Technical Assistance Consultant’s Report
Project Number: 7059-GEO
August 2009
Georgia: Preparing the Ajara Bypass Road
Development Project
Prepared by
Engconsult, Ltd.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
For
Asian Development Bank
6 ADB Avenue, Mandaluyong City
Philippines
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.
EXECUTIVE SUMMARY
Georgia is located south of the Caucasus mountain range, with Russia to the north, Armenia
and Turkey to the south, Azerbaijan to the east, and the Black Sea to the west. It has a
population of 4.5 million.
The road network (2008) consists of 1,495 kilometers of international roads, with about 92% in
good to fair condition; 5,446 kilometers of secondary (interstate) roads of which 28% are in poor
condition and need rehabilitation; and 13,480 kilometers of local roads.
The 81 km Poti – Batumi – Sarpi (S2) road along the western coast of Georgia, mainly located
in the Ajara Autonomous Republic, is a key international highway and international transit route
in Georgia. It is connected to the major Black Sea ports of Georgia, viz. Batumi and Poti, and a
number of holiday resorts, the two major ones being Batumi and Kobuleti. Due to heavy traffic
on this road there has been significant increase in congestion and accidents particularly in
Batumi and Kobuleti and especially during the tourist season. The Government plans to
construct two bypass roads around Batumi and Kobuleti to address these problems
The Government requested ADB’s help to prepare and finance the construction of these two
bypass roads. The Technical Assistance (TA) “Preparing the Ajara Bypass Roads Development
Project” was approved on 28 January 2008.
After discussion between ADB and Government of Georgia it was agreed that the bypass roads
would form two projects (tranches) of a Multi-tranche Financing Facility (MFF). The first tranche
would comprise the Kobuleti Bypass (28km) and 6 km of existing road widening while it is
envisaged that the second tranche would comprise the Batumi bypass (14km).
The Project aims at improving transport reliability by providing a cost-effective investment
program to improve traffic flow between Poti and Sarpi, with considerable savings in both travel
time and accident reduction costs.
To achieve the above objectives, the TA Project’s scope of work comprised the following
components:
•
•
•
•
•
prepare a feasibility study for construction of bypass roads and to undertake a road sector
and institutional analysis.
Prepare preliminary engineering design for the preferred alignment;
Prepare a road safety component for the new road;
Identify the needs for capacity building of Roads Department of the Ministry of Regional
Development and Infrastructure;
Establish benchmark indicators and monitoring system for the project implementation;
The following conclusions and recommendations are made by the Technical Assistance (TA)
study team based on their investigations and analysis. These are set out in more detail in the
main text and appendices of the report.
Road Alignment: The road alignment provides a bypass of the developed tourist area of
Kobuleti for 28km, then joins the existing coast road for 6km and then provides a bypass of
Batumi for 14km. The total road is 48km in length and stretches from the Choloki to the
Chorokhi Rivers. The first 34 kilometers is proposed as tranche 1 of a Multi-tranche Financing
Facility (MFF) with the Batumi bypass proposed as tranche 2.
Road Standard and Design Speed: The new road should be built as a two lane high class
road with limited access except for the 6 km section where the existing coast road is to be
widened to four lanes. It is recommended that it be generally constructed to the new Georgian
design standards for an international road; where these are not applicable other international
standards should be used. Traffic volumes would indicate that a two lane road will be sufficient
through the 20 year evaluation period.
Road Access: It is important that traffic on the project road be allowed to travel quickly and
safely and that there is no interaction between through traffic and local traffic and pedestrians. It
is therefore recommended that access to the new road be only at interchanges, located near
traffic generation centers, and that local traffic, including tractors, pedestrians, bicycles and
animals should not be allowed on the highway except for the six km section of coastal road
widening.
Costs: Based on the preliminary costs the estimated construction cost for the total project is
GEL 523 million ($ 314 million equivalent) at current prices, including, land, design, supervision
and physical and price contingencies but not including any interest during construction PMU
costs or additional TAs. For the first tranche road section the cost is GEL 258 million ($155
million equivalent).
Economic and Financial Analysis: Based on the preliminary costs the economic rate of return
(EIRR) of the total project (48km) is 14.8 percent; for the first tranche it is 16.2 percent.
Organization: It is recommended that the Ministry of Regional Development and Infrastructure
(MRDI) be the executing agency (EA) and Roads Department (RD) be the implementing agency
(IA). It is proposed that a project management unit (PMU) be formed within RD.
Capacity Building: The construction and operation of this high class road will require technical
and operational skills that are not yet at present in Georgia. It is recommended that, as part of
the project, an extensive training program be initiated to develop these skills during construction
and before the project opens. It is recommended that, as part of this capacity building training
be carried out in conducting an axle load survey to ascertain the extent of the problem of
overloaded vehicles. Other technical assistance is recommended in management of private
sector involvement in infrastructure projects and in preparing a roads transport strategy.
Road Safety: In order to improve road safety on the project and other roads it is recommended
that road safety audits, awareness campaigns and training in road safety issues be included in
tranche I of the project.
Environment: RD and its related divisions should review the suggested environmental clauses
included in the EIA/SEIA and ensure that they are inserted into the contract specifications
section of the bid
Land Acquisition and Resettlement. The RD, with due assistance from the Ministry of
Finance, should ensure that implementation of land acquisition and resettlement are carried out
promptly and efficiently in a legal and transparent manner following the Land Acquisition and
Resettlement Framework (LARF) and Land Acquisition and Resettlement Plan (LARP) agreed
with ADB. The RD should ensure that implementation of the LARP is monitored, evaluated, and
reported to ADB as required in the LARP and LARF.
Social. RD should ensure compliance with ADB’s Policy on Gender and Development (1998)
during implementation of the Project and should take necessary steps to encourage women
living in the area of tranche I and further tranches of the MFF to participate in such project
implementation, including causing the contractors to maximize employment of women. RD
should ensure an independent monitoring of the social impacts throughout implementation of
the Project,
FINAL RE
F
EPORT
Asia
an Developmen
nt Bank
Roads
s Deparrtment
Minis
stry of Rural
Deve
elopmen
nt and
In
nfrastru
ucture of
o Georg
gia
M
Main
Rep
port
T
TA No. 7059-G
GEO
Pre
eparing the Ajara Byp
pass Ro
oads
Devvelopme
ent Projject
Au
ugust 2009
ENGCONSUL
N
LT LTD.
21 Queen Street
2
S
E., S
Suite 302
Brampto
on, Ontario
o, L6W 3P1 Canada
ECL CONSULTAN
NTS LTD.
Ro
oad No 2, Hou
use No. 18, (2
2nd Floor)
M
Mirpur
11, Dhaka 1221, Bangladesh.
www.en
ng‐consult.com BT LTD
D.
11 B
Brothers Kakabadze St..,
a
0108 Tbiilisi, Georgia
i
Table of Contents
I II STUDY CONCLUSIONS AND RECOMMENDATIONS ......................................................... 1 INTRODUCTION ..................................................................................................................... 7 A. Background to the Study ..................................................................................................... 7 B. Description of Project ........................................................................................................... 8 1. Project Area .................................................................................................................... 8 2. Components .................................................................................................................... 8 C. Conduct of the Study ........................................................................................................ 9 1. Executing Agency and Counterparts .............................................................................. 9 2. Study Team ..................................................................................................................... 9 3. Summary of Methodology ............................................................................................... 9 4. Progress ........................................................................................................................ 10 D. Contents of the Report ................................................................................................... 11 III RATIONALE: SECTOR PERFORMANCE, PROBLEMS AND OPPORTUNITIES ............. 12 A. Performance Indicators and Analysis ................................................................................ 12 B. Analysis of Key Problems and Opportunities. ................................................................... 13 1. Problems and Constraints. ........................................................................................... 13 2. Revenues and Expenditure .......................................................................................... 15 C. Stakeholder Participation and Consultations ................................................................. 15 IV THE PROPOSED PROJECT ................................................................................................ 17 A. Project description ............................................................................................................. 17 1. Project Area................................................................................................................... 17 2. Components .................................................................................................................. 17 B. Project Rationale................................................................................................................ 17 C. Impact and Outcome ...................................................................................................... 17 D. Outputs ........................................................................................................................... 18 1. Output for Tranche 1 ..................................................................................................... 18 2. Outputs for Tranche 2 ................................................................................................... 19 E. Cost Estimates ................................................................................................................... 19 F. Implementation Arrangements .......................................................................................... 21 G. Implementation Period ................................................................................................... 21 V PROJECT BENEFITS, IMPACTS AND RISKS .................................................................... 22 A. Benefits .............................................................................................................................. 22 1. Traffic Analysis .............................................................................................................. 22 2. Economic Analysis ........................................................................................................ 22 3. Financial Analysis and Tolling ...................................................................................... 23 B. Safeguard Impacts ............................................................................................................. 23 1. Environmental Impacts ................................................................................................. 23 2. Social and Poverty Impacts .......................................................................................... 25 C. Resettlement Impacts .................................................................................................... 26 D. Project Risks .................................................................................................................. 26 Appendices
1
2
3
4
5
6
7
Design and Monitoring Framework
Transport Sector Review
Technical and Design Summary
Road Safety
Stakeholder Participation and Consultations
Cost Estimates
Implementation Schedule
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8
9
10.
11
12.
13.
14
15
16
17
18
19
20
21
Procurement Plan
Traffic Forecast
Economic Analysis
Institutional and Financial Assessments
ToR for Construction Supervision Consultants
ToR Road Safety Enhancement and Awareness Training
ToR Capacity Building
ToR Public-Private Partnership (PPP) Capacity Enhancement
Summary Poverty Reduction and Social Strategy
Summary Land Acquisition and Resettlement Framework
Summary Land Acquisition and Resettlement Plan
Environmental Assessment and Review Framework
Summary Environmental Impact Assessment
Cumulative Impact Assessment
Volume II Supplementary Appendices
1. Transport Trends and Economic Profile
2. Road Standards, Road, Structures and Tunnel Design
3. Project Preliminary Cost Estimates and Schedules
4. Road Safety
5. Detailed Design ToR
6. Traffic Forecasts and Economic Evaluation of the Project
7. Institutional and Financial Assessments and Financial Evaluation of the Project
8. Land Acquisition & Resettlement Framework (LARF)
Volume III Preliminary Design Drawings
Stand-alone documents
Land Acquisition and Resettlement Plan (Tranche 1)
Environmental Impact Assessment Report.
Tables
Table 1.
Table 2.
Table 3.
Table 4
Project Area Districts ...................................................................................... 8
Project Cost Estimate and Financing – Tranches 1 and 2 ........................... 20
Project Cost Estimate and Financing – Tranche 1 ....................................... 20
Disbursement Schedule – Tranche 1 ........................................................... 20
Maps
Map 1: Area of Project
Map 2: Project Area
Map 3: Alignment 0-24km
Map 4: Alignment 24-48km
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ABBREVIATIONS
ADB
AH
AP
CIA
EA
EARF
EIA
EIRR
EMP
EU
GDP
GNI
GoG
Ha
IA
JICA
LARF
LARP
LSG
MED
MFF
MRDI
NGO
NPV
O/D
PBC
PMU
PP
PPP
RAMSAR
RD
RoW
SEIA
SPRSS
TA
ToR
UTA
WB
VOC
Asian Development Bank
Affected Household
Affected Person
Cumulative Impact Assessment
Executing Agency
Environment Assessment Review Framework
Environmental Impact Assessment
Economic Internal Rate of Return
Environment Management Plan
European Union
Gross Domestic Product
Gross National Income
Government of Georgia
Hectare
Implementing Agency
Japan International Cooperation Agency
Land Acquisition and Resettlement Framework
Land Acquisition and Resettlement Plan
Local Self Government
Ministry of Economic Development
Multi-tranche Financing Facility
Ministry of Regional Development and Infrastructure
Non-Government Organization
Net Present Value
Origin and Destination
Performance Based Contracts
Project Monitoring Unit
Patrol Police
Public Private Participation
Ramsar Convention on Wetlands
Roads Department
Right of Way
Summary Environmental Impact Assessment
Summary Poverty Reduction & Social Strategy
Technical Assistance
Terms of Reference
United Transport Administration
World Bank
Vehicle Operating Costs
CURRENCY EQUIVALENTS
(As of May 2009)
1 $US = 1.65 Georgian Lari (GEL)
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I
STUDY CONCLUSIONS AND RECOMMENDATIONS
1.
The following conclusions and recommendations are made by the Technical Assistance
(TA) study team based on their investigations and analysis. These are set out in more detail in
the main text and appendices.
2.
Road Alignment: The road alignment is set out in Maps 3 and 4. It provides a bypass of
the developed tourist area of Kobuleti for 28km, then joins the existing coast road for 6km and
then provides a bypass of Batumi for 14km. The total road is 48km in length and stretches from
the Choloki to the Chorokhi Rivers. The first 34 kilometers is proposed as tranche 1 of a Multitranche Financing Facility (MFF) with the Batumi bypass proposed as tranche 2.
3.
Road Standard and Design Speed: The new road should be built as a two lane high
class road with limited access except for the 6 km section where the existing coast road is to be
widened to four lanes. It is recommended that it be generally constructed to the new Georgian
design standards for an international road; where these are not applicable other international
standards should be used. However it is recommended that a reduced standard for tunnel width
be used consistent with international standards and that the road pavement lane width be 3.5m
instead of 3.75m to reduce earthwork and bridge quantities. Traffic volumes would indicate that
a two lane road will be sufficient through the 20 year evaluation period.
4.
Road Access: It is important that traffic on the project road be allowed to travel quickly
and safely and that there is no interaction between through traffic and local traffic and
pedestrians. It is therefore recommended that access to the new road be only at interchanges,
located near traffic generation centers, and that local traffic, including tractors, pedestrians,
bicycles and animals should not be allowed on the highway except for the six km section of
coastal road widening.
5.
Costs: Based on the preliminary costs the estimated construction cost for the total
project is GEL 523 million ($ 314 million equivalent) at current prices, including, land, design,
supervision and physical and price contingencies but not including any interest during
construction PMU costs or additional TAs. For the first tranche road section the cost is GEL 258
million ($155 million equivalent).
6.
Economic and Financial Analysis: Based on the preliminary costs the economic rate
of return (EIRR) of the total project (48km) is 14.8 percent; for the first tranche it is 16.2 percent.
7.
Organization: It is recommended that the Ministry of Regional Development and
Infrastructure (MRDI) be the executing agency (EA) and Roads Department (RD) be the
implementing agency (IA). It is proposed that a project management unit (PMU) be formed
within RD.
8.
Capacity Building: The construction and operation of this high class road will require
technical and operational skills that are not yet at present in Georgia. It is recommended that, as
part of the project, an extensive training program be initiated to develop these skills during
construction and before the project opens. These skills would include, tunnel design and
construction, operation and maintenance, pavement design, environmental and
social/resettlement monitoring. It is recommended that, as part of this capacity building training
be carried out in conducting an axle load survey to ascertain the extent of the problem of
overloaded vehicles. Other technical assistance is recommended in management of private
sector involvement in infrastructure projects and in preparing a roads transport strategy.
9.
Road Safety: In order to improve road safety on the project and other roads it is
recommended that road safety audits, awareness campaigns and training in road safety issues
be included in tranche I of the project.
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10.
Environment: RD and its related divisions should review the suggested environmental
clauses included in the EIA/SEIA and ensure that they are inserted into the contract
specifications section of the bid documents and in particular implement the following actions:
•
Implement vegetation rehabilitation and soil conservancy actions during construction and
operation;
• Minimize woodland acquisition;
• Protect local natural landscape, avoid high fill and deep cut section when possible.
• Manage traffic congestion during construction so as to avoid long delays and maintain
safe conditions, and,
• Employ local farmers for environmental mitigation activities which they are skilled to
undertake, e.g. the revegetation and replanting activities.
11.
Land Acquisition and Resettlement. The RD, with due assistance from the Ministry of
Finance, should ensure that implementation of land acquisition and resettlement are carried out
promptly and efficiently in a legal and transparent manner following the Land Acquisition and
Resettlement Framework (LARF) and Land Acquisition and Resettlement Plan (LARP) agreed
with ADB and in accordance with Georgian laws and regulations and ADB’s Policy on
Involuntary Resettlement. The RD should ensure that implementation of the LARP is monitored,
evaluated, and reported to ADB as required in the LARP and LARF.
12.
Labor, Social, Gender and Development, Health. RD should ensure compliance with
ADB’s Policy on Gender and Development (1998) during implementation of the Project and
should take necessary steps to encourage women living in the area of tranche I and further
tranches of the MFF to participate in such project implementation, including causing the
contractors to maximize employment of women. RD should ensure an independent monitoring
of the social impacts throughout implementation of the Project, in consultation with local
governments and beneficiaries. In this respect, RD should ensure that all civil works contractors
(i) comply with all applicable labor laws; (ii) use its best efforts to employ women and local
people, including disadvantaged people, living in the vicinity of the projects financed under the
MFF; (iii) disseminate information at worksites on the risks of sexually transmitted infections for
those employed during construction; (iv) provide equal pay to men and women for work of equal
type; (v) provide safe working conditions for male and female workers; and (vi) abstain from
child labor. Contracts for all projects financed under the MFF should include specific clauses on
these undertakings, and compliance will be strictly monitored during implementation. The RD
should ensure that compliance with these provisions is monitored.
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Map 1: Area of Project
3
4
Map 2: Project Area
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Map 3: Alignment 0-24km
5
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Map 4: Alignment 24-48km
6
7
II
A.
INTRODUCTION
Background to the Study
13.
Georgia is located south of the Caucasus mountain range, with Russia to the north,
Armenia and Turkey to the south, Azerbaijan to the east, and the Black Sea to the west. It has a
population of 4.5 million. Gross Domestic Product (GDP) and Gross National Income (GNI) per
capita have increased significantly in the past few years, although it is expected to drop in 2009
partly because of the global economic crisis. The transport sector is one of the fastest growing
in the Georgian economy. Transport, storage and communications have substantially increased
their contribution to the total output, from 4.6% of GDP in 1996 to 11.5% in 2006.The country's
GNI per capita of US$1,560 in 2006; however, is one of the lowest among lower middle-income
countries.
14.
Official development assistance is derived from bilateral, multilateral, and nongovernment organization (NGO) resources. The principal bilateral sources are Germany, Japan,
United Kingdom, and the United States. Among the multilaterals, World Bank (WB) and
European Union (EU) are the largest loan providers. The United Nations system is also a
significant multilateral grant provider.
15.
The road network (2008) consists of 1,495 kilometers of international roads, with about
92% in good to fair condition; 5,446 kilometers of secondary (interstate) roads of which 28% are
in poor condition and need rehabilitation; and 13,480 kilometers of local roads (2006) the
responsibility for which was transferred to Local Self-Government (LSG) bodies in Jan 2007.
16.
There are thirteen trunk highways in Georgia, totaling 1,525 km. These are:
•
S1-Tbilisi-Senaki-Zugdidi (Abkhazia border) 435km
•
S-2 Senaki-Poti-Sarpi (Turkish border) 110km
•
S-3 Mtskheta-Stepantsminda-Larsi (Georgian Military Highway) 139km
•
S-4 Tbilisi-Red Bridge (Tsiteli-Khidi) (Azerbaijan border) 46km
•
S-5 Tbilisi-Bakurtsikhe-Lagodekhi (Azerbaijan border) 140km
•
S-6 Ponichala-Marneuli-Guguti (Armenian border) 94km
•
S-7 Marneuli-Sadakhlo (Armenian border) 34km
•
S-8 Khashuri-Vale (Turkish border) 97km
•
S-9 Tbilisi bypass
49km
•
S-10 Gori-Ergneti (S Ossetia border) 25km
•
S-11 Akhaltsikhe-Ninotsminda (Armenian border) 110km
•
S-12 Samtredia-Grigoleti (beach area N of Kobuleti) 57km
•
Koda-Ninotsminda (no number) 189 km
17.
The often rough topography, the low-capacity highways, the inadequate maintenance
regime, the poor technical standards of vehicles, and other adverse conditions mean the traffic
flow is often slow and the risk of accidents is high.
18.
The 81 km Poti – Batumi – Sarpi (S2) road along the western coast of Georgia, mainly
located in the Ajara Autonomous Republic, is a key international highway and international
transit route in Georgia. It is connected to the major Black Sea ports of Georgia, viz. Batumi and
Poti, and a number of holiday resorts, the two major ones being Batumi and Kobuleti. Due to
heavy traffic on this road there has been significant increase in congestion and accidents
particularly in Batumi and Kobuleti and especially during the tourist season. The Government
plans to construct two bypass roads around Batumi and Kobuleti to address these problems.
19.
The Government requested ADB’s help to prepare and finance the construction of these
two bypass roads. The Technical Assistance (TA) “Preparing the Ajara Bypass Roads
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Development Project” was approved on 28 January 2008 and, subsequently, on 1 September
2008, the TA became effective and the TA letter was signed by the Government. In January
2009, ADB selected Engconsult Ltd., Canada to carry out the Project.
20.
After discussion between ADB and Government it was agreed that the bypass roads
would form two projects (tranches) of a Multi-tranche Financing Facility (MFF). The first tranche
would comprise the Kobuleti bypass (28km) and 6 km of existing road widening while it is
envisaged that the second tranche would comprise the Batumi bypass (14km). In this report the
two tranches are called tranche 1 and tranche 2, while both bypasses are named “The Project”.
21.
Engconsult Ltd. mobilized its team in Tbilisi on 10 February 2009 together with
associated local consultants. The Inception Report was presented on March 6th, the 1st monthly
report on April 5th and the 2nd monthly report on May 6th. The Draft Final Report was presented
on June 28th and, after considering comments by ADB and Government, this Final Report is
presented as required by the contract1.
B.
Description of Project
1.
Project Area
22.
The direct project area includes the three districts of Kobuleti, Batumi and Khelvachauri
in the autonomous region of Ajara2, through which the existing highway and the proposed
bypasses traverse. The total population of the three Rayons, as set out in Table 1, is 204,800
(2008) of whom 122,000 were resident in Batumi municipality who will benefit from reduced
congestion and safer passage on the existing road as well as faster travel for through traffic
using the bypass. Over 50 percent of the rural population of this area lie below the poverty line.
23.
The indirect project area covers most districts between Batumi and Tbilisi and, to a
smaller extent, most of the rest of Georgia (Population 4.4 million) as they will ultimately benefit
from the lower transport costs of agriculture and manufactured goods traveling over the new
bypass roads, particularly to and from Turkey.
Table 1: Project Area Districts
Districts
City of Batumi,
Kobuleti Municipality
Khelvachauri Municipality
2.
Population
January 2007
122.2
89.4
92.2
Components
24.
The Project aims at improving transport reliability by providing a cost-effective
investment program to improve traffic flow between Poti and Sarpi, with considerable savings in
both travel time and accident reduction costs.
25.
To achieve the above objectives, the TA Project’s scope of work comprised the following
components:
•
prepare a feasibility study for construction of bypass roads (about 48 km) for Batumi and
Kobuleti in Ajara Autonomous Republic, including engineering, economic, social and
1
The LARP{ for tranche 2 is not included with this report due to unavoidable delay in completing the survey work. It
will be presented later as a separate document.
2
The first four km of the Kobuleti bypass are in Ozurgeti Rayon of Juria region
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•
•
•
•
C.
environmental criteria for ADB financing and to undertake a road sector and institutional
analysis.
Prepare preliminary engineering design for the preferred alignment;
Prepare a road safety component for the new road;
Identify the needs for capacity building of Roads Department (RD) of the Ministry of
Regional Development and Infrastructure (MRDI);
Establish benchmark indicators and monitoring system for the project implementation;
Conduct of the Study
1.
Executing Agency and Counterparts
26.
The Executing Agency (EA) for the study was the RD and the Counterpart for the study
was Mr. Tengiz Guelesiani, Head of Technical Department.
27.
The Project team would like to express its thanks for the help, support and advice given
to them by Mr. Guelesiani and other staff of RD and the support of staff from Georgia Resident
Mission during the project.
2.
28.
Study Team
The study team for the Project consisted of:
Team Leader/Road Engineer
Transport Economist
Tunnel Specialist
Environment Specialist
Social Specialist
Road Engineer
Structural Engineer
Transport Economist
Transport Economist
Financial Specialist
Social Specialist
Social Specialist
Environment Specialist
Senior Surveyor
3.
G. Connor
T. Yates
S. Mitani
M. Karim
S. Jena
B. Kopaliani
D. Ukleba
B. Kakhadze
T. Todradze
G. Shihashvil
J. Gogodze
L. Janjgava
O. Turmanidze
Summary of Methodology
29.
There had been a previous prefeasibility study, carried out in 2005/06 for the two
bypass roads. The consultants reviewed this and other relevant past studies and an initial
selection of possible alignments was made based on the recommendations of the pre-feasibility
study and available mapping. Field inspections were made of each route and plotted on digital
mapping.
30.
Traffic studies were carried out including classified 12 and 24 hour counts and Origin
and Destination (O&D) surveys. Forecasts were made for normal traffic, generated traffic, traffic
diverted from other roads and modes and traffic from proposed or possible future development
in the project area.
31.
The existing road is at present the main transit route for trade from and to Georgia to
Turkey and beyond and also as a transit route to and from Armenia and Azerbaijan to Turkey. A
study was made of future development projects which would affect this traffic and it was
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determined that some of the transit through traffic could be diverted to a new border crossing
between Turkey and Georgia and, if relations between the two counties improved, directly
between Turkey and Armenia. It was decided to evaluate scenarios for both options. However,
the chances of either or both of these options were considered to be small and they were only
used as a special case (traffic case B) in the economic evaluation sensitivity testing.
32.
Preliminary engineering and safeguard studies were carried out on the preliminary
alignments and a recommended alignment presented to Government for approval and further
study.
33.
It was agreed with GoG and ADB that the road should be constructed as a two lane two
way limited access road except for 6 km of existing road which would be widened to four lanes
with no access control. Design, however, should allow for a four lane road to be constructed at a
later date, depending on actual traffic diversion and growth. The section from Batumi to the
border at Sarpi, originally in the scope of work, was dropped as it was considered economically
infeasible.
34.
A preliminary topographic and geotechnical survey of the preferred alignment was
carried out.
35.
Based on these surveys and further site inspections preliminary design was carried out
for alignment, pavement, bridge and other drainage structures and tunnels. Following this, cost
estimates were made of the preferred alignment. These were based on the preliminary design,
availability of materials and the maximum use of local labor.
36.
Preliminary design drawings including long sections, plans and standard cross sections
were produced.
37.
Terms of Reference (ToR) for detail design consultants were produced as were draft
ToR for supervision consultants, and capacity building TAs to be included in tranche 1.
38.
A road safety audit was carried out on the preliminary design of the project road and a
road safety component program prepared to prepare drivers and local residents of the particular
safety problems of a high speed road.
39.
Using forecast traffic volumes and construction and operation costs, economic analyses
were carried out for each of the two sub-projects and for the project as a whole. Environmental,
land acquisition, resettlement and other social impacts were also assessed and included in the
analyses. Sensitivity and risk analysis were also carried out.
40.
Safeguard studies and surveys were carried out for the whole project, an Environmental
Impact Assessment (EIA) and Summary Environmental Impact Assessment (SEIA) and Land
Acquisition and Resettlement Plan (LARP) were prepared for tranche 1 and Environment
Assessment Review Framework (EARF) and Cumulative Impact Assessment (CIA) for tranche
2 and subsequent tranches.
41.
Further details of the work carried out are set out in later sections of the Report and, in
more detail, in the Supplementary Appendices.
4.
Progress
42.
An Inception mission by ADB was made in late April 2009 to assess the progress of the
project and to carry out discussions with GoG and a site visit to the preferred alignment was
carried out with ADB safeguard specialists.
43.
In April 2009 GoG accepted the recommendations on the alignment. The team
completed the preliminary design and analyses in May 2009 and the results are presented in
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this Final Report. The preliminary design drawings and the LARP for tranche 1 are also included
with the Final Report.
44.
A fact finding mission was made by ADB during the first week in June and a further
review mission in late July.
D.
Contents of the Report
45.
The main body of this report summarizes the results of the Feasibility Studies,
Preliminary Design and other work carried out during the TA project. The appendices to the
report describe in more detail the methodology used in of the study, the design standards and
methodology, cost estimates and implementation plans, and summary of the economic and
financial analyses. The SEIA, summary LARP and LARF and a social assessment (SPRSS) are
also included in the appendices. The remaining sections of this report are as described in the
following paragraphs.
46.
Section II gives the rationale for the project and gives the background to the transport
and road sector in Georgia.
47.
Section III gives the impact and outputs from the proposed project and sets out the cost
estimates for the preferred alignment. It discusses the stakeholder participation and consultation
carried out in the project and also discusses possible implementation arrangements for the
project.
48.
Section IV describes the technical benefits and risks for the preferred alignment based
on traffic projections and construction and operation costs. It gives the results of the economic
and financial analyses. It also summarizes the impact of the alignment on resettlement,
minorities, poverty and the environment. It also describes the risks associated with the Project.
49.
There are 21 appendices included in Volume I which describe the study methodology,
technical analyses, and conclusions and recommendations in more detail.
50.
The report is accompanied by 8 Supplementary Appendices describing in more detail
the work carried out. The design drawings are presented in a separate Volume III.
51.
The EIA and LARP for tranches I are presented as separate stand alone documents.
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III RATIONALE: SECTOR PERFORMANCE, PROBLEMS AND OPPORTUNITIES
A.
Performance Indicators and Analysis
52.
Georgia’s transport infrastructure consists mainly of roads and rail. Roads carry about 99
percent of all passengers and at least 55 percent of freight within the country. A key part of
Georgia’s road system is the 383 km East West Highway (E-60) which runs from Senaki on the
Black Sea coast to Tbilisi through the center of the country ending at the Red Bridge on the
Azerbaijan border. In addition there are eight international and national highways linking major
towns that serve much of the population. The major NS highway goes from Sarpi on the Turkish
border to Poti, the major sea port in Georgia continuing to Sokhumi in Abkhazeti; this is
connected to the E-W Highway at Poti and Ureki, the start of the project road.
53.
Road Network: Responsibility for road construction and maintenance in Georgia is split
between the Roads Department, districts and cities. The Roads Department is responsible for
the main road network, comprising international roads (i.e. those used by international transit
traffic) and interstate roads. In 2007 RD lost responsibility for local roads, however, 2,000km of
what had hitherto been local roads were re-designated as interstate roads. Cities remain
responsible for urban roads. The main road network was 6,941km at the end of 2008, of which
347km lay within Ajara. The local road network is approximately 13,388km (Ajara: 965km). In
terms of length both the main and local networks have hardly changed since 2000, the
investment emphasis having been on rehabilitation rather than network extension. All but 55km
of the 1,495km of international roads are paved, but in the case of interstate roads the
percentage falls to 61, while only 23 percent of local roads are paved. As with its total length,
the proportion of the national network that is paved has hardly changed since 2000. National
and Ajaran road densities are 290km and 160km per 1,000km2 respectively. Densities are low
by regional standards: Azerbaijan has 690km/1,000km2 (both paved and unpaved roads) and
Armenia 270km/1,000km2 (but paved roads only).
54.
Vehicle Fleet: For administrative reasons vehicle fleet statistics are of poor quality and
almost certainly overstate the total stock of vehicles that are in use. According to the Ministry of
Internal Affairs the total fleet in 2008 comprised 613,000 vehicles, of which 543,000 were
passenger vehicles, 58,000 goods vehicles and 12,000 categorized as “other”. Average annual
growth from 2000 to 2008 was 12 percent. Vehicle ownership per 1,000 people has increased
from 56 in 2000 to 140 in 2008. Georgia’s car ownership is broadly consistent with those of its
neighbors, bearing in mind the differences in GDP/head. The increase in vehicle ownership is
attributable to sustained economic growth (GDP per head grew by an average annual 7.9
percent from 2001 to 2008) and has been helped by tariff reductions following Georgia’s
accession to the World Trade Organization in 1999. The fleet has been modernized in the
process, as Soviet era vehicles are replaced by western and Japanese imports, improving
vehicle safety and reducing individual vehicles’ fuel consumption and their emissions.
55.
Organizational Structure: Institutional arrangements changed in February 2009 when a
new ministry was created, the Ministry of Regional Development and Infrastructure (MRDI). In
that month the Roads Department and the United Transport Administration (UTA) were moved
from the Ministry of Economic Development (MED) to the new ministry. The Roads Department
is solely responsible for construction and maintenance of the main road network, all of which is
contracted out to private sector companies. Strategy and planning are handled by the Transport
Department (whose line ministry is the MED).
56.
From 2005/6 annual licensing of vehicles ceased and was replaced by a requirement to
register only at a change of ownership. Vehicle registration and driver licensing is handled by
the police. There are no longer any vehicle roadworthiness tests and owners are not obliged to
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carry even third party insurance. (The abolition of annual licensing accounts for the unreliability
of vehicle ownership statistics: there is no longer any mechanism for determining that a vehicle
is no longer used on the road).
57.
Road Transport: Georgia’s road freight industry is made up of private companies and is
completely unregulated. Entry to the market is easy. It is difficult to judge the extent of market
efficiency, but freight rates of between GEL0.20 and GEL0.27 per tonne-km for hauls of 100500km are at least consistent with costs predicted using HDM-4, which suggests that excess
profits are not being earned.
58.
Intercity bus transport is completely deregulated and there is no official control of prices.
Intercity bus services are extensive and frequent. Although most routes are plied by both minibuses and larger buses, there is little to choose in terms of journey time as all buses will stop to
pick up passengers en route if they have room. Fares between bus stations (e.g. Tbilisi and
Batumi) are controlled by bus station operators, who take a cut from the fare. Bus station
operators also appear to control capacity – a new entrant would find it difficult to operate a new
service from an existing bus station. This control of both prices and capacity may be hindering
the development of new services (e.g. express services).
59.
Where a direct comparison can be made, bus and rail fares are comparable; for
example, rail passengers between Tbilisi and Batumi pay GEL20 for a single trip, while bus
passengers pay around GEL18. Trains are slower but are more comfortable. The introduction of
limited stop, comfortable bus services at a premium fare would change the market considerably
and be likely to increase bus ridership.
60.
The development of the Kobuleti and Batumi bypasses should encourage the
development of faster bus services between the main centers along the Ajaran coast.
B.
Analysis of Key Problems and Opportunities.
1.
Problems and Constraints.
61.
Road Construction and Maintenance: Since 2004, the Government has invested
some GEL990 million in road construction, rehabilitation and maintenance, with financial
assistance from the World Bank, the Kuwait Fund, Germany (KfW) , Japan International
Cooperation Agency (JICA) and the United States (Millennium Challenge Georgia Corporation).
Foreign assistance for the road subsector is increasing. Despite the surge in road sector
investment since 2004, the maintenance backlog for the road network is estimated at GEL970
million. Sustained financing for highways and roads will continue to be needed to bring the road
system (particularly secondary and local roads) to a maintainable standard, while adding
essential new capacity to meet the needs of trade (transit), rural development , agriculture,
industry and tourism. Increased mobility and access to secondary urban centers is expected to
help with job creation.
62.
The RD maintenance program 2009-2013 forecasts an increase in funding from $118
million in 2009 to $158 million in 2013. In 2007, responsibility for local roads was transferred
from RD to 69 local authorities, as part of broader public sector reform aimed at decentralizing
government functions. An estimated GEL 1,450 million is needed to rehabilitate the local road
system (90 percent in poor condition) and bring it up to a maintainable condition. Rehabilitated
local roads would require GEL1,500-4,000 per kilometer annually for routine and winter
maintenance.
63.
RD has no direct labor force: it contracts out all its maintenance and construction
activities. The country is divided into 34 routine maintenance zones. Contractors bid against
bills of quantities drawn up by the department. The last round of bidding took place in 2007 and
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was for a period of 27 months. These contracts will expire in 2009 and will be re-bid for a period
of 12 months. Supervision and verification of quality and quantities were also contracted out to a
private company but has now been brought into the department.
64.
The World Bank is supporting the RD in its efforts to improve the efficiency of its road
maintenance activities. It believes that a shift from contracted out maintenance to performance
based road maintenance contracts (PBCs) could produce further savings (up to 50 percent). A
proposed project component of the Third East West Highway Project will assist in developing a
comprehensive framework for the introduction of PBC in Georgia. The international consultant,
in collaboration with a small RD team, will apply the PBC framework to a preliminary
assessment of a concession for the maintenance of the East-West Highway and an area-wide
contract for rehabilitation and maintenance for 250-300km of main and secondary roads
centered on a Regional RD Office.
65.
The national contracting capacity in the road subsector includes 13 large contractors
with an annual turnover of more than GEL10 million per year, about 30 medium size contractors
with an annual turnover between GEL5-10 million and more than 60 smaller contractors.
66.
Road Safety is a growing problem in Georgia. In 2008 there were 867 fatalities from
road-traffic accidents, a rise of over 18% from 2007. The fatality rate relative to the vehicle fleet
at 16 per 100,000 vehicles in 2007 is significantly higher than other Eastern European countries
and much higher than other developed countries in EU3. Both the fatalities and serious injuries
resulting from traffic accidents in Georgia over the past few years show an upward trend and
road-safety is thus becoming a serious social issue.
67.
World Bank review of statistics for 19964 showed that about 66% of deaths from road
accidents occur in "urban" areas and 34% occur on "rural" roads. Over 30% of those killed
nationally in 2006 were pedestrians. This is almost double the percentage in many West
European countries5. The fact that seatbelts are not worn and vehicle speeds are often
excessive in "urban" areas and that there are very few facilities to ensure pedestrian safety or to
guide drivers through hazardous locations on the road network are major causes of these
accidents and fatalities. The project will provide a bypass to two congested areas, Kobuleti and
Batumi which, at present, incur traffic and pedestrian congestion, especially in the summer
holiday season.
68.
Recognizing the growing problems, the GoG has established a more effective
traffic policing capability, will be developing a multi sector road safety strategy and develop and
implement a multi sector road safety action plan based on the final report of consultants who
have been undertaking a road safety study of Georgia during 2007 and early 20086. A road
safety component has been included within the World Bank Second East West Highway
Improvement Project, to strengthen the RD road safety unit, to implement a hazardous locations
program along the East-West Highway corridor and to develop traffic and safety engineering
standards that can be used on urban and rural roads of Georgia. A further component is
proposed in the Third East-West Highway Improvement Project to develop road safety audit
manuals.
69.
A road safety TA is proposed for the project. Its aim is to educate the domestic road
safety professionals, road users and pedestrians in safety procedures related to high speed
access controlled roads.
The Terms of reference (Appendix 13) set out the objectives,
3
Unpublished World Bank working paper 2004.
World Bank Appraisal Report 2nd E-W Highway Improvement Project 2008
5
e.g. Germany 14%, France 11%, Sweden 14%, Netherlands 8%
6
Sweroad consultants for PHRD February 2008
4
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scope, deliverables and timing for a project to provide the required technical assistance to
achieve the aim above. It is envisaged that the work shall be done by a team of domestic and
international consultants with counterparts from RD and the Patrol police (PP) and other
Georgian professionals so as to ensure local capacity to provided ongoing support to the RD
and PP. It is important that the consultants for the TA coordinate with the World Bank projects.
70.
Road Development: The road program is expanding, with expenditure on construction,
rehabilitation and maintenance planned to increase from GEL272 million in 2008 to GEL521
million in 2009, with an increase to GEL1 billion planned for 2010.
71.
The Government began a systematic upgrading of subregional corridors in 2006.
Progress to date and planned is detailed in Appendix 2. External support to the road subsector,
principally in support of these projects, is being provided by World Bank, JICA and MCG, in
addition to ADB. Upgrading of corridors north to the border with Russia is currently in abeyance,
due to the political situation. Topographic and geological constraints limit the number of practical
all-year round corridors. Shorter alternatives to existing routes all cross passes of over 2000m.
In the long term, other corridors may be developed to serve subregional traffic, but at high cost.
72.
Institutional Capacity. Despite some progress on policy and institutional reforms,
institutional capacity in the road subsector remains limited. This is reflected by (i) lack of a legal
and regulatory framework for managing the road network; (ii) weak enforcement of some
existing regulations such as those relating to vehicle axle-load controls and road safety; (iii) lack
of experience and knowledge about private-public partnership in road construction and
maintenance; and (iv) limited staff experience in management of road projects, particularly in
the area of tunnel and bridge engineering and environmental and resettlement safeguards.
Although the WB has continuously supported necessary institutional strengthening, further
external assistance is needed to help RD in implementing the planned large-scale investment
program (Appendix 14).
2.
Revenues and Expenditure
73.
74.
Up to 2004 there was a road fund, financed from the proceeds of the fuel tax, the
international transit tax and a road usage tax levied on individuals and enterprises. In 2004 the
government abolished special funds, including the road fund, and since then the sub-sector has
been funded directly from the state budget and from donor funds. The proceeds of the
remaining direct taxes on transport (fuel tax, import duties and VAT on vehicle sales, vehicle
registration fees and the Rikoti tunnel tolls) are part of state revenue and are not earmarked.
75.
The RD budget for 2009 is GEL521m. This is financed as follows: GEL284m from the
state budget (of which GEL102m are counterpart funds) and GEL237m from donor grants and
credits. Routine maintenance accounts for GEL26m (GEL 3,800 per km). GEL119m from state
funds is budgeted for periodic maintenance and rehabilitation. If donor funded rehabilitation
projects are included, total funding for rehabilitation and periodic maintenance amounts to
GEL150million, or GEL 22,000 per km.
C.
Stakeholder Participation and Consultations
76.
Public participation is essential for every developmental activity and is a statutory
requirement in Georgia. To ensure peoples’ participation in the planning phase and to treat
public consultation and participation as a continuous two way process, public consultations were
held during the initial screening and preliminary design stages at different places along the
tranche 1 and 2 alignments in order to gather views regarding the need of the proposed roads in
their vicinity.
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77.
Extensive consultations were also held with government agencies involved in
environmental protection, water and forest resources management during the preparation of the
Project. Government officers in relevant ministries and departments, transport and commerce
related organizations, and regional leaders were consulted during the feasibility and design
studies and were apprised of the Project objectives and asked for comments. The results of the
consultations were taken into consideration in the design of the tranche 1 and 2 roads.
78.
During the social, environmental and resettlement assessment various stakeholders
were consulted through informal focus group discussions and individual interviews which aimed
to promote public understanding of developmental problems such as local needs of the road,
problems of resettlement, etc. This therefore, ensured that the any affected population and other
stakeholders were informed, consulted, and allowed to participate actively in the development
process. Stake holder participation will be continued throughout the project, both during
planning, preparation, and implementation and during post implementation of the project.
79.
The people consulted during the reconnaissance and other surveys viewed that the road
will facilitate the development in the zone of influence of the proposed road. Most people
welcomed the proposed project. In the case of resettlement and land acquisition, people viewed
that they should be properly compensated.
80.
During the preliminary design stage of the project regular briefings were given to RD and
further consultations held with stakeholders, including people in the zone of influence during the
field surveys and with transport operators through survey and discussion. (Appendix 5).
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IV THE PROPOSED PROJECT
A.
Project description
1.
Project Area
81.
The direct project area includes the autonomous region of Ajara, including the districts
(rayons) and municipalities through which the existing highway and the proposed bypasses
traverse. The total population of Ajara is 380,000 (2008) of whom 122,000 were resident in
Batumi municipality who will benefit from reduced congestion and safer passage on the existing
road as well as faster travel for through traffic using the bypass.
82.
The indirect project area covers most districts between Batumi and Tbilisi and, to a
smaller extent, most of the rest of Georgia (Population 4.4 million) as they will ultimately benefit
from the lower transport costs of agriculture and manufactured goods traveling over the new
bypass roads, particularly to and from Turkey.
2.
Components
83.
Tranche 1 and 2 of the MFF aim to improve transport reliability by providing a costeffective investment program to improve traffic flow between Poti and Sarpi, with considerable
savings in both travel time and accident reduction costs.
84.
It involves building a 48- kilometer (km)-long high class road between Choloki River
north of Kobuleti to Chorokhi River south of Batumi in Ajara province, including 6 km of widening
of existing road to four lanes; providing consulting services and training; project monitoring and
evaluation (M&E); and improving road safety. The first tranche of the project comprises 28km of
new road (Kobuleti Bypass) and 6 km of road widening; the second tranche comprises 14km of
new road (Batumi Bypass)
B.
Project Rationale
85.
Ajara province, located in the southwest part of Georgia, is bordered by the Black Sea to
the west and Turkey to the south. The two major towns Batumi and Kobuleti are major tourist
centers, especially in the summer months. Batumi is also the second largest port in Georgia.
Whilst the two towns cater for extensive tourist traffic the existing main north south road also
carries heavy goods and passenger traffic. Turkey is Georgia’s most important trading partner
and substantially all trade with Turkey passes along this road. Traffic growth was strong in
2007-8 (averaging around 20 percent a year) but has fallen by 18 percent in 2009 north of
Batumi. Travel speeds are low and traffic accidents are higher than the national rate, which itself
compares badly with nearby countries. The high incidence of traffic accidents, and the
associated death and injury place a heavy burden on the health and welfare systems of the
area. The Project will support (i) construction of bypass roads around the two major tourist
areas; (ii) improve the international road transit network; (iii) improvement of road safety; (iv)
strengthening institutions and (vi) promote activities to involve the private sector.
C.
Impact and Outcome
86.
The overall Project will help promote sustainable economic growth in Georgia as a whole
and the project area in particular and improve the economic development of the project area. It
will create a better trade logistic corridor and, in this manner, enhance cooperation with
neighboring countries. It will achieve this by (i) improving the road transport network by building
bypasses of Kobuleti (tranche 1) and Batumi (tranche 2) allowing faster through transport of
goods and people from Turkey and the project area to Tbilisi and other areas of Georgia,
Armenia and Azerbaijan (ii) improving trade linkages with Turkey and improving the TRACECA
network (iii) reducing transport operating costs in general and, in particular, time and fuel
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savings for both through traffic and traffic remaining on the existing road, and (iv) reducing
accidents and fatalities on the existing road
Outputs
D.
87.
The output of the first tranche of the Project comprises (i) the provision of about 28 km of
two lane access-controlled highway from north of Kobuleti to north of Batumi, and upgrading
and widening of 6 km of existing road to four lanes (Kobuleti Bypass) (ii) safeguard measures
for the project road including environmental, land acquisition, resettlement and social as
required by GoG and ADB, (iii) provide road safety and pavement damage improvements by
awareness campaigns, safety design enhancements and axle weight control measures (iii)
capacity development of RD in the fields of bridge/tunnel design/construction, pavement
overloading, contract management and PPS (iv) detail design and construction supervision
consultants for the bypass road, and (v) project support to the Implementing Agency (IA).
88.
The output of the second tranche of the project comprises (i) the provision of about 14
km of two lane access-controlled highway providing a bypass around Batumi (ii) safeguard
measures for the project road including environmental, land acquisition, resettlement and social
as required by GoG and ADB, and (iii) construction supervision consultants for the Batumi
bypass road.
1.
Output for Tranche 1
89.
Construction of Kobuleti Bypass: The forecast traffic volumes indicate that only a two
lane road is required for the new Kobuleti bypass for the foreseeable future, however the design
allows for future upgrading to four lanes. The proposed design standard is Georgian two lane
standard for international roads.
90.
Design speed will be generally 120 kph, with some mountainous sections dropping to
100 kph. Maximum grade is generally 4 percent. A total right of way of 50m follows the GoG
standard, however in some mountainous road sections and at interchanges, this width has been
increased.
91.
The pavement structure thickness has been calculated based on the estimated
cumulative number of heavy vehicle axles in the design life. Cross road drainage is through
culverts and bridges. Road and design has followed GoG specifications, tunnel design has
followed international standards.
92.
Since the Project Road is located in a seismic affected area anti-seismic measures have
been included in the design of cross drainage structures. The tranche 1 alignment has 18
bridges with a total length of 2,984m; one bridge is over 250m.
93.
There is one tunnel in tranche 1 with a length of 400m. Whilst there are existing Georgia
design standards for tunnels, these are considered not suitable for the smaller length tunnels
and international standards have been recommended. Tunnel lighting will be required as will
traffic safety and emergency facilities. A technical and design summary is set out in Appendix 4
and a full design report in Supplementary Appendix 2.
94.
Road Safety Component: Tranche 1 will provide a road safety component to improve
road safety on the new and existing roads and generally in Georgia. The component will include
awareness campaigns, road safety equipment and road audits (Appendix 4 and 13).
95.
Project Support and Capacity Building: Tranche 1 will provide support for (i)
implementation of the Kobuleti bypass road, including detail design, construction supervision,
project management, monitoring, and evaluation; (ii) procurement and installation of a
weighbridge station along the bypass, portable weighbridges to conduct an axle load survey,
and communication and monitoring equipment, (iii) preparation of detail design of tranche 2; and
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(iv) independent external financial and technical auditing. These components will also help build
the capacity of RD. This non-investment component will be implemented primarily through
consulting services.
96.
The new road will involve some sophisticated and modern techniques both in design and
construction. Some of the skills required are not available in Georgia at the present time. This
will be particularly important in tunnel design, construction and operation, latest pavement
design techniques and contract management and capacity building and training will be required
in this area. Training will be carried out domestically by international specialists. Training will
also be needed in developing an ITS strategy for high speed roads.
97.
The EA has limited experience, resources and equipment for environmental and
social/resettlement management and monitoring and would experience some problems to
efficiently supervise monitoring of the environmental and social safeguard parameters for
tranche 1 and future projects. There is, therefore, a requirement for training RD officials at the
national and regional level in monitoring environmental and social/resettlement issues with the
objectives of building up the capacity and procedures of the PMU to undertake analyses of
environmental and social/resettlement impacts of road projects.
98.
The Government of Georgia supports the involvement of the private sector in
infrastructure. Steps to involve the private sector in road construction or rehabilitation or
maintenance have so far been tentative, although the proposed performance based
maintenance contracts (PBC) is a welcome development. The purpose of the proposed PPP TA
as part of the tranche 1 project is to move RD a step further than PBCs and prepare them for
deeper involvement by the private sector in road provision. Further details are in Appendix 11
and 14 and Supplementary Appendix 7.
2.
Outputs for Tranche 2
99.
Construction of Batumi Bypass: Batumi bypass will be constructed to similar design
standards as Tranche 1. The alignment has 5 major bridges of 500m or longer, with a total
length of bridges of 3,799 m. There are five tunnels, ranging from 90m to 730m, with a total
length of 1,510m.
100. Project Support and Capacity Building: Tranche 2 will provide support for (i)
implementation of the Batumi bypass road, including construction supervision, project
management, monitoring, and evaluation; and (ii) independent external technical and financial
auditing.
E.
Cost Estimates
101. The total project cost estimate and financing arrangements for both bypass roads is
summarized in Table 2 and for tranche 1 in Table 3. Table 4 shows a disbursement schedule for
tranche 1. Details are set out in Appendix 6 and Supplementary Appendix 3. The total cost of
the project, including support services, land, capacity building and contingencies is estimated at
$US325 million of which $119 million (37%) is foreign exchange cost. Local currency costs,
including taxes and duties, are estimated at $US205 equivalent (63%). The total cost for
Tranche 1 is $163 Million of which $56 million (34%) is foreign exchange cost. Local currency
costs, including taxes and duties, are estimated at $US107 equivalent (66%).
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Table 2: Project Cost Estimate and Financing – Tranches 1 and 2 $US million (at forecast exchange rate)
Item
Cost
($m)
ADB
18.4
177.2
10.8
1.8
0.7
1.4
37.2
247.5
71.2
6.1
324.8
0.0
177.2
10.8
1.8
0.7
1.4
0.0
192.0
67.6
6.1
265.7
Financed by:
Government
A Base cost
1. Land acquisition & resettlement
2. Civil works
3. Design & supervision
4. Capacity development
5. Road safety enhancement
6. Project management support
7. Taxes & duties
Subtotal
B Contingencies
C Interest during construction
Total
Table 3:
18.4
0.0
0.0
0.0
0.0
0.0
37.2
55.5
3.6
0.0
59.1
Project Cost Estimate and Financing – Tranche 1
Financed by:
Cost
Item
($m)
ADB
Government
A Base cost
1.
