WB to approve loan for road reconstruction in Azerbaijan

The World Bank (WB) Board of Directors plans on May 25 to approve a loan worth $65 million to Azerbaijan for a new Regional Connectivity and Development Project, Report informs, referring to the WB.

The total cost of the project is $95.8 million. For the implementation of this project, the bank plans to use the funds saved within the Third Highway Project in Azerbaijan, which were allocated through the International Bank for Reconstruction and Development (IBRD).

The project aims to provide safe, efficient and climate resilient transport connectivity and improve market accessibility along the Salyan-Bilasuvar road corridor.

The project consists of four components: Road Connectivity, Road Sector Sustainability, Local Development and Logistics and Project Management and Impacts.

The cost of the first component ‘Road Connectivity’ is $59.24 million.

The Component will include the following sub-components:

• Sub-Component ‘Regional Road Rehabilitation’ (estimated IBRD $55.63 million). This will finance rehabilitation of selected sections of the M3 road (original alignment) between 31.9 km and 103.3 km. The project road provides an alternative route to the newer M3 motorway, which is a requirement for it to be tolled in the future.
• Sub-Component ‘Construction Supervision’ (estimated IBRD $2.24 million). This subcomponent will finance costs of supervision activities.
• Sub-Component ‘Design of Future Investments’ (estimated IBRD $1.37 million). This sub-component will finance costs associated with implementation of technical design, environmental and social studies required for rehabilitation of the remaining sections of M3 highway (original alignment).

The project road will be rehabilitated along the existing alignment as a second category road according to the national road classification. The rehabilitation works will, inter alia, include the improvement of embankment and vertical alignment, replacement/construction of asphalt layers, bridges, water drainage pipes, the installation of side barriers, bus stops, road signs and markings along the selected sections of the M3 highway. Some sections of the road between 54.4 km and 60 km within the Salyan town boundaries are considered for lighter rehabilitation due to their existing technical characteristics.

The cost of the second component, Road Sector Sustainability, is $2 million. It includes the following subcomponents:

- Sub-Component ‘Road Network Management Systems’ (estimated IBRD $0.4 million).

The sub-component is a technical assistance (TA) to improve network management and operational efficiencies through application of intelligent transport systems (ITS). The TA will explore needs and opportunities for establishment of an integrated network-wide management system incorporating electronic tolling and heavy vehicle monitoring, and other ITS modules, including systems for early warning of weather and geohazards that will impact the road network.

- Sub-Component ‘Develop Road User Charging (RUC) Models’ (estimated IBRD $1 million). The sub-component is TA to develop systems for RUC, through e-tolling, vignettes and other similar systems. Technology offers new options to differentiate toll tariffs, so vehicles that damage the roads most, or make more emissions, pay more, and this will also be explored.

- Sub-Component ‘Develop Systems to Prevent Over-loaded Axles’ (estimated IBRD $0.6 million). The sub-component is a TA to specifically focus on systems to prevent premature road deterioration by controlling heavy vehicle overloading, through weigh-in-motion (WIM) technology, and other traffic management systems.

The third component, Local Development and Logistics, is estimated at $2 million. It includes the following subcomponents:

- Sub-Component ‘Develop Road-side Logistics and Market Facilities’ (estimated IBRD $1.4 million). This sub-component will provide financing for TA to guide the planning and development of road-side logistics and market facilities and pilot the implementation of identified small-scale investments. The investments will be identified and designed as a result of participatory planning with local communities and with the strong involvement of the local authorities. There are important synergies with the agriculture sector, and cross-sector support will be sought during implementation of this component. An important aspect will be to support development of a suitable model to manage the facilities, one that provides for equitable usage by beneficiary groups and addresses long-term maintenance and operation of the facility. The investments will improve existing roadside market and logistics facilities and/or create new ones along the project road in selected areas. Facilities considered as part of the sub-component interventions will involve, but not be limited to warehouses, cold storage, small markets and selling points, packaging and distribution facilities.

- Sub-Component ‘Advisory and Training Initiatives’ (estimated IBRD $0.6 million). The sub-component will finance TA to develop a curriculum and then to deliver training and advisory services specific to small-scale agricultural producers and agri-logistics, operating in the project area; for example, businesses supplying organic food products from Salyan to Baku. Activities will include guidance on working safely and strategies to contain the spread of pandemics. There will be a particular focus on the needs of women growers and women entrepreneurs, but the training will be open to all in the project area communities. The sub-component will be tailored to the needs of local beneficiaries, such as farmers, cooperatives and entrepreneur groups, to be identified through participatory needs assessment and community mobilization work.

Advisory services and training will cover such areas as community and cooperative development, business development, branding, digital literacy (e.g. in the use of the e-commerce and e-services platforms and applications), and the like. Some training activities will be tailored to the needs of women entrepreneurs and at least 50 percent of the beneficiaries will be women.

The fourth subcomponent ‘Project Management and Impacts’ (estimated IBRD $1.6 million) will support various project management functions including staff costs, incremental operating costs and costs of individual consultant services in supplement project implementation and management capacity of the State Roads Agency, as well as financial audits.