastructure of 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 | 28 Dec 2022 |
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 | 31 Dec 2025 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 201.20 | Cumulative Contract Awards | |||
| ADB | 114.00 | 12 Sep 2023 | 93.78 | 0.00 | 78% |
| Counterpart | 87.20 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 12 Sep 2023 | 57.40 | 0.00 | 48% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | - | - | Satisfactory |
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 | 31 Dec 2025 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 114.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 12 Sep 2023 | 0.00 | 65.47 | 57% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 114.00 | 12 Sep 2023 | 0.00 | 52.86 | 46% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | - | - | Satisfactory |
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ADB Investment in Batumi Bypass to Improve Logistics, Transport in Georgia
ADB has approved a $114 million loan to help improve regional connectivity and road transport efficiency in Georgia, while strengthening the country’s bid to become a regional transport and logistics hub.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Construction of Poti Bridge and Access Roads | Loan 3520 | 03 Dec 2021 | Construction Service LLC | City Rustavi, Mazniashvili Street N2 | Min. of Regional Dev't.& Infrastructure of Georgia | 19,665,781.42 | 16,018,719.17 |
| Construction of Bakurtsikhe-Tsnori Road Section | Loan 3520 | 03 Dec 2021 | China Road and Bridge Corporation | C88 Andingmenwai Dajie, Beijing | Min. of Regional Dev't.& Infrastructure of Georgia | 28,386,888.70 | 23,022,744.34 |
| Construction Supervision of Bakurtsikhe-Tsnori Road Section | Loan 3520 | 12 Nov 2021 | IRD Engineering S.R.L. | Lungotevere Delle Navi, 30 00196, Rome | Min. of Regional Dev't.& Infrastructure of Georgia | 1,782,590.80 | 1,504,868.42 |
| CONSTRUCTION SUPERVISION OF POTI BRIDGE AND ACCESS ROADS | Loan 3520 | 15 Jun 2021 | JV UBM ULUSLARARASI & IRD ENGINEERING | KAZIM OZALP MAHALLESI RESIT GALIP CADDESI NO: 94 06680 CANKAYA/ANKARA TURKEY | Min. of Regional Dev't.& Infrastructure of Georgia | 1,704,308.32 | 1,445,259.62 |
| PREPARATION OF DETAILED DESIGN & BIDDING DOCUMENTS FOR CONSTRUCTION OF BAKURTSIKHE-TSNORI (16 KM) ROAD SECTION | Loan 3520 | 16 Oct 2020 | KOCKS CONSULT GMBH | STEGEMANNSSTRABE 32-38, D-56068 KOBLENZ GERMANY | Min. of Regional Dev't.& Infrastructure of Georgia | 227,600.00 | 192,881.36 |
| DED, EIA, DETAILED LARP, & BID DOCS FOR CONSTRUCTION OF BATUMI BYPASS-SARPI (BORDER OF TURKEY) SECTION OF INTERNATIONAL E-70 ROAD (ACTIVITY 2) | Loan 3520 | 19 Sep 2019 | JV SPEA ENGINEERING SPA & IRD ENGINEERING SRL | VIA ALBERTO BERGAMINI, 50 ROME ITALY | Min. of Regional Dev't.& Infrastructure of Georgia | 3,473,617.97 | 1,488,366.26 |
| 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 |
| 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 | 132,755,028.00 | 39,532,573.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Batumi Bypass Road Project: Procurement Plan | Procurement Plans | Aug 2023 |