Land
acquisition
&
resettlement
2. Civil works
3. Design & supervision
4. Capacity development
5. Road safety enhancement
6. Project management support
7. Taxes & duties
Subtotal
B Contingencies
C Interest during construction
Total
10.1
0.0
10.1
86.1
7.8
1.8
0.7
1.4
18.5
126.4
33.1
3.5
163.0
86.1
7.8
1.8
0.7
1.4
0.0
97.9
31.3
3.5
132.7
0.0
0.0
0.0
0.0
0.0
18.5
28.5
1.7
0.0
30.3
Table 4: Disbursement Schedule – Tranche 1
Item
A Base cost
1. Land acquisition &
resettlement
2. Civil works
3. Design & supervision
4. Capacity development
5. Road safety enhancement
6. Project management support
7. Taxes & duties
Subtotal
B Contingencies
C Interest during construction
Total
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2009
2010
2011
2012
2013
Total
6.0
4.0
0.0
0.0
0.0
10.1
0.0
2.4
0.0
0.0
0.0
0.5
9.0
1.2
0.1
10.3
10.1
1.6
0.5
0.2
0.4
2.3
19.0
3.8
0.3
23.1
28.5
1.4
0.5
0.2
0.3
5.8
36.6
9.1
0.7
46.4
28.1
1.4
0.5
0.2
0.3
5.8
36.2
10.7
1.1
48.0
19.4
1.1
0.5
0.2
0.3
4.1
25.6
8.2
1.3
35.2
86.1
7.8
1.8
0.7
1.4
18.5
126.4
33.1
3.5
163.0
21
F.
Implementation Arrangements
102. The MRDI will be the executing agency (EA) and RD the implementing agency (IA). The
chairman of RD will be responsible for overall supervision of the program. RD will establish a
project management unit (PMU) headed by the deputy chairman of RD. It will comprise
technical staff seconded from RD and TRRC (the existing PMU for World Bank roads projects).
A steering committee will be established with representatives of the cabinet office, MRDI, RD,
Transport Department (of behalf of MED), the Ministry of Finance and the PMU head. The
steering committee will be chaired by a deputy minister of MRDI and will meet at least every six
months to ensure interagency coordination, review implementation progress, and provide
approvals and guidance as necessary.
G.
Implementation Period
103. Preliminary design was completed in July 2009. Detail design will start in September
2009. Other preconstruction activities, preparation of bidding documents, prequalification of
contractors, and tendering and awarding of contracts, will start in September 2009. Completion
of the preconstruction activities for two contracts of the first tranche is targeted for December
2009, with construction scheduled to start in March 2010. Completion of preconstruction
activities for the remaining contract of the first tranche is scheduled for February 2010, with
construction starting in April 2010. Completion of preconstruction activities for the second
tranche contracts is scheduled for July 2010, with construction starting in October 2010. The
first tranche contracts (Kobuleti bypass) will be opened to traffic by March 2013. The second
tranche contracts (Batumi bypass) will be opened to traffic by January 2014. The
implementation schedule is in Appendix 7.
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V PROJECT BENEFITS, IMPACTS AND RISKS
104. The Project will add improvement of the overall performance of the road sub-sector,
contributing to transport efficiency, and widening access to economic opportunities. The
beneficiaries of the Project will be communities served by the Project road who, although not
necessarily traveling on the new road, will benefit indirectly from the improved, lower cost, and
faster transport services, and thereby obtain improved access to economic opportunities and
social services. Transport operators, both passenger and freight transport services, will benefit
from the new road in terms of lower vehicle operating cost, time savings, and improved road
safety, and thereby increase productivity. Government and non-government agencies using the
Project road will improve their services delivery due to improved transport efficiency. Traders
both sub-regional and regional will also benefit from reduced transport costs and this should
result in lower costs to consumers in Ajara and Georgia generally.
105. Those benefits and positive impacts will occur based on assumptions that sufficient
funding will be obtained, that Government will implement the necessary organizational
structures and that the forecast traffic volumes on the new road take place.
A.
Benefits
1.
Traffic Analysis
106. The existing road is congested and carries unusually high volumes of heavy goods
traffic: approximately 300 articulated trucks – almost all of which carry Turkish license plates –
use the road daily. Average annual traffic on the existing road is currently 6,700 veh/day,
although car and minibus traffic (88 percent of the total) is 30-50 percent higher in mid-summer
than it is in April or October.
107. The bypass will divert long distance domestic and transit traffic, not only reducing
journey times and vehicle operating costs for diverting traffic but also improving the physical and
safety environment for users of the existing road. It is estimated that approximately 42 percent
of vehicles will divert. Opening base case traffic on the tranche 1 and 2 project bypass will be
3,500 veh/day and grow to 8,400 veh/day in 2033. If an alternative eastern corridor between
Turkey and Georgia opens, opening bypass traffic will be reduced to 2,700 veh/day, rising to
6,400 veh/day in 2033. Opening base case traffic on the tranche 1 (Kobuleti) bypass will be
3,600 veh/day, rising to 8,500 veh/day in 2033. Traffic projections take account of (i) forecast
economic growth in the zones used for trip generation and (ii) the additional traffic generated by
the project through reduced transport costs. For further details see Appendix 9 and
Supplementary Appendix 6.
2.
Economic Analysis
108. The evaluation uses 2009 prices and a 12 percent discount rate. All predicted project
costs and benefits are measured in economic prices using an international price numeraire and
a US dollar unit of account. A standard conversion factor of 0.97 was calculated using the
ADB’s simple trade-weighted formula.
109. Bypass benefits to “normal” traffic (i.e. traffic that would have been present in the do
minimum case) result from improvements in road and traffic conditions between the do
minimum and project case and amount to savings in (i) vehicle operating costs (VOCs), (ii)
personal travel time for vehicle occupants (other than drivers and crew, whose costs are
included in VOCs), (iii) road accident costs and (iv) the value tied up in freight during transit. In
addition there are the benefits of additional trips made solely as a result of the lower costs on
the existing road brought about by the project (“generated” traffic). The proposed project road is
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approximately 2.3km longer than the existing road. As a result (and as is typical for bypass
investments), most of the benefits arise from time, rather than VOC, savings.
110. For tranche 1 alone the estimated EIRR with base case traffic is 16.2 percent. Its net
present value (NPV) is USD40.6m. Of the total benefits, 83 percent are journey time and time
in transit savings, 10 percent are VOC savings, 5 percent accident cost savings and 2 percent
generated traffic benefits. Using case B traffic the EIRR falls to 13.3 percent, still above the 12
percent threshold.
111. The results of sensitivity analysis confirm the robustness of the project’s economic
viability: the EIRR remains above 12 percent for all costs up to 1.5 times base and for benefits
above 0.7 times base. A Monte-Carlo risk analysis was used to estimate the frequency
distribution of EIRRs. A negative skew was applied to costs to reflect (i) the weak construction
market in 2009 and (ii) the scope for optimization of the alignment. Negative skews were also
applied to all benefits to reflect the scope for loss of some corridor traffic. The results of the risk
analysis showed that with these uncertainties, (i) the mean EIRR is 15.4 percent and (ii) the
probability of the EIRR falling below 12 percent is 3.4 percent.
112. The EIRR of tranches 1 and 2 combined is 14.8 percent (base case traffic). The results
of sensitivity analysis show that the EIRR remains above 12 percent for all costs up to 1.3 times
base and for benefits above 0.8 times base. A Monte-Carlo risk analysis using the same
skewed distributions of costs and benefits as for tranche 1 gave a mean EIRR of 14.0 percent;
14 percent of results fell below 12 percent. For further details see Appendix 10 and
Supplementary Appendix 6.
3.
Financial Analysis and Tolling
113. It is recommended that the road is not tolled, at least in the short term, but that the
possibility be kept under review and re-appraised once demand for the bypass has been
established.
114. Financial evaluations assessed the tolls that would be needed, should tolling be
implemented, to cover all the operation and maintenance costs (including overlays but excluding
reconstruction or widening) and ADB interest expenses for a period of 20 years. It was
assumed that the concessionaire would include a profit element in his price for undertaking
maintenance works (rather than take equity returns, as in a “full” concession) and would operate
a sinking fund in order to manage the mismatch between revenue and expenditure profiles.
115. Experience suggests that a toll at around one third to one half of perceived road user
cost savings produces a good compromise between economic and financial returns. On this
basis the implied charge for a car using the tranche 1 (Kobuleti) bypass should be no more than
$1.40 and for the entire bypass $2.10.
116. Financial evaluation modeling showed that the levels of toll needed to recover O&M and
ADB interest expenses were modest by comparison. Assuming no toll indexation, (i) the total
charge for using the two lane section of the tranche 1 road (Kobuleti bypass) would be GEL0.8
for a car and GEL2.30 for an articulated truck and for using the two lane section of tranches 1
and 2 (Kobuleti and Batumi bypasses) would be GEL1.8 for a car and GEL5.5 for an articulated
truck. For further details see Supplementary Appendix 7.
B.
Safeguard Impacts
1.
Environmental Impacts
117. Environmental impact assessment (EIA) has been carried out for both tranches in
accordance with ADB’s Environmental Policy (2002), ADB’s Environmental Guidelines (2003)
and the Government of Georgia’s Laws on Environmental Impact Permit and Ecological
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Examination (2007). Environmental issues were considered for selection of the final alignment
for both tranches to avoid impacts on the (i) Ispani mire, a Ramsar Convention on Wetlands
(RAMSAR) wetland site of international importance, (ii) cultural sites, such as cemeteries, and
(iii) soil erosion and landslides. The EIA concludes that there will be both negative and positive
impacts due to the construction activities and normal operations of both tranches. The negative
environmental impacts for both tranches are similar and are broadly classified into 3 categories
during preconstruction, construction and operation.
Preconstruction
• Pedestrian and road accidents
• Land acquisition issues for new right of way (RoW) areas
• Compensation issues for other fixed assets from acquired RoW land areas
Construction
• Increased soil erosion, landslides and/or siltation from cut and fill operations,
including increased risks to downstream rivers and coastal resources
• Clearing of RoW, removal of vegetation (trees and shrubs) and disposal of spoils
• Extraction and transport of construction material from existing quarry sites
• Temporary use of land immediately adjacent to the road for siting of contractor’s
yard, asphalt plant and construction camps
• Reduced air quality and visibility (Air quality impacts and/or noise pollution from
construction activities, quarry sites, material storage sites, temporary diversion
roads, excavations, vehicle and equipment use and asphalt mixing plant)
• Reduced water quality (Water and soil pollution) at bridge rehabilitation sites from
improper handling of and disposal of wastes and materials
• Drainage from construction camps, material stockpiles, excavations and quarry
activities
• Interruption to smooth traffic flow, increased traffic congestion and public safety
problems
• Social conflicts due to project activities
Operation
• Increased traffic volume and related air, noise and public safety concerns
• Possible spills from transport of hazardous cargo 118.
A detailed environmental management plan (EMP) has been prepared for all the
identified impacts with adequate funds for monitoring and mitigation and will be included in the
contractor’s bid documents. The major positive environmental impacts will include:
(i)
reduction of traffic congestion on the existing road in Kobuleti and Batumi and hence improved
air and noise quality, and road safety, and (ii) reduced soil erosion and landslides due to slope
stabilization measures along the proposed bypass roads.
119. A Summary EIA (SEIA) report has already been circulated to the Board and was
approved for public disclosure through the ADB website (Appendix 20). A Cumulative Impact
Assessment (CIA) of the Project was also prepared (Appendix 21). An Environmental
Assessment Review Framework (EARF) was also prepared for future projects to be financed
under further tranches of the MFF and all environmental assessments of the other projects in
future tranches under this MFF will be carried in accordance with the EARF (Appendix 19).
120. The EIA has been submitted to Government and ADB and is presented as a
Supplementary Appendix to this Report.
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2.
Social and Poverty Impacts
121. Poverty and social analysis will be conducted for all projects financed under the MFF in
accordance with ADB’s Handbook for Integrating Poverty Impact Assessment in the Economic
Analysis of Projects and in accordance with the Handbook on Social Analysis (2007). A
summary poverty reduction and social strategy for Tranche-1 is set out in Appendix 16. The
project road will traverse through two regions, Ajara and Guria, and will pass through four
Rayons, Ozurgeti, Kobuleti, Batumi and Khelvachauri with a total population of 379,472. A
socio-economic survey was carried out in the project area in 20 villages with 200 samples. The
survey revealed that approximately 52 percent of the people live below the poverty line.
122. The direct benefit of the Project to the poor is relatively small; however, it will provide
some direct employment opportunities during the construction phase. There are also indirect
benefits. The provision of transport services, including the construction and maintenance of
transport infrastructure, generates demand for labor (often unskilled labor) and provides
income-earning opportunities for the poor. If a transport project generates jobs for the poor who
are otherwise unemployed or under-employed, it contributes indirectly to poverty reduction. The
construction aspect of the transport sector development is often viewed equally as important as
the service aspect of the sector in promoting economic growth. The process of poverty
reduction is embedded in a broad range of socio-economic activities to which transport services
provide intermediate inputs.
123. There will be both short term and long term positive impacts of the proposed Project.
The short term positive impacts include access to markets for agricultural produce, availability of
temporary unskilled jobs for villagers; and opportunity to provide food and restaurant services
for construction workers. The long term positive impacts include access to long distance
transport services with Turkey; access to long distance markets (buying and selling through
regional trade); easier access to health facilities and medical treatment; increased access to
agricultural extension services, increased access to education; increased opportunity for the
development of tourism; and diversification of income sources.
124. Women have important economic roles in project areas and engage in a very wide range
of income making activities in the agricultural and marketing sector. The Project will pay
particular attention to ensure that women are the recipients of the compensation pertaining to
their activities and to ensure that women who are de-facto household heads are clearly listed as
beneficiaries of compensation and rehabilitation proceedings under the loan. Women will also
be participants in the consultation processes to determine and negotiate compensation
entitlements and implement the LARP. Special attention will be given to the impact of
resettlement on women and other vulnerable groups during monitoring and evaluation of the
LARP. The Project will have a positive impact on gender, because the civil works contracts will
include provisions to encourage employment of women during implementation, and women will
be encouraged to participate in activities to monitor program impacts.
125. All projects financed under the MFF will include appropriate measures to mitigate the
potential risk of HIV/AIDS and other sexually transmitted infections, as well as drug and human
trafficking including raising public awareness of the risks. Civil works contracts will include
provisions requiring contractors to take measures to protect construction workers from the risks
of HIV/AIDS and other sexually transmitted infections, and giving construction workers time to
be tested or receive treatment.
126. No impacts on Indigenous Peoples are expected from the Project. An assessment of
impact on indigenous peoples was undertaken in accordance with ADB’s Policy on Indigenous
Peoples (1998). The Project will primarily affect Georgian people which are almost 93% of the
total population; other ethnic groups are also present in the project area but are insignificant in
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number. These groups are mostly Armenian, Azeri, and Russian who have been fully integrated
into institutional, cultural, and economic processes in the country, and they do not display
sufficient features to classify them as indigenous peoples as per the ADB’s definition on IP.
Therefore, the Project is classified category C.
C.
Resettlement Impacts
127. The impact on land acquisition and resettlement will be assessed for all projects
financed under the MFF in accordance with the Land Acquisition and Resettlement Framework
(LARF) prepared by the Government and agreed with ADB in compliance with ADB’s
Involuntary Resettlement Policy (1995) and relevant laws and regulations in Georgia.
Substantial land acquisition and resettlement impacts are expected for the tranche 1 and 2
projects which involve construction of new bypass roads. The LARF specifies compensation
provisions and procedures on preparation and implementation of LARPs for the projects
financed under the MFF. The summary LARF is provided in Appendix 17 and the detailed LARF
is presented as Supplementary Appendix 8.
128. The tranche 1 component will entail substantial land acquisition and resettlement; hence
it is categorized as “A” based on ADB’s definition on ADB’s Involuntary Resettlement. A detailed
impact assessment including the census survey has been completed and is in progress of being
analyzed which will give exact figures related to land acquisition and resettlement. However, a
preliminary assessment shows that approximately, 163.4 hectares (Ha) of land will be required
for land acquisition. A total of 894 land parcels will be affected. Additionally 154
structures/buildings will be affected. Based on preliminary estimate the total number of affected
household (AH) is 881 and the total number of affected persons (AP) is 4,440. A full LARP is
provided as a Supplementary Appendix to this Report. The summary LARP is provided in
Appendix 18. The LARF and the LARP for Tranche 1 have been endorsed by the Executing
Agency (RD) and will be disclosed to the affected people. The LARP has been submitted to
ADB for review and the final LARP as agreed by the EA and ADB will be fully implemented prior
to start of the civil work.
129. The LARPs for future tranches with land acquisition and resettlement impacts will be
prepared in accordance with the LARF, and will be submitted to ADB for approval and fully
implemented before the awards of concerned civil works contracts. Appraisal of the subsequent
projects financed under the MFF will require a review of the LARF and preparing respective
LARPs for those projects with land acquisition and resettlement impacts. Implementation of the
LARPs will be a condition for commencement of civil works under the relevant projects.
D.
Project Risks
130. The Project is being carefully formulated to mitigate risks, however the construction of
the project road will be in difficult terrain and operation of the road will require new techniques.
Possible risks are set out below.
131. The project is being designed to reduce potential technical, economic, financial and
social risks. The main technical risks are associated with the design and construction of the six
tunnels and six major bridges (Tranches I and II). To minimize risks, international consultant will
be included in the consulting services to review the design and contractors construction
methodology of the bridges and tunnels. There is still a risk however, that further detail
geological investigation will reveal adverse geological conditions which may increase cost
and/or change the alignment.
132. There have been problems on major roads in Georgia with pavement damage from
overloaded vehicles and there is at present little enforcement. The preliminary pavement design
has taken account of this overloading. To further minimize risk an axle load survey using
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portable weighbridges is proposed under tranche 1 of the project to assess the extent of the
problem. The introduction of a permanent weigh bridge on the Kobuleti bypass for freight traffic
will help to reduce pavement overloading.
133. To minimize construction risks the prequalification of contractors will focus on their
financial and technical capabilities in handling similar works. During the construction period,
monitoring and contract management information systems will be set up and implemented, with
the assistance of the international supervision consultants, for timely identification of technical
problems and implementation of corrective measures. The proposed PMU will be supported by
the World Bank’s PMU, the TRRC (which has had over ten years’ experience in the financial
management and procurement aspects of internationally financed projects), strengthened by
additional technical and financial auditing support. These arrangements will minimize contract
management risks.
134. The economic and financial risk associated with the construction and operation of the
road will depend on the actual level and composition of traffic and the construction costs. Traffic
forecasts in the TA have been conservative and sensitivity has been tested to the loss of some
long distance domestic and transit traffic to a proposed new border crossing.
135. Social risks are being identified and appropriate mitigation measures have been put in
place in the Resettlement Plan and the EMP.
136. A risk of delay to the project lies with the unsettled nature of Georgia’s political situation
at present. It is hoped that this risk will be minimized before the end of 2009. Government
decisions, involving revised legislation regarding land registration will be required to be set in
place in order that land acquisition and resettlement can be completed as scheduled.
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Appendix 1
28
Appendix 1
DESIGN AND MONITORING FRAMEWORK (Tranche 1)
Design
Summary
Impact
Increased
subregional
trade and
tourism revenue
Outcome
Improved
subregional
road network
Performance Targets/ Indicators
Data
Sources/Reporting
Mechanism
Increase in subregional trade
through the Turkish border by 4%
for 5 years after completion
30% increase in cross-border
freight traffic by 2015 from 1.0m ton
in 2008 to 1.3 million ton.
Increase in registered visitors to
Ajara region by 10% per annum for
5 years after completion from
285,000 in 2008.
Georgia Statistic
Yearbook
Region and National
Statistic Data
Increase in traffic volume for
Kobuleti bypass to 3,600 vehicles
in 2014, to 5,700 vehicles in 2024,
and 8,500 vehicles in 2034
Roads Department
(RD) surveys
Decrease in travel time from
Choloki bridge to Chorki bridge to
less than 0.6 hours after project
completion
Decrease in road accident rate
from 1.3 per million veh-km on the
existing road to 0.68 on the
bypass road in 2014.
Assumptions And Risks
Assumptions
Political and
macroeconomic stability
Implementation of the
Transport Infrastructure
Investment Program as
planned
Assumptions
Government's
commitment to implement
the roadmap and the
Subregional Road
Corridors Development
Program
Adequate financing for
implementation of the
Transport Infrastructure
Investment Program
Accident statistics
from the Georgian
Police
Risks
Rapid deterioration of the
road network caused by
insufficient funding for
maintenance and weak
axle-load control
Limited coordination
among government
agencies during
implementation of the
Subregional Road
Corridors Development
Program
Design
Summary
Outputs
A 28km 2-lane
bypass road
detouring
Performance Targets/ Indicators
Data
Sources/Reporting
Mechanism
Assumptions And Risks
IRI value for the bypass roads
maintained at no higher than 3.0
within 5 years after project
RD surveys
Assumptions
Support from local
governments and
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Appendix 1
Design
Summary
Kobuleti and
6km widening of
existing road
29
Performance Targets/ Indicators
completion
Data
Sources/Reporting
Mechanism
Supervision
consultant's report
Increased road capacity by 12,000
vehicles per day after project
completion
Reduced road user costs for a car
from $0.42 /km to $0.32/km after
project completion
Domestic training for RD staff
Road design
and
construction
and safeguard
capabilities
strengthened.
Asset
management
capacity
strengthened
Road safety
improved
Assumptions And Risks
communities
Disputes among
contractors, supervision
consultants, and RD
avoided or promptly
resolved
Risks
Cost overruns caused by
unexpected geological
conditions or unexpected
increases in prices of fuel
and key raw materials
Implementation of performance
maintenance contracts
Axle load equipment procured and
axle load survey completed on
existing roads by August 2010
Road safety publicity campaign
and training provided by project
with completion by 2011
Adoption of an intelligent traffic
system strategy by project
completion
Activities with Milestones
1. Implementation
Civil works contracts to be awarded for the 1st tranche
of civil works
roads by June 2010 and the construction work to be
started on 1 August 2010 and be completed by
October 2013.
2. Installation of
equipment
3. Implementation
of land acquisition
and resettlement
Plan
4. Implementation
of road safety
improvement and
awareness
campaign
5. Completion of
capacity building for
Civil works contracts to be awarded for the 2nd tranche
roads by December 2010 and the construction work to
be started on 1 January 2011 and be completed by
December 2013.
Equipment procured and installed by December 2011.
Land acquisition and resettlement plan for the 1st
tranche road to be completed by April 2010
Land acquisition and resettlement plan for the 2nd
tranche road to be completed by June 2010
Consultants to be recruited by December 2009 and TA
completed by August 2010
Consultants to be recruited by January 2010 and
completed by August 2010
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Inputs
• ADB: $108 million from
Asian Development
Fund
• Georgia:
Appendix 1
Design
Summary
RD and other
professionals
6. Providing
detailed design and
supervision
consultancy
30
Performance Targets/ Indicators
Data
Sources/Reporting
Mechanism
Design consultants to be recruited by August 2009 and
detailed design to be completed by 31 December 2009
for one contract of the 1st tranche roads, March 2010
for the remaining contract of the 1st tranche roads and
by July 2010 for the 2nd tranche roads
Supervision consultants to be recruited by March 2010
and completed by December 2013
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Assumptions And Risks
Appendix 2
31
Appendix 2
TRANSPORT SECTOR REVIEW
A. Economic Overview
1.
Georgia borders Turkey, Armenia, Azerbaijan and Russia and forms the lynchpin in the
Europe-Caucasus-Asia transport network. It is a small country, located to the south of the main
Caucasus mountain range. It has a population of 4.4 million. Following independence in 1991,
output declined by 70 percent, with the loss of Soviet markets, the end of large budget transfers
from Moscow, and the impact of civil war and ethnic conflicts, which displaced some 300,000
people. By 2000, recorded GDP had fallen to only 30-35 percent of its 1989 level, although
there is a (large) shadow economy, estimated to be up to 33 percent of GDP. Per capita income
is at the lower end of that of lower middle-income countries.
2.
Although a range of political and economic reforms were implemented following
independence in 1991, the situation quickly worsened thereafter. By the early 2000’s, power
had fragmented among competing groups, law and order had deteriorated, corruption was
widespread, public salaries, pensions, and social transfers were in arrears, and the political will
for reforms had slackened. The Rose Revolution in late 2003 brought into office a government
of reformers led by President Saakashvili. The administration has been implementing bold
reforms to fight corruption, reduce the burden of the state on the economy, move the energy
sector towards efficiency and sustainability, lay down the basis for improved employment and
standards of living and develop a fiscally sustainable social safety net. The reform orientation is
strongly pro-market.
3.
Economic performance after the Rose Revolution and until the war with Russia in
August 2008 was encouraging, with strong growth, macroeconomic stability and a sound mix of
fiscal and monetary policies. In the public sector, salaries and pensions are paid on time and
arrears have been cleared. Public employee salaries have increased significantly. Salaries in
the Roads Department (RD) have increased substantially and are now more or less on a par
with the salary level in the private sector. The regulatory and administrative environment facing
business has improved significantly. The World Bank’s 2006 and 2007 Doing Business Reports
rated Georgia among the top reformers. In the 2008 Report Georgia moved to 18th place in the
rankings. Various indicators show a marked decrease in corruption. Investment in infrastructure
has been substantial, particularly for roads and energy, with major improvements in access to
reliable electricity services.
4.
While economic growth has generated new jobs, it has not yet been sufficient to offset
labor shedding and therefore net unemployment has not reduced. Resuming growth in private
investment is therefore very important. Other challenges include the need to pay greater
attention to institutionalizing reforms to ensure their sustainability, protection of property rights,
progress in judicial reforms and strengthening of the rule of law.
5.
Georgia enjoys a strategic location it has yet to fully capitalize on. It is on the shortest
route between Europe and Azerbaijan, Armenia and the Central Asian Republics, through its
Black Sea ports, Poti and Batumi. It also can link Russia and Turkey. The physical location
ensures that it is a key transport link on the most direct route between the Black Sea and the
Caspian Sea and Central Asia, the historic “Silk Road”, which the current TRACECA
initiative seeks to emulate. Trade with neighboring countries, both transit and bilateral, is thus
an important feature of the economy. Wholesale and retail trade services are the second largest
sector. Georgia is developing closer economic cooperation with Turkey and Azerbaijan. In
February 2007, the Tbilisi Declaration on Common Vision for Regional Cooperation was signed
between Azerbaijan, Turkey and Georgia aiming at developing long-term and predictable
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32
relations on the basis of regional projects to establish energy and infrastructure links. Turkey,
Azerbaijan, and Georgia signed an Agreement in March 2007 to construct a railway Kars-TbilisiBaku, including a new 105-km section, 76 km in Turkey and 29 km in Georgia. Increasing
revenue from oil exports in Central Asia and the Caucasus is likely to increase the demand for
consumer and industrial goods.
6.
A range of natural endowments offer strong potential for labor-intensive export oriented
growth, as well as tourism activities, provided the provision of adequate infrastructure enables
them to develop, which would increase employment and broaden asset-ownership, Georgia has
an open trade regime. The country benefits from an educated, inexpensive labor force and it
also has a long tradition of entrepreneurship. Fertile land and favorable climate enables the
production of diverse agricultural products. Georgia’s scenic mountain regions, the Black Sea
beaches, and its rich historical and cultural heritage offer strong tourist potential. With improving
law and order, the prospect of rising incomes in the region, and greater interregional
connectivity through the transit corridor, Georgia has an opportunity to revive its tourist industry.
7.
Despite the successes of the Rose Revolution, Georgia is still in the process of building
a modern state. GDP is not yet back to its pre-independence level. Agriculture, manufacturing
and tourism, the major sources of exports and employment in the Soviet period, are only making
modest recoveries. The legacy of 70 years of command economy is challenging to overcome.
Georgia’s relationship with Russia remains strained, although reopening of the land border is
under consideration. This has repercussions for the export of agricultural goods, especially
wine, the import of gas and power and the ability of people to travel between the two countries.
8.
Reducing poverty is an important challenge. Strong economic growth 2003-2008
increased incomes for many in the middle and upper ranges of the income distribution. Although
the bottom 30 percent of the population has not yet experienced similar increases, important
non-income dimensions of poverty have improved, including significantly improved access for
the poor to electricity, natural gas, safe water, health and higher education. One of the key
structural factors contributing to high poverty level is the slow economic restructuring since
independence. Output contraction contributed to a major reallocation of the labor force.
Agriculture became the “employer of last resort” with the share of employment in the sector
more than doubling between 1992-2004. In addition, plot sizes shrank, leading to declining
productivity. Reducing poverty is a key priority of the Government’s reform program. Social
spending was increased by 5 percent of GDP 2003-2005, pension and wage arrears were
eliminated and a targeted poverty benefit was introduced in 2006. Poverty levels remain high in
rural areas, where incomes of those below the poverty line have not yet improved significantly.
9.
Georgia has a comparative advantage in export-oriented agro-processing areas, such as
wine, hazelnuts and fruit and vegetable processing, which are significant potential sources of
employment, as well as market growth for farm products. Dense forests cover one third of the
country and good potential for labor intensive export-oriented wood processing exists, if a
sustainable forestry regime can be developed. Georgia also has numerous mineral resources
that promise some employment creation. Integration of the rural population with the national
economy and a reduction over time of over employment in agricultural activities (52 percent of
employment for 16 percent of GDP) should help reduce rural poverty in the years ahead.
Although the conditions necessary for poverty reduction are in place, a sustained trend toward
lower poverty has not yet been established.
B. Transport Overview
10.
Poor infrastructure and cumbersome processes inhibit the full exploitation of transit
economy potential. Traffic flows from the Caspian Sea, primarily crude oil and oil products, are
rapidly expanding. The main flow in the corridor is unidirectional, consisting primarily of oil and
Engconsult Ltd.
Appendix 2
33
oil products, moving west to Poti and Batumi. Non-oil traffic mostly comprises Armenian and
Azeri trade goods, which account for a significant share of the turnover of Georgia’s ports.
Georgia has not yet been able to realize the transit potential from Central Asian countries. Rail,
road and port infrastructure require significant investments to rehabilitate and modernize an
aging infrastructure, after years of maintenance neglect. Despite being the closest maritime
gateway to nearly all Central Asian countries, the Georgian route presently accounts for a
negligible portion of the foreign trade of these countries. Long transit times, poor road
conditions, multiple borders to be crossed and the number of times cargoes need to be handled,
together with formal and informal payments and delays, explain the limited use of the Caucasus
route. The significant reduction in corruption should improve Georgia’s transit competitiveness.
11.
Limited transport infrastructure add to the cost of doing business, deter foreign
investment, add time and costs to the transit corridor, and leave large segments of the
population out of mainstream economic activities. Analyses show a close correlation between
poverty in rural households and the extent to which they are linked to markets. Poor transport
infrastructure partly explains why almost two thirds of rural household agricultural production is
for self-subsistence and that about 20 percent of rural households do not trade at all. A World
Bank Rural Infrastructure survey revealed that only in 5 percent of surveyed communities were
roads repaired within the last five years, while in 41 percent of communities they were last
repaired over 15 years ago. Poor connectivity has also contributed to weak linkages between
farmers and agro-processors, as few intermediate agents, wholesalers, or farmer-based
organizations exist.
12.
The Government’s transport strategy is to support market integration, to develop the
infrastructure and institutional setting and to maximize the country’s potential as a transit
economy. Implementation progress has been impressive. The main ports and airports have
been concessioned to the private sector; the railways are developing profit centers and the
adoption of modern marketing techniques; customs has been reformed, to improve trade
facilitation and reduce corruption; local infrastructure has been devolved to local governments;
and a massive effort is being made, with IFI support, to upgrade the road network and reduce
travel costs. The sector agenda includes major challenges, including: (i) overhauling the legal
and regulatory framework to incorporate the right balance in the private:public sector interface,
ensuring fair competition, safety and attention to environmental concerns; (ii) strengthening
institutions to fulfill their policy making, monitoring and executing roles; (iii) careful
implementation of decentralization to ensure that local authorities acquire the technical and
financial resources necessary to deal with their new obligations; (iv) ensuring capabilities for
efficient road management, based on modern information systems; and (v) capitalizing on the
benefits of a transit economy, and the ability to compete with alternative routes, requiring a
concerted public private effort to design and implement a vision that significantly transcends the
transport sector.
13.
The transport infrastructure consists of roads, railways, ports, airports and pipelines.
Road transport accounted for 89 percent of domestic passenger km in 2008 and for 8 percent of
freight ton km (Table A2. 1). The transport sector was one of the fastest growing in the
economy 2003-2008. Transport, storage and communications have substantially increased
their contribution to the total output, from 4.6 percent of GDP in 1996 (GEL881 million) to
over 10 percent in 2007 (GEL1,231 million).
14.
The transit of oil through recently completed pipelines and the railways dominates the
transport contribution to GDP. In physical terms the movement of goods by land modes has
increased by more than 50 percent 2000-2005 from 4.3 billion ton-km to 6.7 billion, with the bulk
of the change coming from an almost doubling of oil transit traffic by rail. While the railways
dominate the movement of oil, the roads are the preferred mode for passengers and non-oil
Engconsult Ltd.
Appendix 2
34
freight. Although the railways have the higher modal share in ton-km terms (89 percent), a
greater total tonnage is hauled by road transport. The average length of haul by road is less
than a tenth of that by rail, reflecting the dominance of the railways in oil transport, which
accounts for more than three-quarters of Georgia’s trade. Total land transport movement
amounts to only about one-third of the levels in 1990, a reflection of the civil war in 1991/92 and
the change in the pattern of trade and production since the breakup of the former Soviet Union.
Table A2. 1: Freight and Passenger Transport by Mode
Transport Mode
Railways
Roads
Maritime
Air
Total
Railways
Roads
Air
Total
2000
2006
Freight Transport (million ton-km)
3,912
7,393
475
586
612
131
3
4
5,002
8,114
Passenger Transport (million passenger-km)
453
809
4,500
5,269
238
453
5,191
6,531
2007
2008
6,928
594
120
4
7,646
6,516
601
45
2
7,164
774
5,417
475
6,666
675
5,568
486
6,729
km = kilometer.
Source: Statistical Yearbook of Georgia 2008. Ministry of Economic Development.
1. Road Infrastructure
15.
Georgia’s road network is crucial in facilitating subregional transport and trade. The
east–west highway forms part of the Asian highway network connecting Georgia and Turkey to
Azerbaijan and Central Asia. Georgia is a signatory to a number of international transport
agreements and conventions. Continued development of an integrated and efficient road
network will facilitate cross-border and transit traffic and contribute to subregional cooperation
and integration.
16.
The road network was primarily developed under the former Soviet Union and does not
adequately cater for the current needs of the economy and of the subregion. There are only
40km of 4-lane highway and many roads remain in poor condition. Funding for secondary and
local road maintenance remains inadequate. A large part of the network deteriorated rapidly
after independence and became non-maintainable, resulting in high transport costs and an
increase in traffic accidents, thus constituting an impediment to growth and poverty reduction.
The road subsector needs to be developed to facilitate subregional trade, investment and
tourism.
17.
The length of the road network in 2008 was 20,329 km (Table A2. 2). Under the Organic
Law on LSG Bodies, the responsibility for all local roads was transferred to LSG units effective 1
January 1 2007, after local elections in October 2006 and the implementation of territorialadministrative reform. Presidential Decree No. 554 provided that some 2,000 km of local road
was reclassified as secondary road. The international and interstate roads under RD jurisdiction
account for one third of the length.
18.
The road network was primarily developed under the former Soviet Union. Because of
insufficient funding for road maintenance following independence, about 24 percent of the RD
secondary road network remained in poor condition in 2008, together with most of the local road
network. The international roughness index (IRI) on subregional corridor roads is: 66 percent
Engconsult Ltd.
Appendix 2
35
under IRI of 4, 28 percent an IRI of 4-6 and 6 percent an IRI above 6. Many secondary and local
roads require reconstruction or rehabilitation. The poor condition of these roads results in high
transport costs and low safety levels. Technical standards and specifications for road design,
construction, and maintenance mostly dated from the Soviet era, with rigid criteria for upgrading
road capacity based on traffic volumes, without considering level of service or economic
viability. The inappropriateness of such standards for a market-based economy was widely
recognized and new norms, based on European standards, have been introduced in 2009.
19.
Cities remain responsible for urban roads. The main road network was 6,941km at the
end-2008, of which 347km are within Ajara. The network comprises 1,495km of international
roads (cross-border links), 5,446km of secondary roads (connecting major cities or regional
centers) and 13,388km of local roads (connecting villages and regional centers), of which 70 per
cent are unpaved and in very poor condition The local road network is approximately 13,288km
(Ajara 965km). The length of both the main and local networks has changed little since 2000,
the investment emphasis having been on rehabilitation, rather than network extension. All but
55km of the 1,495km of international roads are paved, but in the case of interstate roads the
percentage falls to 61, while only 23 per cent of local roads are paved. The paved proportion of
the national network has hardly changed since 2000. National and Ajaran road densities are
290km and 160km per 1,000km2 respectively. Densities are low by regional standards:
Azerbaijan has 690km/1,000km2 (both paved and unpaved roads) and Armenia
270km/1,000km2 (but paved roads only).
Table A2. 2: Road Network 2008 (in km)
Area
Ajara
Other areas*
Total
%
State Road
International
Interstate
46
301
1,449
5,145
1,495
5,446
7
27
Local
Road
965
12,423
13,388
66
Total
1,312
19,017
20,329
100
Per cent of
Total
6
94
100
Source: Roads Department. Note: * Including Abkhazia and South Ossetia.
20.
The 10 major corridors (in total 1309km) are listed in Table A2. 3. The principal
subregional corridor is the East-West Highway (E-60) and the adjoining E-70, which connects
Europe and Asia. The E-60 runs north from the Turkish border at Sarpi, via the Black Sea port
of Batumi to the port of Poti, then the E-70 runs east via the second largest city Kutaisi to Tbilisi,
and south-east to the border with Azerbaijan at Red Bridge. Three corridors run south from
Tbilisi to the Armenian border at Sadakhlo, Guguti and south of Ninotsminda.
Table A2. 3: Major Road Corridors
Route
Section
Length
(km)
S-1 (E-60)
Tbilisi–Senaki(Lesleidze)
288 (510)
S-2 (E-70)
S-3
Senaki-Poti-Batumi-Sarpi
Mtskheta-Kazbegi-Larsi
105
139
S-4 (E-60)
Tbilisi-Red Bridge
46
S-5
Tbilisi-SagarejoLagodekhi
140
S-6
Tbilisi-Marmeuli-Guguti
94
S-7
Marmeuli-Sadakhlo
34
Engconsult Ltd.
Remarks
Principal east-west highway. Currently
closed to through traffic at Abkhazia
border.
Black Sea coast highway.
Mtskheta to Russian border
Continuation of S-1 to Azerbaijan
border
Trunk highway east from Tbilisi towards
Azerbaijan border
Secondary international route to
Armenian border at Guguti
Main international route to Armenian
Appendix 2
36
Route
Section
Length
(km)
S-8
Khashuri-Vale
103
S-9
Tbilisi Bypass
Gori-Tskhinvali-GuptaJava-Roki
49
S-10
89
Remarks
border
Secondary international route to Vale
(Turkish border)
Eastern bypass of Tbilisi
Gori on S-1 to Roki Pass (Russian
Border) in South Ossetia
2. Vehicle Fleet
21.
Vehicle fleet statistics are of poor quality and overstate the number of vehicles in regular
use. The total fleet in 2008 comprised 613,000 vehicles, of which 543,000 were passenger
vehicles, 58,000 goods vehicles and 12,000 other vehicles (Table A2. 4). Average annual
growth from 2000 to 2008 was 12 percent. Vehicle ownership per 1,000 population increased
from 56 in 2000 to 140 in 2008. The level of car ownership is broadly consistent with that of
neighboring countries, given differences in per capita GDP. The increase in vehicle ownership is
attributable to sustained economic growth (GDP per head grew by an average annual rate of
7.9 percent 2001 - 2008), helped by tariff reductions following accession to the World Trade
Organization in 1999. The fleet has been modernized to some extent in the process, with Soviet
era vehicles replaced by western and Japanese imports, improving vehicle safety and reducing
individual vehicles’ fuel consumption and their emissions. Most private vehicles are 10 to 20
years old and many people cannot afford to replace or properly maintain them. The vehicle
fleet still includes many Soviet era cars, which generally consume more fuel and produce
more emissions. Many buses are also in poor condition.
22.
From 2005/6 annual licensing of vehicles ceased and was replaced by a requirement to
register only at a change of ownership. Vehicle registration and driver licensing is handled by
the police. There are no longer any vehicle roadworthiness tests and owners are not obliged to
carry even third party insurance. (The abolition of annual licensing accounts for the unreliability
of vehicle ownership statistics: there is no longer any mechanism for determining that a vehicle
is no longer used on the road).
Vehicle Type
Cars
Buses
Trucks
Other
Total
Table A2. 4: Vehicle Fleet (in ‘000)
2000
2006
202.0
387.9
18.2
38.5
25.6
58.2
4.5
8.9
250.2
493.5
2007
426.9
39.2
49.6
8.7
524.3
2008
501.2
41.7
58.4
12.0
613.3
Source: Ministry of Internal Affairs.
3. Institutional Structure
23.
Institutional arrangements ( Figure A2. 1) changed in February 2009 when a new
ministry was created, the Ministry of Regional Development and Infrastructure (MRDI). RD and
the United Transport Administration (UTA) were transferred from the Ministry of Economic
Development (MED) to the new ministry. RD is solely responsible for construction and
maintenance of the main road network, all of which is contracted out to private sector
companies. Strategy and planning are handled by the Transport Department (whose line
ministry is the MED). UTA is primarily responsible for international aspects of road haulage,
aviation and maritime transport.
Engconsult Ltd.
Appendix 2
37
Ministry of Economic
Development (MED)
Ministry of Regional
Development and
Infrastructure (MRDI)
Transport Department
•
roads strategy &
policy
Roads Department
•
road construction,
maintenance etc
TRRC
•
PIU for World Bank
projects
UTA
•
international
haulage
agreements etc
Figure A2. 1: Roads Department – Institutional Context
24.
RD has 160 staff, nearly all based in Tbilisi. The organization chart is given in Figure A2.
2Error! Reference source not found.. There are five small regional offices: in Sagarejo,
responsible for the regions of Kakheti, Kvemo Kartli, and Mtkheta Mtianeti; in Borjomi for the
regions of Shida Kartli and Samcke Javakheti; in Kutaisi for the regions of Racha Lechkhum,
Kvemo Svaneti and Imereti; and in Poti for the regions of Guria and Samegrelo Zemo Svaneti.
The fifth regional office is for the Autonomous Republic of Adjara. No formal organizational
structure has been established For local roads; most local authorities lack technical staff,
equipment and a secure source of funding for road maintenance and rehabilitation.
25.
Responsibility for road construction and maintenance is split between the Roads
Department (RD), districts and cities. RD is responsible for the main road network, comprising
international roads (i.e. those used by international transit traffic) and interstate roads.
26.
Intercity bus transport is completely deregulated and there is no official control of prices.
The same applies to domestic freight transport.
27.
Institutional capacity in the road subsector needs further strengthening to successfully
implement an expanding road program. The World Bank is continuing to support necessary
institutional strengthening and ADB will work in parallel to enhance resourcing for these
initiatives.
Engconsult Ltd.
Appendix 2
MRDI
Chairman
Engconsult Ltd.
First deputy chairman
Financial management
•
•
•
Legal department
•
accounts
budgeting
tolls
•
•
Administration
•
•
legal drafting (road law
amendment etc)
RD legal representation
legal compliance checks
HR
office management
Deputy chairman
Technical policy
•
•
•
•
Rehabilitation
•
design
road standards
road condition survey
R&D
planning & commissioning
of rehabilitation
Deputy chairman
Deputy chairman
Development and resettlement
•
•
•
annual construction plan
resettlement planning
bridge condition survey
•
•
Periodic maintenance
planning and
commissioning of routine
maintenance
reports on emergencies
Roads operations
•
•
•
co-ordination with local
government
police liaison (blackspots,
diversions)
signing
Regional offices:
Ajara
Sagarejo
Borjomi
Kutaisi
Poti
Figure A2. 2: Roads Department Organization Chart
38
Appendix 2
39
4. Road Investment Financing
28.
Consolidated budget revenues increased by more than ten percentage points of GDP
between 2003 and 2006. Tax revenues increased substantially, partly owing to the sweeping tax
reform adopted in 2005, but also due to the crackdown on smuggling and tax evasion since the
Rose Revolution. The government acknowledges that sustaining and accelerating economic
growth will require deepening integration with world markets. To that end, the Government has
identified as a key priority the modernization and improvement of transport infrastructure.
Reforms implemented since 2004, along with investments in infrastructure and improvements in
the regulatory environment, are supporting private sector growth. In the longer term, expected
sources of growth include agro-processing and small manufacturing, tourism, transit trade
activities and mineral extraction and processing.
29.
Up to 2004 there was a road fund, financed from the proceeds of the fuel tax, the
international transit tax and a road usage tax levied on individuals and enterprises. In 2004 the
government abolished special funds, including the road fund, and since then the sub-sector has
been funded directly from the state budget and from donor funds. The proceeds of the
remaining direct taxes on transport (fuel tax, import duties and VAT on vehicle sales, vehicle
registration fees and the Rikoti tunnel tolls) are part of state revenue and are not earmarked.
30.
The RD budget for 2009 is GEL521m (Table A2. 5). This is financed: GEL284m from the
state budget (of which GEL102m are counterpart funds) and GEL237m from donor grants and
credits. Routine maintenance accounts for GEL26m (GEL3,800 per km). GEL119m from state
funds is budgeted for periodic maintenance and rehabilitation. If donor funded rehabilitation
projects are included, total funding for rehabilitation and periodic maintenance amounts to
GEL150million, or GEL22,000 per km.
Table A2. 5 :RD Expenditure and Financing 2006-2009
2006a
Staff expenses
New road construction:
State budget
TRRC
Subtotal
Rehabilitation:
State budget
TRRC
MCGc
Subtotal
Routine maintenance
Miscellaneous (including bridge
works)
Grand total
Financed by:
Donor and counterpartd funds
State budget
2007a
2009b
1.2
2008a
GEL million
1.2
2.0
N/A
N/A
52.6
N/A
N/A
74.0
13.7
53.7
67.4
13.7
205.7
219.4
N/A
N/A
0.0
93.9
22.0
29.8
N/A
N/A
0.0
165.4
25.5
10.8
122.5
5.3
34.5
162.3
25.5
15.2
121.5
80.0
50.2
251.7
25.8
21.4
199.5
276.9
272.4
521
N/A
N/A
63
214
102
170
339
182
2.2
Source: Roads Department and Transport Department
Note:
(a) actual expenditure for fiscal year – 1 Jan to 31 Dec. All figures include VAT where applicable
(b) budget forecast
(c) the MCG compact became effective April 2006, but MCG accounts show no roads expenditure until
2008. The only MCG roads project is rehabilitation of the Samtskhe-Javakheti road
(d) counterpart funds are from state budget sources
Engconsult Ltd.
Appendix 2
40
5. Road Maintenance
31.
Since 2004, the Government has invested some GEL900 million in road construction,
rehabilitation and maintenance, with financial assistance from the World Bank, the Kuwait Fund,
Germany (KfW), Japan Bank for International Cooperation (JBIC) and the US Millennium
Challenge Georgia Corporation. Foreign assistance for the road subsector is increasing.
Sustained financing will continue to be needed to bring the network (particularly secondary and
local roads) to a maintainable standard, while adding essential additional capacity to meet the
needs of trade (transit), rural development, agriculture, industry and tourism. Increased mobility
and access to secondary urban centers is expected to help with job creation.
32.
The condition of the network under RD responsibility improved considerably 2004-2008,
with the rehabilitation and periodic maintenance of 1,722 km in this period (Table A2. 6). The
percentage of the main road network in good condition increased from 45 to 66 percent,
although the improvement of secondary roads was much less, from 18 to 23 percent. While only
6 percent of the main network was in poor condition in 2008, 24 percent of the secondary
network was (Table A2. 7).
Table A2. 6: RD Rehabilitation/Periodic Maintenance 2004-2008 (km)
Year
2004
2005
2006
2007
2008
Km.
276
216
322
577
331
Source: Roads Department
Table A2. 7: Surface Condition of RD Roads 2004-2008
Year/Condition
2004
Good
Fair
Poor
2005
Good
Fair
Poor
2006
Good
Fair
Poor
2007
Good
Fair
Poor
2008
Good
Fair
Poor
Main %
Secondary %
45.0
45.5
9.5
18.0
41.5
40.5
55.0
37.0
8.0
20.0
50.0
30.0
60.0
32.0
8.0
22.0
50.0
28.0
64.0
30.0
6.0
20.0
55.0
25.0
66.0
28.0
6.0
23.0
53.0
24.0
Source: Roads Department
Engconsult Ltd.
Appendix 2
41
33.
Under the proposed RD maintenance program for 2009-2013, an increase in funding
from $118 million to $158 million is planned, with most of the increase going on a tripling of the
periodic maintenance program (Table A2. 8).
Table A2. 8: Proposed RD Maintenance Program 2009-2013
Type of Work
2009
2010
Routine maintenance
Winter maintenance
Periodic maintenance
Rehabilitation/Strengthening
Emergency works
Total
13.3
3.6
18.2
78.8
3.9
117.9
14.5
3.8
21.2
84.8
3.9
128.4
2011 2012
$ million
13.3
12.1
3.9
4.1
30.3
45.5
84.8
81.8
3.9
3.9
136.4 147.5
2013
Total
10.9
4.2
54.5
84.8
3.9
158.5
64.2
19.8
169.7
415.2
19.7
688.5
Source: Plan for Road Infrastructure Development 2009-2013.
34.
In 2007, responsibility for local roads was transferred from RD to 69 local authorities, as
part of broader public sector reform aimed at decentralizing government functions. An estimated
GEL1,450 million is needed to rehabilitate the local road system (90 percent in poor condition)
and bring it up to a maintainable condition. Rehabilitated local roads would then require
GEL1500-4000 per km annually for routine and winter maintenance.
35.
RD has no direct labor force: it contracts out all its maintenance and construction
activities. The country is divided into 34 routine maintenance zones. Contractors bid against a
bill of quantities drawn up by the department. The last round of bidding took place in 2007 and
was for a period of 27 months. These contracts will expire in 2009 and will be re-bid for a period
of 12 months. Supervision and verification of quality and quantities were also contracted out to a
private company but has now been brought into the department.
36.
The World Bank (WB) is supporting RD in improving the efficiency of its road
maintenance activities. A shift from contracted out maintenance to performance based
maintenance contracts (PBCs) may produce further savings (up to 50 percent). A WB TA for
developing a comprehensive framework for the introduction of PBC has been prepared. The
international consultant, in collaboration with a small RD team, will apply the PBC framework to
a preliminary assessment of a concession for the maintenance of the East-West Highway and
an area-wide contract for rehabilitation and maintenance for 250-300km of main and secondary
roads centered on a Regional RD Office. Performance based maintenance of road projects
undertaken under the MFF will be standard.
37.
The national contracting capacity in the road subsector includes 13 large contractors
with an annual turnover of more than GEL10 million per year, about 30 medium size contactor
with an annual turnover between GEL5-10 million and more than 60 smaller contractors.
6. Vehicle Axle Load Control
38.
Georgia has developed regulations to limit vehicle axle load to 11.5 tons, the EU
standard, but lower than the 13.0 tonnes in neighboring countries. Enforcement, however, is
weak primarily because of limited institutional capacity and lack of vehicle weigh facilities along
main roads. As a result, vehicle axle overloading is prevalent. If enforcement were high,
however, there would be problems in dealing with transit traffic from countries with higher limits.
There is a need for coordination within the Caucasus countries to agree on a common limit.
39.
Informal surveys conducted during preparation of MFF Project 1 indicated that there is a
problem with trucks exceeding the axle-load limit. Heavy vehicle weights are one of the primary
causes of rapid pavement deterioration, therefore enforcement of vehicle axle-load control is
urgently needed to prevent premature deterioration
Engconsult Ltd.
Appendix 2
42
40.
To control this problem there is an urgent need to establish vehicle weigh stations along
international roads, where overloaded vehicles should be required to redistribute or unload
excess freight and also to collect reliable data on vehicle axle loads by installing permanent
“weigh-in-motion” devices at key points. ADB is proposing to establish a vehicle weigh station
on the Kobuleti bypass, under MFF Tranche 1 and to carry out an axle load survey (Appendix
14).
7. Road Transport Services
41.
The road freight industry is made up of private companies and is completely
unregulated. Entry to the market is easy. It is difficult to judge the extent of market
efficiency, but freight rates of between GEL0.20-0.27 per tonne-km for hauls of 100-500km
are consistent with operating costs estimate by HDM-4, which suggests that excess profits
are not being earned.
42.
Intercity bus services are extensive and frequent. Although most routes are plied by
both mini-buses and larger buses, there is little to choose in terms of journey time as all
buses will stop to pick up passengers en route if they have room. Fares between bus
stations (e.g. Tbilisi and Batumi) are controlled by bus station operators, who take a cut
from the fare. Bus station operators also appear to control capacity – a new entrant would
find it difficult to operate a new service from an existing bus station. This control of both
prices and capacity may be hindering the development of new services (e.g. express
services).
Engconsult Ltd.
