North-South Corridor (Sisian-Kajaran) Road Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a sovereign loan of up to EUR 236 million to co-finance the construction of the 24-km Southern section of the Sisian-Kajaran road (the "Project"), part of the international North-South Road Corridor ("NSRC").

The Sisian-Kajaran road also consists of the Bargushat tunnel and the Northern road section, expected to be financed by the European Investment Bank ("EIB"), the Asian Development Bank ("ADB"), and the Government of Armenia.

Project ID 51293

Status Signed

Location

Armenia

Business Sector

Transport

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

"Road Department" FUND
info@armroad.am
+37410511391
https://armroad.am/en
Government House 3, Republic Square, Yerevan 0010

Project ID 51293

Status Signed

Location

Armenia

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

01 May 2024

Disclosure date

26 Feb 2024

Project description

Project objectives

The Project is critical for Armenia's national and regional connectivity, and is expected to substantially reduce the travel distance (from 130 km to 60 km) and the travel time (from the current 3-4 hours down to one hour) and provide a faster and safer connection between Armenia's remote southern region of Syunik with Yerevan, the rest of the country and, subsequently, the EU via Georgia and the Black Sea.

The Project is included under the EU Global Gateways, and it is also aligned with two EU Flagship Initiatives for Armenia under the EU's Economic and Investment Plan, including Flagship No. 2 ("Improved land transport connectivity, including through the implementation of priority projects identified in the Indicative Trans-European Transport Network ("TEN-T") Investment Action Plan") and Flagship No. 4 ("Building Resilience in the Southern Regions of Armenia"), which aim to contribute to the sustainable socioeconomic and institutional development of Syunik region, Armenia's southern and less connected area. The Project is also a part of EBRD's response for Armenia's refugee crisis, as it will contribute towards resilience of the most impacted southern region of Syunik.

Transition impact

ETI Score:69

ject is expected to support Integrated transition quality by providing a new infrastructure between or within the regions that are currently inadequately integrated. The Project is also expected to support Well-governed transition quality by promoting the reform initiatives in the road sector in Armenia.

Client information

ARMENIA SOVEREIGN

The implementing agency is the Road Department Fund, operating under the governance and on behalf of the Ministry of Territorial Administration and Infrastructure.

EBRD Finance Summary

EUR 236,000,000.00

A sovereign loan of up to EUR 236 million.

Total project cost

EUR 447,000,000.00

The VAT is expected to be financed by the Client.

The Project is expected to be co-financed by a sovereign loan from the EIB.

The Project will also benefit from technical cooperation grants to support the project preparation and implementation.

Additionality

EBRD offers long-term financing that is not available in the market from commercial sources on reasonable terms. The Bank's expertise in the sector will support the Client to achieve higher standards through its support and conditionalities in the key areas of procurement, climate resilience, sector policy, gender and human capital development, as well as the timely realisation of the Project's objectives.

Environmental & Social Summary

Category A (ESP 2019). The Project was Categorised A as it has the potential to have significant Environmental and Social ("E&S") impacts associated with the construction and operation of the road.

A Feasibility Study ("FS") and the Detailed Design ("DD") for the entire Sisian-Kajaran road section (the 'road corridor') were prepared between 2016-2019 and funded by ADB. Alongside the FS and DD, the national Environmental Impact Assessment ("EIA") was prepared and received a positive conclusion from the State Environmental Review in March 2018. However, the validity of this conclusion expired in March 2019, and the national EIA process was re-launched by the Road Department Fund ("RD") in March 2023, utilising updated information. The RD obtained a new positive Environmental Approval (i.e. State Expertise Conclusion) in November 2023.

An independent consultant was appointed to complete a comprehensive environmental and social impact assessment disclosure package for the road corridor, inclusive of:

Environmental and Social Impact Assessment ("ESIA")
Environmental and Social Management Plan ("ESMP")
Environmental and Social Action Plan ("ESAP")
Biodiversity Action Plan ("BAP")
Non-Technical Summary ("NTS")
Stakeholder Engagement Plan ("SEP")
Resettlement Framework ("RF")
ESIA Disclosure Meetings Report.

