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| Loan Name | Road Corridor Investment Program - Project 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Country | Georgia, Republic of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan Number | 2560 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Project Number | 41122- 02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fund Source/Amount[Approved] |
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| Thematic Classification |
Economic growth
Private Sector Development Capacity Development |
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| 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. |
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| Impact | Increase in subregional trade and tourism revenues. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 land acquisition and resettlement plan for the 1st tranche is being prepared in accordance with the land acquisition and resettlement framework. |
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| 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. |
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| During Project Implementation | Stakeholder participation and consultation will continue during implementation of the Program and each tranche project. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Procurement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consulting Services | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 |
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| Responsible ADB Department |
Central and West Asia Department |
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| Responsible ADB Division |
Transport and Communications Division, CWRD |
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| Executing Agencies |
Road Department-Min. of Reg. Devt & Infrastructure |
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| Timetable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concept Clearance | 29 May 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fact-finding | 01 Jun 2009 to 12 Jun 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board Approval | 06 Oct 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Last Review Mission | 19 Oct 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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