Appendix 3
43
Appendix 3
TECHNICAL AND DESIGN SUMMARY
(Detailed in Supplementary Appendix 2)
1.
Alignment. The proposed project roads bypass the Black Sea coastal cities of Kobuleti
and Batumi in the province of Ajaria in western Georgia. The proposed bypasses are the
combination of tranche one comprising (i) two-lane road east of Kobuleti (28km) with the first 14
km traversing mostly through plain areas and the remainder in hilly terrain, (ii) widening of the
existing road from 2 to 4 lanes between Kobuleti and Batumi (6km), and tranche 2 a two-lane
road that will cut through densely populated hilly terrain east of Batumi (14km); a total of 48km.
The bypasses are designed as two-lane roads, although land acquisition has allowed for future
upgrading to four-lanes with at least 50 m wide reserve for the right-of way.
2.
Geometric Design Standards. New Georgian design standards (April 2009) were used
in the preliminary design with some adjustments approved by the Roads Department
summarized below. The proposed design speeds are shown in Table A3. 1.
(i)
(ii)
(iii)
(iv)
No
1
2
3a
3b
4a
4b
4c
5
6
7
8
9
10
15
A minimum design speed of 100kph was retained throughout the rolling/hilly
sections.
The envelope for the tunnels was reduced by omitting the 2.5m safety lane to
reduce the cost. The revised envelope agrees with most international standards.
The lane width was reduced from 3.75m to 3.5m over the widening section (6
km) with 1m shoulder because of restricted available land. 3.75m was used
elsewhere.
A slightly higher vertical crest and sag radii were adopted in flat terrain to reduce
the bridge and tunnel lengths. They comply with most international standards.
Table A3. 1: Georgian Geometric Design Standard for Two Lane Road
Main Parameters
Unit
Flat
Rolling
Mountainous
Design speed
km/h
120
100
80
Number of lanes
4/2
4/2
4/2
Lane width (4 lanes)
M
3.75
3.5
3.5
lane Width (2 lanes)
M
3.75
3.75
3.75
Shoulder width left
M
1.0
1.0
1.0
Shoulder width right
M
3.0
2.75
2.25
Shoulder Width two lane both sides
M
2.5
2.25
2.0
Minimum width of central reserve
M
4.0
4.0
4.0
Hard shoulder width for emergency
M
2.5
2.5
2.5
stop
Verge for central reserve
M
1.0
1.0
1.0
Maximum longitudinal gradient
%
4
5
6
Minimum horizontal curvature
M
700
450
250
Minimum radius of vertical curves
Crest
M
22,600
10,000
5,000
Sag
M
7,700
4,900
3,200
Design vertical clearance bridges,
M
5
5
5
overpasses
Design clearance of tunnels
Vertical
M
4.5
Horizontal – Two lane road tunnel M
11.4
11.4
10.65
- Twin Tube (4 Lanes) M
11.4
10.65
10.65
Service walkway width
M
0.75
Engconsult Ltd.
Appendix 3
44
3.
Pavement. An asphalt concrete pavement was adopted to allow for estimated
percentage of heavy vehicles in the traffic flow. The pavement layer thicknesses were
calculated using the estimated cumulative axle loads in the design life of the road and subsoil
strength tests (CBR) taken along sections of the alignment. The proposed pavement varies
along the road but generally consists of 120 mm asphalt concrete wearing and binding course,
230mm crushed stone base, and 300mm granual subgrade. This will be checked at the time of
final design.
4.
Structures and Tunnels. There are (i) 18 bridges and one tunnel along Kobuleti bypass
with a total length of 2,984 meter and 400 meter, respectively; and (ii) 19 bridges and 5 tunnels
along Batumi bypass with a total length of 3,799 meter and 1,510 meter, respectively. Six
bridges are 500 meters or more in length.
5.
The structures and tunnels are designed according to the Georgian specifications except
as mentioned in para. 2(i) above. Bridges are designed to carry 80 ton loads (HK11 – HK80)
with 100 years flood return frequency. Culverts and side drains are designed to carry 50 and 20
years flood return frequency, respectively.
6.
The project road is located in seismic zone IV (Modified Mercalli Scale) which requires
anti-seismic measures to be included in the design of structures. Most bridges will be simple
span reinforced concrete on piers and spread footings. Some bridges with longer spans will be
pre-stressed T-girder superstructure.
7.
The Georgian standard for two way tunnels has an emergency lane on one side of 2.5m
wide with a clear width of the road of 11.5m. This gives an overly large tunnel cross section
compared to most international standards and would create difficulty in construction in poor
ground as well as increasing construction time and cost. An internationally accepted cross
section was recommended and approved by RD for the project tunnels with two 3.5m wide
lanes, 1.25m wide shoulders and 0.9m wide inspection walkway one side. The total width of the
tunnel is about 11 m and height is about 7.5 m. The tunnel ventilation is deemed not required
due to the low traffic volume and relatively short tunnels' length. An Illumination system is
included in the tunnel designs. Suitable facilities are included in the design and cost estimates
for traffic safety and emergency based on the length of the tunnels and traffic volume.
8.
Materials and Labor. Construction materials, such as boulders, stones, gravel and sand
are locally available at a reasonable distance. Suitable sites were identified and quantities
estimated. A more detailed materials source study and analysis will be required in the final
design. Other materials such as bitumen, steel, some cement, tunnel equipment and spare
parts would be imported.
9.
For construction of the road and small/medium bridges most skilled and all unskilled
labor is available in Georgia, but for the construction of tunnels and the large bridges skilled
labor would need to be imported.
10.
Quantity Estimates were based on the preliminary design work. These include: (i)
earthworks estimated from the surveyed longitudinal profile and cross sections, (ii) retaining
structures and minor drainage, (iii) pavement works calculated based on the thickness adopted
in design and the pavement cross section, (iv) bridge works estimated based on the lengths of
bridge spans, cross-sections, and soil type, (v) tunnel works based on the lengths of the tunnels,
cross-sections and soil types, (vi) interchanges based on estimated ramp lengths and widths
and overpass spans and (vii) ancillary works and road safety provisions based on the road and
structures length, plans and traffic volumes.
Engconsult Ltd.
Appendix 3
45
11.
Unit Rates of the major cost items were developed based on recent new road and road
widening projects elsewhere in Georgia and adjusted for the first quarter 2009. Rates for items
not included in recent contracts were estimated based on rates in other countries, adjusted for
Georgia transport costs and taxes etc.
12.
Cost Estimates are based on the quantity and the unit rates of the cost of major items.
Cost of special equipment was estimated using overseas rates adjusted for Georgia. Cost for
some minor miscellaneous works and overheads were estimated on a percentage basis of the
earthworks, pavement and drainage cost. Consulting services costs were estimated for both
international design and for international/domestic supervising engineering organizations. Costs
of land acquisition and resettlement were not available for the final report and were estimated
from preliminary plot maps and recent rates.
13.
A ten percent allowance to the civil works cost is added for physical contingencies to
cover the cost of adjustment of alignments and variations in the lengths of bridges and tunnels
etc in final design.
14.
Limitations to Preliminary Design. The design centerline is based on the preliminary
design topographic survey and cross sections taken from digitized 1:1,000 mapping. The
optimization of the road geometry design will be necessary during detailed design after detailed
cross section survey is carried out. It is expected that this will reduce some quantities, especially
earthworks and bridge lengths.
15.
Pavement thicknesses will also vary during the detail design/construction stage. It is
recommended that subgrade CBRs be checked and pavement thickness design be adjusted
during detail/construction stage.
16.
The geotechnical investigation, whilst covering most of the major structures was limited
to tomography survey because of both limited resources and time. In some cases geological
conditions have been assumed based on survey at nearby sites. Additional geotechnical
investigation will be required for each site during the detailed design. This could lead to some
changes in final design and quantities.
Engconsult Ltd.
Appendix 4
46
Appendix 4
ROAD SAFETY
A.
Road Safety Trends in Georgia
1.
Road safety in Georgia is an acute problem, reflected by a sharp rise in the number of
traffic accidents, fatalities and injuries (Table A4. 1). The current fatality rate is about 10 times
that in European countries, causing significant economic and human losses. While there are
many causes of traffic accidents, inadequacy of the road network is a contributory factor.
Curves and superelevation are inappropriately designed, and safety furniture is lacking on many
roads. Other causes of accidents include weak enforcement of safety regulations, reckless
driving, and inadequate driver education. Accidents are likely to increase, unless remedial
action is undertaken.
2.
In 2008 there were over 6,000 accidents involving death or serious injury and 867
fatalities, a rise of over 18 percent on 2007. The fatality rate relative to the vehicle fleet at 12 per
10,000 vehicles in 2008 is high (even higher if scrapped vehicles are removed from the fleet
statistics), significantly higher than other Eastern European countries and much higher than in
the EU1. Both fatalities and serious injuries show an upward trend and road-safety is thus a
serious social issue.
3.
Georgia as an ECMT member is, along with other members, committed to reducing road
deaths by 50 percent by 2012, compared with 2000. Whereas other countries had made good
progress by 2004, with West European countries reducing deaths by 5.2 percent per year and
Central and Eastern European countries by 3.3 percent per year, road deaths in Georgia
increased over the period by 6.4 percent a year. Besides emotional pain, traffic accidents have
a direct impact on economic growth. A 1999 World Bank working paper Road Safety in
Individual ECA Countries suggested that the social economic cost of road accidents for Georgia
was about 1.1 percent of GDP. Estimates by the PHRD-funded consultants in 2007 indicate that
the annual economic loss is now at least $100 million, 1.4 percent of GDP.
4.
When Georgia enters the “explosive” phase of motorization, with rapid growth in the
vehicle fleet, accidents will increase rapidly, unless effective mitigating actions are implemented.
The Government is addressing road safety, the Patrol Police is now better equipped and thus
more efficient, some main roads have been resurfaced, a drunk driving law has been introduced
and is being enforced, traffic monitoring devices are being installed in Tbilisi. However, there is
much to be done. The Patrol Police have identified the main accident causes to be the poor
condition of the roads and vehicles (e.g. tire blowouts during driving), erratic behavior of
pedestrians and excessive speed, which is thought to be the dominant cause of accidents on
main roads. Around 66 percent of deaths occur in “urban” areas (towns or built-up areas along
main roads). On rural roads, seatbelts are worn and effective police enforcement of speeding
and seatbelt wearing is undertaken, and deaths are increasing by 3 percent per year. On urban
roads, however, they are increasing at around 25 percent per year. Over 30 percent of deaths
are pedestrians, almost double the percentage in many West European countries (e.g.
Germany 14 percent, France 11 percent, Sweden 14 percent, and the Netherlands 8 percent).
The fastest growth is in the 8-15 age group. Urgent actions should be taken to prevent more
loss of life. Seat belts are not worn in urban areas, where vehicle speed is often excessive (both
within towns and on sections of major roads which pass through). According to a 2004
1
. According to a 2004 unpublished World Bank working paper, fatality rates in other ECA countries were: Bosnia
3/10,000 vehicles, Croatia 5/10,000 vehicles, Russia 12/10,000 vehicles, Serbia 5/10,000 vehicles, Turkey
8/10,000. Other European countries average 2/10,000 vehicles.
Engconsult Ltd.
Appendix 4
47
unpublished World Bank working paper, fatality rates in other ECA countries were: Bosnia
3/10,000 vehicles, Croatia 5/10,000 vehicles, Russia 12/10,000 vehicles, Serbia 5/10,000
vehicles and Turkey 8/10,000vehicles. There are very few facilities to ensure pedestrian safety
or to guide drivers through hazardous locations: these should be the highest priority areas for
urgent attention and action.
Table A4. 1: Road Traffic Accidents 2001-2008
Year
2002
2003
2004
2005
2006
2007
2008
Road Accidents
2,011
2,113
2,936
3,870
4,795
4,946
6,015
Number of Deaths
515
572
637
581
675
737
867
Number of Injuries
2,509
2,585
4,069
5,546
7,084
7,349
9,063
Source: Ministry of Internal Affairs, Traffic Patrol Police.
5.
Responsibility for road safety is spread amongst three ministries and cooperation
between the three appears somewhat sketchy. The Interior Ministry, through the Patrol Police,
is responsible for attending and reporting on road accidents as well as enforcing traffic
regulations and laws. The Road Safety Division of RD is responsible for ensuring that the road
infrastructure is designed, constructed and maintained in a safe manner. It carries out road
safety improvements, sometimes at the request of the patrol police, and other times after having
manually analyzed the data collected by the police. It is also responsible for installing and
maintaining road signs and markings. The Transport Department of the Ministry of Economic
Development was instrumental in producing a draft Road Safety Strategy for Georgia.
6.
Recognizing the growing problems, the Government has established a more effective
traffic policing capability, will be developing a multi sector road safety strategy and develop and
implement a multi sector road safety action plan based on the final report of consultants who
have been undertaking a road safety study of Georgia during 2007 and early 20082. A road
safety component has been included within the World Bank Second East West Highway
Improvement Project, to strengthen the Roads Department of the Ministry of Regional
Development and Infrastructure (MRDIRD) road safety unit, to implement a hazardous locations
program along the East-West corridor, to design a new road accident data base and to develop
traffic and safety engineering standards that can be used on urban and rural roads of Georgia.
A further component is proposed in the Third East-West Highway Improvement Project to
develop road safety audit manuals.
7.
A road safety TA is proposed under MFF Tranche 1. It will be important to coordinate
this work with World Bank projects. The TA will include use of new road safety audit manuals for
project roads, inclusion of historic and ongoing accident data into the new accident database
being prepared under the World Bank projects, awareness campaigns for roadside
communities, school children and transport operators, and road safety publicity through
television and newspapers.
8.
Road safety equipment will be procured for the project including surveillance cameras,
variable message signs and road safety enforcement equipment for Patrol Police. Also included
is the development of intelligent transport system standards.
9.
This road-safety study for the Project reviewed the existing trends in road-accidents in
Georgia; carried out a safety audit of the preliminary design of the project road, developed road2
SWEROAD – Feb 2008. Report on proposed road safety actions.
Engconsult Ltd.
Appendix 4
48
safety awareness/education programs to be carried out in conjunction with the Project and
discussed other aids to road safety.
10.
WB has been a major force in promoting road safety in Georgia. This has been done
mainly by including road safety components in their road construction projects and through
advice to RD and other GoG ministries and departments. It is important that any road safety
component in this project complement their work. The road safety component proposed for the
project has been discussed with WB road safety specialists.
B.
Road Safety Audit Of Project-Road
11.
A safety audit was carried out of the initial preliminary design and reviewed the road
alignment and layouts of the tunnel, interchanges, service area and axle-load control station and
bridges. Based on the estimated traffic volumes there are no safety issues because of capacity
constraints within the design period of the Project.
12.
Countermeasures have been included in the design at potentially hazardous locations
including low radius curves, constrained locations owing to the combined effect of the horizontal
and vertical alignment, etc. There are no visibility constraints at the tunnels or their portals,
however the lighting approaching tunnel exits should be carefully monitored such that it blends
in with the outside brightness, especially in the smaller tunnels.
C.
Intelligent Transport System
13.
Intelligent Transport Systems (ITS) is a term that is used widely (and loosely) to
encompass a wide range of technological solutions applied to the transport sector to improve
the performance of the transport system. These improvements include safety and traveler
information (speed signs, warning signs, etc), enforcement (over-speed, over-weight, non
payment of tolls, etc), monitoring (traffic speeds, over-weight, traffic counting, etc), and toll and
revenue collection (e.g. electronic tolling). The relative emphasis placed on ITS for these
functions varies from place to place, depending on factors such as specific need, local
technological skills and ability to reliably construct and maintain a relatively high technology
system, and budget considerations for both construction and on-going maintenance. In Georgia
ITS is in its infancy and there appear no immediate plans for an ITS strategy.
14.
With the construction of high class, high speed roads, it will be important to introduce
ITS facilities to maintain safe travel, to quickly identify situations as they arise, and to inform or
warn the traveling public of those situations or changed conditions and regulations.
15.
The ITS features of the Project will include (i) variable message displays to provide road
users with information about speeding, and enforcement; (ii) a dedicated emergency phone
number; (iii) surveillance technology; (iv) detection of black spot locations and property damage;
and (v) monitoring of overloaded vehicles. About 0.75 percent of the Project cost will be
allocated to procure road safety and ITS equipment, and training in its use will be included in
capacity development component of the project.
D.
Proposed Road Safety and ITS Component
16.
The following items and programs are to be included in the Road Safety TA for Tranche
1 of the Project:
•
•
•
•
Use of new road safety audit manuals (WB) for project road.
Inclusion of historic and ongoing accident data into the new accident database being
prepared under the WB projects.
Drivers’ Education – Safe Driving Code for Access-Controlled Road & Tunnel
Roadside Community Awareness Campaign
Engconsult Ltd.
Appendix 4
•
•
•
•
•
•
•
•
49
Pedestrian Awareness Campaign for School-Children close to open access road
section.
Awareness Campaign for Heavy Vehicles
Road Safety Publicity through Television and Newspaper
Surveillance Cameras
Variable Message Signs (VMS)
Truck weighbridges
Procurement of road safety enforcement equipment for Patrol Police.
Development of Intelligent Transport System standards.
17.
The tentative cost for all the road-safety components above including awareness
campaigns and road safety countermeasures is US$719,000. These costs are in addition to
those already included in the existing road cost estimate (ToR in Appendix 13)3.
E.
Long-Term Measures to Achieve Tunnel and Road Safety
18.
Long-term measures for tunnel and road safety include, prompt and regular
maintenance of the Project road and safety-facilities; prompt monitoring of traffic operations and
incidents. On the engineering side, daily safety inspections, regular safety-audits with emphasis
on safety-structures, hazardous/critical locations, tunnel and ITS installations are
recommended.
19.
A long-term education program on code-of-behavior for road-users is crucial as traffic
operations on the Project road will involve high-speeds. Strong enforcement of traffic rules in
tunnels and along the road, with stiff penalties to traffic violators, is necessary. In this aspect, it
is recommended that a dedicated Patrol Police unit should be formed for the project road and
that it should be well equipped and adequately staffed at all times. A system of introducing a
toll-free number for emergencies is also recommended 4 so that road-users can assist in
identifying incidences or road-accidents along the Project road by the use of mobile phones.
The number should be well publicized at frequent points along the road.
20.
3
4
More details on road safety are set out in Supplementary Appendix 4.
Road cost estimate includes weighbridges, cameras and VMS equipment.
This was suggested in the Road Safety Strategy.
Engconsult Ltd.
Appendix 5
50
Appendix 5
STAKEHOLDER PARTICIPATION AND CONSULTATIONS
1.
A number of consultations were held during topographic, social and environmental
studies with the affected people, NGOs, and other stakeholders, including national, provincial
and rayon governments to discuss alignment, environmental concerns, land acquisition and
resettlement issues. The list below therefore, gives only those public consultations conducted
during preliminary consultations, survey and design.
Location
Date
Participants
Batumi
April 28,
2009
Affected people,
community
leaders, civil
society, NGOs,
environmental
professionals, and
central and
regional
government
officials
Local
Communities,
Affected
Households,
Sacrebulo
Leaders, Business
community and
Farmers
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Xucubani
BoboyvaTi
OCxamuri
Qveda
awyva
GiorgaZeebi
SaCino
Zeda awyva
SuaRele
Gonio
Salibauri
AxalSeni
KapreSumi
Ganaxleba
Sameba
Maxvilauri
Sarfi
KvariaTi
Axalsofeli
Maxinjauri
Daba
xelvaCauri
From 03
April 2009 to
17 April
2009
No. of
participa
nts
50
20
villages
(210
participa
nts)
Purpose
Main Issues
Discussed/Concerns
First Formal
Public
Consultation
construction of
retaining structures,
drainage structures,
and avoiding
construction close to
Kobuleti nature
reserve
•
•
•
•
•
•
•
Engconsult Ltd.
To describe
the people
about the
project
To make the
public aware
about the
social and
resettlement
issues.
To receive
the feedback
from the
people on
alignment
To share with
the people
about the
draft
entitlement of
the
compensatio
n policy
To build the
local propels
aware and
seeking their
cooperation
for project
planning and
implementati
on
To make the
local
sacrebulo
land
committee
aware about
•
•
•
•
People mostly
welcome the
project
They will render
their necessary
cooperation during
planning and
implementation
They suggested
some feedback to
the alignment and
also the problem
related to land
registration in the
rayon
Requested for
continued
consultation
People viewed for
adequate
compensation for
asset loss and
restoration of
religious and
community
property.
Appendix 5
Location
1. Khelvachauri
Rayon Office
2. Kobuleti
Rayon office
3. Batumi Rayon
Office
51
Date
Participants
No. of
participa
nts
Purpose
the project
work and to
seek their
cooperation
for the LAR
activities.
Providing
training on Land
acquisition and
resettlement
24 April
2009 and 25
April 2009
Local Government
19
26 April
2009
Property
Recognition
Committee and
the working group
in the Rayon
12
Imparting
Training to the
working group
committee
Batumi
June 4, 2009
Ajara and Batumi
officials
10
Discussions of
project benefits.
Khelvachauri
Rayon
Kobuleti Rayon
April-May
2009
Landowners and
villages during
survey
60+
Discussion of
alignment
June 25,
2009
Affected people,
community
leaders, civil
society, NGOs,
environmental
professionals, and
central and
regional
government
officials
43
Second Formal
Public
Consultation
Batumi Mayor
office
Main Issues
Discussed/Concerns
Land Issues,
Compensation,
Verification of missing
plot numbers and
implementation
mechanism for LAR
activities.
Land Issues,
Compensation,
Verification of missing
plot numbers and
implementation
mechanism for LAR
activities.
All top officials were
very supportive of
project. Concern over
coordination with other
Batumi infrastructure
projects and possible
ADB assistance.
Location of alignment.
Compensation issues.
Batumi Rayon
Batumi
Avoid valued
agricultural land,
adequate drainage
structure for the
peatland, and
provision of roadside
service stations for
selling local produce.
2. A number of consultations were held during topographic, social and environmental
studies with the affected people, NGOs, and other stakeholders, including national,
provincial and rayon governments to discuss alignment, environmental concerns, land
acquisition and resettlement issues. The consultations methods included public
meetings, focus group discussions, one-on-one meetings, and interviews. Formal public
consultations were held in Batumi on April 28th, and June 25th 2009 to present project
concepts and seek comments and feedback from the participants. Attendees of the
public consultations included affected people, community leaders, civil society, NGOs,
environmental professionals, and central and regional government officials. The
outcome of all these consultations was positive as people are expecting the project to
bring economic benefits to the Project area. Concerns and recommendations arising
Engconsult Ltd.
Appendix 5
52
from the consultations, included proper compensation plans for the affected community,
construction of retaining structures, drainage structures, and avoiding construction close
to Kobuleti nature reserve; these were noted by the team.
3. Additional rounds of consultations were held during the census and inventory survey in
the month of June and July 2009. The officials in Ozurgeti Rayon were also consulted for
their cooperation in resettlement planning as were the property recognition committees
in each Rayon. Various resettlement related information were disseminated to the
Affected People through consultations with them and the local administration, especially
the Sacrebulos.
.
Engconsult Ltd.
Table A6. 1: Detailed cost estimate by expenditure category for tranche 1 (Kobuleti bypass)
Foreign
A Investment cost
a
Local
Total
Foreign
GEL million
Local
Total
% of base
cost
$ million
Appendix 6
Appendix 6
COST ESTIMATES
Engconsult Ltd.
1 Civil works
Subgrade
6.3
21.1
27.4
3.7
12.6
16.4
13.0%
Pavement
12.2
12.4
24.7
7.3
7.4
14.8
11.7%
Structures
26.7
41.5
68.2
16.0
24.9
40.8
32.3%
Tunnels
5.4
3.0
8.4
3.2
1.8
5.0
4.0%
Slope stabilization
0.0
2.3
2.3
0.0
1.4
1.4
1.1%
Roadside facilities etc
3.9
3.8
7.7
2.4
2.3
4.6
3.6%
Miscellaneous
0.3%
0.0
0.6
0.6
0.0
0.3
0.4
2 Equipment
0.2
0.1
0.3
0.1
0.1
0.2
0.2%
3 Land and resettlement
0.0
16.8
16.8
0.0
10.1
10.1
8.0%
4 Environmental protection
0.2
4.1
4.2
0.1
2.4
2.5
2.0%
5 Design & supervision
5.2
7.9
13.1
3.1
4.7
7.8
6.2%
Capacity building
0.7
2.3
3.0
0.4
1.4
1.8
1.4%
Road safety
0.0
1.2
1.2
0.4
0.3
0.7
0.6%
7 Taxes and duties
13.7
17.1
30.8
8.3
10.2
18.5
14.6%
Subtotal (A)
74.6
134.2
208.8
45.2
79.9
125.0
98.9%
PMU
0.4
1.9
2.3
0.2
1.2
1.4
1.1%
Subtotal (B)
0.4
1.9
2.3
0.2
1.2
1.4
1.1%
Total base costs (A+B)
75.0
136.2
211.2
45.4
81.1
126.4
100.0%
7.7
12.7
20.5
4.2
8.1
12.3
9.7%
4.0
29.9
33.9
2.9
17.9
20.8
16.5%
5.8
3.5
3.5
2.7%
178.8
271.3
55.9
107.0
163.0
128.9%
6 TAs:
B Project management
C Contingencies:
physical
price
b
c
d
IDC
5.8
Total project cost at current prices
92.5
Source: consultants’ estimates
Notes: (a) at 2009 prices
(b) 10 percent on all items except PMU and TAs
(c) domestic inflation 7.5% in 2010, thereafter 6% pa; international inflation on foreign exchange costs at 1% in 2010, 0% in 2011, 0.3% in 2012 and
0.5% in 2013
53
(d) interest during construction at 1% per annum on ADB Special Funds resources
Foreign
a
A Investment cost
Local
Total
Foreign
GEL million
Local
Total
% of base
cost
$ million
1 Civil works
Engconsult Ltd.
Subgrade
9.7
32.0
41.7
5.8
19.1
25.0
Pavement
17.5
17.8
35.3
10.5
10.7
21.2
10.1%
8.6%
Structures
60.5
94.0
154.5
36.2
56.3
92.5
37.4%
Tunnels
27.9
15.9
43.8
16.7
9.5
26.2
10.6%
Slope stabilization
0.0
4.1
4.1
0.0
2.5
2.5
1.0%
Roadside facilities etc
5.0
4.9
9.9
3.0
2.9
5.9
2.4%
Miscellaneous
0.1
1.0
1.1
0.1
0.6
0.7
0.3%
2 Equipment
0.3
0.1
0.4
0.2
0.1
0.2
0.1%
3 Land and resettlement
0.0
30.6
30.6
0.0
18.4
18.4
7.4%
4 Environmental protection
0.3
4.8
5.1
0.2
2.9
3.0
1.2%
5 Design & supervision
6.7
11.4
18.1
4.0
6.9
10.8
4.4%
Capacity building
0.7
2.3
3.0
0.4
1.4
1.8
0.7%
Road safety
0.0
1.2
1.2
0.4
0.3
0.7
0.3%
7 Taxes and duties
28.8
33.3
62.1
17.3
19.8
37.2
15.0%
Subtotal (A)
157.5
253.4
411.0
94.9
151.2
246.1
99.4%
PMU
0.0
2.3
2.3
0.0
1.4
1.4
0.6%
Subtotal (B)
0.0
2.3
2.3
0.0
1.4
1.4
0.6%
157.5
255.8
413.3
94.9
152.6
247.5
100.0%
16.0
24.7
40.7
9.2
15.2
24.4
9.8%
14.19
62.8
77.0
9.26
37.6
46.8
18.9%
Appendix 6
Table A6. 2: Detailed cost estimate by expenditure category for tranches 1 and 2 (Kobuleti and Batumi bypasses)
6 TAs:
B Project management
Total base costs (A+B)
C Contingencies:
physical
price
IDC
b
c
d
Total project cost at current prices
10.2
0.0
10.2
6.1
0.0
6.1
2.5%
197.9
343.2
541.1
119.4
205.4
324.8
131.2%
Source: consultants’ estimates
Notes:
(a) at 2009 prices
(b) 10 percent on all items except PMU and TAs
(c) domestic inflation 7.5% in 2010, thereafter 6% pa; international inflation on foreign exchange costs at 1% in 2010, 0% in 2011, 0.3%
in 2012 and 0.5% in 2013
(d) interest during construction at 1% per annum on ADB Special Funds resources
54
Appendix 7 Appendix 7
Tranche 1 IMPLEMENTATION SCHEDULE
2009
Engconsult Ltd.
Activity
Q1
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
Q4
Approval of Advance Procurement
Tranche I (34 km) - Kobuleti Bypass
tranche I
tranche II
Detailed Design and Bid Documents
Review of Detailed Design by the Government
Construction Supervision
defects liability period
Recruitment of Supervision Consultants
Supervision and Preparation of Project 2
Prequalification for Civil Works
Contract 1 & 2 - Km 0-11 & Km 28-34
Bid Documents and ADB's Approval
Civil Works Procurement
defects liability period
Civil Works Implementation
Contract 3 - Km 11-28
Bid Documents and ADB's Approval
Civil Works Procurement
defects liability period
Civil Works Implementation
Capacity Development for Road Network
Road Safety Improvement
55
Appendix 8
56
Appendix 8
PROCUREMENT PLAN
Basic Data
Project Name: XXX-GEO MFF Subregional Road Corridors Development Program
Country: Republic of Georgia
Executing Agency: Ministry of Regional
Development and Infrastructure
Loan Amount: $118.8 million
Loan (Grant) Number: XXX
Date of First Procurement Plan: June 10, 2009 Date of this Procurement Plan: june 10, 2009
A.
Process Thresholds, Review and 18-Month Procurement Plan
1. Project Procurement Thresholds
1.
Except as the Asian Development Bank (ADB) may otherwise agree, the following
process thresholds shall apply to procurement of goods and works.
Procurement of Goods and Works
Threshold
Method
International Competitive Bidding (ICB) for
Works1
International Competitive Bidding for Goods1
Shopping for Goods
Between $1,000,000 and $10,000,000,
Between $500,000 and $1,000,000
Below $100,000
2. ADB Prior or Post Review
2.
Except as ADB may otherwise agree, the following prior or post review requirements
apply to the various procurement and consultant recruitment methods used for the project.
Procurement Method
Procurement of Goods and Works
ICB Works
Recruitment of Consulting Firms
Quality- and Cost-Based Selection (QCBS)
Quality-Based Selection (QBS)
Recruitment of Individual Consultants
Individual Consultants
Prior or Post
Comments
Prior
Prior
Prior
Prior
3. Goods and Works Contracts Estimated to Cost More Than $1 Million
3.
The following table lists goods and works contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
General
Description
Contract
Value
Procurement
Method
Engconsult Ltd.
Prequalification
of Bidders (y/n)
Advertisement
Date (quarter/year)
Comments
Appendix 8
57
4. Consulting Services Contracts Estimated to Cost More Than $100,000
4.
The following table lists consulting services contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
General
Description
Detailed Design
and Bidding
Documents for
Tranche I and II
Construction
Supervision of
Tranche I and II
Project
Administration
and Support
Contract
Value
3.2
Recruitment
Method1
QBS
Advertisement
Date
(quarter/year)
QII/2009
International
or National
Assignment
International
10.6
QCBS
QI/2010
International
Quality-cost ratio
80:20.
1.4
QCBS, CQS
or individual
consultant
QIII/2010
International
Capacity
Development for
Road Network
1.8
QCBS, CQS
or individual
consultant
QIII/2010
International
Consulting
Services for
Road Safety
Improvement
Assistance in
Developing a
Road Master
Plan.
Assistance in
Developing PPP
capacity
0.72
QCBS
QIII/2010
International
Procurement
method to be
determined
depending on
the need.
Procurement
method to be
determined
depending on
the need.
Quality-cost ratio
80:20.
0.8
QCBS
QII/2010
International
Quality-cost ratio
80:20.
0.45
QCBS or
Individual
Consultant
QII/2010
International
Quality-cost ratio
80:20.
B.
Comments
Quality-cost ratio
80:20.
Indicative List of Packages Required Under the Project
5.
The following table provides an indicative list of all procurement (goods, works and
consulting services) over the life of the project. Contracts financed by the Borrower and others
should also be indicated, with an appropriate notation in the comments section.
General
Description
Works
Civil works contract
package for
construction of
Kobuleti Bypass
(28 km) Tranche 1
Estimated
Value
(cumulative)
Estimated
Number of
Contracts
105
2
Engconsult Ltd.
Procurement
Method
ICB
One-envelope
single stage
with
prequalification
Domestic
Preference
Applicable1
No
Comments
Appendix 8
58
Domestic
Preference
Applicable1
Estimated
Value
(cumulative)
Estimated
Number of
Contracts
10.5
1
QCBS or QBS
with FTP
No
3.5
1
QBS with FTP
No
Project
Administration and
Support
1.5
several
QCBS, CQS or
individual
consultant
No
Capacity
Development for
Road Network
1.8
Several
No
0.72
1
QCBS, CQS or
individual
consultant
QCBS
No
Quality-cost
ratio 80:20.
0.8
1
QCBS
No
Quality-cost
ratio 80:20.
0.45
1
QCBS or
Individual
Consultant
No
Quality-cost
ratio 80:20.
General
Description
Consulting
Services
Construction
Supervision of
Tranche I and II
Detailed Design for
Tranche I and II
Procurement
Method
Consulting Services
for Road Safety
Improvement
Assistance in
Developing a Road
Master Plan.
Assistance in
Developing PPP
capacity
Engconsult Ltd.
Comments
Quality-cost
ratio for
QCBS 80:20
Quality-cost
ratio for
QCBS 80:20
Procurement
method to be
determined
depending
on the need
Ditto
Appendix 9
59
Appendix 9
TRAFFIC FORECAST
A.
Introduction
1.
The proposed tranche 1 project is a 34km limited access bypass around the congested
coastal town of Kobuleti and the tranche 2 project a 14km bypass around the Ajaran capital,
Batumi. The existing road through both towns carries significant flows of transit and domestic
long haul traffic. Turkey is Georgia’s most important trading partner and substantially all trade
with Turkey uses the existing road.
2.
In the without-project case traffic will continue to use the existing S-2 two lane
international highway. With the project, long haul and transit traffic will divert to the bypass.
Some additional trips will be generated on the existing road as the economy responds to lower
transport costs.
B.
Traffic surveys
3.
Roads Department (RD) carries out classified radar counts in April, July and October at
three sites on the existing road: at Choloki (north of Kobuleti), at the Chakvi-Makhinjauri tunnel
(between Kobuleti and Batumi) and at Chorokhi bridge (just south of Batumi). Records go back
to 2006 (but with gaps). Prior to the current TA no origin and destination (OD) surveys had been
carried out. Two sets of project traffic surveys were carried out. Manual classified counts were
undertaken at the three RD sites on 26-27 March and 1-2 April (1x12h and 1x24h count at
each). OD surveys were originally scheduled for early April but were delayed as an indirect
result of the civil unrest in the country at the time. One OD survey at Chorokhi and one at
Choloki were eventually carried out on 11-12 May.
C.
Base year traffic
4.
Regional shocks in 2006 and 2008 followed by the global recession have affected traffic
in the project corridor. Estimated 2009 (base year) annual average daily traffic (AADT) values
are 3,655 veh/day at Choloki, 8,361 veh/day at the tunnel and 6,108 veh/day at Chorokhi.
Traffic growth was strong in 2007-8 (averaging around 20 percent a year) but has fallen by 18
percent in 2009 at Choloki and the tunnel. Traffic at those sites is now at its 2007 level. Traffic
at Chorokhi has fared better, perhaps as a result of continued construction activities in Batumi,
and has increased by 20 percent since 2008.
5.
Turkey is Georgia’s largest trading partner. Substantially all trade not only between
Turkey and Georgia but also between Turkey and Azerbaijan and between Turkey and Armenia
uses the Sarpi-Batumi-Kobuleti corridor. As a result long distance and transit traffic are strongly
represented. Around 300 truck-semi-trailer combinations (“articulated trucks”) use the road daily
of which 90 percent carry foreign (almost entirely Turkish) license plates. Large tourist buses
are also predominantly foreign; 79 percent were recorded as carrying foreign license plates
during the project counts at Chorokhi.
6.
The Ajara coast is a popular summer tourist destination and while heavy goods traffic
displays no clear seasonality, passenger vehicle traffic certainly does:;car and mini-bus traffic is
typically 30-50 percent higher in July than it is in April or October. As seasonal congestion is a
significant part of project rationale, project counts and historic seasonality were used to
construct a traffic flow pattern that was slightly more extreme than the default HDM-4 pattern.
Engconsult Ltd.
Appendix 9
D.
60
Corridor diversions
7.
Corridor traffic may be affected by other developments. Traffic case A assumes no
corridor diversions: all traffic currently using the Sarpi-Kobuleti corridor will continue to do so.
8.
Case B diverts some long distance and transit traffic using a proposed new border
crossing and improved roads near Kartsakhi. Road improvements, financed by the Millennium
Challenge Fund Georgia (MCG), will be complete by late 2010. There is a new border post (and
improved road connections) on the Turkish side of the border but as yet no progress has been
made on Georgian border facilities. Once the new road is open, the distance from Erzurum in
Turkey to Tbilisi via Kartsakhi will be 575km, compared with 675km via Sarpi – a drop of 15
percent. Only some trips to and from Tbilisi and further east will switch to the shorter route: the
Sarpi route is likely to be faster (especially outside the tourist season) and less prone to adverse
weather conditions.
9.
The project OD survey results indicate that 25 to 40 percent of all traffic at Chorokhi
bridge and Choloki – and 30-50 percent of goods traffic – would find the Kartsakhi corridor
attractive. For case B it is assumed that 40 percent of all trip ends east of Gori and 20 percent of
those in the zone around Gori would actually divert to the Kartsakhi corridor.
E.
Traffic forecasts
10.
Normal traffic growth is based on forecast GDP growth and elasticities of demand of 1.2
for passenger and 1.4 for goods vehicles. Conservative GDP growth percentages are used: 0%
in 2009, followed by 1.5% in 2010, 2.0% in 2011, 3.0% in 2012 and 4.0% thereafter.
11.
Based on changes in road user costs, the ‘with project’ generated traffic on the existing
road is calculated as 10 percent of normal traffic; this was not applied to medium and heavy
goods vehicles or large buses.
12.
Local traffic, i.e. traffic between points within the urban centers of Batumi and Kobuleti,
will not divert to the bypass but adds to congestion on existing roads and so affects journey
times and vehicle operating costs. To take account of this effect, light and medium passenger
and light goods traffic has been doubled on the central urban sections of the existing road.
13.
Manual assignments for base case and case B traffic were made on the basis of the OD
results. Base case traffic forecasts for tranche 1 and tranches 1 and 2 combined are shown in
Table A9. 1 and Table A9. 2. In summary:
•
•
•
•
•
diversion to the Kartsakhi corridor (i.e. case B traffic) reduces project corridor traffic by
approximately 20 percent
the percentage of project corridor traffic diverting to the bypass is 42-43 percent in both the
base case and case B (60-61 percent in the case of goods traffic)
opening base case traffic on the new two lane section of the tranche 1 (Kobuleti) bypass in
2014 will be 3,600 veh/day (base case) and 2,800 in case B. The four lane section will carry
respectively 10,200 and 8,600 veh/day
opening traffic on the tranche 2 Batumi bypass in 2014 will be 3,400 veh/day (base case)
and 2,800 veh/day (case B)
in 2033, the last evaluation year, bypass traffic on the two lane sections will be 6-8,000
veh/day, depending on the traffic case, i.e. still short of the levels that would normally justify
an additional lane
Engconsult Ltd.
Appendix 9
61
Table A9. 1: Tranche 1 base case traffic projection, veh/day
Year
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Without
project
Existing road
With project
Existing road
Bypass
6,326
6,588
6,862
7,147
7,443
7,752
8,131
8,528
8,945
9,382
9,841
10,322
10,787
11,274
11,782
12,313
12,868
13,448
14,054
14,688
15,350
16,042
16,765
17,521
18,311
0
0
0
0
0
4,233
4,439
4,654
4,880
5,118
5,366
5,627
5,879
6,143
6,418
6,706
7,006
7,320
7,648
7,991
8,349
8,723
9,114
9,522
9,949
0
0
0
0
0
3,559
3,734
3,918
4,111
4,313
4,525
4,748
4,963
5,189
5,424
5,670
5,928
6,197
6,478
6,772
7,080
7,401
7,737
8,088
8,455
Generated
traffic
0
0
0
0
0
410
430
450
472
495
519
544
568
594
620
648
677
707
739
772
806
842
880
919
960
Total
0
0
0
0
0
8,202
8,602
9,023
9,463
9,926
10,411
10,919
11,411
11,925
12,462
13,024
13,611
14,224
14,865
15,535
16,235
16,966
17,730
18,529
19,364
Source: consultants’ calculations
Notes: (a) traffic is weighted by distance; as the bypass is slightly longer than the existing road, the sum of project
traffic on the bypass and the existing road slightly exceed the without project traffic
(b) local traffic is not included, nor is traffic on the common alignment between km28 and km34
Table A9. 2: Tranches 1 and 2 base case traffic projection, veh/day
Year
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Without
project
Existing road
With project
Existing road
6,667
6,944
7,232
7,532
7,844
8,170
8,569
8,988
9,428
9,889
10,372
10,879
0
0
0
0
0
4,702
4,931
5,170
5,421
5,685
5,961
6,251
Engconsult Ltd.
Bypass
0
0
0
0
0
3,515
3,688
3,870
4,061
4,261
4,471
4,691
Generated
traffic
0
0
0
0
0
457
479
502
526
552
578
606
Total
0
0
0
0
0
8,674
9,097
9,542
10,008
10,497
11,010
11,548
Appendix 9
Year
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
62
Without
project
Existing road
With project
Existing road
11,369
11,882
12,417
12,977
13,562
14,173
14,812
15,480
16,178
16,907
17,669
18,466
19,298
6,531
6,824
7,129
7,449
7,782
8,131
8,495
8,876
9,273
9,689
10,123
10,576
11,050
Bypass
4,904
5,127
5,360
5,604
5,858
6,124
6,403
6,694
6,998
7,316
7,648
7,996
8,359
Generated
traffic
633
662
691
722
754
788
823
859
898
938
979
1,023
1,069
Total
12,069
12,612
13,180
13,774
14,394
15,043
15,720
16,429
17,169
17,942
18,750
19,595
20,478
Source: consultants’ calculations
Notes: (a) traffic is weighted by distance; as the bypass is slightly longer than the existing road, the sum of project
traffic on the bypass and the existing road slightly exceed the without project traffic
(b) local traffic is not included, nor is traffic on the common alignment between km28 and km34
Engconsult Ltd.
Appendix 10
63
ECONOMIC ANALYSIS
A.
Introduction
1.
The proposed tranche 1 project is a 34km limited access bypass around the
congested coastal town of Kobuleti. The tranche 2 project is a 14km bypass around the
Ajaran capital, Batumi. The existing road through both towns carries significant flows of
transit and domestic long haul traffic. Turkey is Georgia’s most important trading partner
and substantially all trade, not only between Georgia and Turkey but also between
Turkey and Azerbaijan and Turkey and Armenia, uses the existing road. Arriving transit
traffic passes through the Sarpi border, 18km south of Batumi, making its way through
Batumi and Kobuleti before proceeding towards Tbilisi and further east.
2.
Each tranche will be implemented over approximately 3 years. The economic
appraisal covers the construction period between 2010 and 2013, and 20 years’
operation. The appraisal compares a project case (with the bypass) and a do minimum
(without project) alternative that amounts to maintaining the existing road. A 12 percent
discount rate is used throughout.
3.
In the do minimum case traffic will continue to use the existing S-2 two lane
international highway, which will become increasingly congested and dangerous as well
as expensive to maintain as traffic increases. Some travel may not take place because
of congestion and the resulting increased journey times and vehicle operating costs
(VOCs). With the project, long haul and transit traffic will divert to the bypass, reducing
congestion and accidents on the existing road. Some additional trips will be generated
on the existing road as the economy responds to lower transport costs.
4.
Two traffic cases are considered. The base case (case A) assumes that the
Sarpi-Batumi-Kobuleti corridor continues to carry substantially all long haul and transit
traffic. Case B assumes that approximately 20 percent of traffic diverts to a new route
further east. The latter comprises the rehabilitation and upgrading of existing roads
south west of Tbilisi, meeting the Turkish border near the town of Kartsakhi. Works on
the Georgian side of the border should be complete by late 2010. There is a new border
post (and improved road connections) on the Turkish side but as yet work has not
started on Georgian border facilities. The new route will reduce the distance from
Erzurum in Turkey to Tbilisi by 15 percent, but the existing route via Sarpi will continue
to be faster, especially outside the tourist season, and less prone to adverse weather
conditions.
5.
The analysis was carried out using HDM-4 and using 2009 prices.
B.
Evaluation of tranche 1
6.
All predicted project costs and benefits are measured in economic prices using
an international price numeraire and a US dollar unit of account. That is, tradable goods
are expressed in world market prices plus transport costs (border parity prices), while
non-tradable goods are converted from domestic prices (less taxes etc) multiplied by a
Engconsult Ltd.
Appendix 10
64
standard conversion factor (SCF) and divided by the official exchange rate. An SCF of
0.97 was calculated using the ADB’s simple trade-weighted formula.
7.
Bypass benefits to “normal” traffic (i.e. traffic that would have been present in the
do minimum case) result from improvements in road and traffic conditions between the
do minimum and project case and amount to savings in (i) VOCs, (ii) personal travel
time for vehicle occupants (other than drivers and crew, whose costs are included in
VOCs), (iii) road accident costs and (iv) the value tied up in freight during transit. In
addition there are the benefits of additional trips made solely as a result of the lower
costs on the existing road brought about by the project (“generated” traffic). The
proposed project road is approximately 2.3km longer than the existing road. As a result
(and as is typical for bypass investments), most of the benefits arise from time, rather
than VOC, savings.
8.
The estimated economic internal rate of return (EIRR) in the base case is 16.2
percent, well above the 12 percent threshold rate. Using the 12 percent discount rate it
has a net present value (NPV) of USD40.6m at 2009 prices. Of the total benefits, 83
percent are journey time and time in transit savings, 10 percent are VOC savings, 5
percent accident cost savings and 2 percent generated traffic benefits (Table 2). Using
case B traffic the EIRR falls to 13.3 percent, still above the 12 percent threshold (Table
3).
9.
The results of sensitivity analysis (Table 1) confirm the robustness of the
project’s economic viability: the EIRR remains above 12 percent for all costs up to 1.5
times base and for benefits above 0.7 times base, and is fairly robust in the face of a fall
in traffic, including opening of the Kartsakhi corridor. A modest improvement is achieved
by delaying opening by a year.
10.
A Monte-Carlo risk analysis was used to estimate the frequency distribution
of EIRRs. A negative skew was applied to costs to reflect (i) the weak construction
market in 2009 and (ii) the scope for optimization of the alignment. Negative skews
were also applied to all benefits to reflect the scope for loss of corridor traffic. The
results of the risk analysis showed that with these uncertainties (i) the mean EIRR
for the whole project was 15.4 percent and (ii) the probability of the EIRR falling
below 12 percent was 3.4 percent.
C.
Evaluation of tranches 1 and 2
11.
Table 4 shows the costs and benefits of tranches 1 and 2 combined, using base
case traffic. The combined EIRR is 14.8 percent. The results of sensitivity analysis
show that the EIRR remains above 12 percent for all costs up to 1.3 times base and for
benefits above 0.8 times base. A modest improvement is achieved by delaying opening
by a year. A Monte-Carlo risk analysis using the same skewed distributions of costs and
benefits as for tranche 1 gave a mean EIRR of 14.0 percent; 14 percent of results fell
below 12 percent.
Engconsult Ltd.
Appendix 10
Table 1
65
Sensitivity analysis – tranche 1
Scenario
EIRR percent
NPV in USD
million
40.6
(a)
Base case
16.2%
(b)
Traffic case B (Kartsakhi diversion)
13.3%
11.1
(c)
Benefits less 10%
15.0%
28.3
(d)
Benefits less 20%
13.7%
15.9
(e)
Cost increased by 10%
15.1%
32.3
(f)
Cost increased by 20%
14.2%
24.0
(g)
Residual value reduced from 65 to 30%
16.0%
38.0
(h)
Combination (c) and (e)
14.0%
20.0
(i)
Traffic Growth + 10%
17.6%
58.8
(j)
Traffic Growth -20%
13.1%
9.8
Switching
a
factor
0.67
1.49
(k)
Opening delayed by a year
17.0%
48.9
Notes: (a) the switching factor is the factor times the base value of the indicated item that will produce an
EIRR of 12 percent
Table 2
Year
Tranche 1 base case economic evaluation
Capital Recurrent
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Total
VOC
Time
savings
Gen
traffic
Accident
savings
Total
Net
benefits
USDm
23.22
30.52
28.05
20.96
0.01
0.01
0.01
0.01
0.01
-0.33
0.36
-0.33
0.58
-0.24
0.58
-0.21
0.58
-0.21
0.58
-0.21
-0.15
-1.18
0.00
0.00
0.00
0.00
1.05
1.16
1.30
1.51
1.76
2.05
2.25
2.57
2.71
3.06
3.23
3.62
3.89
4.35
4.60
5.10
5.33
3.20
0.00
0.00
0.00
0.00
12.95
13.69
14.48
15.32
16.22
17.18
18.19
19.25
20.37
21.58
22.86
24.21
25.63
27.11
28.63
30.21
31.70
35.75
0.00
0.00
0.00
0.00
0.29
0.31
0.33
0.35
0.37
0.40
0.42
0.45
0.47
0.51
0.54
0.57
0.61
0.65
0.69
0.73
0.78
0.75
0.00
0.00
0.00
0.00
0.87
0.91
0.96
1.00
1.05
1.10
1.16
1.21
1.27
1.33
1.40
1.47
1.54
1.61
1.69
1.78
1.86
1.95
0.00
0.00
0.00
0.00
15.16
16.07
17.07
18.18
19.40
20.72
22.02
23.48
24.82
26.48
28.02
29.87
31.67
33.72
35.61
37.82
39.67
41.65
-23.22
-30.52
-28.05
-20.96
15.14
16.05
17.05
18.16
19.39
21.05
21.65
23.81
24.24
26.72
27.44
30.09
31.09
33.93
35.03
38.03
39.82
42.83
Incremental cost, USDm
23.22
30.52
28.05
20.96
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.50
-1.28
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.01
0.01
-0.33
0.36
-0.33
0.58
-0.24
0.58
-0.21
0.58
-0.21
0.58
-0.21
0.35
0.10
Engconsult Ltd.
Road user cost savings, USDm
Appendix 10
66
2032
0.00
0.36
0.36
2033
-65.61
0.01
-65.60
PV at 12% 82.7
0.3
83.0
Percent of total road user cost savings
EIRR
Table 3
Year
3.35
5.08
12.3
9.9%
41.91
49.09
102.7
83.0%
0.88
1.05
2.4
1.9%
2.05
2.15
6.4
5.1%
48.19
57.37
123.7
100.0%
47.83
122.97
40.6
16.2%
Tranche 1 economic evaluation, case B traffic
Incremental cost, USDm
Road user cost savings, USDm
Total
VOC
Time
savings
Gen
traffic
Accident
savings
Total
2010
23.22
0.00
23.22
2011
30.52
0.00
30.52
2012
28.05
0.00
28.05
2013
20.96
-0.05
20.91
2014
0.00
0.01
0.01
2015
0.00
0.01
0.01
2016
0.00
0.01
0.01
2017
0.00
0.01
0.01
2018
0.00
0.01
0.01
2019
0.00
-0.28
-0.28
2020
0.00
0.31
0.31
2021
0.00
-0.28
-0.28
2022
0.00
0.58
0.58
2023
0.00
-0.19
-0.19
2024
0.00
0.52
0.52
2025
0.00
-0.19
-0.19
2026
0.00
0.53
0.53
2027
0.00
-0.16
-0.16
2028
0.00
0.52
0.52
2029
0.00
-0.16
-0.16
2030
0.00
0.52
0.52
2031
-2.72
-0.07
-2.80
2032
-1.28
0.52
-0.76
2033
-66.79
0.10
-66.69
PV at 12% 82.5
0.3
82.8
Percent of total road user cost savings
EIRR
0.00
0.00
0.00
0.00
0.62
0.70
0.64
0.75
0.90
1.07
1.19
1.41
1.52
1.75
1.87
2.11
2.26
2.59
2.77
3.19
3.47
3.90
-0.37
-1.56
6.6
7.0%
0.00
0.00
0.00
0.00
10.33
10.91
11.53
12.18
12.87
13.60
14.39
15.22
16.11
17.06
18.06
19.11
20.22
21.40
22.65
23.96
25.30
26.70
28.06
29.45
80.2
85.4%
0.00
0.00
0.00
0.00
0.25
0.26
0.28
0.29
0.31
0.33
0.35
0.37
0.39
0.42
0.44
0.47
0.50
0.53
0.56
0.60
0.64
0.68
0.65
0.67
1.9
2.1%
0.00
0.00
0.00
0.00
0.71
0.74
0.78
0.82
0.86
0.90
0.94
0.99
1.04
1.09
1.14
1.20
1.26
1.32
1.38
1.45
1.52
1.59
1.67
1.75
5.2
5.5%
0.00
0.00
0.00
0.00
11.91
12.61
13.23
14.04
14.93
15.90
16.87
17.99
19.06
20.32
21.52
22.88
24.23
25.84
27.36
29.19
30.93
32.87
30.00
30.31
93.9
100.0%
Capital Recurrent
Engconsult Ltd.