The ESIA documentation was disclosed on the EBRD and Client's website on 24 and 21 July 2023, respectively, for a period of over 120 days and the public consultations on the ESIA documentation were concluded on 1 December 2023. Details on the financing of the road were revised after the disclosure of the ESIA so an updated Non-Technical summary has been publicly disclosed with further details on this and confirmation of the associated facilities, which for EBRD includes the tunnel and northern section of the road.

An ESIA Disclosure and Consultation Report was prepared following the completion of the public meetings and the ESIA package was updated to address the comments received from interested stakeholders. Through these documents and the ESIA process, measures have been defined to avoid and minimise impacts not addressed in the original national EIA. The ESAP, ESMP, BAP and RF have been prepared to enable the Project to be developed and operated in accordance with the EBRD Performance Requirements ("PRs"). The final ESIA package has been disclosed together with Consultation Report prior to final approval.

The ESIA has assessed the optimal route identified in the FS based on a multi criteria analysis but also proposed some alternatives to optimise the alignment and mitigate impacts. These include reviewing the Category 1 design criteria, notably design speed and gradient, changing the position of the southern tunnel portal to reduce the amount of excavated material from the tunnel with reduced transport and disposal benefits plus crossing points for cattle and pedestrians. The ESAP includes the requirement for a Change Management Procedure requiring any material changes in the design to be assessed in line with Lender E&S requirements. TC funds have been provided to support an ESAP requirement for additional investigations and modelling of geo-hazard risks along the road alignment to identify if and where specifically design changes and/or mitigation measures, such as Slope Stabilisation Plans may be needed.

290 hectares of land will be permanently acquired for the complete road corridor footprint, tentatively including 570 land plots, of which 276 are privately used or owned, 253 are community-owned and 41 are state-owned. Of the 276 privately owned/used plots along the Sisian-Kajaran corridor, affected plots include 236 agricultural, 34 residential, and 6 land plots of other land use categories. The resettlement affects 2 residential and 9 non-residential structures on the complete road corridor, including 3 businesses. The Resettlement Framework defined compensation and livelihood restoration entitlement principles for the road corridor Sisian-Kajaran, which will be detailed in the Resettlement Plans ("RPs") that are expected to be ready by September 2024. A RP in line with EBRD's PR5 will be prepared for the Project and implemented on a sectional basis to allow for flexibility in terms of the contractor accessing the land plots and scheduling works. An independent Resettlement Completion Audit is required in the ESAP to verify the completion of livelihood restoration for the Project and achieving pre-project levels for all PAPs in line with the RP.

The existing 130 km road between Sisian and Kajaran has a maximum speed of 90 km/hour; however, travel time is 3-4 hours due to the hazardous driving conditions which are evident from the road traffic collision data. The ESAP requires the RD to undertake an independent Road Safety Audit of the detailed design and requests that the design team review the Audit report and incorporate all technically and economically feasible recommendations into the final design. In addition, a road inspection/condition survey, together with a Construction Traffic Management Plan, will be developed due to the significant amount of construction traffic involved during the mobilisation and construction phases. To reduce adverse impacts to public safety and agricultural activities, road safety awareness and temporary road safety measures will be introduced through the local villages and towns although the route. This will include road safety awareness sessions for local schools.

The biodiversity baseline analysis was based on an extensive literature review, consultations with national and local stakeholders, site surveys and fieldwork undertaken over four seasons in 2021 and 2022 for the complete road corridor Sisian-Kajaran. The road corridor includes several road tunnels and bridges, which are important avoidance measures, as they reduce possible interferences with important areas for biodiversity by passing below them. In particular, Bargushat tunnel will run underneath the Zangezur Sanctuary and proposed Emerald Network Site (Site Code AM0000015), with the tunnel's entry and exit portals being located outside the Sanctuary. In addition, the planned road section near Darbas settlement runs close to the nominated Tatev Emerald Site (Site Code AM0000016).

