Armenia Northern Corridor Modernisation Project

Location:

Armenia

Project number:

43826

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Target board date:

13 Nov 2012

Status:

Repaying

PSD disclosed:

22 Mar 2012

Transated version of this PSD: Armenian

Project Description

The EBRD is supporting the financing of a project aimed at the modernisation and upgrade of three border control points along the border between the Republic of Armenia and Georgia.

A loan agreement for the financing of Bagratashen bridge on the Armenian-Georgian border crossing was signed on 23 November 2012 in the amount of EUR 10.3 million between EBRD and the Republic of Armenia. Following the request of the Government of Georgia to co-finance the construction of the Sadakhlo-Bagratashen bridge, the "Agreement on the construction of a new bridge over river Debeda at the Sadakhlo-Bagratashen border crossing points on the state border of Georgia and the Republic of Armenia" was signed between the Government of Georgia and the Government of the Republic of Armenia on 24 December 2014. As a result, the EBRD is considering the provision of a sovereign loan to Georgia, to co-finance the construction of the Sadakhlo-Bagratashen border crossing bridge.
The Project Summary Document was originally disclosed on 22 March 2012.

Project Objectives

The proceeds of the EBRD loan will finance the construction of a new bridge at the Sadakhlo-Bagratashen border crossing between the Republic of Armenia and Georgia as well as related supervision services.

The border control points at Bagratashen, Bavra and Gogavan are key infrastructure priorities as identified under Armenia's Integrated Border Management Plan. Efficient border crossing facilities is also a priority for the Government of Georgia. The current poor quality of transport access infrastructure as well as of the existing facilities at the borders are a cause for significant bottlenecks in terms of regional traffic flows.

Transition Impact

Satisfactory

The upgrading of the access infrastructure at the proposed border control points will create a more efficient economic transport corridor facilitating regional trade and passenger flows, strengthening the international cooperation between the South Caucasus countries. The project will also provide adequate operational conditions at the upgraded border control points to ensure that the potential for economic benefits are not impeded by operational difficulties.

Client Information

REPUBLIC OF ARMENIA

The Borrowers will be:

  • the Republic of Armenia; implemented by the Ministry of Transport of the Republic of Armenia; and
     
  • Georgia; implemented by the Ministry of Regional Development and Infrastructure of Georgia.

EBRD Finance Summary

EUR 10,300,000.00

A sovereign loan of EUR 10.3 million to the Republic of Armenia (to be reduced).

A sovereign loan of up to EUR 6 million to Georgia.

On the side of the Republic of Armenia, the modernisation programme is also co-financed by a loan from the European Investment Bank (EIB) and grant funding by the EU, the EU's Neighbourhood Investment Facility (NIF) and the United Nations Development Programme (UNDP).

Total Project Cost

EUR 64,100,000.00

Environmental and Social Summary

The project has been categorised B under the Banks Environmental and Social Policy (ESP) (2014) as the environmental and social impacts associated with the construction of the Bridge can be readily assessed and mitigated as part of environmental and social due diligence.

UNDP commissioned an Initial Environmental and Social Impact Assessment (IESIA) for the Project in 2012, which provides a high level review of the potential impacts associated with development and operation of the three border crossing points. Additional due diligence was undertaken by the Bank's technical expert who visited the site and met with a range of stakeholders including UNDP and the local authorities. These reports report indicate that the bridge project may cause a number of environmental and social impacts, though these can be adequately mitigated. The key risks associated with the design and construction of the bridge include labour conditions for workers, health and safety, vegetation removal, demolition of the existing bridge and construction impacts such as noise, transport and dust. Land has already been acquired for the project and did not involve any involuntary resettlement, though a small number of business owners received compensation for the loss of their business. Information provided to date indicates that these businesses owners were adequately compensated.

An ESAP has been prepared to structure the Project to meet the ESP (2014) and associated Performance Requirements. The key tasks contained within the ESAP include the preparation of a bridge specific environmental and social analysis based on the confirmed design; preparation of a Stakeholder Engagement Plan (SEP), Health and Safety and Human Resources Plans; and the implementation of a Waste Management Plan which includes adequate disposal of demolition waste. The Bank will monitor the environmental and social performance of the Project and the implementation of the ESAP through annual E&S reports and may also conduct monitoring visits on a risk driven basis, as required.

Technical Cooperation

None.

Company Contact Information

Vardan Karapetyan
+374 12 20 10 10
http://northsouth.am/en
North-South Road Corridor Investment Program SNCO, 4 Tigran Mets street, 0010 Yerevan, Republic of Armenia
 

 

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