Net
benefits
USDm
-23.22
-30.52
-28.05
-20.91
11.89
12.60
13.21
14.02
14.92
16.18
16.56
18.27
18.48
20.51
20.99
23.08
23.71
26.00
26.84
29.35
30.41
35.67
30.76
97.00
11.1
13.3%
Appendix 10
Table 4
Year
67
Tranches 1 and 2 economic evaluation, base case
Incremental cost, USDm
Capital Recurrent
Total
Road user cost savings, USDm
VOC
2010
31.43
0.00 31.43
0.00
2011
53.09
0.00 53.09
0.00
2012
60.88
0.00 60.88
0.00
2013
59.94
0.00 59.94
0.00
2014
0.00
0.02
0.02
2.36
2015
0.00
0.02
0.02
2.58
2016
0.00
0.02
0.02
2.85
2017
0.00
0.02
0.02
3.19
2018
0.00
-0.03
-0.03
3.62
2019
0.00
-0.43
-0.43
4.07
2020
0.00
0.47
0.47
4.43
2021
0.00
-0.43
-0.43
4.96
2022
0.00
0.79
0.79
5.23
2023
0.00
-0.34
-0.34
5.85
2024
0.00
0.79
0.79
6.17
2025
0.00
-0.31
-0.31
6.82
2026
0.00
0.79
0.79
7.27
2027
0.00
-0.31
-0.31
8.01
2028
-0.57
0.79
0.22
8.43
2029
0.89
-0.25
0.64
7.80
2030
-0.73
0.47
-0.26
9.11
2031
-1.28
0.10
-1.17
6.32
2032
-0.05
0.47
0.42
6.51
2033
-132.29
0.02 -132.27
8.67
PV at 12% 160.1
0.4
160.5
23.9
Percent of total road user cost savings
11.4%
EIRR
Engconsult Ltd.
Time
savings
0.00
0.00
0.00
0.00
22.02
23.26
24.59
26.00
27.51
29.11
30.81
32.61
34.53
36.58
38.76
41.05
43.44
45.98
48.60
51.34
54.08
58.77
65.44
74.69
173.0
82.5%
Gen
traffic
0.00
0.00
0.00
0.00
0.35
0.37
0.40
0.42
0.45
0.49
0.52
0.56
0.59
0.64
0.68
0.74
0.79
0.85
0.91
0.99
1.07
1.05
1.22
1.42
3.0
1.4%
Accident
savings
Total
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.35
26.09
1.42
27.63
1.49
29.32
1.56
31.18
1.64
33.21
1.72
35.39
1.80
37.56
1.89
40.01
1.98
42.33
2.08
45.14
2.18
47.79
2.29
50.88
2.40
53.90
2.51
57.36
2.64
60.58
2.77
62.89
2.90
67.16
3.04
69.18
3.19
76.36
3.35
88.13
9.9
209.8
4.7%
100.0%
Net
benefits
USDm
-31.43
-53.09
-60.88
-59.94
26.07
27.62
29.30
31.16
33.24
35.82
37.09
40.44
41.54
45.48
47.00
51.19
53.11
57.67
60.36
62.25
67.42
70.35
75.94
220.41
49.3
14.8%
Appendix 11
68
Appendix 11
INSTITUTIONAL AND FINANCIAL ASSESSMENTS
A.
Roads Department
1.
RD’s institutional context changed in February 2009. Up to then, RD was part of the
Ministry of Economic Development (MED). In February 2009 the MED was reorganized and a
new ministry created, the Ministry of Regional Development and Infrastructure (MRDI) and RD
and the United Transport Administration (UTA), a small organization principally responsible for
the international aspects of transport, were moved from the MED to the MRDI. The Transport
Department, a policy unit, remains with the MED. A body related to RD is the Transport Reform
and Rehabilitation Center (TRRC), which acts as the project management unit (PMU) for World
Bank projects.
2.
Following re-structuring several years ago, RD is now a small, fairly non-hierarchical
organization with 160 staff members. Officials at the department have indicated that its structure
may still change following recent changes at the top of the organization. RD has no planning
section (this being the remit of the Transport Department) and no internal financial audit section.
Organization charts are shown in Appendix 2.
3.
From 1995 to 2004 Georgia had a road fund. The fund performed poorly, however, and
as part of a wider change of government policy regarding special funds, the fund was abolished
in 2004. Since then the sector has been funded directly from the state budget and from donor
funds. RD income and expenditure is summarized in Appendix 2.
B.
Road maintenance
4.
The department has no direct labor force: it contracts out all its maintenance and
construction activities. The country is divided into 34 routine maintenance zones, each of which
covers 150-250km of roads. Contractors bid against bills of quantities drawn up by RD following
an annual condition survey. The last round of bidding took place in 2007 and was for a period of
27 months. These contracts will expire in 2009 and will be re-bid for a period of 12 months.
Supervision (i.e. checking both quality and the quantities of work undertaken) was also
contracted out to a private company but has now been brought back into the department.
5.
The World Bank is supporting the RD in its efforts to improve the efficiency of its road
maintenance activities. It believes that a shift from contracted out maintenance to performance
based road maintenance contracts (PBCs) could produce further savings. A proposed project
component of the Third East-West Highway Project will assist in developing a comprehensive
framework for the introduction of PBC in Georgia.
C.
Proposed ADB support for capacity building under tranche 1
6.
A comprehensive program of capacity building is a necessary complement to increased
IFI assistance for road infrastructure development. ADB is coordinating its capacity building
interventions closely with those of the World Bank and other donors to maximize their
effectiveness. It will target support for capacity building under tranche 1 by providing technical
assistance in three areas. The ADB component of the three TAs is estimated at around $2.0
million:
•
assistance to RD to develop a road sector master plan ($0.8 million). The lack of a
planning department in RD is noted above – the master plan will focus on the medium to
long term and address concerns which are currently subject to ad hoc decisions
Engconsult Ltd.
Appendix 11
•
•
D.
69
strengthening RD’s capacity for controlling vehicle overloading, with support to acquire
necessary equipment and its capacity in tunnel and bridge engineering and in
environmental and resettlement safeguards ($0.76 million)
strengthening RD’s capacity to implement PPP, including performance based
maintenance of the project road ($0.45 million)
Financial management capacity
7.
Financial management assessments of the TRRC (the World Bank roads PMU) and the
RD itself were carried out.
8.
The TRRC was created by presidential decree in 1995. Although physically located in
RD, its twelve staff members are not departmental employees. Moves to merge the TRRC with
RD are in abeyance. Most of TRRC’s operating expenses are met from World Bank project
funds. Its budget for 2009 is $0.15m.
9.
The TRRC has a strong financial management capability. Audits of project accounts
have always been issued without qualification and while some minor deficiencies have been
noted by auditors, they are being dealt with in an action plan.
10.
RD has a 16 strong finance department but it has no experience of externally funded
projects: both foreign and counterpart funds for such projects are managed by the TRRC. RD’s
financial management capacity appears adequate for its current tasks but would need
considerable strengthening if it were to handle externally financed projects.
E.
Proposed project management arrangements
11.
Financial management of ADB projects should strengthen the long term capacity of RD,
not the TRRC. It is therefore proposed that the ADB PMU is formed within RD, with
procurement and financial management support from TRRC.
12.
The proposed arrangement envisages the MRDI as executing agency (EA) and RD as
implementing agency (IA). The chairman of RD will be responsible for overall supervision of the
program. RD will establish a PMU headed by the deputy chairman of RD. It will comprise
technical staff seconded from RD and TRRC. A steering committee will be established with
representatives of the cabinet office, MRDI, RD, Transport Department (of behalf of MED), the
Ministry of Finance and the PMU head. The steering committee will be chaired by a deputy
minister of MRDI and will meet at least every six months to ensure interagency coordination,
review implementation progress, and provide approvals and guidance as necessary.
13.
The PMU will handle day-to-day implementation activities. It will also undertake periodic
functions such as (i) preparation of project financial reports (PFRs), (ii) engagement and
supervision of consultants and contractors, (iii) preparation of reports and (iv) obtainment of
approvals from ADB and the government. The PMU will be supported by a team of externally
contracted qualified technical, safeguards, financial, and support staff to supplement resources
in RD. Figure A11. 1 and Figure A11. 2 show, respectively, the proposed organizational
arrangements and the funds flow.
F.
Transport sector PPP
14.
Public-private partnerships in the transport sector have made relatively little headway in
Georgia; there are none in the roads sector although there have been two attempts. Some of
the reasons for the slow progress are to be found in EBRD’s 2008 assessment of concession
laws, which rated Georgia’s legal environment for private sector development as “low
Engconsult Ltd.
Appendix 11
70
compliance” with international best practice. As a result a PPP capacity building TA is proposed
as part of tranche 1 (see Appendix 15).
15.
The Road Law of 1994 permits the imposition of tolls on an existing road and allows the
creation of a private, tolled facility. The only conditions are that:
• there must be an alternative, untolled route that is open to traffic
• the proceeds of the toll must be used to maintain and develop the tolled facility
16.
There is no explicit prohibition of making profits from tolling – although such a prohibition
might be inferred from the second condition. There is no provision for the regulation of tolls.
17.
RD has one tolled facility – the Rikoti tunnel. Tolls are levied by virtue of Roads
Department order no 6 of January 1999. This order set the toll rates (GEL1, GEL2 and GEL3 for
small, medium and large vehicles respectively), which have not been changed since. Tolls are
paid in cash and are only payable when the alternative route is open.
Toll proceeds are not
used for tunnel maintenance; they are simply part of RD’s revenue. Annual revenue is
approximately GEL2.2m.
G.
Tolling the Ajara bypass
18.
It is recommended that the road is not tolled, at least in the short term, but that the
possibility be kept under review and re-appraised once demand for the bypass has been
established. Although there is an alternative, toll-free route (as required by law) and the bypass
saves time rather than distance (and thus tolls would be progressive in the sense that they
would apply to the better off), Georgia has, first, no experience of awarding such a concession
in the transport sector, second, a proposal to toll would hinder the fast-track implementation of
the project and, third, tolling would reduce the economic internal rate of return of the bypass.
H.
Financial evaluation
19.
The basis for the evaluation is that of an operation and maintenance (O&M) concession:
a private sector partner is awarded the right to toll the bypass, in return for which the company
is expected to cover all the operation and maintenance costs (including overlays but excluding
reconstruction or widening) for a period of 20 years. ADB interest expenses could also be met
from tolls.
20.
The concessionaire would include a profit element (20 percent was assumed) in his
price for undertaking maintenance works (rather than take equity returns, as in a “full”
concession). Revenue and expenditure profiles will differ sharply – more so than under a full
concession. To handle the revenue and expenditure mismatch the operator would operate a
sinking fund. Adequate financial performance is signalled by adequacy of the sinking fund, i.e.
its ability to meet O&M expenses as they fall due with a nil (or negligible) closing balance at the
end of the term.
21.
Experience suggests that a toll at around one third to one half of perceived road user
cost savings will produce a good compromise between economic and financial returns. On this
basis the implied charge for a car using the tranche 1 (Kobuleti) bypass should be no more than
GEL2.40 $1.40 ($1.40), and for the entire bypass GEL3.50 ($2.10).
22.
Runs using Fineval, the consultants’ financial evaluation program, showed that the levels
of toll needed to recover O&M and ADB interest expenses were modest by comparison.
Assuming no toll indexation:
•
the total charge for using the two lane section of the tranche 1 road (Kobuleti bypass)
would be GEL0.8 for a car and GEL2.30 for an articulated truck
Engconsult Ltd.
Appendix 11
•
71
the total charge for using the two lane section of tranches 1 and 2 (Kobuleti and Batumi
bypasses) would be GEL1.8 for a car and GEL5.5 for an articulated truck
Steering committee
(Cabinet office, MRDI, RD,
MED, MoF, PMU head)
MRDI (EA)
Roads Department (IA)
TRRC:
PMU
Detailed design
i) financial management
ii) procurement
Supervision
External experts:
i) tunnel & bridge
engineering
Capacity building TAs
ii) safeguards
Road safety TA
Contract 1
Contract 2 etc
Figure A11. 1: Proposed project management arrangements
Engconsult Ltd.
Appendix 11
72
Treasury
Payment
Withdrawal application
plus certified
claim/invoice &
RD/PMU approval
Payment advice
RD/PMU approval
Application for
counterpart fund
release
Payment advice
Certification by project
engineer
Contractor’s or
consultant’s claim or
invoice
Figure A11. 2: Proposed funds flow arrangements
Engconsult Ltd.
Payment
ADB
Appendix 12
73
Appendix 12
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS
FOR CONSTRUCTION SUPERVISION OF TRANCHE I AND TRANCHE II
Expected Date of Publication:
Q4 2009
Tentative Date of Commencement:
Q3 2010
Duration:
52 Months
1
Selection Method:
Consulting firm through Quality-and-Cost-Based Selection with Full
Technical Proposal and 80:20 quality-cost ratio
Consulting Input (person-months)
International:
180
National: 1,520 professional,
Outputs to be produced by the consultants:
(i) Develop computer aided contract management system
(ii) Monitor civil works for construction of Kobuleti and Batumi bypasses in accordance with Conditions of Contract.
(iii) Certification of claims, variations, subcontracting and payments and assist in settling disputes.
(iv) Conduct seminars, asses training impacts.
(v) Develop risk management plan.
A. Introduction
1.
International and domestic consultants will assist the Executing Agency (EA) in ensuring
that (i) designs are carried out to the appropriate engineering standards; (ii) all work associated
with the project are carried out in full compliance with the designs and specifications; (iii) the
EA's engineers and domestic consultants receive in-country and international training in
selected areas of tunnel design and construction and pavement design; (iv) resettlement, social,
environmental, road safety, and monitoring are implemented in accordance with the
recommendations of various studies, plans, analysis of the project. A total of 180 person months
are required for international consultants and an estimated 1,520 person months for domestic
engineering consultants
2.
The consultants will be engaged under ADB financing and will be recruited in
accordance with the EA’s procedures acceptable to ADB.
B. Scope of Services and Staffing Requirements
International Consultants
3.
The international consultants will act as adviser to the EA, and support and assist staff in
the performance of their duties. About 183 person months of international consulting services
will be required to provide advisory services in construction supervision. The team of
international consultants will comprise a highway construction project management specialist as
Chief Engineer for 52 person months; 48 months for a highway engineer, 36 months for a bridge
engineer, 18 months for a tunnel engineer, 6 month for a road pavement specialist, 3 months for
a contracts specialist, 2 months for a road safety specialist, 12 months for an environmental
specialist, and 3 months for a social specialist.
4.
The Chief Engineer, will be appointed over the whole construction period. While being
responsible for coordinating the inputs and the activities of the international and domestic
specialists, he will also assist the EA in:
1
Following ADB’s Guidelines on the Use of Consultants
(http://www.adb.org/Documents/Guidelines/Consulting/default.asp?p=cnsltng
Engconsult Ltd.
Appendix 12
•
•
•
•
•
•
74
developing and implementing a computer-aided contract management system for
monitoring the civil works contracts and overall project implementation, and generating
monthly and quarterly progress reports;
organizing, coordinating, and monitoring the construction supervision activities in
accordance with the conditions of contract of Federation International des Ingenieursconseils (FIDIC);
assist in settling contractors’ claims;
reviewing and certifying engineering variation orders, contractor’s applications for
subcontracting parts of the works, and monthly payments to the contractors for
submission to the EA. Assist EA in settling disputes with contractors;
preparing documents and progress reports to be submitted to ADB;
monitor performance, deadlines, project progress, as well as conduct seminars, assess
training impacts and assist in the development of a risk management plan to avoid any
unexpected incidence that may have a negative impact on the project development.
5.
The highway engineer will be fielded for a period of 48 person months to assist the chief
engineer in the construction of the highway works. He will each be responsible for both bypass
sections.
6.
The bridge engineers will be fielded for a period of 36 person months to review the final
bridge design, oversee the bridge construction supervision, implement quality control
procedures, improve construction methods and to train the domestic site engineers on bridge
construction and maintenance.
7.
The tunnel engineer will be fielded for a period of 18 person months to review the final
tunnel design, oversee the tunnel construction supervision, review the safety procedures set up
by the contractor, set up a risk management plan, improve construction methods and to train the
domestic engineers on tunnel construction and maintenance.
8.
The pavement specialist consultant will be required for a period of 6 person months to
review the final pavement design, review pavement construction techniques and oversee the
domestic consultants in supervision of pavement construction.
9.
The contracts specialist shall assist the chief engineer in reviewing the contract
document and assisting in the evaluation of claims and disputes.
10.
The road safety specialist will be required for a period of 2 person months and recruited
upon completion of the detailed design and before the start of the works, to conduct a road
safety audit, and advise on road safety issues of the expressway operations. The specialist will
provide a second input to inspect the completed works before the facilities are opened and,
where appropriate, recommend additional traffic engineering and ITS improvements, particularly
for lighting, hazard barriers, signage, and marking.
11.
The environmental specialist will be required for a period of 12 person months and will
carry out environmental monitoring and management of project implementation and help ensure
the implementation of environmental management practices at each stage of the construction.
The specialist will develop an environmental auditing protocol for the construction period,
formulate a detailed environment monitoring and management plan (EMMP), regularly
supervise the environmental monitoring, and submit periodic reports based on the monitoring
data and laboratory analysis reports. The specialist will also develop a program for hands on
training of contractor’s staff in implementing the EMMP.
Engconsult Ltd.
Appendix 12
75
12.
The social/resettlement specialist will be responsible for the development and
implementation of the Project Monitoring System (PMS) and monitoring and evaluating
HIV/AIDS/STI prevention programs and transmittable disease detection and prevention
programs.
13.
In-country training programs will be submitted to ADB for review and concurrence. The
international consultants will conduct workshops in their fields of expertise.
Domestic Consultants
14.
The domestic consultants will be composed of graduate engineers or the equivalent,
with at least 5 years of practical experience in supervision and administration of major road,
bridge, and tunnel contracts.
Construction Supervision
15.
The consultants will supervise all construction activities.
16.
Construction supervision activities will include the following:
•
•
•
•
•
•
•
•
•
•
•
Assist the EA with contractors’ applications for subcontracting parts of the civil works, by
reviewing ambiguities and discrepancies in contract documents, and in settling disputes
with contractors.
Ensure that all required data for setting out the civil works are provided.
Help the EA with drawings quality, and advise the EA on further drawing or instructions
to the contractors.
Assist the EA to review the contractors’ organizational arrangements, key personnel and
construction programs, materials, and sources of materials.
Monitor the progress of the works against programmed targets, advise the EA on
measures to be taken to improve progress and quality, review and advocate proposed
variation orders, determine rates for works, and decide on alternatives.
Inspect the quality of the works in terms of workmanship and compliance with
specifications; order, supervise, or perform tests on materials and civil works; advise on
approval or disapproval of the contractors’ plan and equipment; propose, if required, the
uncovering of completed civil works and the removal and replacement of improper
material and works.
Check the progress of civil works, examine and review sampling measurements of any
work that is about to be covered or put out of view before permanent work is placed
thereon, examine the measurements of the completed civil works, and (as directed by
the EA) order the initiation of additional civil works that are part of the contract.
Supervise the contractors in all matters concerning safety and care of civil works
including the provision of necessary lights, guardrails, fencing, and security.
Examine the contractors’ accounts, invoices, claims, and other statements for errors in
complying with the contract, and suggest and make corrections.
Advise the EA on how and when to issue certificates of payment to the contractors and
certify the completion of the civil works or parts thereof.
Provide advice and help for the local government authorities to facilitate implementation
of works.
Project Monitoring System
Engconsult Ltd.
Appendix 12
76
17.
The consultants will be responsible for the development and implementation of the
Project Monitoring System (PMS) and will initially collect and analyze a set of indicators for
evaluating project performance against project objectives, purposes, and outputs. The
indicators set out in project documents will be reviewed and a baseline survey will be conducted
at the beginning of project implementation to collect data not already supplied. Domestic
consultants will be recruited to conduct follow-up surveys at project completion, and one year
and three years after completion. Data collected during and after implementation will be
compared with the baseline data and the target values to be established by the EA and agreed
upon with the Asian Development Bank (ADB) before the works start. The main indicators to be
monitored include (i) economic development and poverty indicators at the municipality level and
for each county in the project area; (ii) transport costs and time for specific types of vehicles and
trips; (iii) transport services and charges; (iv) air quality; (v) changes in producer prices, and (vi)
jobs created during construction and maintenance. Where relevant, indicators will be
differentiated by gender. The data collection method will consist of (i) reviewing secondary data
from local government statistics; (ii) conducting household socioeconomic sample surveys; and
(iii) developing participatory rural appraisal methods among communities affected by the bypass
roads. About 24 person-months of domestic consultants specializing in socioeconomic and
transport fields will be required to develop and implement the PMS.
C. Records and Reports
18.
The construction supervision consultants will maintain records of implementation
progress, contract variations, and design revisions for incorporation in the drawings for the final
works. They will also (i) assist the EAs in preparing progress and financial status reports, and a
final project completion report; (ii) certify interim and final payments; (iii) give the EAs technical
and engineering advice on the day-to-day project activities; (iv) keep records of all works done,
and prepare monthly and quarterly progress reports; (v) prepare, before the works start, a
project implementation schedule based on the contractors’ work programs; and (vi) keep
records of all payments approved and report the same in the monthly progress reports. The
monthly reports will cover a description of the activities, the progress charts, the expenditure
records, and implementation-related issues and the suggested remedial actions. The monthly
reports will be consolidated into quarterly reports comparing the actual and originally anticipated
work program.
19.
Upon completion of their inputs, the individual international consultants will prepare for
each relevant technical area, progress reports giving findings and recommendations. Upon
completion of their services, the consultants will submit a final report covering the work
performed, and highlighting findings and recommendations to the EA. Copies of these reports
and actions taken should be provided to ADB.
20.
A strategic plan regarding performance measures, effectiveness, training, and various
activities of the Chief Engineer should be developed during the first two months of the duty
commencement, and ADB should be informed.
D. Support Services for the Consultants
21.
The EA will make the following available to the consultants: (i) administrative assistance
to international consultants in obtaining visas, customs clearance, and any other administrative
permits required to perform their duties; (ii) all relevant reports; documents relating to the
assignment, (iii) suitable office accommodation on site and in Tbilisi and (iv) appropriate and
suitably qualified counterpart staff. Counterpart staff will be agreed upon with the EAs before the
services start.
Engconsult Ltd.
Appendix 12
77
Table A12. 1: Summary of International Consulting Services
Consultant
1. Chief Engineer/Road Engineer
2. Highway Engineer
3. Bridge Engineer
4. Tunnel Engineer
5. Pavement Engineer
6. Contracts Specialist
7. Road Safety Engineer
8. Environmentalist
9. Social Specialist
TOTALS
No.
1
1
1
1
1
1
1
1
1
9
Person Months
52
48
36
18
6
3
2
12
3
180
Table A12. 2: Summary of Domestic Consulting Services
Consultant
1. Deputy Chief Engineer
2. Deputy Resident Engineers
3. Highway Supervising Engineers
4. Bridge Supervising Engineer
5. Tunnel Supervising Engineer
6. Pavement Engineer
7. Geotechnical Engineer
8. Drainage Engineer
9. Quality Control Specialist
7. Road Safety Engineer
8. Environmentalist
9. Social Specialist
TOTALS
No.
1
4
16
6
4
2
1
2
1
1
2
2
41
Total Person
Months
50
192
768
180
144
24
12
16
48
2
72
12
1,520
Table A12. 3: COST ESTIMATES AND FINANCING PLAN ($'000)
Item
A. ADB Financing
1. Consultants
a. Remuneration and Per Diem
i. International Consultants
Number of Person-months
180
ii. Domestic Consultants
Number of Person-months
1,520
iii. Technical Support
Number of Person-months
3,264
b. International and Local Travel
c. Reports and Communications
2. Laboratory and Testing
3.
Miscellaneous Administration and support
costs
4. Contingencies (5%)
Subtotal (A)
Engconsult Ltd.
Total
Cost
3,780
1,968
3,184
384
41
610
152
506
10,62
6
Appendix 13
78
Appendix 13
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS FOR
ROAD SAFETY ENHANCEMENT AND AWARENESS TRAINING
TA Name:
Road Safety Enhancement and Awareness Training
Expected Date of Publication:
2009 QIII
Tentative Date of Commencement:
2010 QIII
Duration:
9 Months
Selection Method:
Consulting firm through Quality-and-Cost-Based Selection with
1
Simplified Technical Proposal and 80:20 quality-cost ratio
Consulting Input (person-months)
International:
11
National: 20
Outputs to be produced by the consultants:
(i) Train and built capacity of the Executing Agency and other concerned agencies to improve application of road
safety principles, road safety monitoring and education.
(ii) Design and implement road safety awareness campaigns targeting school students, pedestrians and general
public.
(iii) Specify equipment to be procured for road safety enforcement
(iii) Prepare an ITS strategy plan.
A. Consulting Input
1.
The TA will be implemented by a consultant team consisting of a team leader
(international road safety specialist, 7 person-months), road safety equipment specialist (1
international for 1 person-month), ITS specialist (international for 3 person months, one national
for 2 months), road safety trainers (2 national for 8 person-months each), media specialist (1
national for 2 person-months)
B. Implementation Arrangements
2.
The Consultant will head a team comprised of international and domestic staff along with
RDMEDI and PP and other counterpart specialists who will work closely with the Consultant.
These counterpart staff will be drawn from existing resources. After proper training, the
Georgian counterpart staff are expected to implement the outputs from the preparation
assignment under close monitoring of the Consultant. The Consultant will therefore guide the
counterpart team, review and comment on outputs, and help the counterpart team to produce
the outputs to the necessary standard.
C. Scope of Services
3.
The new Project road comprises two sections - (i) access-controlled Kobuleti bypass
(28km) and (ii) the free-access six kilometer widening of the existing road. The first of these
sections will be restricted, with no admittance to pedestrians, slow and non-motorized traffic,
while there will be mixed traffic and pedestrians in the second section.
4.
The objective of the assignment is for the Consultant to develop awareness campaigns
and also establish in-country expertise for further road safety campaigns, train counterparts in
road safety monitoring, specify equipment required for road safety enforcement and develop an
1
Following ADB’s Guidelines on the Use of Consultants
(http://www.adb.org/Documents/Guidelines/Consulting/default.asp?p=cnsltng
Engconsult Ltd.
Appendix 13
79
ITS strategy. The focus of the work shall be on ensuring that RDMEDI, PP and other
professionals are fully involved in the preparation of the campaigns so that they are able to do
most of the work of implementation and follow up. This ‘knowledge transfer’ to be proposed by
the consultant in their proposal will be considered an essential measure of the viability of
achieving the outputs.
D. Scope of Work
5.
The objective of the assignment is for the Consultant to develop awareness campaigns
and also establish in-country expertise for further road safety campaigns, train counterparts in
road safety monitoring, specify equipment required for road safety enforcement and develop an
ITS strategy. The focus of the work shall be on ensuring that RDMEDI, PP and other
professionals are fully involved in the preparation of the campaigns so that they are able to do
most of the work of implementation and follow up. This ‘knowledge transfer’ to be proposed by
the consultant in their proposal will be considered an essential measure of the viability of
achieving the outputs.
1.
Road Safety Audits (One person month international, 2 person months
national trainers)
6.
Training will be carried out to suitable counterparts from RDMRDI, PP, Technical
University and NGOs in the use of road safety audits, based on the manuals prepared by WB
consultants. The counterparts will then under the supervision of the consultants carry out an
audit of the details design of the new road and also of the existing S2 road from Poti to Sarpi.
7.
The timing of this component will depend on the completion of the Manuals by WB
consultants.
2.
Awareness Campaigns (6 person-months of Team Leader, 16 person
months of national trainers and media specialist.)
8.
The safety awareness campaign for the access-controlled section should take into
consideration safety-issues related to high-speed traffic and the likely implication to both the
road-users and roadside communities. The target-groups would therefore be (i) road-users and
drivers of all types of vehicles and (ii) roadside communities.
9.
For the former the issues which should be addressed are a safe driving code of behavior
while driving on an access-controlled road including road tunnels and carrying out education
about safety facilities and response in the event of incidences such as accidents.
10.
For the roadside communities, the issues to be addressed would be to educate the
communities on the dangers of accidentally or forcefully breaking through the safety boundary
fence to the access-controlled road. This would include publicizing the construction of sufficient
pedestrian and tractor underpasses and non-disruption of the existing local roads, foot-trails,
etc.
11.Suggested campaigns will include (but are not limited to):
•
Safety Code for Access-Controlled Roads & Tunnels. Educating drivers about
the correct code of behavior while driving in the access-controlled sections of
road including tunnels. It should consist of design of materials to be used in
program and the actual education should be conducted to all road-users through
joint collaboration with the consultants, PP and RDMRDI.
Engconsult Ltd.
Appendix 13
80
In the initial period, the education should be carried out through concerned
associations of transport entrepreneurs and PP. In the latter part of the Program,
the Consultants should in consultation with PP, update the existing manuals for
drivers incorporating the above code. With the collaboration with PP the syllabus
for the written test for driving-licenses should be updated to include the safe
driving code, with special reference to high speed roads.
•
Roadside Community Awareness Campaign. This program will carry out safety
education of roadside communities within the access-controlled section of the
Project and would target school children and concerned residents within the
immediate vicinity of the road. The campaign should be conducted through local
community based organizations in collaboration with RDMRDI, PP and the
Consultants. It should consist of preparation of brochures highlighting a code of
conduct around access-controlled roads, lectures and training to local trainers
(PP or NGOs), supervision of implementation of awareness campaign by local
trainers to students and residents.
•
Pedestrian Awareness Campaign for Open Access Section of Road. This
campaign should use posters and literature related to increased danger from
heavy-vehicles and safe pedestrian behavior when walking by heavily trafficked
roads. This program should be conducted in schools in Kobuleti and Batumi:
Activities should include, preparation of posters and other literature, conduct
lectures at schools with the assistance of MRDIRD and PP.
•
Awareness Campaign for Heavy Vehicles. The main message behind this
campaign will be to underscore the importance of observing safe-driving habits
with special consideration given to pedestrians and non-motorized vehicles on
mixed traffic road sections. This campaign should be conducted at truck and bus
operator’s depots and should include preparation of brochures and stickers and
lectures at transport operators depots with the assistance of RDMRDI and PP.
•
Publicity through Television and Newspaper. The Project should produce and
broadcast a documentary on television highlighting the following issues
pertaining to the Project roads, including code of driving behavior on high speed
roads and tunnels and information on emergency facilities available on high
speed roads.
For newspaper publicity a set of road safety advertisements/information should
be designed and placed in national and regional papers.
3.
Assistance in enforcement by PP by procurement of road safety
enforcement equipment. (One month international)
12.
The consultants will specify a list of road safety enforcement in-vehicle equipment
including radar guns, breathalyzers and computerized vehicle data recoding equipment. The
budget for this item would be around $25,000.
Engconsult Ltd.
Appendix 13
4.
81
Adoption of ITS Standards (3 person months international, 2 person
months domestic)
13.
With the introduction of high standard, high speed, roads in Georgia, it is appropriate to
promote, at the national level, the need to develop and adopt national ITS standards. Given the
amount of effort, time and cost developing and testing standards in other countries, there is
considerable scope to draw upon that international experience as the basis for national ITS
standards. The Consultants will collaborate with RDMRDI in developing a suitable standard for
Georgia. Activities will include: (i) Workshops and lectures to road user stakeholders on the
need for ITS standards, implementation of basic ITS measures and examples of ITS in other
countries, and (ii) collaborate with RDMRDI on designing ITS standards suitable for Georgia,
which will include a phased approach to ITS implementation.
COST ESTIMATES AND FINANCING PLAN ($'000)
Item
A. ADB Financing
1. Consultants
a. Remuneration and Per Diem
i. International Consultants
Number of Person-months
ii. Domestic Consultants
Number of Person-months
b. International and Local Travel
c. Reports and Communications
2. Equipment (Computer, Printer, etc.)a
3. Workshops and Seminars b
4. TV/Radio/Brochures/Posters
5. Miscellaneous Administration and
Support Costs
6. Contingencies
Subtotal (A)
Total
Cost
230.0
11
75.0
20
60.0
10.0
30.0
20.0
85.0
10.0
26.0
546.0
B. Government Financing
1. Office Accommodation and Transport
2. Remuneration and Per Diem
of Counterpart Staff
3. Venue for Workshops and Seminars
4. Previous Studies and Reports
5. Miscellaneous Administration and Support Cost
Subtotal (B)
18.0
130.0
15.0
2.0
8.0
173.0
719.0
TOTAL
a
Equipment
Type
Estimate only. To be specified during TA
b
Quantity
Cost
Workshops, Training/Seminars & Conferences
Purpose
Estimate only. To be specified during TA
Engconsult Ltd.
Number of
Participants
Venue
Duration
Cost
Appendix 14
82
Appendix 14
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS FOR
ROAD SECTOR CAPACITY BUILDING
TA Name:
Road Sector Capacity Building
Expected Date of Publication:
2009 QIII
Tentative Date of Commencement:
2010 QIII
Duration:
6 Months
Selection Method:
Consulting firm through Quality-and-Cost-Based Selection with
1
Simplified Technical Proposal and 80:20 quality-cost ratio
Consulting Input (person-months)
International:
17.5
National: 18.5
Outputs to be produced by the consultants:
(i) Train and build capacity of the Executing Agency and other concerned agencies in high class road design and
construction techniques.
(ii) Carry out axle load surveys to determine extent of overloading on Georgian roads
(iii) Build up the capacity and procedures of the Environmental and Resettlement Unit (ERU) of RDMRDI and Ajara
Autonomous Region officials.
(iv) Develop and build on the Land Acquisition and Resettlement (LAR) capacity currently available in the RDMRDI,
Ajara Autonomous Region and the local Rayons
(v) Train trainers to continue building capacity.
A. Consulting Input
1.
The TA will be implemented by a consultant team consisting of a team leader
(international road engineering specialist, 3 person-months), tunnel design/construct specialist
(1 international for 1.5 person-month), bridge design/construct specialist (one international and
one national for 1.5 person month each), pavement design/construct specialist (one
international for 4 person months and one domestic for 6 person months) international contract
management specialist (one international for 1 person-month), social/resettlement specialist (1
international for 4 and one national for 8 person months person-months), environment specialist
(one international for 2 person months and one national for 3 person months).
B. Implementation Arrangements
2.
The Consultant will head a team comprised of international and domestic staff along with
RDMEDI (the EA), Ajara Autonomous Region and other counterpart specialists who will work
closely with the Consultant. These counterpart staff will be drawn from existing resources. After
proper training, the Georgian counterpart staff are expected to be capable of training further
groups of RDMEDI and other professional counterparts.
C. Scope of Services
3.
At the present time international agencies intend to or are funding a substantial number
of both international and state roads in Georgia in order to improve the overall road network.
Many of these roads are high speed international roads, some are limited access. There is
limited experience in Georgia in the design and construction of high speed roads, and road
tunnels.
1
Following ADB’s Guidelines on the Use of Consultants
(http://www.adb.org/Documents/Guidelines/Consulting/default.asp?p=cnsltng
Engconsult Ltd.
Appendix 14
83
4.
The project roads will carry a large amount of heavy truck transit traffic. There is no
information on the extent of vehicle overloading on main roads in Georgia and despite Georgia
having an axle load limit of 11.5 tons there are few means of measuring actual loads. As
pavement overloading can cause accelerated damage to the pavement it is important to both
know the extent of truck overloading and control it.
5.
The project roads will require extensive environmental and social/resettlement
monitoring both during construction and in the first years of operation. Whilst there is some
experience in safeguard monitoring in Georgia, it has little depth and, in particular there is no
experience in ADB safeguard requirements.
6.
It is proposed to engage consultants to develop and implement a human resource
development plan to include domestic formal and hands on training in areas of design and
construction and environment and social monitoring of impacts of high speed roads. The
consultants may be engaged as part of the supervisory services for the ADB funded Kobuleti
bypass road.
7.
The objective of the assignment is for the Consultant to train counterparts so as to
establish in-country expertise for further domestic training in high speed road design and
construction,
international
contract
management,
environmental
monitoring
and
social/resettlement monitoring. The focus of the work shall be on ensuring that RDMEDI and
other professionals are fully trained such that they can become trainers themselves. The
‘knowledge transfer’ to be proposed by the consultant in their proposal will be considered an
essential measure of the viability of achieving the outputs. In addition the consultants will train
counterparts in the use of portable weighbridges to be procured as part of the services and
assist them in carrying out an axle load survey on the existing Batumi-Kobuleti road and other
international roads in Georgia.
8.
The objectives of the environment training are (a) to help build up the capacity and
procedures of the Environmental and Resettlement Unit (ERU) of RDMRDI and Ajara
Autonomous Region officials to undertake analyses of environmental impacts of road projects
and to prepare environmental management and monitoring plans, land acquisition and
resettlement impacts and social monitoring in accordance with Government regulations and
donor guidelines, and (b) to provide hands-on-training on environmental management to the
ERU, RD, and the contractor.
9. The objective of the social/resettlement training is to allow effective execution of all Land
Acquisition and Resettlement (LAR) related tasks by developing an expansion of the capacity
on LAR currently available at the EA (RD/RDMRDI), Ajara Autonomous Region and in the
Rayons.
D. Scope of Work
10.
The international and national consultants will work with domestic counterparts from
MRDIRD to prepare and present a training program for staff of MRDIRD and other selected
Georgian professionals from other agencies. The subjects to be selected for training are
indicated below but will be finalized during negotiations. All training materials will be translated
into Georgian and provision for such translation should be included in the consultants offer.
11.
The training will consist of four parts (i) developing a human resource development plan,
including domestic formal and hands on training, (ii) domestic training sessions to be given by
the international specialists to RDMRDI counterparts, (iii) assist in carrying out an axle load
survey and (iv) evaluation of the training program.
Engconsult Ltd.
Appendix 14
84
12.
The human resource development plan will include all in-country training programs. The
formal specialist training programs will be submitted to EA and ADB for review and concurrence.
Candidates trained will be required to submit a report, through the consultants, to the EA and
ADB on the training received. The trainees should be able to serve as resource persons in
further training seminars for dissemination of knowledge learned.
13.
The international teal leader will take overall responsibility for the training including
preparing an overall training program in consultation with the other international experts,
assisting in all training sessions and preparing an evaluation report.
1.
Road Design and Construction Training
14.
Training will be carried out to suitable counterparts from RDMRDI and will consist of
bridge and tunnel design and construction techniques, road pavement design and construction
techniques, international bidding and contract management. Training will include:
•
•
•
•
•
•
•
•
•
Bridge design and construction techniques of high/long bridges
Tunnel design and construction techniques of tunnels over 0.5km in hard and soft rocks
Bridge and tunnel design in seismic active areas
The evaluation of suitable pavement surface types
International pavement design standards
Pavement construction techniques and the effect of overloading on pavements.
A review of FIDIC contract documents
Construction variations, claims and disputes
Contract management techniques
2.
15.
Environment Monitoring Training
The consultant’s scope of work will include the following tasks:
•
•
•
•
•
•
•
reviewing prevailing government regulations and donor guidelines governing the
assessment and management of environmental and social impacts of road projects;
identifying the procedures and tasks required to be performed by ERU and RD to meet
the requirements of these regulations and guidelines;
reviewing the skills of ERU and RD officials and assessing the need for training to
establish the capability to meet environmental and social management and monitoring
requirements;
preparing a short-term staff training plan and associated materials to meet immediate
needs;
undertaking the training through a combination of hands-on assistance, on-the-job
training, and training workshops;
evaluating the effectiveness of the training provided by other agencies measuring
improvements in attitudes and skills achieved;
preparing outline proposals for the longer-term development of ERU’s organization and
capabilities.
3.
Social and Resettlement Training
16.
The first task will be to carry out a capacity need assessment to define the capacity
building activities required. Capacity building exercises will be needed at the Road Department,
Ajara Regional and Rayon level. The designated team at the Rayon level for the LAR activities
will be provided with training related to the LAR planning and implementation and will be made
familiar with ADB’s policy on Involuntary Resettlement. This will be done through on the job
training and by participation with the LAR activities.
Engconsult Ltd.
Appendix 14
17.
85
Training will cover the following topics:
•
•
•
•
•
•
•
ADB’s Policy on Involuntary Resettlement (1995) and other safeguards Policies related
to IP and Gender etc.
Principles and procedures of land acquisition;
Public consultation and participation;
Entitlements and compensation & assistance disbursement mechanisms;
Grievance redress;
Implementation Mechanism of LARP and
Monitoring of resettlement operations.
4.
Axle Load Survey and Analysis
18.
Training in pavement design and the effect of overloading on pavement design will be
covered under item I above. In addition the pavement specialist will:
•
•
•
•
•
Specify and assist RD in the procurement of three portable vehicle weighing equipment;
Train RD staff in the use of the equipment;
Develop a continuing program for truck axle load checking on the existing Poti-Batumi
Road and also on selected locations of the E-W Highway. Obtain approval from RD on
the program.
Supervise the execution of the load checking program.
Train RD staff in the analysis of the initial results and preparation of a report setting out
the extent of overloading on the roads.
E. Staffing
19.
The international road engineering consultants shall have a minimum of 15 years
experience in their respective fields in which 5 years should be on international projects
involving high speed roads.
20.
The international environmental specialist will have a minimum of 10 years experience in
environmental assessment and management of infrastructure projects and must possess a
relevant post-graduate degree preferably doctorate in civil /environmental engineering.
21.
The international social/resettlement specialist will have a post graduate in Social
Science with a minimum 10 years of relevant work experiences in the social sector especially in
land acquisition and resettlement planning and implementation. Up- to- date knowledge of
various social safeguards policies of Asian Development Bank and Georgia Laws/regulations on
Land Acquisition and Resettlement is required. Experience in implementation of LARP activities
and experience in ADB funded project implementation will be desirable;
Engconsult Ltd.
Appendix 14
86
COST ESTIMATES AND FINANCING PLAN ($'000)
Item
A. ADB Financing
1. Consultants
a. Remuneration and Per Diem
i. International Consultants
Number of Person-months
ii. Domestic Consultants
Number of Person-months
b. International and Local Travel
c. Reports and Communications
2. Equipment a
3. Workshops and Seminars b
4. Translation Costs
5. Miscellaneous Administration and
Support Costs
6. Contingencies
Subtotal (A)
B. Government Financing
1. Office Accommodation
2. Remuneration and Per Diem
of Counterpart Staff
3. Venue for Workshops and Seminars
4. Previous Studies and Reports
5. Miscellaneous Administration Cost
a
Total
Cost
387.0
17.5
62.9
18.5
90.0
5.0
75.0
40.0
25.0
10,2
36.3
761.4
Equipment
Type
Estimate only. The estimate includes portable single axle weighbridges,
including indicators, computer, printer and associated software with transport
racks for testing vehicle. Other equipment will include computers, printers and
presentation equipment for workshops and training sessions.
b
Quantity
Cost
Workshops, Training/Seminars
Purpose
Estimate only. To be specified during TA. Includes
materials.
Engconsult Ltd.
Number of
Participant
s
Venue
Duration
Cost
Appendix 15
87
Appendix 15
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS FOR
PUBLIC-PRIVATE PARTNERSHIP (PPP) CAPACITY ENHANCEMENT
TA Name:
Public-Private Partnership (PPP) Capacity Enhancement
Expected Date of Publication:
2010 QIII
Tentative Date of Commencement:
2011 QIII
Duration:
4 Months
Selection Method: Consulting firm through Quality-and-Cost-Based Selection1 with
Simplified Technical Proposal and 80:20 quality-cost ratio or direct appointment of individual consultants
Consulting Input (person-months)
International: 12
National: 12
Outputs to be produced by the consultants:
(i) Train and build capacity of the Roads Department in the development of a PPP framework.
(ii) A review of existing relevant legislation and drafts of any required amendments
(iii) Economic and financial analyses of potential PPP projects and a participatory workshop
(iv) Model PPP contracts suitable for Georgian conditions
(v) A PPP procurement strategy
A. Consulting Input
1.
The TA will be implemented by a consultant team consisting of a team leader
(international PPP specialist, 4 person-months), deputy team leader/PPP specialist (national, 4
person-months), legal specialist (1 international for 2 person-month and one national for 2
person-months), economist/financial analyst (one international and one national for 3 person
months each), contracts specialist (one international for 3 person months and one national for 3
person months).
B. Implementation Arrangements
2.
The Consultant will head a team comprised of international and national staff along with
the Roads Department (RD) (the Implementing Agency - IA) and other counterpart specialists
who will work closely with the Consultant. Counterpart staff from Ministry of Regional
Development and Infrastructure (MRDI), as the expected contracting party of any PPP
arrangements, should also work with the Consultant. These counterpart staff will be drawn from
existing resources. After proper training, the Georgian counterpart staff are expected to be
capable of training further groups of RD and other professional counterparts. The Consultant will
work in close liaison with the World Bank PBC consultants and wherever possible seek ways in
which delivery of PBCs can be enhanced.
1
Following ADB’s Guidelines on the Use of Consultants
(http://www.adb.org/Documents/Guidelines/Consulting/default.asp?p=cnsltng
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C. Background
3.
The Government of Georgia (GoG) supports the involvement of the private sector in
infrastructure. Evidence of this in the transport sector was the early efforts by the MED to
involve the private sector in the East-West Highway. These early efforts were not successful,
however: significant increases in private participation in transport projects can generally only
occur when there is a strong policy commitment to private approaches across a range of
government functions and a defined administrative process for handling PPP project proposals.
The objective of the assignment is to muster this policy commitment and put RD in a position
where it could issue an RFP for a PPP arrangement and be assured of getting adequate, costeffective bids.
4.
Public-private partnerships share risks between the public and private sectors. PPP
arrangements come in four main forms: management contracts (including O&M contracts and
the PBCs referred to below), lease contracts, concessions for existing transport infrastructure,
and concessions for new “greenfield” transport infrastructure. In all cases, the arrangement
must be financially attractive to the private sector to be viable. But the degree of risk transfer to
the private sector tends to increase progressively through these categories. As risk increases,
the cost of debt and equity to the private sponsors will increase; the projected returns then need
to be higher if the PPP is to be financeable. Public sector risk often remains substantial in
transport concession agreements to facilitate the transaction at acceptable cost. The public
sector risks are sometimes expressed through full or partial revenue guarantees but there are
many other types and gradations of risk-sharing which can differ by project.
5.
The usual rationale for PPP is that, when facing appropriate incentives, a private
company will deliver a more cost-effective service to users than the public sector. In Georgia’s
case there is also a transit argument: transit countries may derive little direct economic benefit
from the traffic that used its infrastructure. This is undoubtedly so in the case the ADB funded
Ajara bypass roads projects, where it is estimated that some 42 percent of benefits will go to
transit traffic. Similar cases will arise from other bypass projects (e.g. those proposed for the
EW Highway). If a way can be found to recoup some infrastructure costs from foreign
beneficiaries without jeopardizing the project’s economic return, then Georgia will benefit. It can
be seen as a way of capturing the negative externalities of transit traffic as a financial cash flow.
6.
RD, with World Bank support, is proposing to shift from contracted out maintenance to
performance based road maintenance contracts (PBCs) that could produce further savings (of
up to 50 percent). A proposed project component of the Third East-West Highway Project will
assist in developing a comprehensive framework for the introduction of PBC in Georgia. This
will give RD valuable experience in the design of appropriate incentives.
D. Scope of Services
7.
The objective of this TA is to build on the policy commitment of GoG and build technical
and other capacity in RD and MRDI such that they are in a position where they could issue a
request for a technical and financial proposal for a PPP arrangement and be assured of getting
adequate, cost-effective bids.
8.
At the end of the TA the consultants should (i) have assisted the counterparts and the IA
to draft any legislative changes required, (ii) have identified a pipeline of projects suitable for
PPP and have discussed the projects with the IA, (iii) have drafted model PPP contracts and (iv)
have, with the counterparts, developed a coherent PPP procurement strategy for the IA. It
should enable the IA to move a step further than PBCs allowing a deeper involvement by the
private sector in the provision and upkeep of roads in Georgia.
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89
E. Scope of Work
9.
The international and national consultants will work with national counterparts from RD
and MRDI. The work will consist of five parts (i) a review PPP options suitable for Georgia and
of any existing contracts, (ii) a review of existing legislation relating to PPP and
recommendations for new or changed legislation, (iii) economic and financial studies, (iv)
preparation of standard forms of contract and (v) a procurement strategy.
1.
PPP Options Overview
10.
PPP projects need to meet the same criteria as fully public ones to qualify for ADB
support. They should maintain or improve transport access and affordability to the poor. They
must meet safeguards requirements. They should be economically justified. Properly structured
private involvement should deliver risk transfer and efficiency benefits.
11.
The options overview will take a critical look at RD’s operations and objectives. There is
scope for PPP approaches to deliver additional capacity in the form of major highways, bridges
and tunnels. It is likely that multi-year, area-wide road maintenance contracts and concessions
will provide increasing opportunities for the private sector. Intelligent Transport Systems (ITS)
technologies are also possible candidates for PPP as technology risks may be partly defrayed
to the private sector. Thus the Consultant will identify (i) the scope for private sector involvement
and (ii) the most appropriate form of PPP in each case. The Consultant will also review past
efforts, whether successful or not, at transport PPPs in Georgia in order to spell out lessons
learned.
2.
Legal review
12.
For most major transport projects PPP financing requires sophisticated legal and
enforcement legislation. The review will cover: primary legislation, powers of the client agencies,
rights to award concessions, constitution of client agencies and shareholders’ agreements,
regulatory powers and structures, ownership of assets, labor law, rights of access and
arbitration.
13.
The Consultant will highlight recommended changes to the legal environment where
required and draft amendments.
14.
The Consultant will consider and make clear recommendations on the need for
regulation. (Regulation by contract is typically used in the transport sector for specific projects
rather than industry-wide regulation. Toll-road concessions are often regulated by contract. A
regulatory entity is not required if there is sufficient confidence that contract law and arbitration
arrangements can provide a remedy to the parties in the event of dispute).
3.
Economic and financial aspects
15.
It is more difficult to recover road infrastructure costs directly from user charges than it is
to charge for transport services. The financial returns from infrastructure projects are often poor
in the short term and only become satisfactory in the very long term and they are, therefore,
risky. These risks are often not attractive to private investors without some public funding or
public risk-taking, or government guarantees. Where transport infrastructure costs are not
recovered directly, there are distributive consequences which may be politically significant (i.e.
favor the better off).
16.
The Consultant will screen potential PPP projects with the following criteria in mind: (i)
economic internal rate of return, (ii) financial internal rate of return and financial ratios, (iii) need
for subsidy or guarantees and (iv) fiscal and distributive consequences of a PPP arrangement.
The Consultant will review and recommend appropriate payment methods: tolls may not be the
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90
most efficient method and the Consultant should consider alternatives such as shadow tolls,
availability payments and annuity payments.
17.
In each case the Consultant will prepare a public sector comparison case in order to
calculate the incremental net benefits that may be obtained as a result of the PPP. Benefits may
accrue from earlier implementation (particularly if there are public sector budgetary constraints),
lower whole life costs and possibly better service.
18.
The Consultant will also conduct a participatory workshop with relevant stakeholders,
using appropriate models2 to demonstrate the economic and financial performance of candidate
projects, the need for subsidies and the distributive consequences of PPP.
19.
Subsidies and/or guarantees are likely to be required for the more capital-intensive
PPPs. The Consultant will therefore establish the potential sources (both government and
International Financial Institutions (IFIs)) of subsidy and the conditions required.
4.
Contract Review
20.
The Consultant will review suitable forms of contract and prepare model forms
appropriate to potential PPP arrangements under the auspices of RD. The World Bank’s toolkit3
is a good starting point, but the Consultant should seek to base its recommendations on forms
of contract common in Georgia or from their own international experience.
5.
Procurement Strategy
21.
The Consultant will devise a procurement strategy to cover all phases of PPP, from
feasibility through to contract award. It will undertake a pre-marketing exercise with likely
national and international bidders in order to ascertain the level of interest and bidders’
requirements.
