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| TA Name | Railway Investment Development Program | |||
| Country | Armenia, Republic of | |||
| Project Number | 43106- 01 | |||
| Fund Source/Amount[Proposed] |
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| Thematic Classification |
Regional Cooperation
Economic growth Capacity Development |
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| Linkage to Country/Regional Strategy |
For Armenia, the following areas are identified suitable for ADB assistance: (i) regional cooperation, (ii) rural development, and (iii) private sector development. The TA supports regional cooperation and is in line with ADB's Strategy 2020 and its Country Operational Business Plan 2008¿2010 for Armenia.
Armenia relies on its railway system for about 70% of imports and exports. Once heavily used, rail operations fell 10-fold since the independence in 1991. This was due to the decline in rail-based industries and output in Armenia as a result of the closing of its border with Azerbaijan and Turkey. The growing mining industry in south Armenia is emerging as a major industrial output to be transported to the ports of Black Sea. Armenia's closed borders with its neighbors entail high transport cost and therefore, transit of goods through Armenia is nonexistent. Faced with competing opportunities across the Caucasus for regional transport, Armenia is determined to develop transit routes across its territory to enable shorter links and faster services. Armenia's trade regime is liberal. Modernizing existing rail and road infrastructure and developing new transit corridors from north to south are high priorities of the Government. ADB assistance to Armenia focuses on developing regional transport networks linking other Caucasus countries and Central Asia. It will strengthen Armenia's economic competitiveness, trade and business opportunities, thereby contributing to its economic development. |
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| Impact | The TA will contribute to sustained economic growth in Armenia and regional integration by expanding regional transport links. | |||
| Outcome | The outcome will be (i) an agreed investment program to link southern and northern regions of Armenia by rail and link Armenia to its trading partners in the region, and (ii) an agreed design of Project 1 suitable for ADB financing. | |||
| Outputs and Timeframe | The TA's outputs will be (i) feasibility analysis of the Government's north-south railway corridor program, (ii) railway sector roadmap and investment program to be financed by a multitranche financing facility (MFF), (iii) environment and social safeguards framework documents for the MFF; (iv) feasibility study and preliminary project design for the first tranche of the MFF, (iv) safeguards documents for the first tranche of the MFF, and (v) draft bidding documents for the first tranche of the MFF. | |||
| Geographical Location | Throughout Armenia | |||
| Summary of Environmental and Social Issues | The Program will reduce poverty by indirect contribution through expansion of transport links, widening access, accelerating economic activity and increasing employment. The Program will: i) reduce transport costs, ii) increase mining industry income, iii) raise agriculture productivity, iv) promote tourism, v) enhance access of remote areas population to social services institutions, vi) balance regional development within the country, thus increasing employment opportunities, and accordingly reducing poverty. | |||
| Stakeholder Participation and Consultation | Consultations will be carried out during PPTA implementation. Specific measures will be designed during the PPTA to ensure that C&P is carried out during the ensuing project implementation stages. | |||
| Procurement | ||||
| Consulting Services | The input of international and national experts will be required in the field of railway engineering, operation, economics, finance and social and environment safeguards. The total of 19 person-months of international and 25 person-months of national consulting inputs will be required from a consulting firm over the period of 6 months. The consulting firm will be selected on the basis of quality- and cost-based selection method with simplified technical proposal and 20:80 cost-quality ratio, following ADB's Guidelines on the Use of Consultants. | |||
| Responsible ADB Officer |
Arto T. Ahonen |
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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 |
Ministry of Transport & Communication |
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| Timetable | ||||
| Concept Clearance | 08 Jun 2009 | |||
| Fact-finding | 11 May 2009 to 18 May 2009 | |||
| Approval | Oct 2010 | |||
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