The Qirs-Geghi section of the proposed road corridor runs through Zangezur Important Bird Areas (IBA) and Key Biodiversity Areas (KBA). The Project is about 4.5 km north-west of Meghri IBA also identified as Meghri KBA. Currently there are no management plans for the Special Protection Areas (SPAs), KBAs and KBIs available, however meetings were held with the Ministry of Environment and Manager of the Protected Area (PA) Zangezur Sanctuary whose opinion about the Project was overall positive. PA Manager provided the list of mitigation measures, which has been considered in the BAP. The Ministry of Environment reviewed the BAP and provided comments were address in the updated BAP. The two institutions were of opinion that if proposed biodiversity mitigation measures were applied, no significant impacts to the core biodiversity values would be expected. In addition, the Appropriate Assessment for the road corridor indicates that with the implementation of proposed mitigation measures (within the BAP), there will be no impact affecting the integrity of the protected areas or internationally recognised areas of biodiversity.

The ESIA, Critical Habitats Assessment, Appropriate Assessment and BAP assessed the impacts on priority biodiversity features and species and habitats triggering critical habitat associated with habitat loss and degradation, species disturbance, potential mortality, and loss of connectivity, as well as possible accidental pollution. The BAP and ESAP include the requirement for the detailed design to include passages for wild animals to avoid impacts, appointment of qualified experts, implementation of mitigation measures during construction and operational phases, and the development and implementation of Biodiversity Offsets Management Plan to ensure no net loss of natural habitat and a net gain of critical habitats is achieved.

Excess spoil material that cannot be reused for the road construction will need to be accommodated in Spoil Disposal Areas (SDAs). SDAs have been preliminarily identified and assessed as part of the ESIA. The locations of most of the SDAs have been preliminarily approved by the Sisian and Kajaran Community Administrations.

In total, 52 sites with 76 items of tangible cultural heritage importance are within 500m on both sides of the proposed road corridor and tentatively proposed SDA sites. 46 sites, with 67 items of cultural heritage, are likely to be directly affected by the Sisian-Kajaran road construction and may require relocation and ex situ conservation of some cultural heritage objects. Additionally, the ESAP requires developing landscaping measures to reduce the visual impact of the new road in general, but specifically where the road is in close proximity to important heritage structures. No adverse impacts on intangible cultural heritage features that are registered in the national list of values and the UNESCO representative list are expected. As part of ESIA disclosure meetings, consultations with key users and custodians of each cultural heritage site have been carried out and their feedback considered. A detailed Cultural Heritage Management Plan (CHMP) has been developed and is required to be agreed with National Authorities and Lenders as well as included into the tendering documentation. Implementation of the CHMP will be verified by independent monitoring.

The E&S performance of the Project relies on the project-specific E&S management frameworks and systems developed and implemented by their contractors. Therefore, a significant risk associated with the Project will lie with contractors' management and monitoring by RD and ensuring that the contractors are aware of their responsibilities and that they implement adequate actions to avoid, minimise, mitigate and manage these risks as identified in the ESIA, ESMP, BAP and associated management plans. The RD will monitor the implementation of the ESMP and ESAP mitigation measures by the contractors via the Supervision Engineer. A Lenders' E&S Monitoring Consultants will be also engaged to oversee the implementation of E&S management plans and report regularly to the Bank.

A comprehensive E&S management system is required as part of the ESAP to ensure the contractors adequately address the E&S impacts and risks of the Project. This includes a PR2-aligned HR policy and procedures including a worker grievance mechanism and Code of Conduct covering Gender Based Violence and Harassment issues, plus worker accommodation are required to be provided in line with the IFC/EBRD guidelines for worker accommodation.