F. Reporting
22.
The Consultant will submit (i) an inception report within four weeks of project start, (ii) a
diagnostic report within eight weeks of project start, (iii) a draft final report 17 weeks after project
start and (iv) a final report four weeks after receiving comments from ADB and RD. The
diagnostic report will contain: (i) lessons learned from existing or attempted PPPs in Georgia, (ii)
the constraints (legal, financial, institutional) that create barriers to involvement of the private
sector.
G. Workshops
23.
Two workshops will be held. The first will be for senior officials of the EA and IA. Its aim
will be to provide feedback on the Consultant’s proposed project pipeline. The second will be an
analytical workshop for counterparts at which participants will work through the financial and
economic principles of candidate projects.
H. Staffing
24.
The international PSP expert/team leader shall have a minimum of 15 years relevant
experience of which 5 years should be on international PPP projects. He/she should have held
a team leader position on at least two similar assignments and be familiar with IFI requirements.
The other international experts should hold relevant post-graduate qualifications and a minimum
2
e.g. taken from the World Bank’s toolkit: Public-Private Options for Developing, Operating and
Maintaining Highways: Toolkit for Policymakers, 2003
3
Ibid
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91
of 10 years relevant work experience. The deputy team leader (national) shall have a relevant
post-graduate qualification and should have had at least five years experience of donor funded
projects. The other national experts should hold relevant qualifications and a minimum of 5
years relevant work experience. All consultants should be fluent in spoken and written English.
25.
The international PSP expert will be team leader and will be appointed for a period of
four months. He/she will be responsible for co-coordinating the inputs and activities of the
international and national specialists and will take the lead role in developing the project pipeline
and facilitating the first workshop and preparing the procurement strategy. He/she will be
supported by a national PSP expert as deputy team leader.
26.
The international and national legal experts will each be fielded for two months and be
responsible for carrying out the legal review. The international expert will be responsible for the
comparison with international best practice.
27.
The economist/financial international and national specialists will each be fielded for
three months. They will assist the PPP specialists in screening potential projects, and will carry
out economic and financial analyses for each potential project. They will facilitate the second
workshop.
28.
The international and national contract specialists will each be appointed for 3 months.
They will review and recommend suitable contract forms suitable for Georgia and assist the
Team Leader in preparing the procurement strategy.
Table A15. 1: Summary of International Consulting Services
Consultant
1. Team Leader/PPP Specialist
2. Deputy Team Leader/PPP Specialist
3. Legal Specialist
4. Economist/Financial Analysts
5. Contracts Specialist
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International
4
2
3
3
National
4
2
3
3
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92
COST ESTIMATES AND FINANCING PLAN
($'000)
Total
Item
A.
Cost
ADB Financing
1. Consultants
a. Remuneration and Per Diem
i.
International Consultants
283.0
Number of Person-months
ii.
12
National Consultants
50.0
Number of Person-months
12
b. International and Local Travel
c.
45.0
Reports and Communications
2. Equipment (PCs, presentation equipment)
5.0
a
5.0
3. Workshop
10.0
4. Translation Costs
10.0
5.
Miscellaneous Administration and
Support Costs
6. Contingencies
Subtotal (A)
B.
Government Financing
1. Office Accommodation
2. Remuneration and Per Diem
of Counterpart Staff
3. Venue for Workshops and Seminars
4.
Previous Studies and Reports
5.
Miscellaneous Administration Cost
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5.0
41
454.0
Appendix 16
93
Appendix 16
SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY
Country/Project Title: GEO: Sub Regional Road Corridors Development Program-Tranche-1
Lending/Financin
g Modality:
Multitranche Financing Facility (MFF)
Department
/
Division:
CWRD/CWID
I.
POVERTY ANALYSIS AND STRATEGY
A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy
The Project under the Sub Regional Roads Corridors Development Program can be linked indirectly to the overall
objective of Government’s Development Agenda as reflected in Basic Data and Directions (BDD) document2008-2011 and ADB’s Interim Operational Strategy (IOS) 2008-2009. Poverty Reduction is one of the
Governments main agenda where the prime objectives are to reduce, over the period 2006-2015, overall poverty
incidence from 31% to 15% and extreme poverty from 11% to 4%. This can be achieved through economic
growth where infrastructure development plays a vital role and therefore, Infrastructure bottlenecks to growth will
be removed. One of the important strategies under this is to develop transport infrastructure to strengthen market
access and to realize Georgia’s transit economy potential more fully. ADB’s priorities for the IOS (2008–2009)
have been identified based on the considerations such as: (i) alignment with the Government’s development
agenda; (ii) selectivity in focusing limited resources on a small number of priority areas; and (iii)
complementarities with other development partners. The IOS will focus on enhancing sustainable economic
growth, with the crosscutting themes of governance, regional cooperation, and environmental protection, by: (i)
improving service delivery in municipal infrastructure within the evolving decentralization process, (ii) reducing
road transportation constraints on economic activity, and (iii) upgrading and developing energy infrastructure.
ADB’s operational engagement in this area will involve financing improvements to the highway network, resulting
in lower transport costs, better road safety, and reduced traffic congestion and vehicle pollution. These are highreturn, in demand operations, and the Government has requested ADB assistance in this area to help address
some of the remaining investment gaps.
Georgia’s road network consists of 1,495 kilometers (km) of international, 5,446 km of state, and 13,388 km of
local roads. The country has five main roads and highways, including the East–West Highway connecting the
ports of Poti and Batumi to the Azerbaijan border. The Government has been encouraging private sector
participation in construction and maintenance of highways. Given the country’s location, transport sector
development is critical to reducing the logistics costs of economic activity and realizing Georgia’s full potential as
a transit economy. The difficult terrain in some sections and congestion slows traffic, increases vehicle operating
costs, and reduces road safety. Road maintenance costs are also high because of the terrain and weather
conditions. About 6% of the main roads, 24% of the secondary roads, and 50% of the local roads are in poor
condition and need rehabilitation. The Government has prioritized improving conditions of the road network. The
link between access to infrastructure services and poverty incidence has been well-established in cross-country
studies. For Georgia, rural-urban differences in access to infrastructure services go some way toward explaining
the pattern of poverty incidence. Because of the generally poor condition of secondary and local roads, Georgia’s
rural population, including ethnic minorities living in southern Georgia, face problems of isolation, with inadequate
access to markets and to social services. In rehabilitating/upgrading secondary and local roads, it will be
important to build in participatory mechanisms involving local communities in design and maintenance of such
roads. Therefore, the project will have indirect linkage to the overall development goal.
B. Poverty Analysis
Targeting Classification: General Intervention
1. Key Issues
Georgia’s rank on the human development index computed by the United Nations Development Program (UNDP)
is 97 out of a list of 177 countries. Rank-wise, it is better placed than Azerbaijan (99) but not so with respect to
Armenia (79). Although growth will need to be more broad-based to achieve the income poverty reduction target,
the policy and institutional environment for achieving the Millennium Development Goals (MDGs) has improved in
recent years with higher and more efficient spending on social sectors. More than one third of Georgia’s
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94
population fall below the national poverty line with relatively higher poverty in rural areas. Poverty incidence in
Georgia is close to levels in other South Caucasus countries. The incidence of Poverty in Georgia is 39.4% and
the depth of poverty 13.5%. Direct benefit of the Program on poor is relatively small except the fact that it
provides some direct employment opportunities during the construction phase. However, it contributes more
indirectly. The provision of transport services, including the construction and maintenance of transport
infrastructure, generates demand for labor (often unskilled labor) and provides income-earning opportunities for
the poor. If a transport project generates jobs for the poor who are otherwise unemployed or under-employed, it
contributes indirectly to the poverty reduction. The construction aspect of transport sector development is often
viewed equally as important as the service aspect of the sector in promoting economic growth. The process of
poverty reduction is embedded in a broad range of socio-economic activities to which transport services provide
intermediate inputs. There will be both short term and long term positive impacts of the proposed Project. The
short term positive impacts include access to markets for agricultural produce, availability of temporary unskilled
jobs for villagers; and opportunity to provide food and restaurant services for construction workers. On the other
hand, the long term positive impacts include, access to long distance transport services across the border;
access to long distance markets (buying and selling through regional trade); easier access to health facilities and
medical treatment; increased access to agricultural extension services, increased access to education; increased
opportunity for the development of tourism; and diversification of income sources.
2. Design Features.
No direct impact on poverty is envisaged to occur as result of the implementation of this Project. Nonetheless, the
Project will have indirect impacts on Georgia as a whole.
II.
SOCIAL ANALYSIS AND STRATEGY
Findings of Social Analysis
The program will have positive socio-economic impact on Georgia. A social analysis has been carried out in the
project area through a socio-economic household’s survey of 200 households including 20 villages. Out of the
total sampled surveyed household in the project area, 70 % are covered in villages and the rest 30 % are from
urban areas. Among the head of the households, about 83 % are males and 17% are females. Most of the
sampled households (about 97.5 %) are of Georgian ethnicity. The sex ratio of the project area favors the
females (1,004 females to 1,000 males). The average family size is 5.04 members per household. There is
almost 100% literacy rate in the project area. A majority (about 59 %) have secondary level education and about
16 % have university level of education (same for both genders). Agriculture is practiced by 81 % of the
households as primary economic activity followed by government services (33.17 %) and business and trading
(8.91%). Out of 39 households professing secondary economic activities, nearly 9 % are practicing agriculture
and 3.47 % each are either doing government jobs or are having own business. Among the household members
in the age group of 15 years and above, 70 % are found to be unemployed (65% males and 75% females).
About 6.43 % of the households are landless. Almost all the land is cultivable and unirrigated. The average
residential land as possessed by the people is 0.022 hectares. The total annual average income per family is
6,024 Lari and the median annual income is 4,660 Lari. House hold assets like television (97.5%), LPG gas
(78.2%) and refrigerator are commonly possessed by the sampled households. Large animal like cow/bulls/
buffaloes are possessed by 57 % of the households and poultry is possessed by nearly 23 % of the households.
About 40 % of the households reported having loans and most of them have taken loan from the bank. Most of
the structures and building are double storied and 88% of the structures are cemented structures. 98.5 % of the
households are connected to central power supply. The average number of rooms available within the sampled
house hold is 6.11. Only 2.5 % households reported having connection to the NG pipe line. Piped water supply is
the common source of water for half of the households. About 48.51 % are having flush toilets and the other are
having latrines. 94 % of the households are using wood as the fuel for heating. About 89 % of the sampled
households in the project area had access to a health care center. The average distance of the health centers is
3.1 kms; for 8.23% the health center is located within 1 km from their house. 95 % had access to schools for their
children. About 94.55 % households are immediately connected a to road. For 86% of the households, the
immediate approach road is the village road and for 10 % it is the highway. Based on the survey and the
analysis, it is derived that almost 52% of the households are living below the poverty line in the project area.
B. Consultation and Participation
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95
1. Provide a summary of the consultation and participation process during the project preparation.
Consultations were carried out with all the stakeholders during the program preparation. As an integral part of the
safeguards planning, affected communities and APs were directly and fully involved in the project preparation
and during the design. All stakeholders were informed and the stream of information will continue during the
implementation of the project. Extensive consultation events were arranged at various stages of social and
resettlement project preparation i.e., alternative alignment feasibility study, cadastral survey of affected lands,
land census survey, socio-economic survey and targeted consultation meetings with affected people and local
stakeholder organizations and individuals. Consultations were also held at various office levels such as,
Department of Roads (RD) including the Resettlement Division (DRD), National Agency for Public Registry under
the ministry of Justice, Local Government at Rayon Level (District Municipality), Gamgebeli, Property Recognition
Committee in the Rayon Level and Sacrebulo. Community consultations were held through Focus Group
Discussion at various locations, especially at 20 villages during the month of April 2009 which involved both men
and women participants and totaling 210 participants. The consultation will be continued throughout the project
cycle.
2. What level of consultation and participation (C&P) is envisaged during the project implementation and
monitoring?
Information sharing
Consultation
Collaborative decision making
Empowerment
3. Was a C&P plan prepared?
Yes
No
Local communities and APs were consulted throughout the preparation process to minimize impacts, ensure
social acceptance and increase equitability. The process will indeed continue during the implementation of the
Project. Views and concerns of all stakeholders will be taken into consideration and addressed whenever
feasible.
C. Gender and Development
1. Key Issues.
The Program will pay particular attention to ensure that women are the recipients of the compensation pertaining
to their activities and to ensure that women who are de-facto household heads are clearly listed as beneficiaries
of compensation and rehabilitation proceedings under the loan. Women will also be participants in the
consultation processes to determine and negotiate for compensation entitlements and implement the LARP.
Special attention will be given to the impact of resettlement on women and other vulnerable groups during
monitoring and evaluation of the LARP. The Program will have a positive impact on gender, because the civil
works contracts will include provisions to encourage employment of women during implementation, and women
will be encouraged to participate in activities to monitor program impacts. No particular issue is expected to be
rising from the implementation of the project. Nonetheless, additional compensations will be awarded to femaleheaded households as considered to be more vulnerable.
2. Key Actions. Measures included in the design to promote gender equality and women’s empowerment—
access to and use of relevant services, resources, assets, or opportunities and participation in decision-making
process:
Gender plan
Other actions/measures
No action/measure
III.
SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS
Issue
Involuntary
Resettlement
Significant/Limited/
No Impact
Significant Impact
Land acquisition will be required
for the construction of the
Bypass Road. The Project will
entail
substantial
land
acquisition and resettlement. A
detailed impact assessment
including the census survey is in
progress which will have exact
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Strategy to Address
Issue
A full Land Acquisition
and Resettlement Plan
(LARP)
has
been
prepared
for
the
tranche 1 components
based
on
the
engineering
design.
The LARP is based on
the ADB’s policies on
Involuntary
Plan or Other Measures
Included in Design
Full Plan
Short Plan
Resettlement
Framework
No Action
Appendix 16
96
figures
related
to
land
acquisition and resettlement.
However,
a
preliminary
assessment has been done
which shows that approximately,
11.06 hectares (HA) of private
land will be required for land
acquisition. A total of 590 land
parcels
will
be
affected.
Additionally
44
structures/buildings
will
be
affected. The total amount of
state land required is 109.70 HA.
Also, 7.26 HA of land will be
required
additionally
whose
status is yet to be confirmed
during
the
survey.
The
approximate total number of
affected
household/family
(AP/AH) is 3,500.
No Impact
No impacts on Indigenous
Peoples are expected for the
Program. An assessment of
impact on indigenous peoples
was undertaken in accordance
with
ADB’s
Policy
on
Indigenous Peoples (1998).
The Program will primarily
affect Georgian people which
are almost 93% of the total
population. Some of the other
ethnic groups are also present
in the program area, which are
insignificant in number. These
groups are mostly Armenian,
Azeri, and Russian. These
groups
have
been
fully
integrated into institutional,
cultural,
and
economic
processes in the country, and
they do not display sufficient
features to classify them
indigenous peoples. These
groups are quite mainstreamed
and cannot be considered as
Indigenous People as per the
ADB’s definition on IP
No Impact
Indigenous Peoples
Labor
Employment
opportunities
Labor retrenchment
Core
labor
Jobs opportunities will open for
skilled and unskilled labor
during construction
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Resettlement
and
Georgian laws and
regulations. All the
losses
have
been
assessed
and
provisions have been
made to the APs for
compensation
and
assistance including the
non
titleholders.
Additional assistances
have been provided to
the
vulnerable
households.
Additionally a LARF
has been prepared for
the entire MFF which
will be followed and
implemented for the
preparation
of
subsequent LAPs for
future tranches.
Not Required
Plan
Other Actions
Indigenous Peoples
Framework
No Action
The tranche 1 work will
create both direct and
indirect
employment
opportunities for the
local
people.
The
issues related to safety
Plan
Other Action
No Action
Appendix 16
97
standards
and
safeguard
of
laborers
including
employment and equal
payment for women
and no-employment of
children in the project
will be taken care by
making provisions in
civil
work
contract.
Specific assurances will
be added for the EA to
ensure the enforcement
of
CLS
by
the
contractor on the work
camps/sites.
No Impact.
No tolls will be collected
Affordability
on the subproject road
Action
and it will lead to
No Action
savings
on
vehicle
operating cost, which
will lower transport
costs.
It is expected that
Other Risks and/or Limited
project is likely to bring
Plan
Vulnerabilities
HIV/AIDS
in some risks related to
Other Action
Human trafficking
HIV/AIDS transmission
No Action
Others(conflict,
as a result of improved
political instability, etc),
mobility of the people
please specify
and influx of labor at
the
time
of
the
construction.
This
aspect will be studied
further
during
the
detailed design stage
and
mitigation
measures
will
be
developed to counter
the spread of sexually
transmitted diseases in
the project area.
IV. MONITORING AND EVALUATION
Are social indicators included in the design and monitoring framework to facilitate monitoring of social
development activities and/or social impacts during project implementation?
Yes □ No
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98
Appendix 17
SUMMARY LAND ACQUISTION AND RESETTLEMENT FRAMEWORK (LARF)
A.
Introduction
1.
This Land Acquisition and Resettlement Framework (LARF) for the Sub regional Road
Corridors Development Program (SRCDP) has been prepared by The Road Department of the
Ministry of Regional Development and Infrastructure of Georgia (RDMRDI) and is fully endorsed
by the RDMRDI. The Project, to be financed by ADB under the Multi Tranche Financial Facility
(MFF) will be implemented over a period of 5 years. The objective of this document is to provide
guidance in the preparation/implementation of Land Acquisition and Resettlement (LAR) tasks
for the projects under each tranche and to establish the necessary covenants to ensure that this
is done in compliance to ADB’s Policy on Involuntary Resettlement and procedures for the MFF.
B.
LAR-Related Program Processing Requirements
2.
Based on ADB policy/practice appraisal of the MFF and each tranche and approval of
the implementation of tranche subprojects will require the preparation of the following:
(i) A LARF for the whole financial facility and applicable to all subprojects. The LARF will be
reviewed, if necessary updated, and submitted for ADB approval at least annually and
always at the start of the preparation of each tranche.
(ii) An Initial Poverty and Social Assessment (IPSA) indicating, for each tranche, whether
LAR impacts are likely to occur, type of impacts, likely magnitude, and whether there
may be Indigenous Peoples (IP) affected, and;
(iii) If LAR occurs, a LAR Plan (LARP) for each project under a tranche based on detailed
design and commensurate to the severity of impacts1. The LARP will include detailed
compensation and administration budgets and implementation schedules linking LAR
tasks to the initiation of civil works.
3.
Based on ADB policy/practice, the appraisal of the MFF and each specific tranche and
the approval of project implementation will be based on the following LAR-related conditions:
(i)
(ii)
(iii)
(iv)
1
MFF/first tranche appraisal: Conditional to preparation/disclosure of a LARF for
the whole MFF acceptable to ADB and of the LARPs for the tranche projects
requiring LAR.
Following tranches appraisal: Conditional to review/update/disclosure of the
LARF, and preparation/disclosure of needed LARPs consistent with the revised
LARF and acceptable to ADB for projects with LAR.
Contract awards signing: Conditional to the update/disclosure of the revant
LARPs acceptable to ADB. The updated LARPs will reflect final impacts, final AP
lists and final compensation rates and will be readily implementable.
Provision of notice to proceed to contractors:
Conditional to the full
implementation of the relevant LARP (full delivery of compensation and rehabilitation)
Based on ADB Operation Manual (OM) F2/OP and BO (2006) a project is classified as Category “A” and
a full LARP is needed if > 200 people suffer significant impacts (relocation or loss of >10% of productive
assets). A project will instead be classified as Category “B” when less than 200 people suffer significant
impacts. Category “C” projects have no LAR impacts. No subproject will affect indigenous Peoples. The
WB does not have a similar resettlement classification system but its policy also envisages that for
minor impacts a shorter document, called “Abbreviated Resettlement Plan”, is prepared.
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99
for the relevant project. Such a condition will be clearly spelled out in the text of the civil
works contract.
C.
Indigenous Peoples and Vulnerable Groups including Women
4.
No impacts on Indigenous Peoples are expected for the Program. Special attention will
also be given to identifying and addressing the needs of disadvantaged groups such as the
landless, the poor, female-headed households, the elderly and the disabled, through measures
included in the LARP to try and improve (over and above cash compensations and restoration
of) their livelihoods. Women have important economic roles in project areas and engage in a
very wide range of income making activities in the agricultural and marketing sector. The project
will pay particular attention to ensure that women are the recipients of the compensation
pertaining to their activities and to ensure that women who are de-facto household heads are
clearly listed as beneficiaries of compensation and rehabilitation proceedings under the loan.
D.
Legal and Policy Background
5.
The legal framework will be based on both Georgian Laws/ legislation and ADB’s Policy
on Involntary Resettlelement (1995). In Georgia, the legislative acts that regulate the issues of
obtaining State ownership rights to privately owned land parcels based on the necessary public
needs caused due to road constructions activities are : (i) The Constitution of Georgia, August
24, 1995; (ii) The Civil Code of Georgia, June 26, 1997, (iii) The Law of Georgia on Protection of
Cultural Heritage; (iv) The Law of Georgia on Notary Actions; (v) The Law of Georgia on
Privatization of State-owned Agricultural Land, July 8, 2005’ (vi) The Law of Georgia on
Ownership Rights to Agricultural Land, March 22, 1996; (vii) The Law of Georgia on Registration
Ownership Rights to Immovable Property, December 28, 2005, (viii) The Law of Georgia on the
Rules for Expropriation of Ownership for Necessary Public Need, July 23, 1999; and (ix) The
Civil Procedural Code of Georgia, November 14, 1997. Based on the Georgian laws on land
acquisition and ADB’s Policy on Involuntary Resettlement, 1995, core involuntary resettlement
principles are developed for this MFF which are as follows:
•
•
•
•
•
•
•
•
•
•
Land acquisition, and other involuntary resettlement impacts will be avoided or minimized
exploring all viable alternative project designs;
where unavoidable, a time-bound LARP will be prepared and APs will be assisted in
improving or at least regaining their pre-program standard of living;
consultation with APs on compensation, disclosure of resettlement information to APs, and
participation of APs in planning and implementing sub-projects will be ensured;
vulnerable and severely affected APs will be provided special assistance;
Non-titled APs (e.g., informal dwellers or squatters, APs without registration details) will
receive a livelihood allowance in lieu of land compensation and will be fully compensated for
losses other than land.;
Legalizable APs will be legalized and fully compensated for land losses.
Provision of income restoration and rehabilitation;
The LARP will be disclosed to the APs in the local language
Payment of compensation, resettlement assistance and rehabilitation measures will be
fully provided prior to the contractor taking physical acquisition of the land and prior to
the commencement of any construction activities on a particular package and
Establishment of appropriate grievance redresses mechanisms to solve APs grievance if
occurs.
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E.
100
Compensation Eligibility and Entitlements
6.
LAR tasks under the Project will be implemented according to a compensation eligibility
and entitlements framework in line with both Georgia laws and regulation and ADB Policy. APs
entitled for compensation or at least rehabilitation provisions under the Project are: (i) All APs losing
land either covered by legal title/traditional land rights, Legalizable, or without legal status; (ii)
Tenants and sharecroppers whether registered or not; (iii) Owners of buildings, crops, plants, or
other objects attached to the land; and (iv) APs losing business, income, and salaries.
Compensation eligibility will be limited by a cut-off date to be set for each subproject on the day
of the beginning of the AP Census and detailed Measurement Survey (DMS). A summary
entitlements matrix is included in Table A17. 1below.
Table A17. 1: Compensation Matrix
Type of Loss
Application
F.
Land
Permanent loss of
agricultural land
Definition of APs
Compensation Entitlements
AF losing agricultural Owner with full registration
Cash
compensation
at
land regardless of
replacement cost.
impact severity
Legalizable Owner
These AP will be legalized and
provided with cash compensation
at replacement cost.
Informal Settlers/ APs with
One
time
self-relocation
no
registration/valid
allowance in cash equal to 1 year
documentation
at minimum salary
Non-Agricultural Land AF
losing
their Owner with full registration
Cash
compensation
at
commercial/ residential
replacement cost.
land
Legalizable Owner
APs will be legalized and
provided with cash compensation
at replacement cost..
Renter/Leaseholder
Rental allowances in cash for 3
months
time
self-relocation
Informal Settlers/ APs with One
no
registration/valid allowance in cash equal to 1 year
at minimum salary
documentation
Buildings and Structures
Residential and non
All AFs regardless of their Full impact: Cash compensation
residential
legal
ownership/ for loss of building/ structures at full
costs
free
of
structures/assets
registration
status replacement
(including legalizable and depreciation and transaction costs
Partial impact: compensation for
Informal Settlers)
repairs
Loss Of Community Infrastructure/Common Property Resources
Loss
of
common Community/Public
Community/Government Reconstruction of the lost structure
property resources
Assets
in consultation with community and
restoration of their functions
Loss of Income and Livelihood
Crops
Standing
crops All AFs regardless of legal
Crop compensation in cash at
affected
status
(including
market rate by default at to gross
legalizable and Informal
crop value of expected harvest.
Settlers)
Trees
Trees affected
All AFs regardless of legal
Cash compensation at market
status
(including
rate on the basis of type, age and
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Type of Loss
Application
Business/Employment Business/employment
loss
Allowances
Severe Impacts
>10% income loss
Relocation/Shifting
Vulnerable
Allowances
Transport/transition
costs
People
Temporary Loss
Temporary
impact
during construction
Unforeseen
resettlement impacts,
if any
O.
Definition of APs
Compensation Entitlements
legalizable and Informal productive value of the trees.
Settlers)
N.
All AFs regardless of legal Owner: (i). (permanent impact) cash
status
(including indemnity of 1 year net income; (ii)
legalizable and Informal (temporary impact) cash indemnity of
Settlers)
net income for months of business
stoppage. Assessment to be based
on tax declaration or, in its absence,
minimum salary..
Permanent
worker/employees:
indemnity for lost wages equal to 3
months of minimum salary.
All severely affected AFs Agricultural income: 1 additional
including informal settlers crop compensation covering 1 year
yield from affected land.
Other
income:
1additional
compensation for 3 months of
minimum salary.
All AFs to be relocated
Provision of sufficient allowance to
cover transport expenses and
livelihood expenses for the
transitional period (up to 1 month).
AFs below poverty line, Allowance equivalent to 3 months of
headed
by
Women, minimum salary and employment
priority in project-related jobs
disabled or elderly
All AFs
Due compensation will be
assessed and paid based on this
LARF during construction.
Road
Department
and
the
construction contractor will address
and
mitigate/compensate
unforeseen resettlement impact
during project
Public Consultation, Participation, Documents Disclosure and Grievance Redress
7.
Concerned officials of centre, district/rayon, municipalities and villages/sacrebolu will be
informed about the Project, and their assistance will be solicited in the conduct of the inventory
of affected assets and the Census of APs and the DMS. Also, prior to the finalization of the
LARP and its submission to Project authorities, the APs will be thoroughly informed on the
results of the Census and DMS, and their preferences on compensation or other resettlement
assistance will be given due consideration. This LARF in Georgian will be disclosed on the
RDMRDI website and at RDMRDI offices before Project appraisal. The LARF in Georgian will
also be disclosed to the APs at the relevant Rayon office (Gamgebeli) and at village
administration (Sacrebolu) once subprojects are identified. Its English version will be disclosed
on the ADB website prior to Project appraisal and after the LARF is endorsed by the Executing
Agency (EA) which will be RDMRDI in this case. Once a LARP for a subproject has been
prepared and approved by RDMRDI and ADB it will be disclosed at relevant Rayon office
(Gamgebeli) and at village administration (Sacrebolu). A pamphlet in Georgian, summarizing
compensation eligibility and entitlement provisions, will be sent to all AP/AFs before the initiation
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102
of the compensation/rehabilitation process and before signing contract awards. The consultation
process will be continued throughout the project cycle.
8.
A grievance mechanism will be available to allow an AP appealing any disagreeable
decision, practice or activity arising from land or other assets compensation. APs will be fully
informed of their rights and of the procedures for addressing complaints whether verbally or in
writing during consultation, survey, and time of compensation. Care will always be taken to
prevent grievances rather than going through a redress process. This can be obtained through
careful LAR design and implementation, by ensuring full participation and consultation with the
APs, and by establishing extensive communication and coordination between the affected
communities, the EA, and local governments in general
P.
Institutional Arrangements
9.
Asian Development Bank (ADB) will be the funding agency of the MFF. The Road
Department of the Ministry of Regional Development and Infrastructure of Georgia (RDMRDI)
will be the Executing Agency (EA) having the lead responsibility for road construction, as well as
the implementation of this LARF and subsequently the LARP. RDMRDI has overall
responsibility for the MFF. This includes preparation, implementation and financing of all LAR
tasks and cross-agency coordination. RDMRDI will exercise its functions through its existing
resettlement division (DRD) which will be responsible for the general management of the
planning and implementation of all LAR tasks. RDMRDI with the assistance of the consultants
will develop and implement the LARP for each project based on the policy and procedures set
out in the LARF. In addition to the RDMRDI, a number of other government departments and
private agents will play an instrumental role in the design, construction and operation of the
project. Pursuant to the active legislation, the Ministry of Natural Resources and Environmental
Protection is responsible for environmental issues. The Ministry of Justice is responsible for
legal matters regarding land ownership, and National Agency of Public Registry (NAPR) within
the Ministry of Justice is in charge of the registration of land ownership and its transfer through
purchase agreement from landowners to the Road Department. The local government at Rayon
and village level will also be involved. To allow an effective execution of all LAR related tasks
some expansion of the capacity on LAR currently available at DRD/RDMRDI may be needed.
Q.
Resettlement Budget, Financing and Implementation Schedule
10.
All LARP preparation and implementation costs, including cost of compensation and
LAR administration, will be considered an integral part of Project cost and will be contributed as
a counterpart fund by the Georgia Government, in particular RDMRDI. Each LARP will include a
budget section indicating (i) unit compensation rates for all affected items and allowances, (ii)
methodology followed for the computation of unit compensation rates, and (iii) a cost table for all
compensation expenses including administrative costs and contingencies. Costs for external
monitoring tasks and for the preparation of surveys and LARPs can be allocated under the loan.
Being the project owner, RDMRDI is responsible for the timely allocation of the funds needed to
implement the RPs. Allocations will be reviewed twice a year based on the budget requirements
indicated by the LARPs. As per the LAR finances flow the budget for compensation and
rehabilitation will be directly disbursed by RDMRDI to the AP.
11.
Based on experience in Georgia the Preparation and implementation of a LARP may
take up to a few months. All land acquisition, resettlement, and compensation will be completed
before the start of civil works All land required will be provided free of encumbrances to the
contractor prior to handing over of sub-project sites and the start of civil works.
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R.
103
Monitoring and Evaluation
12.
LAR tasks under the Program will be subjected to both internal and external monitoring.
Internal monitoring will be conducted by DRD/RDMRDI. External monitoring will be assigned to
an Independent Monitoring Agency (IMA) to be hired by RDMRDI and approved by ADB. The
IMA will be selected among NGOs, academic Institutions, or consulting firms. ADB will advise
RDMRDI on the IMA’s terms of reference once Project implementation has begun.
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104
Appendix 18
SUMMARY LAND ACQUISTION AND RESETTLEMENT PLAN FOR PROJECT 1
A. Introduction and Project Background
1.
This is the Summary Land Acquisition and Resettlement Plan (LARP) which is
based on the draft Land Acquisition and Resettlement (LAR) Plan (LARP) for Project
(tranche) 1 of the Ajara By-pass as has been prepared by RDMRDI as part of the feasibility
study for Tranche 1 of the Program. Its objective is to assess tranche 1 impacts and plan
needed compensation/rehabilitation measures. The document fits relevant Georgia laws,
the ADB involuntary Resettlement Policy (1995) and the Program's Land Acquisition and
Resettlement Framework (LARF). Its preparation involved: (i) detailed measurement
surveys, (ii) asset valuation/documentary research on affected plots, (iii) consultation with
rayons (districts), and affected parties; (iv) a 100% AH census; and (v) a socio-economic
surveys of the AH. LARP preparation involved intensive consultation with all the
stakeholders including the Affected Persons (APs). The LARP has been prepared for the
Tranche-1 project which comprises the Kobuleti bypass (28km) and 6 km of existing road
widening. The project road will fall under the jurisdiction of Ajara and Guria region. The total
length of the project road under Tranche-1 is 34 Kilometers (Kms). Sufficient consideration
has been given during the inception and feasibility phases of the project preparation to
minimize the adverse impacts on land acquisition. The assessment of losses and land
acquisition is based on the preliminary design as part of the feasibility study. If required, the
LARP will need to be updated based on the detailed engineering design. The assessment
has been carried out based on a 50 meters right of way (25 meters either side of the central
line). According to ADB policy/practice, the appraisal of the MFF and each specific tranche
and the approval of project implementation will be based on the following LAR-related
conditions:
(i)
(ii)
(iii)
(iv)
Appraisal of MFF and Tranche 1: Conditional to preparation/disclosure of a
LARF for the whole MFF acceptable to ADB and preparation of the LARPs for
the tranche projects requiring LAR.
Appraisal
of
subsequent
projects
(tranches):
Conditional
to
review/update/disclosure of the LARF, and preparation of needed LARPs
consistent with the revised LARF and acceptable to ADB for projects with
LAR.
Contract award for each project: Conditional to the update/disclosure of the
relevant LARPs based on the final design and accepted by ADB. The updated
LARPs will reflect final impacts, final AP lists and final compensation rates and
be readily implementable.
Provision of notice to proceed to contractors: Conditional to the full implementation
of the relevant LARP (full delivery of compensation and rehabilitation) for the
relevant project. Such a condition will be clearly spelled out in the text of the civil
works contract.
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105
B. Impacts on Land Acquisition And Resettlement
2.
The tranche 1 project will entail substantial land acquisition and resettlement. A total
of 894 land parcels will be affected out of which 740 land parcels are agricultural including
pasture land. The total land required for acquistion is 163.38 HA. The amount of affected
agricultural land is 134.81 HA and the amount of pasture land is estimated to be 26.08.
Additionally, 2.03 HA of residential land and 0.36 HA of commercial land will be affected.
The total number of affected structures and buildings are 154 out of which 123 are
residential structures, 18 are commercial structures and the remaining 13 are community
property resources which include school, government buildings. 2,020 fruit bearing trees
will be affected and 200 timber trees will be affected due to the project. The total number of
households losing business is 18 whereas 141 households are eligible for relocation
allowances. The total number of affected vulnerable households is 304 which include
women headed households, households below poverty line etc. The total number of
affected households is 881 out of which 200 households are legal title holder, 119
households belong to non titleholders and 562 households belong to the legalizable
category. The total number of affected persons is estimated to be 4,440. The summary of
impacts on land A summary of acquisition and resettlement is given in Table 18-1.
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106
Table 18.1: Impacts on Land Acquisition and Resettlement (Tranche 1)
Impacts
Number/Amount
1
Total Number of Land parcels
894
2
Agricultural and Pasture Land Parcel
740
3
Parcel for Structures and Buildings
154
4
Total area of land Required (HA)
163.38
5
Total area of Agricultural Land (HA)
134.81
6
Total area of Non Agricultural/Pasture Land (HA)
7
Total Area of Residential Land (HA)
2.03
8
Total Area of Commercial Land (HA)
0.36
9
Total number of structures/Buildings
154
10
Total number of Residential Structures
123
11
Total number of Commercial Structures
18
12
Total number of Government and community property
13
13
Total Number of Structures for Relocation
14
Total number of Fruit Bearing Trees
15
Total number of Non Fruit Bearing Trees
16
Total Number of HH losing business
18
17
Total number of severely affected HH
18
18
Total Number of Affected Households (AHs)
881
19
Total Number of Vulnerable Households
304
20
Total number of Titleholders
200
21
Total number of non-title holders
119
22
Total Number of Legalizable Households
562
23
Total Number of Affected Persons (APs)
4,440
26.08
141
2,020
200
C. Indigenous Peoples and Vulnerable Groups including Women
3.
An assessment of impact on indigenous peoples was undertaken in accordance
with ADB’s Policy on Indigenous Peoples (1998). No impacts on Indigenous Peoples (IP)
are expected for the Project. The Project will primarily affect Georgian people which are
almost 97.50% of the total population. The other ethnic group found in the project area is
Armenian and their number is very small. These groups have been fully integrated into
institutional, cultural, and economic processes in the country and they do not display
sufficient features to be classified as indigenous peoples as per the ADB’s definition on IP.
Therefore, the Program is classified category C. Special attention is given to identifying and
addressing the needs of disadvantaged groups such as the poor and female-headed
households through measures included in the LARP to try to improve (over and above cash
Engconsult Ltd.
Appendix 18
107
compensations and restoration of) their livelihoods. Women have important economic roles
in the project area and engage in a very wide range of income making activities in the
agricultural and marketing sector. The project will pay particular attention to ensure that
women are the recipients of the compensation pertaining to their activities and to ensure
that women who are de-facto household heads are clearly listed as beneficiaries of
compensation and rehabilitation proceedings under the loan.
D. Resettlement Policy, Principles and Legal Framework
4.
The legal framework is based on both Government of Georgian laws/ legislation and
ADB’s Policy on Involntary Resettlelement (1995). In Georgia, there are several legislative
acts that regulate the issues of state's obtaining privately owned land parcels based on the
necessary public needs such as public road construction: (i) The Constitution of Georgia,
August 24, 1995; (ii) The Civil Code of Georgia, June 26, 1997, (iii) The Law of Georgia on
Protection of Cultural Heritage; (iv) The Law of Georgia on Notary Actions; (v) The Law of
Georgia on Privatization of State-owned Agricultural Land, July 8, 2005; (vi) The Law of
Georgia on Ownership Rights to Agricultural Land, March 22, 1996; (vii) The Law of
Georgia on Registration Ownership Rights to Immovable Property, December 28, 2005,
(viii) The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public
Need, July 23, 1999; and (ix) The Civil Procedural Code of Georgia, November 14, 1997.
Based on the Georgian laws on land acquisition and ADB’s Policy on Involuntary
Resettlement, 1995, core involuntary resettlement principles are adopted for tranche 1
components as follows:
•
•
•
•
•
•
•
•
•
•
Land acquisition, and other involuntary resettlement impacts will be avoided or
minimized through all viable alternative project designs;
where unavoidable, a time-bound LARP will be prepared and APs will be assisted in
improving or at least regaining their pre-program standard of living;
consultation with APs on compensation, disclosure of resettlement information to APs,
and participation of APs in planning and implementing sub-projects will be ensured;
vulnerable and severely affected APs will be provided special assistance;
non-titled APs (e.g., informal dwellers or squatters, or APs without registration details)
will receive a livelihood allowance in lieu of land compensation and will be fully
compensated for losses other than land;
legalizable APs will be legalized and fully compensated for land losses;
provision of income restoration and rehabilitation will be ensured;
the LARP will be disclosed to the APs in the local language;
payment of compensation, resettlement assistance and rehabilitation measures will
be fully provided prior to the contractor taking physical acquisition of the land and
prior to the commencement of any construction activities on a particular package;
and
appropriate grievance redresses mechanisms will be established to solve APs
grievance if occurs.
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108
E. Compensation Eligibility and Entitlements
5.
Land acquisition and resettlement tasks under the Project (tranche) 1 will be
implemented according to a compensation eligibility and entitlements in line with both
Georgian laws and regulation and ADB’s policy. APs entitled for compensation or at least
rehabilitation provisions under the Project 1 are: (i) all APs losing land either covered by legal
title/traditional land rights, legalizable, or without legal status; (ii) tenants and sharecroppers
whether registered or not; (iii) owners of buildings, crops, plants, or other objects attached
to the land; and (iv) APs losing business, income, and salaries. Compensation eligibility is
limited by a cut-off date on the day of the beginning of the AP Census and detailed
measurement survey (DMS) which is June 2009. A summary entitlements matrix is
included in Table 18-2 below.
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109
Table 18.2: Entitlement Matrix
Type of Loss
Land
Permanent loss
agricultural land
Application
Definition of APs
Compensation Entitlements
of AF losing agricultural land Owner with full registration
regardless of impact severity
Cash compensation at
replacement cost or through
replacement land equal in
value/productivity to the plot lost
and at location acceptable to APs
where feasible
Legalizable Owner
These AP will be legalized and
provided with cash compensation
at replacement cost.
Informal Settlers/ APs with no One
time
self-relocation
registration/valid documentation allowance in cash equal to 1 year
at minimum salary
-
Non-Agricultural Land AF losing their commercial/ Owner with full registration
residential land
Cash
compensation
at
replacement cost or through
replacement land equal in value
to the plot lost and at location
acceptable to APs where feasible
Legalizable Owner
APs will be legalized and
provided with cash compensation
at replacement cost..
Informal Settlers/ APs with no One-time
self-relocation
registration/valid documentation allowance in cash equal to 1 year
at minimum salary
Buildings and Structures
All AFs regardless of their legal Full impact: Cash compensation
ownership/ registration status
for loss of building/ structures at full
replacement
costs
free
of
depreciation and transaction costs
Residential and non
residential
structures/assets
Partial impact: compensation for
repairs
Loss Of Community Infrastructure/Common Property Resources
Loss
of
common Community/Public Assets
property resources
Community/Government
Reconstruction of the lost structure
in consultation with community and
restoration of their functions
Loss of Income and Livelihood
Crops
Standing crops affected
All AFs regardless of legal Crop compensation in cash at
status (including legalizable and market rate by default at the gross
Informal Settlers)
crop value of expected harvest.
Trees
Trees affected
All AFs regardless of legal Cash compensation at market
status (including legalizable and rate on the basis of type, age and
Informal Settlers)
productive value of the trees.
Business/Employment Business/employment loss
Engconsult Ltd.
All AFs regardless of legal Owner: (i). (permanent impact) cash
status (including legalizable and indemnity of 1 year net income; (ii)
Informal Settlers)
(temporary impact) cash indemnity of
net income for months of business
Appendix 18
110
Type of Loss
Application
Definition of APs
Compensation Entitlements
stoppage. Assessment to be based
on tax declaration or, in its absence,
minimum salary..
Allowances
Severe Impacts
>10% income loss
All severely affected
including informal settlers
Relocation/Shifting
Transport/transition costs
All AFs to be relocated
Vulnerable
Allowances
People
income:
additional
AFs Other
compensation for 3 months of
minimum salary.
Provision of sufficient allowance to
cover transport expenses and
livelihood expenses for the
transitional period (up to 1 month).
AFs below poverty line, headed Allowance equivalent to 3 months of
by Women, disabled or elderly minimum salary and employment
priority in project-related jobs
F. Institutional Arrangements
6.
ADB will be the funding agency of the MFF. The Ministry of Rural Development and
Infrastructure (MRDI) will be the Executing Agency (EA) and Roads Department (RD) of
MRDI the Implementing Agency (IA) entrusted with the lead responsibility for road
construction, as well as the implementation of this LARP. This includes preparation,
implementation and financing of all land acquisition and resettlement tasks and crossagency coordination. RDMRDI will exercise its functions through its existing resettlement
division (DRD) which will be responsible for the general management of the planning and
implementation of all land acquisition and resettlement tasks. RDMRDI with the assistance
of the construction supervision consultants will develop and implement the tasks based on
the policy and procedures set out in the LARP. In addition to the RDMRDI, a number of
other government departments and private agents will play an instrumental role in the
design, construction and operation of the project. Pursuant to the active legislation, the
Ministry of Natural Resources and Environmental Protection is responsible for
environmental issues. The Ministry of Justice is responsible for legal matters regarding land
ownership, and National Agency of Public Registry (NAPR) within the Ministry of Justice is
in charge of the registration of land ownership and its transfer through purchase agreement
from landowners to the RDMRDI. The local government at rayon and village level will also
be involved. To allow an effective execution of all land acquisition and resettlement related
tasks some expansion of the capacity on land acquisition and resettlement, currently weak,
at DRD/RDMRDI will be needed and capacity building training will be provided. The initial
level of the capacity building exercise in the relevant agencies was carried out during the
preparation of the LARP. Close consultations were held with all the concerned
departments. The designated official from DRD was also an active member in a leading
role during the census survey. Informal training was provided by the consultant’s
resettlement specialist on the requirements of ADB’s policy and how to develop a balanced
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compensation package which will fulfill the requirements of APs, Government, RDMRDI
and ADB. Additionally, capacity building training was also initiated through a series of
consultations and informal training sessions at the local administration level.
G. Complaints and Grievance
7.
A grievance mechanism will be available to allow an AP appealing any disagreeable
decision, practice or activity arising from land or other assets compensation. APs will be
fully informed of their rights and of the procedures for addressing complaints whether
verbally or in writing during consultation, survey, and time of compensation. First,
complaints resolution will be attempted at the village level with the involvement of village
authorities and rayon level land acquisition and resettlement teams at the sacrebolu level.
Second, if the grievance is not solved at the sacrebolu level, then the AP will lodge the
written complaint at the regional level RDMRDI. If, after the regional level RDMRDI
intervention, no solution has been reached, a grievance can be directly lodged to
DRD/RDMRDI. The AP must lodge the complaint within 2 weeks after receiving response
on the original complaint from the regional level RDMRDI and must produce documents
supporting his/her claim. Third, the DRD/RDMRDI at central level will provide a response
within 2 weeks of registering the complaint. The DRD/RDMRDI decision must be in
compliance with this land acquisition and resettlement framework provisions. Fourth, if the
grievance redress system fails to satisfy the AP, they can pursue further action by
submitting their case to the appropriate court of law (rayon court).
H. Public Consultation, Participation and Disclosure
8.
Extensive consultations were conducted at various stages of the social and
resettlement project preparation, i.e., alternative alignment feasibility study, cadastral
survey of affected lands, land census survey, socio-economic survey, and targeted
consultation meetings with affected people and local stakeholder organizations and
individuals. Consultations were also held at various office levels such as RDMRDI including
DRD, National Agency for Public Registry under the Ministry of Justice, Local Government
at rayon level (District Municipality), Gamgebeli, and Property Recognition Committee in
the rayon level and Sacrebulo. Community consultations were held through focus group
discussion at various locations, especially at 20 villages during April 2009 which involved
both men and women participants and totaling 210 participants. The concerned
government offices were involved in the resettlement plan preparation. They include Roads
RDMRDI, NAPR, Ministry of Justice and the office of Rayons (Ozurgeti, Kobuleti, Batumi
and Khelvachauri). The consultation will be continued throughout the project cycle.
Information on compensation, entitlement and resettlement management adopted for the
Project will be made available to APs. Each AP will be provided information regarding
specific entitlements. Information on LAR entitlement was shared at the village level
through consulation and through formal public consualtion during the Public Hearing under
the Environment Impact Assessement in the month of June 2009.This summary LARP will
be translated into local language (Georgian) and disclosed to APs at the local level. The
copy of the LARP will be available with RDMRDI. The same will be available for the APs as
and when asked for. A copy of the LARP will be disclosed in ADB’s website.
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112
Resettlement Budget, Financing and Implementation Schedule
9.
The resettlement cost estimate for the Project (tranche) 1 components includes
eligible compensation, resettlement assistance and support cost for RP implementation. All
LARP preparation and implementation costs, including cost of compensation and land
acquisition and resettlement administration, will be considered an integral part of Project
cost and will be contributed as a counterpart fund by the Government of Georgia, in
particular RDMRDI. The total estimated cost for the LARP for Project 1 is approximately
9.62 million GEL equivalent to $5.83 million. Contingency provisions (@ 10% of the total
cost) have also been made to take into account variations from this estimate. Incase of of
any over-run in cost, RDMRDI will provide additional funds as needed in a timely fashion.
RDMRDI is responsible for the timely allocation of the funds needed to implement the
LARP. As per the land acquisition and resettlement fund flow, the budget for compensation
and rehabilitation will be directly disbursed by RDMRDI to the APs. All land acquisition,
resettlement, and compensation will be completed before the start of civil works. The LARP
duration for LARP implementation schedule is estimated to be one year.
J. Monitoring and Evaluation
10.
Land acquisition and resettlement tasks under the project will be subjected to
monitoring. Monitoring will be the responsibility of RDMRDI. Internal monitoring will be
carried out routinely by DRD/RDMRDI. The results will be communicated to ADB through
the quarterly project implementation reports. External monitoring will be carried out twice a
year, and its results communicated to DRD/RDMRDI and ADB through semi-annual
reports. The RDMRDI (through external help) will carry out a post-implementation
evaluation of the LARP about a year after completion of its implementation.
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Appendix 19
ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK
A.
Introduction
1.
This environmental assessment and review framework (EARF) has been developed
to guide the Roads Department (RD) of the Ministry of Regional Development and Infrastructure
(MRDI) in carrying out the environmental assessment of the future projects to be financed under
the multitranche financing facility (MFF): ’Subregional Road Corridor Development Program’.
The EARF is based on the Georgia’s Laws on Environmental Impact Permit and Ecological
Examination (2007) and ADB’s Environment Policy (2002).
B.
Overview of the Subprojects to be Assessed
2.
Identification of projects for MFF are under progress. So far, only one project
(Project 1, Adjara Bypass Roads) has been identified and this project will be implemented in two
tranches. The activities included in the Project 1 are construction of 42 km of new roads and
widening of 6 km of existing roads along the Poti–-Batumi–Sarpi road, bypassing Kobuleti and
Batumi (Map 1). Construction of the project road will involve new construction and rehabilitation
of bridges, culverts, and other associated drainage structures; tunnel construction; land
acquisition and resettlement; site preparation; land clearing; disposal of gravel, soil, vegetation,
and unstable material; construction of temporary access roads to construction sites; setting up
of temporary construction camps to house workers; excavation and operation of borrow pits;
operation of a boulder quarry; extraction of material for embankments using cut and fill
procedures; protection of landslide, rockfall, and snowfall areas; measures to protect critical
side-slopes; and extraction and cartage of sand for aggregate mixtures, cement works, and
asphalt plants. An environmental impact assessment has been already carried out for the
Project 1.
C.
Country’s Environmental Assessment and Review Procedures
3.
The relevant national laws on environmental assessment are the ‘Law on
Environmental Impact Permit’ (dated December 14, 2007), the ‘Law on Ecological Examination’
(dated December 14, 2007) and the ‘Order No. 515 of the Minister of Environmental Protection
and Natural Resources (MOEPNR) on Approval of Rules on Conduction of Ecological
Examination’ (dated July 7, 2008). In accordance with these laws, all proposed subprojects
require Environmental Impact Permits (EIPs) from the MOEPNR under a procedure including (i)
Environmental Impact Assessment (EIA) Report, (ii) Ecological Expertise (EE), and (iii) Public
participation. The steps included in securing the EIPs are:
•
•
•
The proponent will conduct environmental assessment study and prepare an EIA report
The proponent will arrange a public hearing of EIA. The procedure involved in public
hearing is
o Before one week of submitting draft EIA reports to the MOEPNR and MRDI, the
proponent issue advertisement in regional and national news papers about the
project, and date, time and place of public consultations; and send written
invitations to the local government, MOEPNR and MRDI
o Arrange hearing within 50 to 60 days after publishing advertisement in the news
paper
The proponent will submit an application with EIA report. minutes of meetings of public
hearing and other required documents to the MOEPNR and MRDI for Environmental
Impact Permit (EIP)
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•
MOEPNR will carry out expert examination of the EIA report, known as State Ecological
Expertise (EE) and issue positive EE Conclusion (EEC). Based on the positive EEC, the
MOEPNR will issue EIP.
A brief summary of the relevant laws applicable for EIPs are described below:
•
Determines the activities subject to mandatory EE and consequently to issuance of EIP,
details the procedure for the issuance of EIPs, and defines the legal basis for public
participation in the process of EE conduction, EIA preparation and decision making on
EIP.
Activities subject to mandatory EE and consequently to issuance of EIPs inter alia
include construction of automobile roads and railroads of international or inter-state
importance, bridges and road tunnels thereon, as well as engineering protection
structures of automobile roads, railroads and their respective territories.
View a positive EE conclusion (EEC) as mandatory for adoption of a positive decision on
the issuance of an EIP. Conduction of EE and issuance of the EEC is the responsibility
of the MOEPNR, which undertakes expert examination and the normative-technical and
methodological guidance documents and the procedure established under law, through
a special committee of experts established for each particular case.
4.
•
•
D.
114
Specific Procedures to be Used for Subprojects under MFF
1.
5.
include:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
Responsibilities and Authorities
Responsibilities of the implementing and executing agencies (RD and MRDI)
Prepare environmental screening checklist and classify projects in consultation
with MOEPNR and other departments.
Based on the environmental classification of projects, prepare terms of reference
to conduct IEE or EIA studies.
Hire an environmental consultant to prepare IEE or EIA reports including EMP
and summary EIA/IEE for public disclosure.
Ensure that an IEE or EIA are prepared in compliance with the requirements of
the Government and ADB, and that adequate consultation with affected people is
undertaken in accordance with ADB requirements.
