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Georgia: North–South Corridor (Kvesheti–Kobi) Road Project

Sovereign (Public) Project | 51257-001 Status: Active

The project will improve connectivity and safety along the North-South Corridor by (i) constructing about 23 kilometers (km) of climate-resilient two-lane highway between Kvesheti and Kobi (the project road) and about 5 km of all-weather access roads, and (b) increasing road safety awareness; (ii) establishing a visitor center in the Khada Valley to support tourism activities; and (iii) enhancing the capacity of the Roads Department on project and contract management. The project expands efforts of the Asian Development Bank (ADB) and other development partners to upgrade the country's national highway network along key economic corridors. It will enhance inclusive economic growth and regional connectivity.

The project is aligned with the following impacts: (i) economic growth and regional connectivity enhanced; and (ii) trade, tourism, and economic corridors improved. The project will have the following outcome: connectivity, safety, and livelihoods along the North-South Corridor improved.

Project Details

Project Officer
Bouhmad, Kamel Central and West Asia Department Request for information
Country
  • Georgia
Sector
  • Transport
 
Project Name North–South Corridor (Kvesheti–Kobi) Road Project
Project Number 51257-001
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3803-GEO: North-South Corridor (Kvesheti-Kobi) Road Project
Ordinary capital resources US$ 415.00 million
Loan: North-South Corridor (Kvesheti-Kobi) Road Project
European Bank for Reconstruction and Development US$ 60.00 million
Strategic Agendas Environmentally sustainable growth
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 Equity and Mainstreaming Effective gender mainstreaming
Description

The project will improve connectivity and safety along the North-South Corridor by (i) constructing about 23 kilometers (km) of climate-resilient two-lane highway between Kvesheti and Kobi (the project road) and about 5 km of all-weather access roads, and (b) increasing road safety awareness; (ii) establishing a visitor center in the Khada Valley to support tourism activities; and (iii) enhancing the capacity of the Roads Department on project and contract management. The project expands efforts of the Asian Development Bank (ADB) and other development partners to upgrade the country's national highway network along key economic corridors. It will enhance inclusive economic growth and regional connectivity.

The project is aligned with the following impacts: (i) economic growth and regional connectivity enhanced; and (ii) trade, tourism, and economic corridors improved. The project will have the following outcome: connectivity, safety, and livelihoods along the North-South Corridor improved.

Project Rationale and Linkage to Country/Regional Strategy

The Government of Georgia is making substantial investments in infrastructure intended to take advantage of its location and tourism attractions, and is emphasizing the country's transit trade through development of the East-West and North-South

transport corridors. The East-West Highway is part of Corridor 2 of the Central Asia Regional Economic Cooperation (CAREC) Program, and connects to the North South Corridor at Mtskheta, directly north of Tbilisi. The East West Highway is being upgraded with the assistance of ADB, the European Investment Bank, the Japan International Cooperation Agency, and the World Bank. The North-South Corridor connects the Russian border (Kazbegi) to the Armenian border (Sadakhlo) and the Azerbaijani border (Red Bridge). It is a lifeline for Georgian and Armenian economic activities, and provides the only land access to the Russian Federation.

The North-South Corridor connects Tbilisi (1,159,000 people) to the Mtskheta-Mtianeti region (95,000 people) in the north and to the Kvemo Kartli region (424,000 people) in the south. It serves as the main transport artery for the Mtskheta-Mtianeti region, and spans quite diverse and spectacular terrain, from the historic capital of Georgia (Mtskheta) north

to Stepantsminda in the Greater Caucasus mountains. The region is home to many tourist attractions, including cultural heritage sites, ski resorts, natural park, and monuments. Traffic disruption, adverse climate conditions, safety hazards, and slow travel times are major impediments to meeting increasing transport demand and harnessing the tourism potential of the region. The government has developed a tourism strategy for the region that identified, through a value chain analysis, a number of opportunities and priority interventions for the Gudauri and Khada valleys. Lack of tourist information centers, inadequate guest house services, and limited guide training were identified among the possible areas for improvements.

Through the project, ADB will help the government in: (i) ensuring that adequate climate change adaptation, gender-sensitive, and road safety features are incorporated into the engineering design; (ii) implementing a biodiversity action plan and a stakeholder engagement plan to mitigate key project risks; and (iii) expanding the regional spillover and economic benefits supported by other ADB-assisted projects in Georgia and Armenia. Further, ADB's leading role in the CAREC program will provide the government with tools and opportunities for information sharing and learning on road safety and asset management.

