MFF - Road Corridor Investment Program : Georgia, Republic of

Go to Project Summary

MFF - Road Corridor Investment Program : Georgia, Republic of

Timetable

MFF-Facility Concept

MFF - Road Corridor Investment Program

Country

Georgia, Republic of

MFF-Facility Concept Number

OO34/OO34

Project Number

41122- 01

Fund Source/Amount[Proposed]

Asian Development Fund	US$118.80 million
Ordinary Capital Resources	US$381.20 million

Thematic Classification

Social Development
Private Sector Development
Regional Cooperation

Project Rationale

Georgia serves as the shortest transit link between Central Asia and Europe, Russian Federation and Turkey. The physical location of Georgia ensures that it is a key transport link on the most direct route between the Black Sea and the Caspian Sea and the Central Asian countries. Recognizing the strategic importance of a transit route connecting Central Asia and the Caspian Sea to Europe, the Government has accorded top priority rehabilitating and upgrading the East-West Highway to an international standard. Although development of the main road network remains the first priority of the Government, a new strategic perspective has emerged. This calls for the development of a wider network of roads. The reprioritization highlights the importance of the Tbilisi-Akhalkalaki-Akhaltsikhe-Batumi road (on the southern part of the country along the Turkish border) and some cross-connections from the main road network to it.

The development of subregional multi-corridors helps exploit Georgias locational advantage as a transit hub. Efficiently functioning multi-corridors will reduce the cost of subregional and international transport, benefiting both the local economy and the economy of the subregion, thereby stimulating the development of Euro-Asia trade links. The subregional multi-corridors also serve as principal domestic corridors linking the major cities, ports and tourist centres, and their development enhances economic growth through more efficient passenger and freight transport.

The proposed MFF supports investments under the sector roadmap, develop subregional road multi-corridors, particularly alternative cross-border routes connecting surrounding South Caucasus countries and Turkey.

Impact

The Investment Program under the MFF will promote country development and subregional trade, and accelerate regional cooperation and integration. It will create better trade logistic corridors, and, in this manner, facilitate cross-border movement of people and cargos.

Outcome

The outcome will be an improved subregional road network. Successful implementation of the Program will result in (i) more efficient subregional road traffic through Georgia, (ii) increased trade flows and competitiveness, (iii) lower transport costs, (iv) increased mobility and accessibility to markets, jobs, and social services, (v) improved governance.

Outputs

The outputs will be (i) an expanded and improved subregional road network, and (ii) effective and efficient management of the road network. The outputs will be achieved from three components: (i) road infrastructure, (ii) road network management capacity development, and (iii) road safety improvement.

Outputs for the 1st tranche project will be (i) a new 2-lane bypass road of 34 km detouring Kobuleti, (ii) better asset management capacity of the Road Department; and (iii) improved road safety. These will be achieved through 4 components: (i) construction of the bypass road; (ii) capacity development program; (iii) road safety improvement package; and (iv) project support, including detailed design and supervision consultancy.

Outputs for the 2nd tranche project will be (i) a new 2-lane bypass road of 14 km detouring Batumi, (ii) improved cross-border procedures and (iii) feasibility study for the 3rd tranche project. These will be achieved through 3 components: (i) construction of the bypass road; (ii) improvement of border infrastructure for customs and harmonization and simplification of cross-border procedures and documents; and (iii) project support including the feasibility study for the 3rd

Safeguard Categories

Indigenous People

Summary of Environmental and Social Issues

Social Aspects

Poverty and social analysis including gender analysis will be conducted for all investments financed under the MFF. This work will follow ADB's Handbook on Social Analysis (2007). The overall (both direct and indirect) poverty reduction impacts are (i) reduced transport cost; (ii) jobs from construction and maintenance; and (iii) improved access to markets and social services.

The impact on land acquisition and resettlement will be assessed during the due diligence phase following ADB's Involuntary Resettlement Policy (1995) and relevant laws and regulations in Georgia. A land acquisition and resettlement framework was prepared. This specifies compensation provisions and procedures for the preparation and implementation of resettlement plans.

Environmental Aspects

Environmental assessment will be conduced for all projects financed under the MFF in accordance with the Environmental Assessment and Review Framework prepared by the Government and agreed with ADB in compliance with ADBs Environment Policy (2002) as well as relevant laws and regulations in Georgia.

Stakeholder Participation and Consultation

During Project Design

The Road Department under the Ministry of Regional Development and Infrastructure (MORDI) conducts regular public consultations with nongovernment organizations (NGOs) and local governments in the project area. As part of the feasibility study, wide-ranging consultations were conducted in the project area with NGOs, local government, and affected people.

Public consultations were conducted in Batumi with various stakeholders including the representatives from the affected community. The consultation involved a wide range of participants representing affected people, community leaders, civil society, NGOs, environmental professionals, and central and regional government officials. The stakeholder consultations were held in Tbilisi and Batumi in March, April and June 2009. The objective was to share information on the project and obtain feedback on its design.

During Project Implementation

Stakeholder participation and consultation will continue during implementation of the Program and each tranche project.

Procurement

Consulting Services

Consulting services will be required for capacity development, road safety improvement, and project implementation. Key tasks include (i) detailed design, (ii) construction supervision, (iii) monitoring of project performance and reporting, (iv) road safety training, amendment of road safety regulations, and development of intelligence traffic system standards, and (iv) capacity development of Roads Department. The consulting services will be financed from ADB loans. Roads Department will select and engage the consultants following ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality-based selection method for detailed design and supervision consultants and the quality- and cost-based selection method (80:20) for capacity development and road safety improvement consultants.

Project 1 will require a total of 1,330 person-months (230 international and 1,100 national) of services from consulting firms. This comprises (i) 1,056 person-months (164 international and 892 national) for detailed design of Project 1 and Project 2, construction supervision, and project monitoring and evaluation; (ii) 31 person-months (11 international and 20 national) for road safety; and (iii) 243 person-months (55 international and 188 national) for RD's capacity development. Additional consulting services, if necessary, will be procured under subsequent projects. The consulting services will be financed from ADB loans.

Civil Works/Goods

Procurement will be carried out following ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding procedures will be followed for contracts with an amount above $1 million for civil works and $500,000 for goods. The upper limit for a civil works contract through national competitive bidding procedures will be set at $1 million. National competitive bidding will be conducted under Georgia's legislation on state procurement, subject to modification and clarification set forth in the procurement plan.

Responsible ADB Officer

Dong-Soo Pyo

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Transport and Communications Division, CWRD

Executing Agencies

Road Dept-Min.of Reg. Devt. and Infrastructure

Concept Clearance

29 May 2009

Fact-finding

01 Jun 2009 to 12 Jun 2009