Undertake review of the IEE or EIA, summary EIA/IEE, and EMP reports to
ensure their compliance with the requirements of the Government and ADB.
Obtain necessary permits and/or clearance, as required, from MOEPNR and
other relevant government agencies, ensuring that all necessary regulatory
clearances are obtained before commencing any civil work on the relevant
sections.
Submit to ADB the IEE or EIA, summary EIA/IEE, and EMP reports and other
documents, as necessary.
Ensure that any EMP including relevant mitigation measures needing to be
incorporated during the construction stage by the contractor are included in the
bidding documents.
Ensure that contractors have access to the EIA or IEE and EMP reports of the
projects.
Ensure that contractors understand their responsibilities to mitigate
environmental problems associated with their construction activities.
Ensure and monitor that an EMP including an environmental monitoring plan will
be properly implemented.
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(xii)
6.
In case unpredicted environmental impacts occur during the project
implementation stage, prepare and implement as necessary an environmental
emergency program in consultation with MOEPNR, other relevant government
agencies, and ADB.
(xiii) In case a project needs to be realigned during implementation, review the
environmental classification, revise it accordingly, and identify whether a
supplementary IEE or EIA study is required. If yes, prepare the terms of
reference for undertaking a supplementary IEE or EIA and hire an environmental
consultant to carry out the study.
(xiv) Submit semi-annual reports on implementing EMPs, including implementation of
an environmental emergency program, if any, to MOEPNR and ADB.
(xv)
Submit project completion environmental monitoring report to ADB after three
years of completion of construction summarizing the overall environmental
impacts from the projects.
ADB is responsible for the following:
(i)
Review EIA and SEIA reports prepared under supervision of EA.
(ii)
Review of IEE and SIEE reports if it requires ADB’s no objection approval
(iii)
Undertake annual environmental review missions for Category A and B
sensitive projects.
(iv)
Public disclosure of SEIA and SIEE (for Category B sensitive projects)
through ADB website
2.
Environmental Criteria for Subproject Selection
7.
Considering the potential environmental impacts of the future subprojects and the
relevant environmental requirements of ADB and the Government of Georgia, the following
criteria was agreed upon (by the Government and ADB) for selection of the future subprojects to
be included in the Subregional Road Corridor Development Program:
(i)
(ii)
(iii)
(iv)
3.
The subprojects shall only involve activities that follow all the government
regulations
The subprojects should not pass through any wildlife sanctuaries, national
parks, nature reserves, and protected areas designated by national and
international regulations;
The subprojects should not pass through any ecologically sensitive and
significant as recognized by the Government or any area that is
internationally significant (such as protected wetland and mangroves); and
The subproject should as much as possible not include any stretch that
passes through any cultural heritage and archaeological sites designated by
UNESCO and Ministry of Culture, Monument Protection, and Sports.
Procedures for Environmental Assessment of Subprojects
8.
ADB categorizes Road projects into two categories A and B. Projects with potential
for significant adverse environmental impacts are classified into Category A. An EIA is required
to address significant impacts. Project judged to have some adverse impacts, but of lesser
degree and/or significance than category A is classified into Category B. An initial environmental
examination (IEE) is required to determine whether or not significant environmental impacts
warranting an EIA are likely. If an EIA is not needed, the IEE is regarded as the final
environmental assessment report. The guidelines to prepare environmental assessment reports
for a Category A project (EIA and SEIA) and for a Category B project (IEE and SIEE) in
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compliance with the ADB’s Environment Policy (2002) and Environmental Assessment
Guidelines (2003) are given in the following sections.
a.
Screening
9.
All future subprojects to be included in MFF will be screened to determine its
environmental category based on the ADB’s Rapid Environmental Assessment Checklist (REA).
A template of the REA is given in Annex 1. Categorization is to be based on the most
environmental sensitive component, which means that if one part of the project is with potential
for significant adverse environmental impacts, then the project is to be classified as Category A
regardless of potential environmental impacts of other aspects of the project. In general, a
project will be classified as ‘Category A’ if the project:
(i)
(ii)
is a new road alignment
requires a complex mitigation measure needing to be prepared through an in-depth
assessment of the impacts and detailed study for preparing mitigation measures;
(iii)
will generate impact on an ecologically sensitive area, particularly if the project is located
less than 500 meters from any designated wildlife sanctuary, national park, other
sanctuary, botanical garden, or area of international significance (e.g., an IUCN or
RAMSAR site) or cultural heritage and archaeological sites designated by UNESCO. and
Ministry of Culture, Monument Protection, and Sports; or
(iv)
passing through any ecologically sensitive areas (hilly or mountainous, forested, nearby
estuarine or other area with important ecological function).
10.
Road upgrading and rehabilitation subprojects that do not fall into the above
category are classified as B.
b.
Scoping
11.
Before conducting any environmental studies, a scoping document consists of the
scope of the environmental surveys, methods of data collection and outputs anticipated from the
study are to be prepared. In case of Category A projects, the scoping document is to be
approved by the EA before taking up of detailed environmental studies. Scoping should focus
on identifying those components of the environment likely significantly affected by the project
based on project location, past documented experience, the potential likely geographic and
time-related extent of the effects, and the measurements or thresholds to be used to assess
significance. A map of the study area with a clear topographic map showing the project road(s)
in relation to topography, water courses, settlement areas and preferably landuse should be
enclosed with the scoping document. A sample scoping document prepared for Project 1 of the
MFF is enclosed in Annex 2.
c.
Identifying Baseline Conditions and Impacts
12.
With the screening and scoping results in hand, planning of the field program
becomes relatively easy, however does need the involvement of an experienced environmental
assessment practitioner.
13.
The first step is to establish the baseline conditions for the components of the
environment likely affected by the project. This will be usually carried through site visits and
review of spatial database for all available environmental parameters such as terrain, soils,
geology, rivers, forest, protected areas and landuse. This also will include collection and
analysis of background noise, air and water quality. This baseline will become the measure
against which any change is measured. These data must be collected in such a manner that
their source can be traced by anyone who picks up the document.
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14.
The second step is to predict likely change as a result of major construction
activities and operation of the road, by relating cause and effect such as changes in traffic
volume, fleet makeup and traffic patterns to air quality and noise effects. This will be carried out
by thorough review of baseline environment and proposed civil works. The locations where
based data were collected, where ongoing monitoring takes place and the timing of these
activities should be remain uniform or at least easily traceable, permitting analysis of technical
credibility. While following strict scientific method in EIA is far too costly and time consuming,
every effort should be made make the entire study transparent and traceable
d.
Public Consultations/Hearing
15.
The third step is to present the findings on impacts and benefits during a
consultation and information session to inform key stakeholders and affected community of the
issues identified and to invite comments and corrections. For a full EIA consultation is required
at least twice during the EIA:
•
first as part of the scoping stage to define the project and to get feedback in options;
and,
• secondly after the draft EMP has been prepared.
16.
Public consultations include news paper advertisement in the regional and national
news papers before 50 to 60 days of the consultations giving brief project description, location
and specific contact data (including telephone numbers). Often a project website is created and
link information is provided. Further, the proponent, working with the consultant should prepare
a list of important participants and send emails or letters of invitation providing details including
dates for both consultations.
17.
Consultation sessions must have minutes and attendance sheets prepared and
included as part of the EIA documentation.
18.
For Category B projects, nearly all conditions as defined above are the same except
there is only 1 consultation session is needed. Often, the consultation session takes place as
the EMP is being prepared.
e.
Preparation of the Environmental Management Plan (EMP)
19.
The Fourth Step is the preparation of the EMP, the most important output of an
environmental assessment. The EMP must be practical, specific and systematic, such that it
can be easily converted to mitigative and monitoring actions, proponents and contractors can
undertakes: activities that monitors can track and activities that can be translated or simply
referenced in contract specification as environmental clauses. Therefore each mitigative
measure needs to be matched with a monitoring activity.
20.
Good EMPs not only identify the source of the impact, the effect in the biophysical
environment and the monitoring action to be taken, but also where, how often, when and who
should implement each mitigative and monitoring action and who is responsible. This is the
same for both EIAs and IEEs.
21.
Project Management Unit of RD is required to review and update the EMP as soon
as the contractor has been appointed and the mobilization date is established.
f.
Assessing Institutional Capacity for EMP Implementation
22.
The Fifth Step involves the identification of the agencies and units at the national
and provincial level that will likely be involved in the implementation and supervision of the
mitigation and monitoring actions as well as the general management of the EMP from
preconstruction through the operating period. The EMP is also useful in that it identifies the lead
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implementing and supervising agencies (RD, MRDI and MOEPNR and their provincial/regional
departments) involved in all mitigation and monitoring actions. The analysis, using mostly the
interview approach, should be short and focused, identifying needs based on obvious gaps,
such as lack of experience in any international-level assessments or lack of experience with
preparation and implementation of EMPs. Careful interviews will almost always result in those
needing assistance identifying what they need. Finally the needs are assessed in terms of
longer term capacity building and short term training and workshops in relation to realistic
budgetary limits and a capacity building and training is proposed. Since the contractors play
such an important role in EMP implementation, they must not be left out of the analysis and a
general approach to strengthening their safeguards skills must be included in the analysis.
g.
Estimating Mitigation, Monitoring and Training Costs
23.
The Sixth Step involves costing of each of the mitigative and monitoring actions as
well as the institutional capacity building. Costing details must be systematic and include rates
and unit costs and an indication of actions that, while referred to as environmental, are normally
found in other budget items, for example slope stabilization, revegetation, fuel handling and
storage protocols and work camp waste management.
h.
Reporting
24.
The Seventh Step is preparation of the assessment document according to a
prescribed format and level of details. The templates of the reports for preparation of EIA/IEE
and SEIA/SIEE reports are given in Annexes 3 to 6 and also can be found from ADB website at
www.adb.org/documents/guidelines/environmental_assessment/default.asp.
E.
Compliance with ADB’s Environmental Policy—Due Diligence
25.
RD, MRDI and MOEPNR have the responsibility to undertake environmental due
diligence and monitor implementation of environmental mitigation measures for all projects
under each respective responsibility. The due diligence report as well as monitoring of EMP
implementation (described in the annual report) need to be documented systematically. ADB
must be given access as needed to undertake environmental due diligence for all projects.
26.
An EMP will be part of the overall project monitoring and supervision, and will be
implemented by the contractor with oversight from the supervision consultant and PMU.
Progress on the preparation and implementation of an EMP will be included in the periodic
project progress reports. Specific monitoring activities defined in the IEEs or EIAs and EMPs will
be carried out by the contractors and monitored by the PMU. RD will submit reports on EMP
implementation to ADB for every six months to Category A projects and annually for Category B
projects.
27.
The PMU, with assistance of the international or national environmental consultants,
will review the IEE or EIA and corresponding EMP for each project to ensure that mitigation
measures and monitoring plans proposed in that document are in compliance with ADB’s and
national requirements. According to the reports and reviews during its missions, ADB, in
consultation with the Government, will confirm compliance. For this purpose, the PMU will
provide ADB with access to information on any projects. The information on implementation of
an EMP, as well as that on environmental and social safeguard compliance, will be
systematically documented and reported to ADB as part of the regular progress reports
F.
Public Disclosure
28.
RD is responsible for ensuring that all environmental assessment documents,
including the environmental due diligence and monitoring reports, are properly and
systematically kept as part of the project record of each project under its responsibility.
All
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environmental documents are subject to public disclosure. These documents should be made
available to the public, if requested. In case there are category A and B-sensitive projects, the
summary EIA/IEE will be disclosed to the public through ADB’s website 120 days before the
project is approved. The SEIA/SIEE shall be reviewed by ADB before it is disclosed to the
public. RD will also ensure that public consultations, particularly with project affected persons,
are undertaken adequately during the IEE or EIA preparation in consistent with ADB
requirements.
G.
Staffing Requirements and Budget
29.
RD and MRDI will recruit environmental consultants as a part of engineering design
consultants to prepare environmental assessment reports for each subproject consistent with
this EARF. Terms of reference for consultants along with the budget are given in Annex 7. The
estimated cost for preparation of each IEE and EIA are US$98,750 and US$156,750,
respectively. Adequate funding resources will be provided under each subproject for
environmental monitoring and mitigation measures for each subproject.
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Annex.1
120
Annex 1
Rapid Environmental Assessment (REA) Checklist
ROADS AND HIGHWAYS
Instructions:
‰
‰
‰
‰
This checklist is to be prepared to support the environmental classification of a project. It is to be attached to
the environmental categorization form that is to be prepared and submitted to the Chief Compliance Officer of
the Regional and Sustainable Development Department.
This checklist is to be completed with the assistance of an Environment Specialist in a Regional Department.
This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately
considered, refer also to ADB checklists and handbooks on (i) involuntary resettlement, (ii) indigenous peoples
planning, (iii) poverty reduction, (iv) participation, and (v) gender and development.
Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use
the “remarks” section to discuss any anticipated mitigation measures.
Country/Project Title:
Sector Division:
A.
SCREENING QUESTIONS
Project Siting
Is the Project area adjacent to or within any of the following
environmentally sensitive areas?
ƒ
Cultural heritage site
ƒ
Protected Area
ƒ
Wetland
ƒ
Mangrove
ƒ
Estuarine
ƒ
Buffer zone of protected area
ƒ
Special area for protecting biodiversity
B. Potential Environmental Impacts
Will the Project cause…
ƒ
encroachment
on
historical/cultural
areas;
disfiguration of landscape by road embankments,
cuts, fills, and quarries?
ƒ
encroachment on precious ecology (e.g. sensitive
or protected areas)?
ƒ
alteration of surface water hydrology of waterways
crossed by roads, resulting in increased sediment
in streams affected by increased soil erosion at
construction site?
ƒ
deterioration of surface water quality due to silt
runoff and sanitary wastes from worker-based
camps and chemicals used in construction?
ƒ
increased local air pollution due to rock crushing,
cutting and filling works, and chemicals from
asphalt processing?
ƒ
noise and vibration due to blasting and other civil
works?
ƒ
dislocation or involuntary resettlement of people
ƒ
other social concerns relating to inconveniences in
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No
REMARKS
Appendix 19
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Annex.1
SCREENING QUESTIONS
living conditions in the project areas that may
trigger cases of upper respiratory problems and
stress?
hazardous driving conditions where construction
interferes with pre-existing roads?
poor sanitation and solid waste disposal in
construction camps and work sites, and possible
transmission of communicable diseases from
workers to local populations?
creation of temporary breeding habitats for
mosquito vectors of disease?
dislocation and compulsory resettlement of people
living in right-of-way?
accident risks associated with increased vehicular
traffic, leading to accidental spills of toxic materials
and loss of life?
increased noise and air pollution resulting from
traffic volume?
increased risk of water pollution from oil, grease
and fuel spills, and other materials from vehicles
using the road?
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Yes
No
REMARKS
Appendix 19
Annex 2
122
Annex 2
SAMPLE SCOPING DOCUMENT
Scoping Framework for the Environmental Impact Assessment of ‘Ajara Bypass Roads
Development Project’
A.
Introduction
30.
This scoping framework has been prepared to carryout detailed environmental impact
assessment (EIA) for the ‘Ajara Bypass Roads Development Project’ in accordance with ADB’s
Environment Policy (2002) and Environmental Assessment Guidelines (2003) and relevant laws and
regulations in Georgia. The project involves new construction and widening of roads, bridges,
overpasses, tunnels, and protection structures. The study will identify potential environmental impacts on
physical, ecological, social, cultural, and economic resources of project areas during design (for different
alignments), construction and operation. An EIA report will be prepared along with environmental
management and monitoring plan to address all identified environmental impacts as per the work plan
provided in Figure A19. 1. The study will be carried out by Consultant and the draft EIA report will be
submitted along with the Final Report of the Project.
B.
Scope of Work
1.
Baseline Studies
Output 1: Memo on Georgian Legal and Administrative Procedures
31.
Activity 1.1: Collection and review of relevant information regarding environmental
legislation, statutory orders, by-laws, etc. connected to preparation and approval of the EIA report by
Georgian Authority, and draft the memo. The memo will also consider the requirements of ADB
Guidelines for ‘Category A’ Project.
32.
Activity 1.2: Conduction of a series of meetings with the Ministry of Environment Protection
and Natural Resources, National Environmental Agency, and the Ministry of Culture (Center of
Archeological Studies, Department of Monument Protection). During these meetings appropriate legal
and administrative procedures has been discussed. Discussions also includes issues such as basis for
further approval/ disapproval of EIA by Georgian authorities and on the issuance of “Construction Permit”
along with “Environmental Impact Permit’ (published in 2007 and entered in force in 2008) and ‘State
Ecological Examination’ in accordance with Georgia’s Law on Licenses and Permits (2005). Review of
other relevant environmental laws, regulations, Norms, and Standards on Air, Noise, Water, Waste, and
Wildlife.
33.
Activity 1.3: Conduction of discussion meeting with the Road Department of the Ministry of
Regional Development and Infrastructure on the issuance of “construction permit” and “environmental
impact permit” in accordance with Georgia’s Law on Licenses and Permits (2005).
Output 2: Preparation of Baseline Assessment
34.
Activity 2.1: Review of reports and field data collected from the Project’s pre-feasibility study;
and other road projects carried out under the World Bank, JBIC, EBRD, and MCC’s funding.
35.
Activity 2.2: Collection of baseline information on existing environmental condition along the
project road alignments and identification of the environmental components that need detailed further
study. Baseline assessment will be done based on the available secondary information, field visits,
sampling and environmental monitoring including but not limited to the following:
i.
•
Physical resources:
Topography, climate, soils, geology, landuse, coastal resources, and surface and groundwater
resources.
ii.
Natural hazards:
• Seismicity, floods, landslides, and volcanic activity
iii.
Ecological Resources:
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•
Landscape and natural ecosystem, flora and fauna, wildlife and wetland habitats, nature reserve
and Protected areas
iv.
Environmental quality:
• Air quality (PM, CO, NOx, SOx etc.), noise quality and water quality (DO, TPH, pH, total nitrogen,
BOD, total phosphorus, and suspended solid etc.).
v.
Cultural resources and Archaeological sites:
• Structures or sites that are of historical, archaeological, paleontological, or architectural
significance
2.
Detailed Field Investigation to Screen Environmental Impacts
Output 3: Field Investigation and Analysis of Results
36.
Activity 3.1: Preparation of layout plan of the project road consisting of, but not limited to, the
flowing information:
•
•
•
•
•
Road alignments
Sampling location for environmental parameters (air, noise, water)
Construction camp including storage of petroleum products and explosives
Asphalt and batch mixing plants, Construction sites and camps, Quarry sites and borrow pits
Water sources, Waste disposal sites, Environmentally sensitive areas
37.
Activity 3.2: Collection of a cadastral land use map showing the project locations and
descriptions of the surrounding activities. This is to ensure that the project road is compatible with the
national regulation specified for construction sites.
38.
Activity 3.3: Initiation of necessary investigations and fieldwork for gathering of following
additional information about ecological and environmental parameters in the project area.
i.
Landscape, Geohazards and Slope Stability
Identification of natural landscape along the project road. Assessment of geological and geomorphologic
features of the project area, as well as any violent interference in the natural processes. Investigation and
evaluation of results to predict rock falls, landslide, mudflow and debris flow, erosion, ground subsidence,
floods, and banks washing-off (lateral erosion) and seashore erosion.
ii. Soil erosion and slope stability
Analysis of soil characteristics, moisture contents, vegetation cover etc., in conjunction with the above
activity, to predict possible soil erosion and landslides due to project activities.
iii. Terrestrial flora and fauna
Investigation of the composition of plant species and migratory birds in the Project area. Attention should
be paid to the distribution of protected plant and animal/birds species in order to ensure favorable
conservation status for these species.
iv. Wetland habitats and aquatic flora and fauna
Investigations of occurrence of species (flora and fauna) in the identified wetlands along the project area
and assess the potential influence of the proposed road alignment. Attention should be paid to the
distribution of protected species in order to ensure favorable conservation status for these species.
v. Protected Areas and sensitive environmental receptors
Collection of protected and sensitive area maps and exact coordinates showing the boundaries and buffer
zones of protected areas and project alignments and descriptions of the habitats. This is to ensure that
the locations of sensitive areas and project alignment are sufficiently distant enough to maintain
harmonization and avoid any potential disturbances on the habitats. Investigation will also be done for
other sensitive sites along the project alignment, viz. wetlands, seashore, tourism, etc.
vi. Traffic flow
Traffic counts and historical traffic flow to predict the future traffic growth and the load on the project road.
vii. Air quality and noise level
Collection and analysis of air (PM, CO, NOx, SO2) and noise quality along the project road.
viii. Water Quality
Collection and analysis of water quality (DO, turbidity, pH, TOC, and dissolved solid) of the major rivers
along the project road. Investigation of water quality impacts during construction and operations stages in
selected river sites.
ix. Monuments and Archaeological Site
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Investigation of the impact of the project on monuments and archaeological sites along the project
corridor.
x. Quarry and Borrow Sites
Estimation of effects on the ecological resources in the area connected to quarry and barrow pit
operations needed for construction.
3.
Analysis of Alternatives and Economic Assessment
Output 4: Analysis of Alternative Options
39.
Activity 4.1: Comparative environmental analysis of all available project alignments, including
“No Project” scenario.
Output 5: Economic Assessment
40.
Activity 5.1: Economic analysis of all alternatives in accordance with ADB’s Handbook on
Economic Evaluation of Environmental Impacts for: (i) costs and benefits of environmental impacts; (ii)
costs, benefits, and cost-effectiveness of mitigation measures; and (iii) discussion of impacts that have
not been expressed in monetary values, in quantitative terms where possible.
4.
Forecast Future Impacts and Mitigation Measures
Output 6: Forecast of Impacts
41.
Activity 6.1: Forecasting of air and noise quality based on predicted traffic estimates using
computer modeling software and recommendation of mitigation measures.
42.
Activity 6.2: Evaluation of the project impact on all physical and ecological resources
described in Activity 3.3 and recommendation of mitigation measures.
43.
Activity 6.3: Evaluation of socio-economical and cultural impacts, such as:
•
Assessment of the status of livelihoods (agriculture, business, etc.) in the context of socioeconomical impact.
•
Assessment of the impact on objects or areas with known archeological values in the project
area.
•
Assessment of impacts on culturally and religiously sensitive locations (church, cemetery,
etc.)
•
Assessment of impacts in tourism sector in Kobuleti and Batumi resort areas
•
Assessment of traffic safety.
44.
Activity 6.4: Assessment of impact on human health and estimation of possible health
impacts on construction workers and roadside residents (such as safety, HIV/AIDS, STDs, human
trafficking) due to construction camps and other project activities.
Output 7: Environmental Management and Monitoring Plan
45.
Activity 7.1: Preparation of Environmental Management and Monitoring Plan (EMMP) for all
phases of the Project for effective implementation of environmental protection and mitigation measures
and monitoring of significant environmental impacts. Preparation of environmental protection measures
to (i) mitigate environmental impacts, (ii) provide in-kind compensation for lost environmental resources,
or (iii) enhance environmental resources. Prepare cost estimates for each mitigation measure proposed
in the EMP and include all the mitigation measures in the engineering design of the Project.
46.
Activity 7.2: Setting up of environmental criteria for several variables such as:
•
•
5.
Air quality, Noise level, Water quality, Accidental spills of hazardous substances
Naturally protected areas
Institutional Assessment and Monitoring Mechanism
Output 8: Institutional Assessment
47.
Activity 8.1: Assessment of institutional capacity of the implementing agencies for effective
implementation of environmental management and monitoring plan. Identification of responsible institutes
for implementation and supervision of the EMMP. Assess training needs of these agencies and propose
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capacity building measures and institutional arrangements to strengthen these agencies along with the
cost estimates.
Output 9: Monitoring Mechanism
48.
Activity 9.1: Elaboration and specifying of “feed back monitoring” program, a tool to be used
by implementing authorities in order to be able to interfere and respond quickly to activities, which during
the construction and operation turn out to have a negative effect to the environment. The tool will specify
the parameters, location, frequency and means of monitoring.
6.
Public Consultations and Disclosure Plan
Output 10: Conduct Public Consultations and Document them
49.
Activity 10.1: Assisting Department of Road to conduct two public consultations (one during
the inception stage and the second one after finalization of EIA report) according to ADB’s Public
Communications Policy (2005) for Category A projects and the 6th Clause of the Law of Georgia on the
Environmental Impact Permit. This will ensure that the consultation process will involve affected people,
key agencies, NGOs, and other stakeholders and they are provided with opportunities to participate in the
decision-making process and to influence decisions that will affect them. Address all the comments in the
engineering designs.
50.
Activity 10.2: Agreement by the appropriate authorities of specific zones where minor
temporary and/or permanent impacts to the environment can be accepted during the construction and
operation phase of the bypass road. The ranges of the zones will be determined on the basis of results of
investigations and local conditions.
Output 11: Disclosure Plan
51.
Activity 11.1: In consultation with the stakeholders, preparation of information disclosure plan
for dissemination of safeguard documents to the affected community and general public.
Figure A19. 1: Work Plan of Proposed EIA Study
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Annex 3
Outline of an Environmental Impact Assessment (EIA) Report
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
Introduction
Description of the Project
Description of the Environment
Alternatives
Anticipated Environmental Impacts and Mitigation Measures
Economic Assessment
Environmental Management Plan
Public Involvement and Disclosure
Conclusions
Introduction
52.
This section usually includes the following:
(i)
(ii)
(iii)
(iv)
2.
purpose of the report, including (a) identification of the project and its proponent, (b) brief
description of the nature, size, and location of the project and its importance to the country,
and (c) any other pertinent background information;
stage of project preparation (i.e., pre-feasibility study, feasibility study, detailed engineering
design preparation);
extent of the EIA study, including the scope of the study, magnitude of effort, and
persons/expertise or agency performing the study and corresponding person months; and
brief outline of the contents of the report, including any special techniques or methods used
for identifying issues, assessing impacts, and designing environmental protection measures.
Description of the Project
53.
The project should be described in terms of its basic activities, location, layout, and schedule
(in terms of the project cycle). This section of the EIA report should provide sufficient details on the
following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
3.
Type of project
Need for project
Location (use maps showing general location, specific location, project boundary and project
site layout)
Size or magnitude of operation including any associated activities required by or for the
project
Proposed schedule for approval and implementation
Description of the project including drawings showing project layout, components of project,
etc. This information should be of the same type and extent as is included in feasibility reports
for proposed projects, in order to give a clear picture of the project and its operations.
Description of the Environment
54.
This section contains a description of the study area to provide a clear picture of the existing
environmental resources and values within which the impacts must be considered. Detailed methodology
to gather information, including data sources, should also be briefly described. As much as possible, the
baseline information should be presented in maps, figures, and tables. The baseline environmental
information area should include:
(i) Physical Resources: e.g.
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4.
• atmosphere (e.g. air quality and climate)
• topography and soils,
• surface water
• groundwater
• geology/seismology.
(ii) Ecological Resources: (e.g.)
• fisheries
• aquatic biology
• wildlife
• forests
• rare or endangered species
• protected areas
• coastal resources
(iii) Economic Development: (e.g.)
• industries
• infrastructure facilities (e.g. water supply, sewerage, flood control)
• transportation (roads, harbors, airports, and navigation)
• land use (e.g. dedicated area uses)
• power sources and transmission
• agricultural development, mineral development, and tourism facilities
(iv) Social and Cultural Resources: (e.g.)
• population and communities (e.g. numbers, locations, composition, employment)
• health facilities
• education facilities
• socio-economic conditions (e.g. community structure, family structure, social well
being)
• physical or cultural heritage
• current use of lands and resources for traditional purposes by Indigenous
• Peoples
• structures or sites that are of historical, archaeological, paleontological, or
architectural significance.
Alternatives
55.
The consideration of alternatives is one of the more proactive sides of environmental
assessment - enhancing the project design through examining options instead of only focussing on the
more defensive task of reducing adverse impacts of a single design. This calls for the systematic
comparison of feasible alternatives for the proposed project site, technology, and operational alternatives.
Alternatives should be compared in terms of their potential environmental impacts, capital and recurrent
costs, suitability under local conditions, and institutional, training and monitoring requirements. For each
alternative, the environmental costs and benefits should be quantified to the extent possible, economic
values should be attached where feasible, and the basis for the selected alternative should be stated.
56.
Examining alternative means of carrying out a project involves answering the following three
questions: (i) what are the alternatives? , (ii) what are the environmental impacts associated with each
alternative? , and (iii) what is the rationale for selecting the preferred alternative? For example, a road
connecting two points can follow a number of different routes. In this case, the EIA report must describe
the process taken to select the most appropriate route based on a set of pre-determined criteria. The
consideration of alternatives and the selection criteria used to identify the preferred alternatives must
include environmental factors. The information going into the decision and the decision-making process
must be documented in the EIA report. For example, if "alternative means" refers to site selection for a
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large hydroelectric dam, the location of each alternative would have to be described, the environmental
impacts of each alternative defined and the criteria and analysis of site selection presented.
57.
Since the selection of alternatives can involve detailed technical analysis that includes more
than just environmental factors, it may be preferable to present the details of this analysis as an appendix
and include only the results and summary of this selection process in the body of the report. For example,
a table listing the alternatives on one axis, and the criteria, such as reliability, cost, performance, inherent
environmental effects and necessary mitigation measures, on the other axis may provide an effective
summary.
58.
Alternatives to the project. In some instances it will be necessary to consider “alternatives
to” the project. This situation should not arise if the project is consistent with DMC’s development
strategy, ADB’s Country and Strategy Program, and has been developed based on a sector strategy and
roadmap. The EIA report should describe how the project fits into this larger strategic planning context.
This context helps justify the project and demonstrates the requirements that may constrain the
alternatives that are feasible or permitted.
59.
However, in the case of potentially controversial projects, there may public concern that the
project does not represent the best way to achieve stated development objectives. In addition, segments
of the public may react negatively if they perceive that the EIA report has not considered alternatives to
the project, or the preferred alternative is proceeding based on flawed assumptions. Therefore, if
controversy is expected surrounding the fundamental reasons for the project, the EIA report should
include a discussion of alternatives to the project.
60.
One alternative that should receive special attention is the "no go" alternative. In some
cases, this may be the only alternative to the project that can be realistically considered.
5.
Anticipated Environmental Impacts and Mitigation Measures
61.
Review Characteristics of Each Environmental Impact. This section will evaluate the
project’s expected impacts (in as quantified terms as possible) on each resource or value, and applicable
sectoral environmental guidelines wherever any significant impact is expected (including environmental
risk assessment, where appropriate. Environmental impacts to be investigated will include those due to (i)
project location; (ii) caused by possible accidents; (iii) related to design; and (iv) during construction,
regular operations, and final decommissioning or rehabilitation of a completed project. Where adverse
effects are indicated, discuss measures for minimizing and/or offsetting these, and opportunities for
enhancing natural environmental values will be explored. Both direct and indirect effects will be
considered, and the region of influence indicated. This analysis is the key presentation in the report and if
not sufficiently completed it may be necessary to delay the project until the analysis can be completed. It
is necessary to present a reasonably complete picture of both the human use and quality of life gains to
result from the project due to the utilization, alteration, and impairment of the natural resources affected
by the project, so that fair evaluation of the net worth of the project could be made.
62.
Mitigating Adverse Effects. For each significant adverse environmental impact, the
report will carefully explain how the project plan/design minimizes the adverse effects and in addition how
the project plan/design, to the extent feasible, includes provision for offsetting or compensating of adverse
effects and for positive enhancement of benefits or environmental quality. Where substantial cost of
mitigation measures is involved, alternative measures and costs will be explored.
63.
Irreversible and Irretrievable Impacts. The EIA report will identify the extent to which the
proposed project would irreversibly curtail the potential uses of the environment. For example, highways
that cut through stream corridors, wetlands, or a natural estuary can result in irretrievable damage to
those sensitive ecosystems. Other impacts that may be irreversible include alteration of historic sites, and
expenditure of construction materials and fuels. Also, projects through estuaries, marshes, etc., may
permanently impair the area’s natural ecology; or elimination of recreation areas and parklands can
precipitate drastic changes in the project area’s social and economic character.
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64.
Temporary Effects During Project Construction. In the event the construction phase of
the project involves special environmental impacts (to be terminated on completion of construction), these
will be separately discussed including proposed remedial measures.
6.
Economic Assessment
65.
This section may be drawn from the economic analysis conducted as part of the project
feasibility study. It should include the following elements which should be integrated into the overall
economic analysis of the project: (i) costs and benefits of environmental impacts; (ii) costs, benefits, and
cost-effectiveness of mitigation measures; and (iii) discussion of impacts that have not been expressed in
monetary values, in quantitative terms where possible (e.g. weight of volume estimates of pollutants).
7.
Environmental Management Plan
66.
The EMP describes how the mitigation and other measures to enhance the benefits of
environmental protection will be implemented. It explains how the measures will be managed, who will
implement them, and when and where they will be implemented. The following elements should be
described in the EMP (see Table A2.1 for contents of EMP): (i) implementation of mitigation measures
during project design; (ii) implementation of mitigation measures by contractors, and how impacts
prevention will be incorporated in the materials procurement; (iii) social development program (e.g.,
resettlement plan, community training); (iv) contingency response plan for natural or other disasters, and
project contingencies; and (v) environmental management and monitoring costs including mitigation
costs.
67.
The environmental monitoring plan describes the monitoring activities to ensure that adverse
environmental impacts will be minimized, and the EMP implemented. The environmental monitoring plan
will cover selected parameters to indicate the level of environmental impacts. It also describes how,
when, and where the monitoring activities will be undertaken; who will carry them out; and who should
receive the monitoring report. More importantly, it includes a proposal to carry out environmental
compliance monitoring activities.
68.
The present capacity of the executing agency to implement EMP should be described and
implementation costs clearly identified.
8.
Public Consultation and Information Disclosure
69.
This section will (i) describe the process undertaken to involve the public in project design
and recommended measures for continuing public participation; (ii) summarize major comments received
from beneficiaries, local officials, community leaders, NGOs, and others, and describe how these
comments were addressed; (iii) list milestones in public involvement (e.g., dates, attendance, topics of
public meetings), and recipients of the report and other project-related documents; (iv) describe
compliance with relevant regulatory requirements for public participation; (v) if possible summarize public
acceptance or opinion on the proposed project; and (vi) describe other related materials or activities (e.g.,
press releases, notifications) as part of the effort to gain public participation. This section will provide of
summary of information disclosed to date and procedures for future disclosure.
9.
Conclusions
70.
The EIA report will present the conclusions of the study including: (i) gains which justify
project implementation; (ii) explanation of how adverse effects could be minimized or offset, and
compensated to make these impacts acceptable; (iii) explanation of use of any irreplaceable resources;
and (iv) provisions for follow-up surveillance and monitoring. Simple visual presentations of the type and
magnitude of the impacts may aid the decision-maker.
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Annex 4
Outline of Summary Environmental Impact Assessment (SEIA) Report
A. Introduction (1/2 page)
71.
This section will include the purpose of the report, extent of the EIA study and brief
description of any special techniques or methods used.
B. Description of the Project (1/2 page)
72.
This section will include the type of and need for project, location, size or magnitude of
operation and proposed schedule for implementation.
C. Description of the Environment (2-3 pages)
73.
This section will include the physical and ecological resources, human and economic
development and quality of life values in the area affected by the project. Where available, environmental
standards will be used as the baseline for comparative purposes.
D. Alternatives (1-2 pages)
74.
For each alternative, a summary of the probable adverse impacts and its relation to the
project, and other alternatives will be discussed determine whether the project minimizes the
environmental impact over all other alternatives and is within acceptable environmental impact limits. In
most cases, environmental impacts "with" and "without" project alternatives should be examined.
E. Anticipated Environmental Impacts and Mitigation Measures (4-6 pages)
75.
Environmental impacts, both direct and indirect, on different environmental resources or
values due to project location, as related to design, during construction and regular operation will be
discussed and mitigation, offsetting or enhancement measures will be recommended.
F. Economic Assessment (1-2 pages)
76.
This section will include: (a) costs and benefits of environmental impacts; (b) costs, benefits
and cost effectiveness of mitigation measures; and (c) for environmental impacts that have not been
expressed in monetary values, a discussion of such impacts, if possible, in quantitative terms (e.g. weight
or volume estimates of pollutants). This information should be integrated into the overall economic
analysis of the project.
G. Environmental Management Plan (1-2 pages)
77.
The EMP will describe the impacts to be mitigated, and activities to implement the mitigation
measures, including how, when, and where they will be implemented. The environmental monitoring plan
will describe the impacts to be monitored, and when and where monitoring activities will be carried out,
and who will carry them out.
H. Public Consultation and Disclosure (1-3 pages)
78.
This section will describe the process undertaken to involve the public in project design and
recommended measures for continuing public participation; summarize major comments received from
beneficiaries, local officials, community leaders, NGOs, and others, and describe how these comments
were addressed; list milestones in public involvement such as dates, attendance, and topics of public
meetings; list recipients of this document and other project related documents; describe compliance with
relevant regulatory requirements for public participation; and summarize other related materials or
activities, such as press releases and notifications. This section will provide of summary of information
disclosed to date and procedures for future disclosure.
I. Conclusions (1 page)
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79.
This section will describe the gains which justify implementation of the project; explain how
significant adverse environmental impacts will be mitigated or offset and compensated for; explain/justify
use of any irreplaceable resources and; describe follow-up surveillance and monitoring.
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Annex 5
Annex 5
Outline of an Initial Environmental Examination (IEE) Report
1.
2.
3.
4.
5.
6.
7.
8.
A.
Introduction
Description of the Project
Description of the Environment
Screening of Potential Environmental Impacts and Mitigation Measures
Institutional Requirements and Environmental Monitoring Plan
Public Consultation and Information Disclosure
Findings and Recommendation
Conclusions
Introduction
80.
This section usually includes the following:
(i) purpose of the report, including (a) identification of the project and project proponent; (b) brief
description of the nature, size, and location of the project and of its importance to the country; and
(c) any other pertinent background information; and
(ii) Extent of the IEE study: scope of study, magnitude of effort, person or agency performing the
study, and acknowledgement.
B.
Description of the Project
81.
Furnish sufficient details to give a brief but clear picture of the following (include only
applicable items):
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
C.
type of project;
category of Project;
need for project;
location (use maps showing general location, specific location, and project site);
size or magnitude of operation;
proposed schedule for implementation; and
descriptions of the project, including drawings showing project layout, and project
components. This information should be of the same type and extent as is included in
feasibility reports for proposed projects to give a clear picture of the project and its operations.
Description of the Environment
82.
Furnish sufficient information to give a brief but clear picture of the existing environmental
resources in the area affected by the project, including the following (to the extent applicable):
(i) Physical Resources: (e.g.)
• atmosphere (e.g. air quality and climate)
• topography and soils,
• surface water
• groundwater
• geology/seismology.
(ii) Ecological Resources: (e.g.)
• fisheries
• aquatic biology
• wildlife
• forests
• rare or endangered species
• protected areas
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• coastal resources
(iii) Economic Development: (e.g.)
• industries
• infrastructure facilities (e.g. water supply, sewerage, flood control)
• transportation (roads, harbors, airports, and navigation)
• land use (e.g. dedicated area uses)
• power sources and transmission
• agricultural development, mineral development, and tourism facilities
(iv) Social and Cultural Resources: (e.g.)
• population and communities (e.g. numbers, locations, composition, employment)
• health facilities
• education facilities
• socio-economic conditions (e.g. community structure, family structure, social well being)
• physical or cultural heritage
• current use of lands and resources for traditional purposes by Indigenous Peoples
• structures or sites that are of historical, archaeological, paleontological, or architectural
significance.
D.
Screening of Potential Environmental Impacts and Mitigation Measures
83.
Using the checklist of environmental parameters for different sector projects, this section will
screen out “no significant impacts” from those with significant adverse impact by reviewing each relevant
parameter according to the following factors or operational stages. Mitigation measures, where
appropriate, will also be recommended environmental problems due to project location, and related to
project design, construction, and operations. Potential environmental enhancement measures and
additional considerations will also be covered.
E.
Institutional Requirements and Environmental Monitoring Plan
84.
This section should state the impacts to be mitigated, and activities to implement the
mitigation measures, including how, when, and where they will be implemented. Institutional
arrangements for implementation should be described. The environmental monitoring plan will describe
the impacts to be monitored, and when and where monitoring activities will be carried out, and who will
carry them out. The environmental management and monitoring costs should also be described.
F.
Public Consultation and Information Disclosure
85.
This section will describe the process undertaken to involve the public in project design and
recommended measures for continuing public participation; summarize major comments received from
beneficiaries, local officials, community leaders, NGOs, and others, and describe how these comments
were addressed; list milestones in public involvement such as dates, attendance, and topics of public
meetings; list recipients of this document and other project related documents; describe compliance with
relevant regulatory requirements for public participation; and summarize other related materials or
activities, such as press releases and notifications. This section will provide of summary of information
disclosed to date and procedures for future disclosure.
G.
Findings and Recommendations
86.
This section will include an evaluation of the screening process and recommendation will be
provided whether significant environmental impacts exist needing further detailed study or EIA. If there is
no need for further study, the IEE itself, which at times may need to be supplemented by a special study
in view of limited but significant impacts, becomes the completed environmental assessment for the
project and no follow-up EIA will be needed. If an EIA is needed, then this section will include a brief
terms of reference (TOR) for the needed follow-up EIA, including approximate descriptions of work tasks,
professional skills required, time required, and estimated costs. The Bank's Environment Guidelines
provides a guide for preparing the TOR for different projects.
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H.
Annex 5
Conclusions
87.
This section will discuss the result of the IEE and justification, if any, of the need for
additional study or EIA. If an IEE, or an IEE supplemented by a special study, is sufficient for the project,
then the IEE with the recommended institutional and monitoring program becomes the completed EIA.
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Annex 6
Outline of Summary Initial Environmental Examination (SIEE) Report
A. Introduction (1/2 page)
88.
This section will include the purpose of the report, extent of the IEE study and brief
description of any special techniques or methods used.
B. Description of the Project (1/2 page)
89.
This section will include the type of and need for the project; and project location, size or
magnitude, operation, and proposed schedule for implementation.
C. Description of the Environment (2 pages)
90.
This section will include the physical and ecological resources, human and economic
development, and quality of life values.
D. Forecasting Environmental Impacts and Mitigation Measures (2-4 pages)
91.
This section will identify "no significant impacts" from those with significant adverse impacts
and will discuss the appropriate mitigation measures, where necessary.
E. Institutional Requirements and Environmental Monitoring Plan (1 page)
92.
This section will describe the impacts to be mitigated, and activities to implement the
mitigation measures, including how, when, and where they will be implemented. The environmental
monitoring plan will describe the impacts to be monitored, and when and where monitoring activities will
be carried out, and who will carry them out.
F. Public Consultation and Disclosure
93.
This section will describe the process undertaken to involve the public in project design and
recommended measures for continuing public participation; summarize major comments received from
beneficiaries, local officials, community leaders, NGOs, and others, and describe how these comments
were addressed; list milestones in public involvement such as dates, attendance, and topics of public
meetings; list recipients of this document and other project related documents; describe compliance with
relevant regulatory requirements for public participation; and summarize other related materials or
activities, such as press releases and notifications. This section will provide of summary of information
disclosed to date and procedures for future disclosure.
G. Findings and Recommendations (1-2 pages)
94.
This section will include an evaluation of the screening process, and recommendation will be
provided whether significant environmental impacts exist needing further detailed study or EIA. If there is
no need for further study, the IEE itself, which at times may need to be supplemented by a special study
in view of some small significant impacts, becomes the completed EIA for the project and no follow-up
EIA will be needed. If further additional study is needed, then this section will include a brief terms of
reference (TOR) for the needed follow-up EIA, including approximate descriptions of work tasks,
professional skills required, time required, and estimated costs. The Bank's Environment Guidelines
provides a guide for preparing the TOR for different projects.
H. Conclusions (1/2 page)
95.
This section will discuss the result of the IEE and justification if any of the need for additional
study or EIA. If an IEE or an IEE supplemented by a special study is sufficient for the project, then the IEE
with the recommended institutional requirements and monitoring program become the completed EIA.
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Annex 7
Annex 7
Outline Terms of Reference for Consulting Services for Environmental Assessment
A.
Objectives
96.
The objective of the services are (a) to conduct environmental impact assessment (EIA)/
initial environmental examination (IEE) of the proposed subproject to identify potential environmental
impacts on physical, environmental, ecological, social, cultural and economic resources, and (b) to
prepare EIA/IEE report along with environmental management plan. The duration of an EIA study is 5
months and an IEE study is 3 months.
B.
Scope of Work
97.
The consultant’s scope of work will include the following tasks:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
C.
reviewing prevailing government regulations and donor guidelines governing the assessment and
management of environmental impacts of road projects;
prepare a scoping document for the environmental studies to be carried out under the project;
undertake the EIA/IEE study to assess the direct and in-direct environmental impacts of the
Project such as: (a) ecological impacts (plants and wildlife); (b) soil erosion and desertification; (c)
protection of wetland habitat; (d) impact of quarry sites; (e) impact of construction camps on local
environment (natural and social); (f) operational traffic safety measures; (g) areas with known
archeological value; and (h) potential spills of hazardous or toxic chemicals and an appropriate
response plan for the Project;
prepare the EIA/IEE report and its summary in accordance with ADB’s Environmental Policy
(2002) and related Environmental Assessment Guidelines (2003) as well as ADB's Public
Communications Policy (2005);
the EIA/IEE study should address all potential direct and indirect environmental impacts of the
project. The assessment of environmental impact should be presented in the order of project
cycle: pre-construction, construction and operation. This EIA/IEE report should include the
detailed environmental management plan that should be included in the bidding document;
Analyze the likely impacts during construction and operation and suggest appropriate mitigation
measures;
conduct formal public consultations with affected people (two consultations for EIA and one
consultation for IEE). The first consultation aims to gather environmental concerns from affected
people and the final consultation aim to share the result of the assessment and the proposed
mitigation measures. The list of people attended the consultation, time and locations; subject
discussed during consultation should be recorded in systematic manner and should be attached
in the EIA/IEE report as an appendix;
solicit and incorporate comments on the draft EIA and summary EIA reports from ADB, MPW,
NGOs, civil society, and other stakeholders. Finalize the report to accommodate inputs from all
the stakeholders.
submit the reports to MOEPNR and make presentation as required by MOEPNR to obtain a
environmental impact permit;
Organization and Staffing
98.
The services are expected to be provided a team comprising one international and one
national consultant.
99.
The International Environmental Specialist shall have at least 15 years experience and
familiarity with all aspects of environmental management and with significant experience in environmental
management and monitoring of projects, environmental assessment and / or implementation of
environmental mitigation measures on construction projects. The specialist shall also have experience
working in teams of multi-discipline experts and leading a national team of consultants. Candidates with
higher degrees in environmental engineering or environmental science or environment management are
preferred.
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137
100.
The National Specialists shall at least be graduates in environmental science, environmental
engineering, geological science, engineering hydrology, biology or related discipline with significant
experience in environmental management and monitoring of projects, environmental assessment and/or
design and implementation of environmental mitigation measures.
D.
Budget
101.
The estimated cost for preparation of each IEE and EIA are provided in Table A19. 1 and
Table A19. 2, respectively. A team of International and national specialists are recommended for these
studies. Generally for government funded projects, the environmental assessment team would include an
environmental specialist, a geologist, and a biologist.
Table A19. 1: Estimated Cost of IEE Preparation for each Subproject
Item
International Environmental Specialist
National Environmental Specialist
Land Transportation
Data collection, sample analysis
Communication
Report production and distribution
Public Consultation
Total
Unit
Person-month
Person-month
Months
Lumpsum
Months
Lumpsum
Lumpsum
Quantity
3
3
3
1
3
1
1
Unit Cost, USD
25,000
3,500
1,250
4,000
500
2,000
2,000
Total
75,000
10,500
3,750
4,000
1,500
2,000
2,000
98,750
Table A19. 2: Estimated Cost of EIA Preparation for each Subproject
Item
International Environmental Specialist
National Environmental Specialist
National Hydrologist
National Geologist
National Biologist
Land Transportation
Communication
Data collection and sample analysis
Report production and distribution
Public Consultation
Total
E.
Unit
Person-month
Person-month
Person-month
Person-month
Person-month
Months
Months
Lumpsum
Lumpsum
Lumpsum
Quantity
4
4
2
2
2
5
5
1
1
2
Unit Cost, USD
25,000
3,500
3,500
3,500
3,500
1,250
500
7,000
2,000
2,000
Total
100,000
14,000
7,000
7,000
7,000
6,250
2,500
7,000
2,000
4,000
156,750
Supervision
102.
The team will work in association with the PMU/RD, reporting to the project director of the
PMU/RD on a day-to-day basis.
F.
Outputs
103.
The team’s outputs will include: (i) an inception report reviewing the available environmental
reports and prepare preliminary assessment of impacts associated with the proposed project, (ii) an
interim report; (iii) a draft final report, containing a description of project environment, anticipated
environmental impacts for various alternatives and proposed environmental management, monitoring and
mitigation plan, and (iv) final report incorporating comments from ADB and other stakeholders.
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Appendix 20
SUMMARY ENVIRONMENTAL ASSESSMENT REPORT
I.
INTRODUCTION
1.
This summary environmental impact assessment (SEIA) was prepared as part of the
Asian Development Bank (ADB) project preparatory technical assistance (PPTA) for the Ajara
Bypass Roads Development Project in Georgia.1 The PPTA is preparing a multitranche
financing facility (MFF) for the proposed Subregional Road Corridors Development Program
with the Ajara bypass road (more specifically, the Kobuleti bypass road) as a key component of
an ensuing project. The Executing Agency for the Project is the Ministry of Regional
Development and Infrastructure and the Implementing Agency is the Roads Department under
the ministry. Financing for the Project will be provided in two tranches.
2.
The PPTA is to (i) package the MFF; (ii) conduct a feasibility study and preliminary
engineering design for the bypass roads to Batumi and Kobuleti on the Poti–Batumi–Sarpi
Highway in Ajara Autonomous Republic, including engineering, economic, social, and
environmental viability tests; and (iii) undertake a road sector and institutional analysis. The
81-kilometer (km) Poti–Batumi–Sarpi road along the western coast of Georgia is a key highway
and international transit route in Georgia. It connects to the major Georgian Black Sea ports,
i.e., Batumi and Poti, and several holiday resorts, particularly in Batumi and Kobuleti. Heavy
traffic on the existing road has resulted in a significant increase in congestion and accidents,
particularly in Batumi and Kobuleti, and especially during the tourist season. The Government
plans to construct two bypass roads around Batumi and Kobuleti to address these problems,
and requested ADB assistance to prepare and finance these two roads.
3.
As part of MFF preparation, an environmental assessment and review framework was
prepared to provide a basis for preparing the environmental impact assessment (EIA) for the
Project to be financed by the first and second tranche, and any EIA or initial environment
examination (IEE) for projects funded by subsequent tranches. The cumulative impact
assessment for the entire MFF will be prepared during MFF processing and implementation.
The EIA for the Project was prepared in accordance with ADB’s Environment Policy (2002) and
Environmental Assessment Guidelines (2003), as well as the Law on Ecological Examination
(2007) and Order No. 515 of the Minister of MOEPNR of Georgia on Approval of Rules on
Conduction of Ecological Examination (2008). The EIA is based on detailed field investigations;
baseline environmental monitoring; review of proposed civil works; review of the 2005/06
prefeasibility study report; consultations with relevant stakeholders during the scoping study of
the EIA; public consultation; and detailed review and analysis of available spatial databases for
all environmental parameters in project areas such as terrain, soils, geology, rivers, forests,
protected areas, land use, and population. The EIA was prepared with the active cooperation of
the Roads Department, Ministry of Environmental Protection and Natural Resources
(MOEPNR), and ADB’s project team in Manila.
4.
Based on consultation with MOEPNR and Roads Department staff, the consultant
understands that an environmental impact permit is not required at this time as no construction
activity will be carried out based on the outcome of this feasibility study. An environmental
impact permit is required for the revised EIA report, which will be based on the detailed design.
1
ADB. 2008. Technical Assistance to Georgia for Preparing the Ajara Bypass Roads Development Project. Manila.
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A.
II.
139
DESCRIPTION OF THE PROJECT
5.
The Project will construct 42 km of new roads and widen 6 km of existing roads along
the Poti–-Batumi–Sarpi road, bypassing Kobuleti and Batumi (map). The project road is located
close to Ispani Mire (Kobuleti Protected Areas), identified by the Ramsar Convention on
Wetlands (RAMSAR) as a wetland of international importance and an area protected by the
International Union for Conservation of Nature. Construction of the project road will involve new
construction and rehabilitation of bridges, culverts, and other associated drainage structures;
tunnel construction; land acquisition and resettlement; site preparation; land clearing; disposal
of gravel, soil, vegetation, and unstable material; construction of temporary access roads to
construction sites; setting up of temporary construction camps to house workers; excavation
and operation of borrow pits; operation of a boulder quarry; extraction of material for
embankments using cut and fill procedures; protection of landslide, rockfall, and snowfall areas;
measures to protect critical side-slopes; and extraction and cartage of sand for aggregate
mixtures, cement works, and asphalt plants.
