Regional: Support to Improve Cross-Border Railway Services between Armenia and Georgia

Sovereign Project | 55329-001

This SSTA will assess the economic potential of the Tbilisi-Yerevan rail corridor and identify viable investment interventions. It will conduct analyses on (i) rail freight and passenger demand assessment, including competition from other modes of transportation; (ii) pricing of current freight and passenger services; (iii) infrastructure investment needs to enable competitive rail services; (iv) required rolling stock investment; (v) connectivity options and obstacles on the Armenian and Georgian railway networks; and (vi) required organizational capacity building, in particular in terms of business development and marketing.

Project Details

  • Project Officer
    Herz, Thomas
    Central and West Asia Department
    Request for information
  • Country
    Regional
  • Sector
    • Transport
Project Name Support to Improve Cross-Border Railway Services between Armenia and Georgia
Project Number 55329-001
Country Regional
Armenia
Georgia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6861-REG: Support to Improve Cross-Border Railway Services between Armenia and Georgia
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description This SSTA will assess the economic potential of the Tbilisi-Yerevan rail corridor and identify viable investment interventions. It will conduct analyses on (i) rail freight and passenger demand assessment, including competition from other modes of transportation; (ii) pricing of current freight and passenger services; (iii) infrastructure investment needs to enable competitive rail services; (iv) required rolling stock investment; (v) connectivity options and obstacles on the Armenian and Georgian railway networks; and (vi) required organizational capacity building, in particular in terms of business development and marketing.
Project Rationale and Linkage to Country/Regional Strategy

Railways have the potential to transform a country from being landlocked into being land-linked and facilitate increased regional cooperation and integration. Armenia's railway sector is significantly contributing to maintaining the competitiveness of the country, with a significant modal share of approximately 27%. The country's railway sector involves many stakeholders, the main one being the South Caucasus Railway (SCR) in Armenia and Georgian Railway (GR) in Georgia. Besides SCR and GR, these include the mining industry, the freight forwarding and logistics sector, the tourism sector, and municipalities served by the rail passenger services.

The Yerevan-Tbilisi corridor is a vital economic axis. The combined population of the two capitals is 2.2 million, and the corridor is the main entry gate for land-traveling tourists. The distance from Yerevan to Tbilisi on the existing railway is 370 km which is within the ideal competitive distance-range for passenger train services. Current technical performance of the Armenian railway is low the average operating speed is 30 km/hour except for an express service between Yerevan and Gyumri that averages 70 km/hour. Travel time between Yerevan and Tbilisi in Georgia is currently 5-6 hours by road and around 10 hours by rail.

Impact Efficient, modern, demand-driven and affordable railway transport developed.
Project Outcome
Description of Outcome Prefeasibility study including a list of priority investments and organizational requirements to improve performance of freight and passenger transport on the rail corridor between Tbilisi and Yerevan completed
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Passenger and freight potential on the Tbilisi-Yerevan rail corridor assessed.

Investment needs for infrastructure, auxiliary systems, rolling stock and safeguards impacts assessed.

Economic viability of investment options assessed.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Armenia - Nation-wide, Yerevan; Georgia - Nation-wide, Tbilisi
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Herz, Thomas
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Economy (MOE)
5 M. Mkrtchyan Street, Yerevan 0010, Republic of Armenia
Ministry of Economy and Sustainable Development of Georgia
2 Sanapiro Str., Tbilisi, 0105
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 08 Dec 2021
Last Review Mission -
Last PDS Update 09 Dec 2021

TA 6861-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2021 - 08 Dec 2021 30 Nov 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 06 Jan 2022 0.00

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