The SEP includes a summary of information disclosure and community meetings conducted to date, as well as an outline of the upcoming consultation activities and details of the Project grievance mechanism. During the ESIA preparation stage over 2022 and 2023, there were 49 stakeholder engagement events carried out for the road corridor that included consultation meetings, focus group discussions, public consultations, and scoping meetings across 16 villages and settlements. The ESAP requires that Community Liaison Officers be appointed for the Project, including at least one female.

The PSD will be updated throughout implementation phase of the Project.

Technical Cooperation and Grant Financing

The following technical co-operation ('TC') assignments are envisaged as part of this Project:

Pre-signing:

Feasibility Study, financed by the EU Neighbourhood Investment Platform ("EU NIP").
Environmental and Social Impact Assessment, financed by EU NIP.
EV Pathways and Strategic Initiatives Roadmap, financed by EU NIP.
Investigation and Modelling of Geohazards and Rockfalls, financed by the EBRD Shareholder Special Fund (the "SSF").
Procurement Support, expected to be financed by the SSF.

Post-signing:

Lender's Technical Monitor, funding source to be confirmed.
Lender's Environmental and Social Monitor, funding source to be confirmed.
Support for Road Sector Diagnostics, Sector Reform, Corporate Development and Capacity Building, funding source to be confirmed.

Company Contact Information

"Road Department" FUND
info@armroad.am
+37410511391
https://armroad.am/en
Government House 3, Republic Square, Yerevan 0010

PSD last updated

08 Aug 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project ID 51293

Status Signed

Location

Armenia

Environmental Category

Disclosure date

24 Jul 2023

Project description

The Project entails the provision of a senior loan on a sovereign basis to co-finance the construction of the 24-km Southern section of the Sisian - Kajaran road, part of the international North-South Road Corridor. The Sisian - Kajaran road also consists of the Bargushat tunnel and the Northern road section, expected to be financed by the European Investment Bank (“EIB”), the Asian Development Bank (“ADB”) and the Government of Armenia.

The Project is expected to be co-financed by the EIB and will be implemented by the Road Department Fund (“RDF”). The ESIA package was prepared for the whole Sisian - Kajaran road according to the requirements of the EBRD, EIB, and ADB and the legislation of Armenia. The original ESIA package was disclosed on EBRD’s website on 24 July 2023. Following the public consultations, the ESIA package was updated to take into account stakeholder comments and an updated version was redisclosed on 5 April 2024.

ESIA disclosure package

ESIA
Non-technical summary
Stakeholder Engagement Plan
Environmental and Social Action Plan
Biodiversity Action Plan
Resettlement Framework
ESIA Disclosure and Consultation Report

Download zip package in Armenian

Download zip package in English

Full ESIA availability

Local physical addresses, contact name and telephone:

Road Department Fund
Government Building 3, 1st floor, Republic Square, Yerevan 0010, Armenia
Artur Sanoyan, Project Manager
Tel.: Office: +374 10 511 391 (269), mobile: +374 95 111 537
info@armroad.am

Sisian Community Administration, Sisakan St. 31, 3501 Sisian, Armenia

Kajaran Community Administration, Lernagortsneri St. 4, 3309 Kajaran, Armenia

And

Piazza Grande Business Centre, 2nd floor, rooms 95-97,
10 Vazgen Sargsyan Street, 0010 Yerevan, Armenia
Mrs. Nelli Sargsyan
+ 374 10 590 901

And

Client website: English | Armenian

Enquiries

Environmental or social enquiries

Mrs. Inesa Zargaryan
Environmental Impact Specialist
Road Department Fund
Government Building 3, 1st floor, Republic Square, Yerevan 0010, Armenia
+374 10 511 391
inesa.zargaryan@armroad.am

General enquiries

Mr. Artur Sanoyan
Project Manager
Road Department Fund
Government Building 3, 1st floor, Republic Square, Yerevan 0010, Armenia
Tel.: Office: +374 10 511 391 (269), mobile: +374 95 111 537
artur.sanoyan@armroad.am

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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North-South Corridor (Sisian-Kajaran) Road Project

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Project description

ESIA disclosure package

Enquiries