Figure 1: Location Map of Project
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6.
The first tranche will cover the first 34 km (km 0–34); the second tranche will finance the
remaining 14 km (km 34–48). Work financed by the first tranche is expected to commence in
May 2010, and work financed by the second tranche in July 2010. Each is forecast to require 3
years to complete.
III.
DESCRIPTION OF THE ENVIRONMENT
7.
Topography. The first 14 km of the project road passes through flat coastal plain with
elevations ranging from 2 to 20 meters (m); the remaining 34 km passes through rolling and hilly
terrain with elevations ranging from 20 to 250 m. The road passes through three hill ranges:
Zeda Ackva hill range from km 20 to 26; Makhinjauri hill range from km 27 to 36; and Peria hill
range from km 40 to 44. Five tunnels will be constructed along the ridges of these hill ranges
(600 m tunnel from km 22.8 to 23.4 on Zeda Achkva ridge; three small 500 m tunnels from
km 33.7 to 34.5 on small ridges in Makhinjauri; and a 700 m tunnel from km 41 to 41.7 on Peria
ridge). The hilly sections, especially between km 27 and 36, are susceptible to soil erosion,
landslides, and mudslides due to steep slopes, poor geological conditions, and higher sand
content of surface soils—as noticed from the newly constructed 600 m tunnel on the existing
road in this section.
8.
Soils. Soils in the project area consist of laterite clay and loam, originating from intense
weathering of volcanic rocks; and deposits of alluvial sediments. The coastal plain comprises
mainly hydromorphic and alluvial soils due to abundant rainfall and the relief of the plain. Red
soil predominates in hilly areas. The soils in the project area are classified into Haplic Nitisols.
Surface soils are clay loam with a sand fraction of 45%, while subsurface soils are clay.
Generally soils near the coastal and river alluvium consist of coarse sand with high infiltration
capacity. In terms of vulnerability to soil erosion and slope stability issues, the project road can
be divided into three zones: km 0–14, low vulnerability; km 14–20, medium vulnerability; and
km 20–48, high vulnerability. Because of steep slopes, high sand content, good drainage, and
an active geodynamic process, soils in hilly areas are susceptible to landslides. The Batumi
area is within an exceptionally strained geodynamic area, hence landslides are more frequent.
9.
Climate. The project area is located in a subtropical climate—humid with prolonged
rains. Average summer temperatures range from 22 degrees Celsius (0C) to 240C in lowland
areas and 170C to 210C in the highlands. Average winter temperatures range from 40C to 60C
along the coast, while the interior areas and mountains average around minus 20C.
10.
Most precipitation in the project area is in the form of rain. Average annual precipitation
in Batumi is 2,718 millimeters (mm). September is the wettest month, averaging 335 to 410 mm;
May is the driest, averaging 92 mm. Batumi generally does not receive significant snow
(accumulating snowfall of about 30 centimeters); 12 days of the year have snow cover. Average
humidity ranges from 67% to 80%. Average wind speed is 15.8 km/hour (hr), reaching more
than 20 km/hr during December–February with lower temperature. Winds are generally from the
southwest. Average annual precipitation in Kobuleti is 2,320 mm; September is the wettest
month and May the driest. Average wind speed is 11 km/hr, with a maximum of 14 km/hr during
February. Wind is mostly from the southwest (30%) and northeast (23%).
11.
Geology. The project area is located in the Ajara–Trialeti zone situated within the
Meskheti, Shavshvebi, and Chakvi mountain rings. Middle Eocene-aged sediments are spread
over this area. The lower part of middle Eocene is lithologically represented with tabular tuff,
tuffo-gravel, argillite, and limestone. These sediments are mostly spread over the middle and
upper part of the Kintrishi river and flanks of the Meskheti mountain ring, in the draw of the
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Chorokhi river, and within the Chaisubani village territory. The upper part of middle Eocene is
represented by a mass of fragmented volcanic breccias, tuff, and clinker stratums. In some
places, andesite, basalt, tuffo-gravel, tuff, and marl can be found. Those sediments are mainly
spread in the Ajara cauldron, flanks of the Chakvi and Shavshebi mountain ring, and draw of the
Achara Wyali river. In the middle part of Chakvis Wyali, intrusive sediments of upper Eocene are
lithologically represented by syenites and syenite-diorites. Geomorphologically, the northern
part of the project area comprises the Kobuleti coastal plain crisscrossed by numerous streams;
the southern part is characterized by hilly ranges with deep gorges.
12.
Seismicity. The project area is located in a seismic intensity zone of Richter scale 7.
The intensity of tectonic zones is calculated for 2% probability (expectation time 50 years)
according to the Richter scale. On a modified Mercalli scale, the project area is in an earthquake
intensity zone of IV (moderate intensity). The eastern part of the project area, in the eastern part
of Kobuleti near Ozurgeti, is in a high earthquake intensity zone.
13.
Water Resources. The project area has significant surface water resources. The project
road crosses three major rivers (more than 15 km long), six medium-sized rivers (from 10 to
15 km long), and a several small streams and hillside drainage systems. The major rivers along
the alignment are the Choloki (km 3.80), Kintrishi (km 15.00), and Chaqvistskali (km 26.10). The
Chorokhi, the third largest river in Georgia, is located about 1 km away from the southern end of
the project road. Discharges of all the rivers in the project areas were estimated for return
periods of 10, 100, and 200 years.
14.
The project area north of Kobuleti and south of Batumi is in low runoff areas of less than
1,000 mm. However the main project area is located in middle runoff areas, where annual runoff
ranges from 1,000 to 2,000 mm. The eastern project area is mostly mountainous with high
runoff zones. River water in the project area is extensively used for municipal drinking water
supply, irrigation, industries, hydropower, fisheries, and construction. In addition, sand, gravel,
and stones from these rivers are used extensively for construction.
15.
Groundwater is the major source of drinking water. All towns and major villages in the
project area have central water distribution systems, while smaller villages and isolated
dwellings depend on private wells and springwater. Shallow aquifers of alluvial deposits are
located near the major rivers and their floodlands. These aquifers generally comprise pebbles
and sand with intermediate lenses of clay. Generally aquifers are in direct hydraulic interaction
with the river waters and are excellent sources of drinking water. A well field comprising eight
bore wells located along the Kintrishi riverbank at km 16 (on the upstream side) supplies water
to the Kobuleti water supply system. In general, the water table is very shallow in flat and
coastal areas with depth varying from 3 to 6 m.
16.
Quarries and Borrow Pits. The quarries and borrow pits required for construction
activities are located in several river sites. Two major quarry sites in the Chaqvistskali and
Chorokhi rivers are located near the project road. The sand, gravel, and stones from these sites
are suitable for road construction. Several stone-crushing plants are located on the banks of the
Chorokhi River near Batumi. Material extraction from these sites is regulated and a permit for
the Chorokhi site is issued to a local company with quantity restrictions; the Chaqvistskali site
will require a permit from MOEPNR.
17.
Water Quality. The quality of the water in all the rivers is generally very good, except for
Choloki because of high turbidity (5.53 nephelometric turbidity units [NTU]) and low dissolved
oxygen (1.8 milligrams per liter). All other rivers have turbidity of less than 0.65 NTU and
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dissolved oxygen of more than 7 milligrams per liter. The rivers all have potable water with total
dissolved solids ranging from 75 to 164 milligrams per liter. All the rivers are excellent sources
of water for drinking and construction. No petroleum hydrocarbon or agriculture pollution was
identified in the river water.
18.
Noise. Noise was measured at three locations to assess background noise along the
project alignment, noise along the existing road, and noise along the railway line. Background
noise along the project alignment on new roads measures 30 decibel (dBA). Average hourly
noise
25 m from the center of the existing road is 65 dBA. Noise 25 m from the railway line when
loaded trains are moving is 77 dBA, and when empty trains are moving 73 dBA. The average
hourly noise 25 m from the railway line is 58 dBA
19.
Air Quality. Traffic, industries, and port operations are the major sources of air pollution
in the project area. Until 1991, air quality monitoring in Georgia was carried out regularly and
systematically in 11 cities, including Batumi. Dust, carbon monoxide, nitrogen dioxide, and sulfur
dioxide were measured continuously three times a day. The most recent air quality monitoring
data for Batumi is from 1995 to 2004, with the average yearly concentrations of dust, sulfur
dioxide, and nitrogen dioxide slightly exceeding the norms. The highest dust concentration
exceeded maximum permissible levels by 1.2 times. In more recent years of the data, the
concentration of nitrogen dioxide increased substantially, while hydrogen sulfide pollution
decreased.
20.
Ispani Mire. Ispani Mire, a national protected area and RAMSAR wetland site (number
894), is located near the project road from km 6 to 12. The project road passes well beyond the
safe buffer zone of the mire.2 The mire, a part of the Kolkheti lowland system of wetlands, is
included in the RAMSAR list because (i) Ispani II Mire is one of two percolation bogs discovered
worldwide (another one is Imnati, which also occurs in the Kolkheti lowland, about 20 km north
of Ispani II Mire); and (ii) vegetative cover of the Ispani I and Ispani II peatland complex contains
relict plant communities (e.g. Carex lasiocarpa, Molinia litoralis), northern Palaearctic species
(e.g., Drosera rotundifolia, Sphagnum (S) imbricatum, S. palustre, S. papillosum, S. rubellum,
S. auriculatum), Kolkheti elements (e.g., Rhododendron luteum, Rhododendron ponticum,
Rhynchospora caucasica, and Vaccinium arctostaphyllus), as well as species such as Frangula
alnus, Rubus spec., or Alnus barbata at the margin of the peatlands.
21.
Flora. Natural vegetation of the project area comprises mostly grasses and bushes such
as Vaccinium artostapylia and Rhododend luteum. In hilly areas, the vegetation mostly includes
board-leaved trees; the main species are Fagues orientilia, Casatanea sativa, Carpinus
caucasica, Cuercus dachorocalis, Tilia caucasica, Aser platanoides, Pinus sosnovsky, and
Picea orientalis. The Ispani I and Ispani II peatland complex is also important because of its
floristic composition. The peatland vegetation includes a high percentage of peat-moss
(Sphagnum) species in the cover, and low density of vascular plant species. The existence of
boreal (tundra and taiga) flora elements like Drosera rotundifolia, Sphagnum imbricatum (which
is rather an unusual phenomenon for subtropical latitudes), as well as Colkhic flora elements
like Rhododendron ponticum, R. Iuteum is another feature of the uniqueness of these
peatlands.
22.
Fauna. Despite its small size and proximity to an urbanized zone, the Ispani I and Ispani
II peatland complex and its adjacent areas provide habitats to Lutra lutra (species of Georgian
2
The alignment agreed upon by the authority of the Kobuleti Protected Area runs with a 100-m distance from the
buffer zone for a 500-m stretch in its narrowest gap and with a 500-m distance for a 1.5-km stretch.
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Red List), Canis aureus, Felis silvestris, Myocastor coypus, Meles meles, Erinaceus concolor,
Rattus norvegicus, Rattus rattus, Sorex volnuchini, Mus musculus, Myotis blythii, and
Pipistrellus pipistrellus. They also serve as a good refuge for migratory birds from Eurasia and
Africa: Circus cyaneus, Egretta garzetta, Merops apiaster, Lymnocryptes minimus, falco
vespertinus, Grus grus, Egretta alba, and Haliaeetus albicilla. The area’s small population of
reptiles (herpetofauna) includes Emys orbicularis, Elaphe longisima, Lacerta agilis, Lacerta
media, Natrix tesselata, and Natrix natrix. Amphibibians include Triturus vulgaris, Triturus
cristatus, Rana ridibunda, Hyla arborea, Bufo viridis, and Bufo verucozissima. Various habitats
support large numbers of invertebrates.
23.
Fish, Fisheries, and Aquatic Biology. The rivers in the project area are populated by a
wide variety of fish. Major types in the Kintrishi and Chorokhi rivers, and the Black Sea are
sturgeon (Acipenser guldenstadi Brandt); beluga; salmon; and grey mukket species including
Mugi cephalu, ramada risoo, Mugli saliens risoo, and Mugil cephalus risso. Other prominent fish
include barbell, bullhead, and herring. Fish species noted in the Ispani wetland system are
Siluris glanis, Leuciscus cephalus, and Cyprinus carpio. No marine protected areas, mangroves,
or coral reefs are located near the project area.
24.
Land Use. The project area includes swamps, badlands, temporal dwellings, perennial
plantations (e.g., tea, citrus), an industrial area, agricultural lands, arable lands, and forest. The
road mostly passes through arable land comprising pastures, agricultural lands, and tea and
citrus plantations. The locations of settlements are included on the map. Corn, the major
agricultural product, is widely grown on all agricultural land. Vegetables are the second major
product.
25.
Population. Ajara has a population of 378,000 (2007 estimates). Its ethnic groups
include Laz, Russians, Armenians, Greeks, and Abkhaz. The project area is within the
administrative units of Kobuleti municipality, Batumi city, and Khelvachauri municipality. The
project road passes through 16 villages and settlements, which fall under 10 sacrebulos
(subdistrict administrations) and two rayons (districts).
26.
Economic Resources. Tourism is the major industry in the project area; extensive
resort infrastructure is located along the existing road in Batumi and Kobuleti. Other major
industrial activities include an oil refinery; port; shipyard; and machine-building, zinc-plating, and
furniture factories; as well as a range of light industries. In addition, several stone-crushing
factories and an asphalt plant are located near Batumi. Industries and municipal infrastructure
along the project road include an oil terminal, Kobuleti drinking water pumping station, and
electrical substations. Agriculture, including tea and citrus plantations, is the major economic
activity in the project area.
IV.
ALTERNATIVES
27.
During the prefeasibility study, three alignments were examined between the Cholokhi
River and Sarpi to recommend an alignment for the Kobuleti and Batumi bypass roads. The
present feasibility study reviewed the three alignments and made modifications to the
prefeasibility-recommended alignment, considering environmental, engineering, and social
issues. It also recommends a final alignment. The environmental, social, and engineering issues
considered for assessing various alternate alignments are (i) location of Ispani Mire; (ii) cultural
sites, such as cemeteries; (iii) land acquisition and resettlement; (vi) geological features such as
stability, landslides, and cut and fills; (vi) design standards of the Roads Department and other
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applicable international standards; and (vii) impact on infrastructure facilities such as the water
pumping station of Kobuleti, substations, and industries along the corridor.
28.
Alternatives for the Section from Kilometer 0 to 14. Various alignments were
considered in this section to avoid impact on Ispani Mire. The prefeasibility alignment passes
parallel to the 3.3 km long Ispani Mire (from km 2.4 to 5.7) through a narrow strip of land
between a strip of residential development and a bund constraining the mire. The prefeasibility
alignment is located very close to the mire (within 140–200 m) for about 1.6 km (from km 4.22 to
5.70). Road development on the narrow strip on the prefeasibility-recommended alignment will
damage the peatland system and its hydrological integrity, and nullify all recent efforts to
establish general awareness among the population of the natural value of the unique ecosystem
of the mire. The feasibility study recommends an alternative alignment that passes to the
eastern side of the mire and is well away from the safe buffer zone of the mire.
29.
To meet the Project’s design standards, two possible alternatives were studied for the
starting point of the Project. One alignment leaves the existing Poti–Batumi road north of the
Choloki River (immediately south of the amusement park), thus starting the project road in Juria
province. It then crosses the Choloki on a new bridge and turns east toward the railway line.
The alternative start is similar to the prefeasibility-preferred alignment and exits the existing road
just south of the Choloki River using a modified trumpet interchange. The advantage of the
second option is that it is about 0.5 km shorter and requires only an additional two-lane bridge
over the Choloki River. The disadvantage is that the alignment is constrained within the first
kilometer and is below the geometric standard for a high class road. The consultant
recommends the first alignment starting south of the amusement park.
30.
Alternatives for the Section from Kilometer 14 to 28. The main oobjective in
assessing alternatives for this section is to avoid impact on the physical environment such as
soil and geology; and existing infrastructure facilities such as the pumping station, substation,
and cemetery. The proposed alignment generally follows the prefeasibility alignment except
from km 14 to 17 and km 18 to 20. In the former case, the line is moved slightly eastward to
avoid a chemical factory and then a water pumping area and associated substation. In the latter
case, the line is moved to avoid a new cemetery, avoid going on top of an existing minor road,
and allow sufficient height to pass over a new minor access road and bridge. At km 22, the
prefeasibility alignment cuts through the Zeda Achkva ridge. A closer inspection of this section
indicates that the cut would be deep in erodible material, require demolishing several houses,
cut a significant access road, and require steep approach grades. The consultant proposes
replacing this cut with a 400 m tunnel.
31.
Alternatives for the Section from Kilometer 28 to 34. At km 28.5, the new alignment
joins the recently reconstructed existing road and goes through an existing 600 m tunnel to
descend to the old road at km 32. This section was constructed as a two-lane road, however,
the tunnel is twin bore with a total of four lanes; earthworks have been mostly completed for four
lanes. Significant slope protection will be required. This section of the alignment follows the
existing Kobuleti–Batumi road parallel to the coast and the railway line, and is heavily
developed. The road will require widening to four lanes plus adequate shoulders as this section
will carry both through and local traffic. Acquisition will be required for about 10 buildings, part of
a school frontage, and a hotel parking area. An alternative alignment moving east of the existing
road from km 32 to 34 would encounter steep terrain and still be in residential built-up areas;
therefore it is not recommended.
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32.
Alternatives for the Section from Kilometer 34 to 48. In the prefeasibility study, three
alignments were examined for this section. The westernmost alignment encroaches on the
Batumi Municipal Development Area and passes through some heavily built-up areas; even
more built-up now than when the prefeasibility study was carried out. The advantage of this
alignment is that it is 0.5 km shorter and passes through easier terrain, obviating the need for a
tunnel. After inspecting other two alternatives,
33.
The prefeasibility-recommended alignment first rises to cross the rail line, turns
southeast through three short tunnels, and descends to the Chakvis Korolistskali River, crossing
the river (km 36) and some commercial structures on a 600 m bridge. It then follows the slope of
the land to descend to the Bartskhana River, also crossing this and the riverside commercial
development on a 600 m bridge (km 39); both bridges are about 10 m above ground level, but
will need long spans. The alignment then gradually rises, following the line of the Batumi
Municipal Development Area to the west of Batumi, and runs along but outside the
development plan margin. At km 40.5, the alignment crosses a 200 m bridge to enter a 700 m
tunnel, and then descends to cross the Batumi–Alkhaltsikhe road at km 44.5, with an
interchange, to then turn west to join the Senaki–Poti–Sarpi road at km 48. This alignment ends
at the existing bridge over the Chorokhi River.
34.
The proposed third alignment follows the second alignment for the first 5 km and then
proceeds further east, bypassing the developed area around the Bartskhana River and staying
up to 2–3 km east of the Batumi Development Plan boundary. It also uses a 400 m tunnel,
rejoining alignment two just before the Batumi–Alkhaltsikhe road. This alignment is 0.5 km
longer and an estimated 8% more expensive.
35.
Both alignments two and three were inspected. Both have some new residential
development. In addition, alignment three passes through a new cemetery close to Bartskhana
River; this would be difficult to avoid without demolishing residential houses. Thus the
prefeasibility advantages of alignment three appear to have disappeared. Therefore, except for
a minor realignment at km 45 to avoid the cement factories and another minor alignment
change in the vicinity of the tunnel to minimize demolishment of houses, the consultant
recommends an alignment close to the prefeasibility alignment two. The length of the tunnel will
need to be increased to 700 m to reduce the tunnel grade to 3%.
36.
Do-Nothing Option. The do-nothing or without-project option is not really an alternative
since the objective of the Project is to construct bypass roads to divert traffic from already
congested roads in Kobuleti and Batumi. Congestion and accidents on the existing road have
increased significantly, especially during the summer tourist season. The without-project
scenario will continue to increase the negative impacts generated by increased traffic loads on
the existing road, which lacks adequate capacity (e.g., traffic jams, noise, low speed, higher
emissions, accidents). With continuous growth of tourist and residential infrastructure, the
existing road will continue to deteriorate affecting travel by local residents, tourists, and other
transit road users.
V.
ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES
37.
Anticipated environmental impacts of the Project, on the basis of the EIA study, are
broadly classified into three categories: preconstruction, construction, and operation.
(i)
Preconstruction. Anticipated impacts include
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(a)
(b)
(c)
(ii)
pedestrian and high-speed traffic,
land acquisition issues for new right-of-way areas, and
compensation issues for other fixed assets from acquired right-of-way
land.
Construction. Environmental impacts could include
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(iii)
Operation. Possible environmental impacts include
(a)
(b)
38.
increased soil erosion, landslides, and/or siltation, including increased
risks to downstream rivers and coastal resources as a result of cut and fill
operations;
impacts of clearing right-of-way, removing vegetation (trees and shrubs),
and disposing of spoil;
impacts of extracting and transporting construction material from existing
quarry sites;
impacts of temporary use of land immediately adjacent to the road for
siting of contractor’s yard, asphalt plant, and construction camps;
reduced air quality and visibility (air quality impacts and/or noise pollution
from construction activities, quarry sites, material storage sites, temporary
diversion roads, excavations, vehicle and equipment use, and asphalt
mixing plant);
water pollution (water and soil pollution) at bridge rehabilitation sites from
improper handling and disposal of wastes and materials;
drainage from construction camps, material stockpiles, excavations, and
quarry activities;
interruption to smooth traffic flow, increased traffic congestion, and public
safety problems; and
social conflicts due to project activities.
increased traffic volume and related air, noise, and public safety
concerns; and
possible spills from the transport of hazardous cargo.
Perceived benefits from the Project include
(i)
(ii)
(iii)
(iv)
(v)
reduction of traffic congestion on Kobuleti and Batumi and hence improved air
and noise quality, and road safety;
reduced soil erosion and landslides due to slope stabilization measures;
improved access in the project area and resulting economic development;
faster route for international traffic between Poti and Sarpi; and
improved access to tourist facilities.
39.
Usually implementation of civil works does not have major or long-term impacts, but
localized, short-term impacts can be addressed in detailed designs and through application of
site-specific environmental management plans (EMPs). These construction-related impacts can
be mitigated by (i) the contractors’ work practices, especially those related to the storage of
construction materials and cleanliness of work sites; (ii) cooperation of local authorities with the
contractor for traffic management and use of public space and utilities; (iii) project
management’s strict enforcement of adequate construction practices and standards; and (iv) the
incorporation of mitigation measures identified in the EIA. An environmental management and
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monitoring plan (including cost estimates) was prepared to mitigate the negative environmental
impacts of the Project (Appendix 1).
40.
Soils and Materials. The project road is a new alignment with the first 22 km passing
through high, fertile, arable agricultural land. The main impacts on the soil during construction
will be from (i) loss of topsoil from construction sites; (ii) conversion of existing land uses such
as agriculture and plantations to stockpiles of materials, and damage to temporarily acquired
land; (iii) cut and fill operations; (iv) extraction of fill materials from the cut section and/or borrow
pits; (v) soil erosion on mountainous slopes, side slopes, borrow pits, and uncompacted
embankments; and siltation; and (vi) land contamination from hazardous and toxic chemicals
and construction material spillage. In addition, site preparation activities generate spoils
involving crop residue, grasses, trees, and earth.
41.
Topsoil of cultivated land used for temporary work areas will be stripped off and
stockpiled, to be replaced when construction is completed and the cultivated land rehabilitated.
Contractors will be encouraged to minimize usage of productive agricultural land and convert it
to its original state after completion of civil works. Embankments should be monitored during
construction for signs of erosion; long-term material stockpiles will be covered to prevent wind
erosion. A balanced cut and fill approach is designed for the Project. Deep cuts through Zeda
Achkva ridge near km 22.8 and Makhinjauri ridges at km 34 will be avoided by constructing
tunnels. Excess cut, if any, will be used to shape the embankment side slopes, strengthen the
toe of the high slopes road bench, and fill the low-lying government lands for plantation in
preapproved areas. Contractors will submit a spoil plan to the Roads Department for approval.
The spoil plan should show the location of any borrow pits to be used, fill location for excess cut,
and measures to rehabilitate these pits and cuts upon finalization of the Project. The spoils
generated from the site preparation will be disposed of in these preapproved sites.
42.
Soil Erosion and Slope Stability Problems. Construction activities in zones that are
highly vulnerable for soil instability, especially in hilly areas, will intensify the effects of natural
soil erosion unless precautionary measures are taken. In addition, construction activities will
cause soil erosion due to cut and fill at different locations especially in hilly sections, and bridge
and tunnel sites. The impacts of soil erosion and unstable side slopes are (i) increased runoff
and sedimentation causing a greater flood hazard to downstream areas; (ii) loss of topsoil
affecting the growth of vegetation resulting in ecological imbalances; (iii) destruction of the
aquatic environment in nearby rivers, streams, and sea caused by erosion and/or deposition of
sediment damaging the spawning grounds of fish; (iv) destruction of vegetation by burying or
gullying; and (v) development of unsightly cuts and fills that have been riddled by uncontrolled
erosion and gullying.
43.
Soil erosion and landslides will be minimized by preventive measures incorporated in the
engineering design, such as (i) constructing 12,250 m of retaining wall near the deep-cut
sections, bridges, overpasses and tunnels; (ii) planting shrubs buffer strips and grass;
(iii) ensuring appropriate compaction, rock lining, and slope walls near the proposed
overpasses, tunnels, and existing tunnels; and (iv) constructing side ditches, berms, dikes,
sediment basins, fiber mats, mulches, and drainage channels. Engineering design also
considers cross-drainage and floodwater flows for road links on elevated fills that could obstruct
natural drainage. Any cut and fill that results in a slope steeper than 45 degrees will need to be
secured by a protective wall and protected by bioengineering methods. As a long-term
mitigation measure, land degradation must be stopped. Maintaining a vegetative cover in
mountain areas will reduce erosion through runoff, and land and mud slides. The EIA
recommends planting trees and landscaping along the roads. The landscaping will beautify the
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road and protect it from soil erosion. To reduce maintenance, the trees and bush species that
naturally grow in the project area are recommended for plantations (Juglans regia, Populus
nigra, Quercus iberica, Crataegus kyrtostyla, Spiraea hyperiafolia, Rosa canina, Jasminum
fructicans, Corylus avellana).
44.
Water. The project road crosses nine major rivers and several small streams, and could
affect the surface runoff flow pattern. All drainage works are designed based on historical flood
data and flood forecasting. Design discharges for all the rivers are prepared for return periods of
50, 100, and 200 years. The design of drainage facilities considered soil protection measures in
addition to water resources management. A design discharge for a return period of 50 years is
considered for culverts and 100 years for bridges. The Project will construct 18 major bridges
with lengths ranging from 12 to 600 m, and 7 small 12 m bridges. In terms of water quality, the
Project will increase the silt load during construction at bridge sites. Embankments and
construction materials (fill, sand, and gravel) are subject to washout with rainwater.
Hydrocarbon leakage and spills could occur from storage and mixing plants, discharge of
sewerage from work camps to water resources, or percolation through seepage and
contamination of the local water table.
45.
To mitigate this, (i) small drainage structures are proposed in the engineering design to
divert water flow near the bridge sites, i.e., for road sections across streams, soil and stones will
be disposed of properly so that they do not block the rivers and streams; (ii) open surfaces will
be covered by grasses and creepers to reduce material that can be washed away;
(iii) hydrocarbons will be stored in secure, impermeable, and bounded compounds away from
surface waters; and all contaminated soil will be properly handled (as a minimum, these areas
will be contained such that any spills can be immediately contained and cleaned up; any
petroleum products used in the preparation of bitumen mixes must be carefully managed to
avoid spills and contamination of the local water table; (iv) construction and work sites will be
equipped with sanitary latrines that do not pollute surface waters, and contractors will submit a
simple sewage management plan; (v) cofferdams, silt fences, sediment barriers, or other
devices will be included in the design to prevent migration of silt during excavation and boring
operations within streams (dewatering and cleaning of cofferdams will be performed to prevent
siltation by pumping from cofferdams to a settling basin or a containment unit); (vi) discharge of
sediment-laden construction water (e.g., from areas containing dredged spoil) directly into
surface watercourses will be forbidden (sediment laden construction water will be discharged
into settling lagoons or tanks prior to final discharge); and (vii) drainage systems will be
periodically cleared to ensure adequate storm-water flow.
46.
Water for construction activities is available from three rivers: the Choloki (km 3.80),
Kintrishi (km 15.00), and Chaqvistskali (km 26.10). Water quality of these rivers is suitable for
drinking and construction. Quarterly water quality monitoring will be undertaken during
construction at each major bridge site to assess the impact of bridge construction on water
quality and implementation of necessary mitigation measures.
47.
Air Quality. During construction, air quality is likely to be degraded by exhaust
emissions from the operation of construction machinery; fugitive emissions from asphalt plants;
and dust generated from haul roads, unpaved roads, exposed soil, and material stock piles. The
dust will settle on trees and crops, and may cause some degree of respiratory stress for nearby
residents. To mitigate these, the following will be implemented: (i) Construction equipment will
be maintained to a good standard and idling of engines will be discouraged. Machinery causing
excessive pollution (e.g., visible smoke) will be banned from construction sites. (ii) The
contractor will submit a dust suppression program prior to construction. The plan will detail
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actions to be taken to minimize dust generation (e.g., spraying of roads with water, vegetation
cover in borrow sites), and will identify equipment to be used. (iii) Construction materials will be
stored away from residential areas and be properly covered. (iv) Asphalt plants will be located a
minimum of 500 m away from settlements, according to government Decree # 234n (Ministry of
Health and Social Welfare of Georgia, 6 Oct 2003), to avoid direct impact of emissions on local
settlements. This decree also specifies that the concrete production plants are to be located
more than 300 m and borrow sites more than 100 m from settlements. The construction and
road machinery used during construction will comply with national environmental requirements
for emission and noise pollution.
48.
The project road is planned in a completely new alignment with only background
concentration. During road operation, emission of particulates matter, hydrocarbon, carbon
monoxide, nitrogen oxides, and sulfur dioxide from diesel and gasoline engines on the highway
will increase. The air quality in tunnel sections will deteriorate. However, all tunnels will have
limited access and prevent the entrance of pedestrians. The annual emissions along the project
roads are estimated for 2010, 2014, 2025, and 2033 for both with- and without-project
scenarios. Pollutant concentration along the bypass roads will be localized and not pose any
threat to the population. Project implementation should reduce emissions along the existing
road considerably.
49.
Noise and Vibration. During construction, the main potential impact from noise on
residential areas will be temporary: noise will emanate from maintenance workshops and the
operation of earthmoving equipment. Operation of heavy machinery and rock-blasting activities
can generate significant noise and vibrations. Health centers, schools, and prayer halls are
sensitive receptors; and residential areas, in general, are the major receptors in the project
corridor. Strong vibrations resulting from compaction equipment and rock blasting can damage
nearby houses and other structures. To prevent noise and vibration, these operations will be
restricted between 0600 to 2100 hours within 150 m of settlements and 500 m from sensitive
receptors (hospitals and schools).
50.
During operation, noise along the project roads will increase due to higher traffic volume.
Noise along the project road is predicted using the Federal Highway Administration Traffic Noise
Model (FHWA TNM 2.5). Noise quality data exceeds standards in the flat terrain. To mitigate
noise pollution in residential areas, 341 m of noise barriers are incorporated in the project
design from km 8 to 22.
51.
Quarry Sites. Existing quarry sites in Chaqvistskali and Choroki rivers will be used to
procure construction material. Generally quarry sites are major sources of environmental impact
due to dust and noise pollution, loss of biodiversity, and generation of spills. The operating
procedure for borrow pits will consider the following principles: (i) maximize the amount of fill
that can be effectively used from the pit, (ii) minimize erosion and sedimentation, (iii) preserve
water quality of the rivers, (iv) protect air quality during excavation, (v) prevent wildlife from
falling into the pit, and (vi) reinstate the site after construction.
52.
The mitigation plan to be followed by the contractor at the borrow sites includes (i) use
only existing borrow areas approved by the environmental authority for the Project; (ii) ensure
pit management (including restoration if it follows the completion of certain works) fully complies
with all applicable environmental standards and specifications; (iii) conduct excavation and
restoration of borrow areas and their surroundings in an environmentally sound manner to the
satisfaction of MOEPNR and the Roads Department; and (iv) grade borrow pit areas to ensure
drainage and visual uniformity or to create permanent tanks and/or dams. Additional borrow
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pits, if necessary, will not be opened before restoration of areas no longer in use, and without
the approval of MOEPNR. Topsoil from the opening of borrow pits will be saved and reused to
revegetate the pits to the satisfaction of MOEPNR. At the gravel extraction sites (quarries), the
proposed mitigation plan is to (i) use resources already being exploited to prevent proliferation
of extraction sites, and make control and reinstatement more manageable; (ii) if new gravel
extraction sites must be opened, conduct investigations to identify possible fossil deposits at a
distance from active river beds; (iii) when extraction is approved from gravel bars along existing
riverbanks on the inside margins of meander curves, do not remove gravel from within 2 m of
the upper water level at the time of extraction (to protect the currently active river channel); and
(iv) when extraction is in areas with less sensitive, shallower river flows, consider permitting
removal of gravel to the level of the existing riverbed. The existing valley grade will be
maintained and the operating area should be protected by a low 1–2 m gravel bank.
53.
Flora and Fauna. Construction and operation of the Project will have only a
minimal effect on existing flora and fauna. Flora degradation is expected to occur marginally as
a result of road construction. The work will directly cause minor degradation of the local ecology
through the clearance of areas of vegetation (ground cover) at major work sites and ancillary
sites. During construction, a short-term impact on ecology along the road is likely to occur in and
around the quarry sites, material stockpiling areas, and worksites due to vegetation clearance. A
permanent but relatively minor impact on ecology is likely to occur due to the alignment of any
unstable section. Vegetative cover stripped from these locations will be kept for landslide and
slope protection. Contractors will be responsible for putting new vegetation in removal sites.
Construction vehicles should use temporary roads constructed to minimize damage to
agricultural land and local access roads. Where local roads are used, they will be repaired to
their original condition after the completion of work. Compaction around trees will be performed
carefully to avoid damage to the tree drip-line.
54.
Potential impacts from construction worker camps include poaching of edible animals
and birds in the locality, despite prohibitions. The contractors’ environmental health and safety
manager will be responsible for providing adequate knowledge to workers regarding the
protection of fauna. Workers will be trained regarding nature protection and the need to avoid
cutting down trees during construction. Contractors will be responsible for supplying appropriate
fuel in the work camps to prevent fuelwood collection.
55.
Fish, Fisheries, and Aquatic Biology. The main potential impacts on aquatic flora and
fauna in the watercourses are increased suspended solids from earthworks erosion, bridge
construction and quarry site operations, sanitary discharge from work camps, and hydrocarbon
spills. The management plan proposed for impacts on water resources and quarry sites will also
mitigate this problem.
56.
Protected Areas and Sensitive Environmental Receptors. The only protected area
located in the project area is Ispani Mire (para. 20). The consultant had discussions with the
management authority about the boundaries of the nature reserve and the impact of the project
road on the protected area. Based on the consultations, the management authority revised the
boundaries of the protected areas to include buffer zones to avoid any development in the buffer
zone. The project road does not pass through the buffer zone and will not have any impact on
the protected area. During construction, measures will be taken to restrict encroachment into
protected areas, such as (i) no construction camp will be located from km 6 to 14 in the
protected area section of the road; (ii) asphalt and mixing plants will be set up outside the
protected area section and transport the material to overlay the pavement in the protected
section; (iii) solid waste will be strictly managed in the nature reserve, (iv) a roadside fence will
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be built for the protected area section; and (v) road signs, an awareness display board, and
bylaws will be developed to explain and deal with violations and encroachments.
57.
Social Impacts. Road improvement under the Project requires considerable land
acquisition and resettlement. A resettlement and compensation framework was prepared for the
Project. Campsites for construction workers have significant impacts, such as health and safety
hazards on local resources and infrastructure of nearby communities. This may lead to
antagonism between residents and workers. To prevent such problems, the contractor will
provide temporary worksite facilities such as health care, eating space, and praying places. In
addition, a mechanism will be established to allow local residents to raise grievances arising
from the construction process. The use of local labor during construction will increase benefits
to the local community and resolve such conflicts. The construction sites may impact public
health through the spread of malaria, HIV/AIDs, and other sexually transmitted diseases.
Mitigation measures include creating a good environment at work sites and educating
construction workers. Awareness campaigns for the education of road users on the importance
of the culturally sensitive sites normally help with their preservation. Improved road signage and
awareness display boards will be placed at sensitive religious sites: the cemetery and churches
located along the project roads. These will alert construction workers and road users. During
construction, extreme precautions will be taken to ensure that cemetery and sensitive religious
places are protected and respected. Contractors should consult with local residents during civil
works close to these sites.
VI.
ECONOMIC ASSESSMENT
58.
Environmental mitigation and monitoring costs for the project area estimated at
$6,364,875. The main environmental mitigation costs will be associated with activities, such as
landslides, soil erosion, noise, rockfalls, stripping of topsoil, and plantation and ecosystem
disturbance. The budget includes environmental management and monitoring during
construction and operation. Capacity-building programs are proposed to strengthen the
environmental monitoring capabilities of the implementing agencies. The environmental costs
will be included in the economic analysis to estimate the economic internal rate of return. The
economic assessment of the Project is under way.
59.
The economic benefits of the Project are expected to include
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
VII.
reduced traffic loads on existing roads that lack sufficient capacity (e.g., traffic
jams, noise, low speed, higher emissions, accidents);
decreased vehicle operating cost and travel time costs due to improved road
facilities, and shorter route between Poti and Sarpi;
improved tourist infrastructure and facilities;
improved air and noise quality in Kobuleti and Batumi as a result of fewer traffic
jams due to construction of bypass roads;
reduced soil erosion and landslides due to slope stabilization measures;
improved commercial activity in the project area resulting in economic uplift of the
people of the project area; and
improved access of rural residents to the markets in Kobuleti and Batumi
ENVIRONMENTAL MANAGEMENT PLAN
60.
An Environmental Management Plan and Environmental Monitoiring Plan were prepared
to address all the anticipated impacts of the Project and are presented in Annexes A and B of
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Environmental Impact Assesment Report. Locations of the impacts, mitigation measures, costs,
institute responsible, and monitoring measures are listed. The following institutes are
responsible for implementing and monitoring the mitigation measures:
(i)
(ii)
(iii)
(iv)
The Ministry of Regional Development and Infrastructure is responsible for
planning, constructing, operating, and maintaining regional, national, and
provincial infrastructure in Georgia; the Roads Department is responsible for
overall management of roads. The Project Management Unit of the Roads
Department will be in charge of project management to ensure that the contract
provisions are properly maintained.
The Roads Department and its regional authorities will undertake routine and
random monitoring of specific EMPs addressed in this EIA.
The supervision consultants under the Roads Department are responsible for
environmental monitoring and management of project implementation, and for
helping ensure implementation of environmental management practices at each
stage of construction.
MOEPNR will be consulted if complicated issues arise during construction and
operation stages.
61.
Implementation of mitigation measures presented in the EMP and monitoring plan during
construction will be the responsibility of the contractor. The representative of the Roads
Department and environmental specialists of the supervision consultants will supervise the
monitoring of implementation of mitigation and monitoring measures during construction. The
national environment specialist will coordinate with the international environment specialist to
resolve complicated issues that arise in the field and provide continuously updated information
for reports to be submitted to the Roads Department and ADB.
62.
The Roads Department has limited experience, resources, and equipment for
environmental, social, and resettlement management and monitoring. It will have difficulty
efficiently supervising monitoring of the environmental and social safeguard parameters.
National and regional officials of the Roads Department require environmental and social
management training to increase their understanding of road-related environmental issues,
implementation of mitigation measures, and subsequent monitoring and capacity building.
Training for the officials is crucial for proper environmental, social, and resettlement monitoring
addressed in the EIA. Environmental, social, and resettlement training will be provided to Roads
Department officials (a small unit comprising one environment specialist and one land asset
assessor exists in the Roads Department). In addition, the supervision consultants in
association with the contractor’s environmental, health, and safety manager will provided handson training for the contractor at the construction site. The objectives of this training program are
(i) to help build the capacity and procedures of the Roads Department to undertake analyses of
environmental, social, and resettlement impacts of road construction projects including
incorporation of environmental, social, and resettlement factors in engineering design and
preparation of environmental, social, and resettlement impact management plans in accordance
with Government regulations and development partner guidelines; and (ii) to provide training on
environmental, social, and resettlement management to the Roads Department and regional
road maintenance offices.
63.
A budget of approximately $6,364,875 is allocated for implementing the environmental
monitoring program and mitigation measures provided in the EIA. The proposed environmental
mitigation cost is $4,495,275; it is included as a civil works package. The environmental
management budget under the Roads Department during construction and operation is
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$832,000. In addition, a budget of $119,800 is provided for a road safety campaign,
procurement of office equipment for the environmental and resettlement unit of the Roads
Department, and environmental and social management training. The total budget is divided
into $4,508,000 for the first tranche and $1,856,875 for the second tranche. The Roads
Department will retain a recognized organization for environmental monitoring and ensure that
the road is monitored regularly for the first 3 years of its operation.
64.
During project implementation, the supervision consultants in cooperation with the
Roads Department and MOEPNR will be required to
(i)
develop an environmental auditing protocol for use during construction, and
formulate a detailed monitoring and management plan; and
(ii)
regularly supervise the environmental monitoring, and submit quarterly reports
based on the monitoring data and laboratory analysis report.
The contractor will be responsible for subcontracting data collection of environmental monitoring
to a recognized organization. The cost for this monitoring is included in the environmental
mitigation budget.
65.
The Roads Department will submit the following environmental reporting documentation
to ADB:
(i)
Baseline monitoring report. The report, to be submitted to ADB prior to
commencement of civil works, will include a detailed environmental management
and monitoring plan (including data collection locations, parameters, and
frequency), baseline environmental data, relevant standards, and data collection
responsibilities.
(ii)
Environmental monitoring reports. The reports will include environmental
mitigation measures and monitoring activities undertaken, details of monitoring
data collected, analysis of monitoring results, recommended mitigation
measures, environmental training conducted, and environmental regulatory
violations. The environmental monitoring reports will be submitted to ADB
quarterly during construction and quarterly for 3 years after completion of
construction.
(iii)
Project completion environmental monitoring report. Three years after
completion of construction, the Roads Department will submit a project
completion environmental monitoring report to ADB summarizing the overall
environmental impacts of the Project.
VIII.
PUBLIC INVOLVEMENT AND DISCLOSURE
66.
The EIA process included stakeholder and public participation and consultation to help
the Roads Department achieve public acceptance of the Project. Two types of consultations
were conducted: (i) stakeholder consultation and (ii) public consultation. Stakeholder
consultations are performed mainly with selected individuals and organizations with professional
national and provincial expertise in the EIA process. The stakeholder consultations were held in
Tbilisi and Batumi in March and April 2009. The public consultations are conducted with various
stakeholders including representatives of the affected community. The consultation involved a
wide range of participants representing affected people, community leaders, civil society,
nongovernment organizations, environment professionals, and central and regional government
officials. The first public consultation was held in Batumi on 28 April 2009; the second is
scheduled for 26 June 2009. The results of the first consultation were positive; participants
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considered that the bypass roads would bring significant economic benefits to the region and
recommended taking cautious measures to preserve the protected nature reserve.
65.
Stakeholder consultations conducted in Tbilisi and Batumi at the early stage of the PPTA
involved professionals and government officials responsible for reviewing the EIA and taking
decisions on construction and environmental impact permits. The objective was to share
information about the Project and obtain feedback on important environmental components that
would be considered in the EIA process. During the consultations, the consultant presented the
scope of the EIA study, discussed potential environmental and social impacts, collected
available secondary data and information on environmental parameters, identified the
parameters for a baseline environmental monitoring survey, and discussed the regulatory
requirements for environmental permits and public consultations.
66.
The public consultation organized in Batumi on 28 April 2009 involved about 50 people
mostly from project-affected areas. Key representatives of the affected communities discussed
the project issues with the relevant specialists and government authorities, expressed their
concerns for the environmental and social impacts in their community associated with the
bypass roads, and recommended mitigation measures. The specialists obtained a better
understanding of the environmental concerns of these communities and established contacts for
collecting information relevant to the Project during implementation. The meetings were planned
as open meetings and key informal representatives of the communities, nongovernment
organizations, and provincial and rayon (district) officials were invited to attend.
67.
Recommendations from the consultations are incorporated in the engineering design of
the Project (e.g., construction of retaining structures and drainage structures, avoiding
construction close to the Kobuleti nature reserve, and development of a proper compensation
plan for the affected community). No major concerns were raised during these consultations
except the issues for proper drainage, construction quality, proper engineering practices during
construction, and transparency in construction work. The first public consultation was widely
covered by the electronic and print media. Staff of the Ajara television station and newspaper
interviewed the chairman of the Ajara Autonomous Region, Roads Department staff, and the
consultant. Project details were broadcast during the day and prime time news schedule.
68.
The EIA, in both English and Georgian, documenting the mitigation measures and
consultation process will be made available for public review. The SEIA will be published on the
ADB website and the full EIA will be available upon request from ADB as well as from the
Roads Department. The affected residents and local communities expressed support for the
Project during the consultations as they clearly see the benefits to the community as well as the
region. Consultations and public disclosure of information should continue during project
implementation through (i) preparing and disseminating a brochure in Georgian explaining the
entitlements of those affected; and the procedures for obtaining compensation for temporary
disturbances, trees, crops, and land for construction sites, and recording grievances; and
(ii) setting up a formal grievance redress committee with representation from the affected
people. The supervision consultant in association with the contractor will be responsible for
managing the effective grievance redress program.
IX.
CONCLUSIONS
69.
The EIA identifies negative and positive impacts due to construction activities and
normal operations of the bypass roads. Recommendations are made to mitigate expected
Engconsult Ltd.
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negative environmental impacts with adequate funds provided to cover environmental
monitoring and mitigation cost.
70.
The major positive impacts of the Project will be less air pollution and dust, less
congestion, improved traffic safety along the existing road, and better accessibility. Additional
positive impacts are increased economic growth in the region, substantial income and
employment opportunities, improved living conditions, reduced poverty, and better access to
village produce.
71.
Potential negative impacts are road safety, landslides, soil erosion, rockfalls, increased
air emission and noise, dumping of construction spoils into the rivers and unauthorized sites,
impacts on quarries and borrow sites, impacts on the habitats of the nature reserve, and
significant land acquisition.
72.
Road safety will be improved by stabilizing unstable batters and installing road safety
barriers including proper traffic engineering signs and display boards. Soil erosion and rockfalls
will be minimized after project completion. Landslides, critical side slopes, and unstable batters
will be protected by retaining structures and rockfall fences. The contractor will prepare a spoil
management plan and submit it to the Roads Department for approval. Quarries and borrow
materials will be collected from the preapproved sites and be properly restored after the
extraction of materials. The bypass road has been realigned to a safe distance from the buffer
zone to avoid any potential disturbances to the habitats of the nature reserve. In addition, strict
measures are recommended in the EMP to restrict encroachment on the nature reserve. A land
acquisition and resettlement framework is being developed to compensate the affected
population.
73.
The environmental management and monitoring program developed for both temporary
and permanent works covers preconstruction, construction, and operation stages with an
estimated cost of $6,364,875. Implementation of an appropriate EMP and mitigation measures
during various phases will minimize the negative impacts of the Project to acceptable levels. To
ensure that these plans and mitigation measures are implemented and negative impacts
avoided, the EMP will be included in the contract documents of the Project with a separate line
item for environmental management in the bills of quantities. The residual impact on the
environment will be minor and in some cases positive where erosion has been active along the
existing tunnel portal and henceforth will be controlled. The cost of the retaining structure and
other protective measures for slope stability is included in the engineering design.
74.
Environmental and social management training of Roads Department officials at different
stages in the project cycle is required to enable them to carry out environmental, social, and
resettlement monitoring and implementation of the EMP. Environmental, social, and
resettlement training will require the input of 2 person-months of international and 4 personmonths of national specialists with an estimated cost of about $69,800.
75.
The Project will have overall beneficial impact as well as some negative impacts that will
be carefully monitored and adequately mitigated. Therefore, the completion of this EIA fully
meets ADB requirements and no further environmental study is required for this Project.
However, an updated EIA and EMP will be produced based on the detailed engineering design,
and cover the impacts of temporary work activities during the detailed design stage in early
2010. An environmental impact permit must be obtained at that time to comply with MOENPR
guidelines.
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Appendix 21
CUMULATIVE IMPACT ASSESSMENT
A.
Introduction
1.
In the context of this project, Cumulative Impact Assessment (CIA) or Cumulative Effects
Assessment (CEA) involves the examination of “the impact on the environment which results
from the incremental effects of action when added to other past, present, and reasonably
foreseeable future actions [taking place in a defined area] stemming from projects, regardless of
what agency or person undertakes such other actions” (US National Council on Environmental
Quality 1997).
B.
Sources of Cumulative Impacts
2.
The sources of cumulative impacts are implementation of ongoing or future development
projects that will affect the physical, ecological and social resources in the Project areas,
Various ongoing and proposed development activities near the project areas are obtained from
the ‘regional economic development master plan of Adjara’ for 2007 to 2011. The major planned
projects according to this master plan are:
i.
Improving tourism infrastructure
(i) Rehabilitation and construction of water supply and sewerage system
(ii) Construction of tourist objects
(iii) Care and importance of historic and cultural monuments
ii.
Coastal strip protection works
(i) Coast protection works of River Cholokhi
(ii) Protecting Kobuleti coastal strip
iii.
Repair of Roads
(i) Rehabilitation of retaining walls, gabions, bridges and forest roads
iv.
In addition to the above projects, specific projects targeted near Batumi are
(i) Tourism development - entertainment managements, organizing sporting events,
new entertainment clubs
(ii) Cleaning and developing beaches
(iii) Arranging sewerage and gutter systems
(iv) Illuminating the city
v.
Projects near Kobuleti are
(i) Setting up of agricultural processing industry equipped with advanced technology
(ii) Rehabilitation of roads and sewerage
3.
The Project 1 of MFF is a part of the road upgrading of Poti to Sarpi, a 81 km
international road and is one of the sections of the Transport Corridor Europe-Caucasus-Asia
(TRACECA). The rehabilitation of 35-kilometre long road section from Poti to the river Choloki
(the start of Project 1) has been carried out in the last five years, the construction of Poti bypass
has been completed and new bridges have been constructed across the Kaparcha and the
Choloki Rivers. The section of road from Choloki Bridge to Sarpi is the subject of the Project 1.
Project 1 will construct bypass roads to Kobuleti and Batumi and widen 6 km of the existing
road.
C.
Assessment of Cumulative Impacts
4.
According to World Bank’s Roads and Environment Handbook, CIA is founded on
identifying broad and overarching effects that are generated by many actions (projects) affecting
specific components of the biophysical and/or social/human environment, referred to as Valued
Ecosystem Components (VECs).The cumulative effects of the Project 1 are evaluated by (i)
compiling a list of activities that are part of the proposed project; (ii) defining the changes
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(impacts) that will occur using indicators that are known to be sensitive to the project activities;
and (iii) estimating the effects that the project actions will have on in each of the VEC; within a
pre-defined temporal and spatial boundary.
5.
The methodology followed in CIA is: identification of possible potential VECs through an
evaluation of the threat to each VEC was made based on the technical knowledge of the
Consultant and an assessment of six impact attributes of each potential effect on each VEC.
These attributes were impact direction (negative, positive or neutral), geographic extent,
duration, frequency, magnitude and significance. Each VEC is assessed for three scenarios: (i)
existing conditions; (ii) future conditions without the Project; and (iii) future conditions with the
Project. While assessing future conditions with the Project, construction impacts during
implementation of the Project were not considered as they were addressed in EIA and an
environmental management and mitigation plan was already developed to mitigate those
impacts.
1. VEC 1: Air Quality and Dust
6.
