Georgia : Batumi-Sarpi Bypass Project

Project Name

Batumi-Sarpi Bypass Project

Project Number

50388-001

Country / Economy

• Georgia

Project Status

Proposed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan: Batumi-Sarpi Bypass Project

Source	Amount
Ordinary capital resources	US$ 200.00 million

Strategic Agendas

• Inclusive economic growth
• Regional integration

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Knowledge solutions
• Partnerships

Sector / Subsector

• Transport / Road transport (non-urban)

Gender

Some gender elements

Description

Recognizing these systemic challenges, the government has requested ADB''s assistance to construct an approximately 12 kilometers (km) long bypass road to enable year-round traffic movements and facilitate trade on the strategically important East- West Corridor. The project road will provide opportunities for tourism development in the Adjara Black Sea region by reducing travel time along the Black Sea coast and reducing congestion and/or road safety problems at the busiest border crossing point (Sarpi). The project road will be constructed to two-lane asphalt surfaced standard, with at least one long tunnel and several bridges (output 1). Innovation in financing solutions has been introduced though provision of a study (output 2) of options for public private partnership (PPP) or similar for a highway rest area and logistics facility.

Project Rationale and Linkage to Country/Regional Strategy

Georgia enjoys a strategically advantageous location at the crossroads between Europe and Asia. Recent free trade agreements with its main trading partners (total trade 2018 Turkey $1.7 billion, Russian Federation $1.37 billion, Azerbaijan $1.09 billion, and Peoples Republic of China $1.03 billion) have furthered its ambitions to become a regional transit hub. Exports by road and by sea grew on average 39% and 29% per annum by value between 2016 and 2018. Georgia's geographical location positions the country at the center of north-south transit routes linking the Russian border (Larsi) to the Armenian border (Sadakhlo), and east -west routes linking the Azerbaijan border (Red Bridge) to the Turkish border (Sarpi).

Rehabilitation and modernization of road infrastructure has consistently been a top government priority over the last 12 years. The national development strategy aims to transform Georgia into a regional transport and logistics hub. Government investments have focused on the road sector, with rail and port sectors financed largely by the private sector. The Ministry of Regional Development and Infrastructure (MRDI) Action Plan for 2018 -2021 has budgeted GEL7.3 billion for internationally and nationally important roads. The government has targeted its financing and priority interventions on the East -West Highway, the North -South Corridor, and critical sections of the secondary road network.

The road network extends to approximately 22,000 km, including about 1,600 km of international roads and 5,300 km of secondary roads managed by the Roads Department under the MRDI, as well as 15,000 km of local roads managed by district administrations. While most of the international roads (90%) are in good or fair condition, about 30% of the secondary roads and 60% of the local roads are in poor condition. The implementation of the Roads Department's program on highways improvement will lead to a dramatic increase of its asset base of large bridges and tunnels, which will in turn require new skills and expertise that do not currently exist in-country.

The Roads Department has prepared, under ADB financing, a feasibility study to select an alignment to upgrade the current (mostly coastal) 11 kilometer (km) road from the terminus of Batumi bypass to the Turkish border at Sarpi, being the southernmost portion of the E60 motorway within Georgian territory and the eastern most part of CAREC corridor 2. Four possible alignments were studied including the option of upgrading the current road to international standard. In addition to geology, environment, land acquisition and technical specifications for tunnels, bridges, drainage and pavement, the final alignment had to factor in town planning of the border crossing area at Sarpi, plans of the Adjara autonomous government to further develop the coastal area, and the sensitive environmental nature of the Chorokhi river. The study concluded that due to the congested nature of the border arrival area in the middle of the Sarpi town square, the best option was an immediate tunnel through the mountains to the east, diverting traffic along an approximately 12 km alignment consisting of at least one major tunnel (around 4.5 km), several bridges and overpasses.

Impact

Regional connectivity in Georgia improved

Outcome

Efficiency of road transport along the East West Highway (EWH) in Georgia improved

Outputs

Batumi Sarpi bypass road constructed

Highway rest area and/or logistics facility ready for private sector investment and operation

Geographical Location

Batumi

Safeguard Categories

Environment

A

Involuntary Resettlement

A

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

Business Opportunities

Consulting Services

ADB will engage the consultants, through the technical assistance, following the ADB Procurement Policy (2017, as amended from time to time) and its associated project staff instructions.

Procurement

All contracts will be procured in accordance with ADB Procurement Policy (2017, as amended from time to time) and its associated staff instructions. Social and environmental assessment, documentation, consultation, and disclosure requirements will be undertaken in compliance with ADB''s Safeguard Policy Statement 2009.

Contact

Responsible ADB Officer

Herz, Thomas

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

Road Department - Ministry of Regional Development and Infrastructure
12 Khazbegi Str. 0160 Tbilisi
Georgia

Timetable

Concept Clearance

27 Sep 2019

Fact Finding

07 Feb 2022 to 11 Feb 2022

MRM

14 May 2022

Approval

-

Last Review Mission

-

Last PDS Update

07 Oct 2019

Funding