Impact Economic growth and regional connectivity enhanced; Trade, tourism, and economic corridors improved
Project Outcome
Description of Outcome Connectivity, safety, and livelihoods along the North-South Corridor improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Project roads constructed, and road safety awareness increased

Khada Valley visitor center established

Capacity of the Roads Department for project and contract management enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location K'veshet'i, Kobi
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The proposed project is a greenfield project that passes through difficult mountainous terrain. The project is classified as category A for environment impacts. An Environmental Impact Assessment is being prepared in accordance with ADB's Safeguard Policy Statement 2009.
Involuntary Resettlement The project is classified as category A for involuntary resettlement impacts. A Land Acquisition and Resettlement Plan is being prepared in accordance with ADB's Safeguard Policy Statement 2009.
Indigenous Peoples The project is classified as category C for impacts on indigenous peoples impacts (no indigenous peoples in the project area).
Stakeholder Communication, Participation, and Consultation
During Project Design During project design, stakeholders participation in any form of communication accessible to them will be conducted to ensure that the general public understands the proposed project.
During Project Implementation Public consultations with relevant government agencies, local residents, and other participants will be encouraged to ensure proper dissemination of information regarding the proposed project.
Business Opportunities
Consulting Services

Consulting services will be required for supervising two civil works 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.

The project management and construction supervision consultant contract was awarded to UBM Uluslararasi Birlesmis Musavirlik A.S. in June 2019; and mobilized in August 2019. An individual external monitor for land acquisition and resettlement plan contract was awarded in July 2019. The financial audit contract awarded in November 2018 under L3520 will be partially financed by the project.

Procurement

Procurement of all contracts through open competitive bidding will be done in accordance with ADB Procurement Policy and Regulations (2017, as amended from time to time). Advance contracting and retroactive financing will be considered and used to expedite the Project implementation. ADB approval of advance contracting will not commit ADB to subsequently approve the project or to finance the procurement costs.

The two civil works contracts for the construction of the Kvesheti-Kobi Road were awarded to (i) China Railway 23rd Bureau Group Co., Ltd. in August 2019 (Road Section); and (ii) China Railway Tunnel Group Co., Ltd. in September 2019 (Tunnel Section).

Responsible ADB Officer Bouhmad, Kamel
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Georgia Resident Mission
Executing Agencies
Ministry of Regional Development and Infrastructure of Georgia
12 Khazbegi Str. 0160 Tbilisi
Georgia
Timetable
Concept Clearance 01 Aug 2018
Fact Finding 30 Apr 2019 to 03 May 2019
MRM 28 May 2019
Approval 01 Aug 2019
Last Review Mission -
Last PDS Update 01 Aug 2019

Loan 3803-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Aug 2019 27 Aug 2019 28 Oct 2019 31 Dec 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 558.60 Cumulative Contract Awards
ADB 415.00 01 Aug 2019 315.16 0.00 75%
Counterpart 83.60 Cumulative Disbursements
Cofinancing 60.00 01 Aug 2019 63.77 0.00 15%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory Satisfactory -

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.

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
Land Acquisition and Resettlement Plan National External Monitor Individual - Consulting Closed 02 Jul 2019 07 Jul 2019
Loan No. 51257-GEO: North–South Corridor (Kvesheti–Kobi) Road Project [KKRP/CW/CP-01R] REBIDDING Invitation for Bids Closed 21 Feb 2019 22 May 2019
Loan No. 51257-GEO: North-South Corridor (Kvesheti-Kobi) Road Project [KKRP/CW/CP-02] Prequalified applicants Active 05 Nov 2018
PROJECT MANAGEMENT AND CONTRACT SUPERVISION Firm - Consulting Closed 25 Jun 2018 24 Jul 2018
Loan No. 51257-GEO: North-South Corridor (Kvesheti-Kobi) Road Project [KKRP/CW/CP-02] Invitation for prequalification Closed 05 Jun 2018 18 Jul 2018
GEO: North-South Corridor (Kvesheti-Kobi) Road Project Advance Notice Active 28 May 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PROJECT MANAGEMENT AND CONTRACT SUPERVISION (PMCSC) CS-01 Loan 3803 06 Nov 2019 UBM ULUSLARARASI BIRLESMIS MUSAVIRLER [email protected] TURKEY Min. of Regional Dev't.& Infrastructure of Georgia CONSULTANCY 8,281,230.24 6,791,803.78
CONSTRUCTION OF KVESHETI-KOBI ROAD (TUNNEL SECTION) CP-01R Loan 3803 06 Nov 2019 CHINA RAILWAY TUNNEL GROUP CO., LTD. CHAOYANG DISTRICT, BEIJING, CHINA CHINA,PEOPLE'SREP.OF Min. of Regional Dev't.& Infrastructure of Georgia CONSTRUCTION 330,785,202.42 217,185,534.89
CONSTRUCTION OF KVESHETI-KOBI ROAD (ROAD SECTION) CP-02 Loan 3803 06 Nov 2019 CHINA RAILWAY 23RD BUREAU GROUP CO., LTD CHENGDU CITY, SICHUAN CHINA,PEOPLE'SREP.OF Min. of Regional Dev't.& Infrastructure of Georgia CONSTRUCTION 113,079,810.73 92,932,570.45

Procurement Plan