Existing Condition: Air quality along the existing highway exceeds the national
standards. Major sources of pollution are vehicles. Available data with Ministry of Environmental
Protection and Natural Resources indicates that mobile sources are responsible for an
increasing share to total emissions from about 70% in 1991 to 91% in 2001.1 Vehicles contribute
31% of dust, 37% of SO2, 98% of CO, and 82% of NH4. Transport is also contributing an
increasing share of the CO2 from 11% to 35% in 1990-1997. The reasons for high vehicle
pollution are: majority of the vehicles in Georgia today are 15 to 20 years old representing poor
condition of the vehicles, poor quality of the fuels (only few laboratories exist to test the fuel
quality with insufficient equipment, and the analysis is according to 1970s Soviet standards
and), and poor traffic management. Georgia phased out leaded gasoline in 2000. The maximum
allowable sulfur content in diesel and petrol are 350ppm and 500ppm in imported fuel. Gradual
move to 50 ppm in petrol by 2011 and 50 ppm in diesel by 2010 has been planned. Georgia is
planning to introduce new sulfur standard for gasoline ‐ 250ppm from 2009 and 150ppm from
2010.2
7.
Future Condition without the Project: One would hope that with improved pollution
control devices on vehicles, better refined fuels, reduced sulphur content in diesel fuel and legal
requirements for catalytic converters, the air quality along the road corridor will as a minimum
stay the same, but hopefully improve. Confounding this conclusion however will be the issue of
vehicle congestion due the lack of improved roads. Future conditions without bypass or
upgraded roads will mean that the roads which are already near design capacity will experience
increased traffic congestion, and air pollution will rise due the excessive acceleration and
deceleration cycles. The development of any new industries requiring road transport, the use of
cars and trucks could quickly cause sections of the road corridor to exceed the design limits,
requiring the use of more fossil fuels, thereby exhausting more pollutants into the air.
8.
Future Condition with the Project: The air quality in the Kobuleti and Batumi towns will
be improved due to diversion of traffic to the newly constructed bypass roads thus minimizing
traffic slowdowns and moving traffic around congested urban areas. No new heavy industries
are expected in this areas that cause severe air pollution.
2. VEC 2: Noise Environment
9.
Existing Condition: Estimated noise levels within 25m along the existing roads are
nearly 70 dB thus have already exceeded the national standard of 60dB. Noise above 60dBA at
1
2
http://www.thepep.org/en/workplan/urban/documents/GeorgiaEnvt.pdf
http://www.unep.org/pcfv/PDF/Matrix%20CEE_FuelsFeb_2009.pdf
Engconsult Ltd.
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night is annoying and will result in sleep deprivation among residents, even 100m away from the
roadside. The background noise levels in the undeveloped and undisturbed areas of the project
areas are 30 dB.
10.
Future Condition without the Project: The noise levels will continue to increase due to
increased traffic. This may require landuse controls to keep sensitive activities such as schools,
recreation areas, etc. out of these corridors. There will another possible scenario with a donothing option - the average speed of the traffic will slow down, thereby reducing the overall
noise environment, unless of course there will be a large increase in the use of horns, from
drivers frustrated at the slow pace.
11.
Future Condition with the Project: Assuming that vehicle operating patterns remain
more or less the same, e.g. the use of car horns is at a low-level, improved roads leading to
higher traffic speeds will have a negative noise impact, since higher average speed generally
means greater noise levels. This however will be mitigated due to the greatly improved road
surface (roughness), this being an important contributor to traffic noise; and the steadily
improving vehicle fleet condition and age. Secondly new roads will insure that grades are low
enough to permit vehicles and trucks to move without having to use lower and noisier gears,
further mitigating operating period noise. Further the new roads will include noise barriers
wherever the predicted noise levels exceeds the standards.
3. VEC 3: Stabile and Roadside Communities
12.
Existing Condition: The existing roadside communities from one half to three km
from the edge of pavement are only marginally negatively affected by the existing road
corridor; mostly in relation to occasional road safety, noise and air pollution issues, and
accidents which require use of local emergency services. In fact the road provides a vital link to
outside services and markets by facilitating travel, the transport of goods and provision of
services. The economies of these communities have come to depend on the roads which
generate the demand for services, food and fuel by car, truck and bus operators/users. The
influx of temporary construction jobs should only serve to maintain and enhance a community’s
prosperity.
13.
Future Condition without the Project: In the absence of major developments along
the roads, the change in the future will be a steady growth in traffic, generally maintaining a
balance between the supply of traffic and the demand for services. In terms of physical safety,
the do-nothing scenario will mean more congested slower moving traffic, therefore fewer really
serious accidents, but likely more minor accidents. The congestion could lead to health
problems, as air pollution grows with the frequency of traffic slow-downs.
14.
Future Condition with the Project: Road construction through new alignment requires
considerable land acquisition and resettlement of affected people. Highway related business
along the existing road will be affected due to diversion of traffic to the bypass roads. The
projects will lead to better quality roads and shorter travel times to and from markets and
services, and improve the economy of the area. Tourism, the major source of economy in the
project area will improved due to improvement of quality of life in the decongested cities.
4. VEC 4: Landscape Integrity
15.
Existing Condition: Landscape integrity refers to the maintenance of the visual field on
either side of the road free of unsightly hill cuts and piles of stored excess excavation materials.
At present, at some of the hill sections, especially near Makhinjauri, there are unprotected side
slopes picturing scar in the landscape view. Further, most of the hill sections near Batumi are
highly susceptible to soil erosion, landslides and mudslides due to steep slopes, poor geological
conditions, higher sand content of surface soils and active geodynamic process. Generally the
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road in these hilly sections generally provides many breathtaking views and represents an
important tourist attraction.
16.
Future Condition without the Project: Unless major new road construction takes
place, there will be no improvement in landslide protection and control of soil erosion. The
government with its limited budget cannot take up any major activities unless there will some
donor funding. There is a possibility of uncontrolled in-migration along the roadsides, particularly
near the towns providing obstructions to picturesque vistas.
17.
Future Condition with the Project: The Project will establish new and attractive
roadside corridors, ripe for settlement. Landuse planning and control is required to develop the
areas near road sides. Landuse zoning enforcement permits the development of settlements
and businesses along the road, degrading roadside areas likely eliminating any existing tree
stands, polluting local water courses, creating congestion, as well as endangering the health of
these ‘settlers’.
5. VEC 5: Vegetation and Trees
18.
Existing Condition: Given that the project area is in the arable lands, there are no
natural forest lands along any of the road corridors, but instead, contains natural vegetation for
long stretches very old Pines and Eucalyptus.
19.
Future Condition without the Project: Future losses of forested areas may continue
as trees are cleared for residential and tourism development and the roadside commerce grows
as the country’s population increases. Government’s ongoing tree replanting program and
development of plantation forests will improve the vegetation in the project areas .
20.
Future Condition with the Project: No road-related operating period impacts are
predicted. In fact trees will be planted along the new road sections as well as along the
upgraded roads.
6. VEC 6: Kolheti Wetlands and its Flyways
21.
Existing Condition: Kolheti wetlands, along the Poti – Saripi Highway, lies along one of
the main routes of migration of water-fowl and waders of Africa and Eurasia. Over 194 different
bird species are found within the wetland regions including 21 species of migratory birds. Large
migrating flocks can be seen in the fields beside the road from spring through early summer and
again in the fall. While the main known resting and staging areas are further to the North and
West of the roads, some flocks do land in the areas close to the road to feed and rest along the
small wetlands and in the cultivated fields. These are not in danger of being filled or drained.
22.
Future Condition without the Project: As the human population density along the
corridor increases, due to new employment opportunities, the habitat will gradually deteriorate.
Only conservation efforts by the national and provincial governments, protecting known resting
sites, will prevent further loss of this habitat and in turn the bird populations.
23.
Future Condition with the Project: The project roads will not pass through any
wetlands and known bird resting areas, and hence no impact on these wetlands.
7. VEC 7: Surface Water Quality
24.
Existing Condition: The water quality of the existing rivers is good except high turbidity
levels in a few rivers due to soil erosion in the upstream areas. However several possible
sources of pollution exist in the project areas, such as irrigation return flows, and sewerages
from the municipal and industrial areas.
25.
Future Condition without the Project: A future do-nothing scenario will likely have a
negative impact on surface water quality since at present no storm water management exists
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near the project roads and as such when it rains runoff is directed straight into local streams. In
the case of bridges some have actual holes in the deck permitting water to flow off the bridge
into any receiving water. This permits all pollutants, including oils and metals in the rainwater
and snow melt to discharge into receiving waters without being detained or diverted which
would allow for percolation into surrounding soils. As traffic grows over the next decade this
condition will worsen significantly.
26.
Future Condition with the Project: Impact on surface water quality stemming from the
roads would be minor and result primarily from improperly maintained stormwater management
systems, which do not permit the storm runoff to be detained for a minimum of 12 hours before
discharging into a receiving stream.
D.
Summary of Cumulative Impacts
1.
Cumulative Impacts of Poti – Sarpi Highway
27.
The cumulative impact of constructing bypass roads to Kobuleti and Batumi in the
broader context of the Poti - Sarpi Highway Upgrading Program includes both positive and
negative impacts. These positive impacts include:
•
substantial reductions in travel time - by 2013, a travel time saving of approximately 40
minutes had been achieved through the completion of Project 1 and this would result a
cumulative time savings of about 80 minutes from Poti to Sarpi
• improvements in road safety resulting from the diversion of traffic from cities (Poti,
Kobuleti and Batumi) to bypass roads
• consequential improvements in travel efficiency for local and regional businesses
resulting from travel time savings
• Increased opportunities for tourism development based on improved accessibility of
coastal and nearby hilly resort areas.
28.
Overall, the negative impacts of the Project would primarily affect the natural
environment along the alignment, together with residents living close to the proposed alignment
and businesses with a high reliance on highway-related trade. The design of the Project and the
mitigation measures are intended to ameliorate the adverse environmental impacts on nearby
residents and the natural environment.
2.
Cumulative Impact with other projects or activities in the study area
29.
The developments that could be expected in the Project area are mostly tourism and
tourism related infrastructure. These proposed developments, though implemented in
conjunction with the present project would hardly have a cumulative impact on the environment.
3.
Cumulative Social Impacts
30.
The Project would result in noticeable improvements in the amenity of the townships of
Kobuleti and Batumi through the removal of large volumes of through traffic, including a
substantial proportion of heavy traffic, especially at night. In particular, this would result in:
•
•
•
•
•
reduced levels of traffic noise, with associated reductions in sleep disturbance at night
reduced levels of vehicle emissions
improvements in local accessibility through the removal of traffic congestion
improvements in local road safety
opportunities to undertake urban design improvements that would not otherwise be
possible with the presence of the existing highway in the centre of the township.
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161
31.
When combined, these changes would noticeably improve the amenity of houses and
community facilities fronting or near the existing highway. Residents located near the proposed
alignment would be affected, particularly by noise. However, mitigation measures are integrated
into Project design where the noise assessment has indicated that noise levels would exceed
the standards and to ensure that the new road fits appropriately into the local environment.
32.
A number of property owners would be affected by loss of all or part of their property to
accommodate the Project. However the cumulative impact would not be such as to adversely
affect the nature and supply of the housing stock in the study area or its overall demographic
structure or agricultural production at a regional level.
4.
Cumulative Impacts on Conservation Resources
33.
The Project would result in the loss of some native vegetation and, as a result, fauna
habitat. However, as discussed in EIA report, it is not considered likely that the Project would
significantly reduce the biodiversity in the locality or region. The impact on conservation
resources of the Project is acknowledged by the incorporation of extensive measures into the
design of the road which, individually and collectively, would mitigate particular and cumulative
impacts on native vegetation and fauna habitat. These measures, in particular the proposed
fencing along nature reserves, would reduce the road kill of native fauna..
5.
Cumulative Economic Impacts
34.
The extent of agricultural, forestry, fishing and other farming activities directly affected by
the Project is minor in local and regional terms. Therefore, the Project should not cause any
significant adjustments to these economic activities individually or collectively. The
enhancement in road conditions, safety, efficiency and reduced travel times are likely:
•
•
•
•
•
•
to enhance access to the region for local tourism
to increase opportunities for commerce, industry and tourism between Kobuleti and
Batumi, and other major centres
to attract further economic development to the cross-border trade
to increase the activity of the service industry
to improve fuel efficiency due to better horizontal and vertical road alignments
to increase accessibility to and within the region.
Engconsult Ltd.
FINAL REPORT
Asian Development Bank
Roads Department
Supplementary Appendix 1
Transport Trends and Economic Profile
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
i
Table of Contents
I. INTRODUCTION -------------------------------------------------------------------------------------------- 1 II. TRANSPORT TRENDS ----------------------------------------------------------------------------------- 2 A. Vehicle ownership --------------------------------------------------------------------------------------- 2 B. Demand for transport ----------------------------------------------------------------------------------- 2 III. ROAD DEVELOPMENT IN GEORGIA ------------------------------------------------------------- 4 A. Existing road network ----------------------------------------------------------------------------------- 4 B. The bypass and the regional transport system --------------------------------------------------- 5 IV. SOCIO-ECONOMIC FEATURES OF GEORGIA AND AJARA ------------------------------ 8 A. Georgia ----------------------------------------------------------------------------------------------------- 8 B. Ajara
. ------------------------------------------------------------------------------------------- 9 1. Economy ------------------------------------------------------------------------------------------------ 9 2. Access by train and bus --------------------------------------------------------------------------- 10 C. Sarpi and Batumi trade ---------------------------------------------------------------------------- 11 D. Growth and inflation forecasts ------------------------------------------------------------------- 12 List of Tables
Table 1: Registered vehicles in Georgia, 2000-8 ...................................................................... 2 Table 2: Regional car ownership ............................................................................................... 2 Table 3: Transport demand as tonne-km and passenger-km ................................................... 3 Table 4: Transport demand in tonnes and passengers ............................................................ 3 Table 5: Road development in Georgia and Ajara, 2000-2008 ................................................ 4 Table 6: Rehabilitation and lengths of new road, 2004-9 ......................................................... 5 Figure 1: Georgia’s trunk road network ..................................................................................... 6 Table 7: Trunk road network ...................................................................................................... 6 Table 8: Population and economy of Georgia, 2000-2008 ....................................................... 8 Table 9: Trade statistics – Georgia, 2004-2008 ........................................................................ 8 Table 10: Ajara visitors, 2005-8 ............................................................................................... 10 Table 11: Passenger train services to Batumi......................................................................... 10 Table 12: People crossing Georgia’s borders, 2007-8 ........................................................... 11 Table 13: Transit vehicles and vehicles crossing Sarpi border, 2007-8 ................................. 11 Table 14:Batumi and Poti ship calls, 2007-8 ........................................................................... 12 Table 15: Batumi rail freight traffic, 2004-8 ............................................................................. 12 Table 16: Georgia short term GDP growth forecasts .............................................................. 13 Table 17: GDP growth forecasts ............................................................................................. 13 Table 18: Inflation forecasts .................................................................................................... 13 List of Figures
Figure 1: Georgia’s trunk road network ..................................................................................... 6 Engconsult Ltd.
1
I.
INTRODUCTION
1.
This supplementary appendix is divided into several sections and is designed to give an
overview of the transport system and an economic profile of Georgia and Ajara.
2.
The purpose of this supplementary appendix is thus to:
•
•
•
•
summarize transport trends and the development of the road network
place the proposed bypass in the regional transport context
summarize Georgia’s and Ajara’s economies
estimate future GDP growth in order to support traffic forecasts
Engconsult Ltd.
2
II. TRANSPORT TRENDS
A.
Vehicle ownership
3.
Table 1 shows the growth in goods and passenger vehicles in Georgia from 2000 to
2008. The data quality is poor and there are discrepancies between data obtained from the
Ministry of Internal Affairs, data from the MED reproduced in the JICA Highway Improvement
Project report and data from the Transport Department. The reason for its poor quality is the
administration of vehicle registration: from 2005/6 annual licensing of vehicles ceased and was
replaced by a requirement to register only at a change of ownership.
4.
The table below is based on MED data to 2006, followed by Ministry of Internal Affairs
data for 2006-8.
Table 1: Registered vehicles in Georgia, 2000-8
Year
Car
Truck
2000
201,992
25,557
2001
225,992
29,260
2002
250,358
32,545
2003
276,225
36,909
2004
306,211
42,580
2005
342,047
48,912
2006
387,866
58,237
2007
426,864
49,588
2008
501,248
58,363
Average annual change, 2000-2008
Bus
Other
Total
18,159
22,703
26,487
29,867
32,460
35,101
38,549
39,169
41,684
4,482
4,993
5,479
6,127
6,752
7,552
8,891
8,699
12,002
250,190
282,948
314,869
349,128
388,003
433,612
493,543
524,320
613,297
Percent
change
13%
11%
11%
11%
12%
14%
6%
17%
12%
Source: MED and Ministry of Internal Affairs (from 2006)
5.
Vehicle ownership per 1,000 people has increased from 56 in 2000 to 140 in 2008 (cars
alone from 46 to 114) – faster than GDP per head (see section IV), as expected. Table 2 shows
that Georgia’s car ownership is broadly consistent with that of its neighbors, bearing in mind the
differences in GDP/head.
Table 2: Regional car ownership
Year
2004
2005
GDP/head, 2005, PPP
$
GDP/head, 2005, nom $
Georgia
71
79
3,570
Azerbaijan
53
57
4,648
Russia
159
Ukraine
107
11,861
5,583
1,427
1,604
5,341
1,829
Sources: (i) Table 1data, (ii) EECCA CSI 29 - Passenger Transport Demand and (iii) 2005 Purchasing Power Parity International
Comparison Program (World Bank et al, 2005).
B.
Demand for transport
6.
Tonne-km and passenger-km statistics, taken from the 2008 Statistical Yearbook for
Georgia, are reproduced in Table 3. As with vehicle ownership statistics, their quality is likely to
be poor – in this case because both intercity bus and freight markets are completely
deregulated. Even if their quality is poor, several features stand out. Rail carries around 90
percent of goods measured by tonne-km, but only 45 percent as tonnes. This is consistent with
rail’s role as the predominant carrier of bulk oil: the average trip length by rail is around 300km
(approximately the distance between Tbilisi and Poti). Table 3 and Table 4 data suggest that by
Engconsult Ltd.
3
road the average trip is approximately 20km, but this appears extremely unrealistic. The
apparent pattern with passenger traffic is similar: the average rail journey is 180km but by bus it
is 20km (with the same caveat as for goods traffic).
Table 3: Transport demand as tonne-km and passenger-km
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
Million tonne-km
Rail
Road
3,912 475
4,481 520
5,075 543
5,538 562
4,862 570
6,127 578
7,393 586
6,928 594
6,516 601
Maritime
612
74
148
92
70
69
131
120
45
Air
2.9
2.7
2.9
2.7
3.5
3.6
3.9
3.6
1.9
Total
5,002
5,077
5,769
6,195
5,505
6,778
8,114
7,646
7,164
Million passenger-km
Rail
Bus
Air
453
4,500
238
401
4,764
241
401
4,920
297
387
5,150
400
615
5,200
489
720
5,252
511
809
5,269
453
774
5,417
475
675
5,568
486
Total
5,197
5,406
5,618
5,938
6,304
6,482
6,531
6,665
6,729
Sources: (i) national statistics,
Note:
passenger-km data exclude journeys by urban transport (tram, trolley-bus and metro)
Table 4: Transport demand in tonnes and passengers
Year
2000
2001
2002
2003
2004
2005
2006
2007
Million tonnes
Rail
Road
11.5
18.5
13.2
20.0
15.0
22.5
16.6
24.5
15.4
25.7
19.0
27.0
22.6
27.3
22.2
27.6
Maritime
0.063
0.031
0.036
0.021
0.024
0.024
0.040
0.038
Air
0.0013
0.0012
0.0013
0.0013
0.0015
0.0016
0.0016
0.0011
Total
30.1
33.2
37.5
41.1
41.1
46.0
49.9
49.8
Million passengers
Rail
Bus
2.3
235.0
2.1
240.5
2.1
249.5
2.2
257.0
3.0
260.0
3.6
263.1
3.8
285.7
3.9
293.5
Sources: (i) national statistics,
Note:
passenger data exclude journeys by urban transport (tram, trolley-bus and metro)
Engconsult Ltd.
Air
0.1
0.1
0.1
0.2
0.2
0.3
0.2
0.2
Total
237.4
242.7
251.7
259.4
263.2
267.0
289.7
297.6
4
III. ROAD DEVELOPMENT IN GEORGIA
A.
Existing road network
7.
Table 5 shows the national and Ajaran network from 2000 to 2008. In terms of total
length and surface type there has been very little change over this period. The network of
international roads, i.e. those used by international transit traffic, has barely changed and
similarly the interstate network did not change until 2007. In 2007 the Roads Department lost
responsibility for local roads but 2,000km of what had hitherto been local roads were redesignated as interstate roads. 55km of the total network has four lanes.
8.
In Ajara the 48km shown as international road is the existing Kobuleti-Batumi-Sarpi road
and the 2km reduction in 2008 is the result of the realignment north of Makhinjauri.
9.
Roads Department carries out an annual condition survey. The proportion of
international roads that are classified as “good” (defined as IRI<4m/km) rose from 45 percent in
2004 to 66 percent in 2008. In the case of interstate roads the increase has been less
impressive: from 18 to 23 percent.
10.
Road network improvement is the result of investment in rehabilitation and periodic
maintenance rather than network extension. Lengths of road rehabilitated and new roads are
shown in Table 6.
Table 5: Road development in Georgia and Ajara, 2000-2008
InterInterstat
Local
national e
Georgia 2000
Paved 1,414
Gravel 60
Earth
Total 1,474
Georgia 2001
Paved 1,414
Gravel 60
Earth
Total 1,474
Georgia 2002
Paved 1,414
Gravel 60
Earth
Total 1,474
Georgia 2003
Paved 1,414
Gravel 60
Earth
Total 1,474
Georgia 2004
Paved 1,414
Gravel 60
Earth
Total 1,474
Total
2,328
867
131
3,326
4,411
9,968
1,183
15,562
8,153
10,895
1,314
20,362
2,328
867
131
3,326
4,284
9,967
1,178
15,429
8,026
10,894
1,309
20,229
2,529
655
82
3,326
4,284
9,967
1,178
15,429
8,287
10,682
1,260
20,229
2,459
743
124
3,326
4,101
10,223
1,123
15,447
7,974
10,223
1,123
20,247
2,358
911
57
3,326
4,039
10,264
1,144
15,447
7,811
11,235
1,201
20,247
Engconsult Ltd.
International
Interstat
Local
e
Ajara 2000
48
140
7
48
147
Ajara 2001
48
140
7
48
147
Ajara 2002
48
140
7
48
147
Ajara 2003
48
140
7
48
147
Ajara 2004
48
140
7
48
147
Sub-total
132
736
264
1,132
320
743
264
1,327
132
736
264
1,132
320
743
264
1,327
132
736
264
1,132
320
743
264
1,327
132
736
264
1,132
320
743
264
1,327
132
736
264
1,132
320
743
264
1,327
5
InterInterstat
Local
national e
Georgia 2005
Paved 1,432
Gravel 63
Earth
Total 1,495
Georgia 2006
Paved 1,432
Gravel 63
Earth
Total 1,495
Georgia 2007
Paved 1,442
Gravel 55
Earth
Total 1,497
Georgia 2008
Paved 1,440
Gravel 55
Earth
Total 1,495
Total
2,395
902
57
3,354
4,027
10,304
1,149
15,480
7,854
11,269
1,206
20,329
2,395
902
57
3,354
4,027
10,304
1,149
15,480
7,854
11,269
1,206
20,329
3,379
1,807
260
5,446
4,821
1,862
260
6,943
3,326
1,823
297
5,446
4,766
1,878
297
6,941
International
Interstat
Local
e
Ajara 2005
48
140
7
48
147
Ajara 2006
48
140
7
48
147
Ajara 2007
48
120
144
48
48
312
Ajara 2008
46
138
141
22
46
301
Sub-total
112
756
249
1,117
300
763
249
1,312
112
756
249
1,117
300
763
249
1,312
168
144
48
360
184
141
22
347
Source: Roads Department
Note:
(i) local roads became the responsibility of local government from the end of 2006
(ii) Ajara roads are included in the totals for Georgia
(iii) Georgia includes Abkhazia and South Ossetia
(iv) urban roads (city responsibility) are excluded
Table 6: Rehabilitation and lengths of new road, 2004-9
2004
Km new road
N/A
Km rehabilitateda 276
2005
2006
2007
2008
0.65
216
16.65
322
72.1
577
18.5
331
2009
(planned)
76.75
N/A
Source: Roads Department
Note:
(a) includes periodic maintenance
11.
The trunk road network is illustrated in Error! Reference source not found. and shown
in Table 7.
B. The bypass and the regional transport system
12.
Georgia is a key transport link on the most direct link between the Black Sea and the
Caspian. It is an important link for the transport of oil by rail and by pipeline from Azerbaijan to
Supsa and Batumi. But while rail has the highest modal share when measured by tonne-km,
road carries 55 percent of total tonnage. Passenger transport is dominated by bus traffic.
13.
The East-West Highway (road number S-1, E60 in the European network) is the
principal artery for long distance road traffic, being used by most traffic from Azerbaijan and
Armenia to the Black Sea ports and Turkey as well of course as long distance traffic to and from
Tbilisi. It carries 6-9,000 vehicles/day on its west-central section from Gori to Samtredia. At
Samtredia the traffic splits, with roughly half using the Senaki-Poti link (S-2) and half the link to
Kobuleti. The existing S-2 from Kobuleti to Sarpi carries an average of 7,000 vehicles/day. The
proportion of heavy vehicles is high: 11-19 percent around Gori and Khashuri, 10 percent
Engconsult Ltd.
6
between Batumi and Sarpi. Traffic in the S-1 and S-2 corridors grew by 20 percent a year from
2004 to 2007 (but with the Russian trade embargo and global recession has grown little since).
Gantiadi
Russia
Larsi
Zugdidi
Kulevi
Black Sea
Senaki
Kutaisi
Terjola Khashuri Gori
Samtredia
Poti
Batumi
Tbilisi Telavi
Bypass
Akhaltsikhe
Turkey
Railway
Railway – under construction
International airports
Vale
Kartsakhi
Lagodekhi
Tbilisi
Red bridge
Akhalkalaki
Sarpi
Trunk road network
Roki
Partskhisi
Ninotsminda
Guguti
Zhdanovi
Sadakhlo
Azerbaijan
Armenia
Figure 1: Georgia’s trunk road network
Table 7: Trunk road network
Road
Tbilisi-Senaki-Zugdidi (Abkhazia border)
Mtskheta-Stepantsminda-Larsi
(Georgian
Military
Highway)
Gori-Ergneti (S Ossetia border)
Tbilisi-Red Bridge (Tsiteli-Khidi) (Azerbaijan border)
Tbilisi-Bakurtsikhe-Lagodekhi (Azerbaijan border)
Marneuli-Sadakhlo (Armenian border)
Ponichala-Marneuli-Guguti (Armenian border)
Akhaltsikhe-Ninotsminda (Armenian border)
Khashuri-Vale (Turkish border)
Senaki-Poti-Sarpi (Turkish border)
Tbilisi bypass
Samtredia-Grigoleti (beach area N of Kobuleti)
Koda-Ninotsminda
Total
Numbera
S-1 (E60)
S-3 (E117)
Length, km
435
139
S-10
S-4
S-5
S-7
S-6
S-11
S-8
S-2 (E70)
S-9
S-12
No number
25
46
140
34
94
110
103
105
49
57
189
1,526
Source:
Transport Department
Note: (a) Georgian and, where applicable, European numbering system
14.
At present levels of traffic the S-1 is close to capacity over its central sections and recent
projects have sought to increase its capacity by means of bypasses, road widening and lane
addition.
15.
The S-2 is similarly close to capacity on its central section between Batumi and Kobuleti.
It is extremely congested during the busy summer period. Sarpi is the busiest border crossing in
Georgia (see section IV below) and Turkey is Georgia’s most important trading partner. Trade
(measured as imports plus exports) has grown faster than GDP, averaging 32 percent a year (in
nominal terms) from 2004 to 2008.
Engconsult Ltd.
7
16.
The S-2 is the E70 in the European network; it runs from A Coruña on the Atlantic coast
of NW Spain to Poti. Regionally, it follows the Black Sea coast west from Sarpi to the port of
Samsun. West of Samsun it connects to the E95 and the E80. The E80 connects Bulgaria,
Istanbul and Ankara to eastern Turkey and Iran – but not (see below) to Georgia, Armenia or
Azerbaijan.
17.
Thus, with the present pattern of trade and the available transport links in the central
Caucasus region, the bypass has a clear role, that of reducing the costs of trade with Georgia’s
major trading partners. It has other important benefits: it will reduce congestion and accidents in
Batumi and Kobuleti. High standard road access to Batumi will also encourage further
investment in and around Batumi.
18.
The regional role outlined above may be affected by several developments:
•
•
improvement of road links between Georgia and Turkey further east, in particular the
Samtskhe-Javakheti road project. The road itself will be complete by late 2010, but it is
less clear that border facilities will be in operation at the same time. Once completely
open, it will be part of a new and shorter route for traffic between Turkey and Tbilisi and
Azerbaijan – although as a low altitude alternative the E70 and S-2 will continue to
attract long distance traffic during the winter months
the re-opening of the Turkey-Armenia border, closed to both road and rail traffic since
1993. This development is not certain, as it depends on ratification of a “normalization
package” by the two governments
Engconsult Ltd.
8
IV. SOCIO-ECONOMIC FEATURES OF GEORGIA AND AJARA
A.
Georgia
19.
Population and economic growth in Georgia are summarized in Table 8 and trade
statistics in Table 9.
Table 8: Population and economy of Georgia, 2000-2008
Pop Gross domestic product
x
Current
2008
GDP/he Real
1,000 GELm
GELm ad 2008 GDP
growth
2000 4,435 6,015
9,856
2,222
2001 4,401 6,646
10,389 2,361
5.4%
2002 4,372 7,457
10,960 2,507
5.5%
2003 4,343 8,565
12,177 2,804
11.1%
2004 4,315 9,970
12,895 2,988
5.9%
2005 4,322 11,621
14,133 3,270
9.6%
2006 4,401 13,790
15,461 3,513
9.4%
2007 4,395 16,999
17,379 3,954
12.4%
2008 4,382 17,900
17,900 4,085
2.1%
Average annual growth rates:
2001- 14.7%
7.8%
7.9%
8
0.1%
2004- 0.2% 16.0%
8.1%
7.9%
8
Year
USD/hea Agric
d PPP
3,570
4,100
4,770
4,851
21.6%
22.1%
20.6%
20.6%
17.8%
17.0%
13.0%
11.0%
CPI
Industry Service percent
s
22.5%
22.0%
24.4%
25.6%
25.4%
27.0%
25.0%
24.0%
56.0%
55.9%
55.0%
53.8%
56.8%
56.0%
62.0%
65.0%
4.0%
4.7%
5.6%
4.8%
5.7%
8.2%
9.2%
9.3%
10.0%
Sources:(i) Georgia Statistics Yearbook, (ii) IMF Georgia Country Report CR2006-171, (iii) World Bank data profile for Georgia,
2008, (iv) EIU country report for Georgia, March 2009
Notes: (i) 2008 GDP and CPI values are estimates
(ii) PPP values are of gross national income (=GDP+net factor income from abroad)
(iii) last census was in 2002
Table 9: Trade statistics – Georgia, 2004-2008
Year Import Exports Total
b
trade
sb
USDm USDm USD
m
2004 2,008 1,092 3,100
2005 2,687 1,472 4,159
2006 3,686 1,667 5,353
2007 4,984 2,088 7,072
2008 6,050 2,509 8,559
Av ann growth rate 32%
2004-8
Trade Trade Exports
by
trading Imports by trading Tourist
deficit as % partner USDm
partner, USDm
arrival
GDPa Russia Turkey Turkme Russia Turkey Azer s
x
1,000
n
9%
31
105
119
113
256
202
156 368
10%
36
154
122
76
383
283
233 560
15%
39
76
123
72
559
523
319 980
17%
42
46
172
26
577
728
382 1,051
20%
48
-14% +14% -34%
33%
55%
35% 45%
Sources: Georgia Statistics Yearbook
Notes:
(a)(exports+imports)÷GDP
(b) fob basis
20.
Georgia’s centralized economy had collapsed by the mid-1990s: industrial output had
shrunk to a sixth of its 1989 level and inflation was high. Since then the country has pursued
policies that attracted inward investment, has reformed tax collection (Georgia has historically
been very poor at collecting tax revenues) and has pursued fiscal policies that helped contain
inflation. The World Bank categorizes Georgia as a lower-middle-income country. When
compared with other lower-middle-income countries, Georgia trades more than its peers (i.e.
imports and exports are higher as a share of GDP) but it scores poorly in terms of domestic
Engconsult Ltd.
9
savings. The World Bank’s 2005 purchasing power parity comparative program put Georgia’s
PPP income per head at around the median for the ten countries of the CIS.
21.
In addition to its role as a transit country, Georgia’s main activities are agriculture (citrus,
grapes and nuts), mining (manganese and copper) and small scale industry. It is reported that
two firms have just received licenses to operate in a new free industrial zone in Poti. Tourism is
locally important, particularly in Ajara – see below.
22.
GDP growth has averaged 8 percent per annum over the past five years, but fell sharply
in 2008 to 2 percent. In addition to the global recession, Georgia has faced regional difficulties,
first with the Russian trade embargo that began to bite in late 2006 and then the conflict in
South Ossetia in August 2008.
23.
The trade statistics show a widening trade gap, reaching 20 percent of GDP in 2008.
The changing geo-political landscape is also evident. In 2004 the Russian Federation was
Georgia’s largest trading partner, representing about 12 percent of total trade. By 2007 Turkey
had displaced Russia, accounting for 13 percent of total trade, while Russia had slipped to 9
percent. Russia continues as a major source of Georgian imports (especially of gas) but since
the embargo, very little is now exported to Russia. The rate at which tourist arrivals grew,
evidently strong up to 2006, also declined in 2007, but as there are no country of origin data it is
impossible to attribute a reason for the decline.
24.
Georgia is a comparatively open country measured as (imports+exports)÷GDP and its
openness has grown rapidly since 2004. Trade openness was 48 percent in 2007, comparable
with EU countries such as France and Italy (who would have a much larger services component
in their trade) and slightly lower than Turkey. Trade has grown faster than GDP. In current USD
terms, the average annual growth in trade from 2004-8 has been 32 percent, compared with 25
percent for GDP.
B.
Ajara
1.
.
Economy
25.
Although Ajara is an autonomous republic, most data relating to it are included in those
for Georgia as a whole.
26.
Limited data for Ajara alone appear in the Georgian statistical yearbook. Its 2002 census
population was 376,000, of whom 122,000 were resident in Batumi (down from 137,000 in
1989). GDP in 2007 is recorded as GEL518m (current prices), implying a GDP per head of
GEL1,380, compared with GEL3,900 for Georgia as a whole. The principal economic activities
are tourism, fruit growing (especially citrus) and transport.
27.
The bare statistics above understate Ajara’s importance to Georgia. Although Batumi is
only Georgia’s third largest city (with a population of 122,200 in 2008 after Tbilisi, with
1,106,500, and Kutaisi, with 188,600) it is a focus for development. Nearly all trade with Turkey,
Georgia’s largest trading partner, takes place through the Sarpi border post, 10km south of
Batumi. Batumi port is a natural deepwater harbor.
28.
Tourism along the coast from Sarpi to Grigoleti (between Kobuleti and Poti) is an
extremely large business. Table 10 summarizes Ajara government data for registered arrivals
for 2005-2008. Foreign, especially Turkish, visitors have accounted for much of the impressive
growth between 2005 and 2008. Equally, it is predominantly foreigners who stayed away in
2008.
Engconsult Ltd.
10
Table 10: Ajara visitors, 2005-8
Year
Total
2005
2006
2007
2008
Ann growth, 2005-7
Change, 2007-8
Domestic
147,000
250,000
352,085
285,000
34%
-19%
Foreign
120,000
182,523
239,786
208,782
26%
-13%
27,000
67,477
112,299
76,218
61%
-32%
Foreigners by nationality
Turkey Azerbaij Armenia Russia
an
Others
2,369
10,062
39,588
30,804
155%
-22%
2,111
6,931
10,492
13,156
71%
25%
1,700
2,498
4,628
3,757
40%
-19%
20,000
46,273
54,996
26,130
40%
-52%
820
1,713
2,595
2,371
47%
-9%
Source: Ajara government; consultants’ calculations
29.
Table 10 data omit visitors who do not register (i.e. either do not spend the night or stay
with friends and relatives or in other unregistered accommodation). This stretch of coast may
receive around half a million tourist arrivals a year.
30.
Ajara is known for its mandarin oranges and was at one time the principal source for the
Soviet Union. In 2005 Ajara accounted for 5,800ha out of a national total of 8,700ha of citrus.
However, this market disappeared in late 2006 as a result of the Russian embargo. Ajara has
had to find alternative markets, but has found this difficult: grading and packaging have been
below western European standards.
2.
Access by train and bus
31.
Passenger rail services are shown in Table 11. Passenger numbers provided by
Georgian Railway are unreliable, but based on observed ridership and train frequencies total
arrivals in Batumi are estimated at perhaps 100,000 per year.
Table 11: Passenger train services to Batumi
Service
Tbilisi-Batumi/Makhinjauria
1 x night & 1 x day service dailyb
Yerevan (Armenia)Batumi/Makhinjauri
Seasonal service, odd days
Kutaisi- Batumi/Makhinjauri
Daily
Ozurgeti- Batumi/Makhinjauri
Daily
Total
Single fare,
GEL
Approx distance,
km
Duration, h
15-40
340
7h-9h30
30-90
700
13h (Yerevan-Tbilisi)
4h20
2h
Source: Georgian Railways
Notes:
(a) services now terminate at Makhinjauri, 5km north of Batumi
(b) day services are every other day outside the tourist season
32.
It is difficult to estimate the numbers who arrive in the project area by bus. Outside the
summer holidays approximately 16 minibuses and 2 large buses leave Tbilisi daily for Batumi.
Engconsult Ltd.
11
These buses are “registered”, i.e. they are affiliated to a bus station. In addition there are
unregistered vehicles, probably another 10 minibuses and two large buses. In summer there
may be another 15 minibuses and two buses. Assuming eight passengers per minibus and 30
per large bus suggests a total of 136,000 arriving passengers. However, this is bound to be an
underestimate as it omits buses starting from towns en route and international buses. The single
fare from Tbilisi to Batumi is GEL15-18, increasing to GEL18-20 in summer, i.e. about the same
as a second class rail fare for the same journey.
33.
The Batumi airport operator’s website (www.tavyatirimciiliskileri.com) reports 39,637
passengers in 2007 and 69,354 in 2008, relatively small compared with those arriving by
surface modes. (Batumi international airport has a new terminal, opened in 2007, with a
capacity of 600,000 passengers).
C.
Sarpi and Batumi trade
34.
Sarpi border crossing is by most definitions the busiest in Georgia. Approximately a third
of all individuals crossing Georgia’s international borders cross at Sarpi (Table 12). Although
nationalities are not reported by border crossing, around 600,000 people holding Turkish
nationality cross Georgia’s borders annually, overwhelmingly, it is assumed, through Sarpi,
evidence of the popularity of Ajara with Turkish visitors. There is only one other border with
Turkey currently open. This is at Vale, 100km east of Sarpi. Road conditions remain poor at
Vale and only 27,000 people crossed the border there in 2007.
Table 12: People crossing Georgia’s borders, 2007-8
Period
Sarpi
(Turkey)
Tsiteli Khidi Lagodekhi
(Azerbaijan) (Azerbaijan)
Tbilisi
airport
Sadakhlo
(Armenia)
All borders
2007
1,601,776
1,126,020
384,443
622,779
682,191
5,007,537
Q1 2008
385,411
274,786
102,738
141,587
125,123
1,215,329
Q2 2008
538,540
299,124
152,232
205,962
159,576
1,578,388
Q3 2008
600,526
346,210
115,518
224,274
210,531
1,774,156
Source: Georgia Border Agency (www.gbg.gov.ge)
Notes:
(a) only the five most frequented border points are shown
(b) Sadakhlo data include those crossing by rail
(c) Q3 2008 data are affected by the conflict in S Ossetia
35.
Table 13 shows the numbers of vehicles crossing at Sarpi in the direction of Turkey.
Approximately 40 percent are goods vehicles (compared with 15 percent in the 2009 Batumi
traffic counts), indicating the significance of merchandise trade. The proportion of truck traffic in
transit is comparable with the 14 percent carrying foreign license plates at Batumi (see
Supplementary Appendix 6).
Table 13: Transit vehicles and vehicles crossing Sarpi border, 2007-8
Period
2007
Q1 2008
Q2 2008
Q3 2008
Percent
Vehicles crossing border
Cars
Trucks
Buses
Total
125,023 114,394
22,757
262,174
40,880
30,045
6,433
77,358
50,492
40,932
7,723
99,147
49,717
41,334
8,712
99,763
49%
42%
9%
100%
Proportion of each vehicle type in transit:
Source: Georgia Border Agency (www.gbg.ge)
Engconsult Ltd.
Transit vehicles crossing border
Cars
Trucks
Buses
Total
8,051
27,854
676
36,581
902
4,970
131
6,003
1,337
6,294
106
7,737
1,056
3,160
84
4,300
21%
77%
2%
100%
4.3%
18.6%
2.2%
12
36.
Batumi port is one of the deepest ports on the Black Sea (at 11-15m it is considerably
deeper than Poti, with 7-11m). It has 11 berths: three for oil tankers, two for containers, one for
rail, two passenger berths and four for general cargo. It is predominantly an oil exporting facility,
however: Batumi shipped 11.2m tonnes in 2007, of which 9.6m were oil or refined product.
37.
Following a modernization program Batumi’s oil terminal is capable of handling tankers
of up to 130,000dwt and has a capacity of 240,000b/d. Poti, Georgia’s other port, is limited to
tankers of up to 45,000dwt and has a capacity of 60,000b/d. (Regional oil pipeline capacity is
however much larger: Baku-Tbilisi-Ceyhan has a capacity of 1m b/d and with upgrades and
additional pumping stations could carry 1.8m b/d. The older Baku-Supsa pipeline has a capacity
of 120,000b/d).
38.
The oil terminal is owned by KazTransGas, a company owned by the Kazakhstan
government. KazTransGas also manages the port on behalf of the state. Early in 2009
KazTransGas abandoned a plan to construct a refinery at Batumi.
39.
Table 14 shows the number of ship calls at Batumi and Poti. While Batumi remains an
important oil port, Poti dominates container traffic. (Poti remains a small container port,
however. It handled 127,000 TEU in 2007, well below its capacity).
Table 14:Batumi and Poti ship calls, 2007-8
Period
2007
Q1 2008
Q2 2008
Q3 2008
Batumi
1,349
761
516
371
Poti
3,354
1,061
938
882
Source: Georgia Border Agency (www.gbg.gov.ge)
Notes:
Q3 2008 data are affected by the conflict in S Ossetia
40.
Table 14 shows rail freight traffic from Batumi for 2004-8. Oil and oil products account for
80-90 percent of tonnage carried and are overwhelmingly carried to and from international
destinations.
Table 15: Batumi rail freight traffic, 2004-8
2004
2005
2006
2007
2008
Batumi-Potib
t-km m
Oil%a
0.659
8%
0.484
11%
0.492
12%
2.622
41%
2.647
13%
Batumi-Tbilisib
t-km m
Oil%
7.807
20%
16.278
34%
10.614
20%
11.203
11%
23.904
8%
Batumi-otherbc
t-km m
Oil%
2,865
91%
4,166
93%
5,062
92%
4,228
89%
3,277
84%
Source: Georgian Railway
Notes:
(a) percentages are based on tonnes carried
(b) traffic is in both directions
(c) includes international traffic (average trip length is 390km)
D.
Growth and inflation forecasts
41.
Growth of GDP or of GDP per head is needed in order to forecast traffic (Supplementary
Appendix 6). Inflation forecasts, needed for the financial evaluation and cost estimates
(Supplementary Appendix 7), are included here for convenience.
42.
As population is essentially stable (see Table 8), the traffic forecasts use GDP as the
explanatory variable. Table 16 shows three GDP growth forecasts for 2009-11 (forecasts
beyond 2011 are not currently available).
Engconsult Ltd.
13
Table 16: Georgia short term GDP growth forecasts
Source
2009
2010
2011
EIU, March 2009 country report
0.5%
1.8%
-
Georgia government, April 2009 economic overview
2.5%
-
-
World Bank office, Tbilisi, April 2009
-2%
1%
2%
1%
3%
-
2.5%
6%
8%
IMF, World Economic Outlook, April 2009
a
Georgia Ministry of Economic Development
Note:
(a) letter from the MoED dated 15.04.09 in response to a project request
43.
There is evidently, as yet, little consensus on the effects of the global recession on
Georgia. For the purposes of traffic forecasting it is assumed that there is no growth in 2009,
followed by 2.5 percent in 2010 and 3 percent in 2011.
44.
Past growth in Georgia was greatly helped by FDI: net FDI was 19.8 percent of GDP in
2007 and 10.1 percent in 2008. An early return to these levels of investment – and the 8 percent
average annual growth rate experienced during recent years – seems unlikely. Also, much
lower long term GDP growth rates have been used to forecast traffic on other recent Georgian
roads projects: 2.8 percent in the case of the Samtskhe-Javakheti Roads Rehabilitation Project
(final feasibility study report for Millennium Challenge Georgia Fund, February 2007) and 3
percent in the case of the World Bank’s Second East-West Highway Project (project report,
November 2007). Given much higher historic growth rates and the significant regional impact of
trade, a slightly higher rate is justified here, 4 percent is adopted as the long term growth rate.
45.
Transit traffic in Ajara will respond to regional growth rates in Turkey, the South
Caucasus and Central Asia. Recent forecasts for growth in these economies are slightly higher
than those for Georgia (for example, ADB’s 31 March 2009 GDP forecast for Central Asia was
3.9 percent for 2009 and 4.8 percent in 2010). However, a recent World Bank appraisal (Second
East-West Highway Project, project report, Nov 2007) put long term regional growth rates no
higher than those for Georgia, and in any event the goods vehicle elasticity used in this project
(see Supplementary Appendix 6) implicitly factors in regional growth. For these reasons it was
decided not to use a separate set of growth forecasts for transit vehicles. Table 17 summarizes
the assumptions used in the traffic forecasting.
Table 17: GDP growth forecasts
GDP growth, % per yr
Source:
2009
2010
2011
2012
2013
2014
2015 on
0%
2.5%
3.0%
3.5%
4.0%
4.0%
4.0%
consultants’ estimates
46.
Inflation forecasts were made available by ADB and are shown in Table 18. In practice,
devaluation of the GEL, which cannot be ruled out, would have a significant impact on inflation.
Table 18: Inflation forecasts
Series
Georgia
Internationala
2009
7.0%
1.9%
2010
7.5%
1.0%
2011
6.0%
0.0%
2012
6.0%
0.3%
2013 on
6.0%
0.5%
Source:
ADB
Notes:
(a) Jan 2009 manufacturers’ unit value (MUV) index (proxy for the price of developing
country imports of manufactures in USD terms)
Engconsult Ltd.
FINAL REPORT
Asian Development Bank
Roads Department
Supplementary Appendix 2
Road Standards, Road, Structures and
Tunnel Design
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
i
Table of Contents
I. INTRODUCTION ..................................................................................................................... 1 II. ALIGNMENT ............................................................................................................................ 2 A. Introduction .......................................................................................................................... 2 1. Location of the Project ..................................................................................................... 2 2. Principles for Route Selection .......................................................................................... 3 3. Recommended Alignment ................................................................................................ 4 III. HORIZONTAL ROAD Design Standards ............................................................................ 7 A. Design Criteria ..................................................................................................................... 7 1. Design Standard............................................................................................................... 7 2. Embankment and Cut Slopes ........................................................................................ 10 3. Retaining Structure ........................................................................................................ 11 4. Slope Stabilization .......................................................................................................... 11 5. Design Drawing .............................................................................................................. 11 IV. GEOLOGICAL SURVEY ................................................................................................... 12 A. Introduction ........................................................................................................................ 12 B. Terrain and Climate conditions .......................................................................................... 12 C. Geomorphologic Characteristics .................................................................................... 12 D. Engineering geological conditions of the rocks ............................................................. 13 E. Geological risks .................................................................................................................. 15 V. PAVEMENT DESIGN ............................................................................................................ 17 A. Introduction ........................................................................................................................ 17 B. Pavement Surface Analysis ............................................................................................... 17 C. Subgrade strength .......................................................................................................... 17 D. Traffic .............................................................................................................................. 18 1. Determination of damage potential ................................................................................ 19 2. Distribution of traffic between the lanes ......................................................................... 19 E. Reliability ............................................................................................................................ 20 F. Serviceability ...................................................................................................................... 20 G. Proposed Pavement Structure ....................................................................................... 20 H. Summary of Recommended Pavement Structure ......................................................... 21 1. Pavement Depth............................................................................................................. 21 2. Wearing Course ............................................................................................................. 22 3. Binder Course ................................................................................................................ 22 4. Base Course ................................................................................................................... 22 5. Sub-base ........................................................................................................................ 23 6. Shoulders ....................................................................................................................... 23 VI. HYDROLOGICAL STUDY ................................................................................................. 24 A. Introduction ........................................................................................................................ 24 B. Methodology....................................................................................................................... 24 1. Culvert Opening Sizes ................................................................................................... 24 2. Bridge Span .................................................................................................................... 24 3. Freeboard ....................................................................................................................... 25 C. Hydrological Characteristics of Main Rivers .................................................................. 25 1. River Descriptions .......................................................................................................... 25 2. Maximum Flow Rate ...................................................................................................... 27 3. Chorokhi’s Maximum Flowrate....................................................................................... 29 VII. STRUCTURES .................................................................................................................. 30 A. Design Standards .............................................................................................................. 30 1. General ........................................................................................................................... 30 Engconsult Ltd.
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2. Bridge Cross Sections:................................................................................................... 31 B. Bridges in the Project ......................................................................................................... 31 1. Large Bridges ................................................................................................................. 31 C. Technical and Design Summary: Bridges ..................................................................... 32 1. General Design Principles ............................................................................................. 32 2. Other General Bridge Design Issues ............................................................................. 34 D. Interchanges ................................................................................................................... 34 1. Introduction ..................................................................................................................... 34 2. Interchange Types ......................................................................................................... 35 3. Interchange locations ..................................................................................................... 35 VIII. OTHER PROJECT ROAD ELEMENTS ............................................................................ 37 A. At Grade Intersections ....................................................................................................... 37 B. Roadside Facilities ............................................................................................................. 37 1. Signs and Markings ........................................................................................................ 37 2. Roadside Service/Information Stations ......................................................................... 37 IX. Tunnel Design .................................................................................................................... 38 A. Introduction ........................................................................................................................ 38 B. Standards and dimension of tunnels ................................................................................. 38 C. Tunnel Design ................................................................................................................ 38 1. Tunnel Cross Section ..................................................................................................... 38 2. Tunnel Support Design .................................................................................................. 40 3. Project Tunnels .............................................................................................................. 42 4. Method of Tunnel Excavation ........................................................................................ 42 5. Tunnel Portals ................................................................................................................ 43 X. Facilities for Tunnels.............................................................................................................. 44 A. Ventilation System ............................................................................................................. 44 B. Illumination ......................................................................................................................... 44 C. Emergency Facilities ...................................................................................................... 44 D. Construction and Operation Risks ................................................................................. 46 1. Risks in Tunneling .......................................................................................................... 46 2. Risks and Targets in Operation and Maintenance ........................................................ 47 E. Site condition and recommended method of construction of tunnels ............................... 47 1. Introduction ..................................................................................................................... 47 2. Zeda Achkva Ridge Tunnel (km 23.1-23.5) ................................................................... 47 3. Three short tunnels (Makhinjauri I, II, III) between km 33.9 and 34.7 ........................... 48 4. Peria RidgeTunnel (km 41.3 - 42.) ................................................................................ 48 5. SalibauriTunnel (Km 37.6-38.1) ..................................................................................... 49 6. Existing twin tunnels at km 30........................................................................................ 49 Annex A Tomograhpy Profile
List of Tables
Table 1: Major Civil Works’ Quantities ........................................................................................... 6 Table 2: Georgian Road Standards ............................................................................................... 7 Table 3: Additional Proposed Design Criteria ................................................................................ 8 Table 4: Conditions of Alluvial Sediments .................................................................................... 14 Table 5: Equivalency factors ........................................................................................................ 19 Table 6: Vehicle % in inside lane (4 lane road) ............................................................................ 19 Table 7: Cumulative Axle loads .................................................................................................... 19 Table 8: Pavement Design Calculations ...................................................................................... 21 Table 9: Bituminous base / Granular base ................................................................................... 21 Engconsult Ltd.
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Table 10: Pavement Depth ........................................................................................................... 22 Table 11: Freeboard Allowances .................................................................................................. 25 Table 12: Flow rates of Rivers and Streams. ............................................................................... 28 Table 13: River Chorokhi maximal flow rates.............................................................................. 29 Table 14: Summary of bridges ..................................................................................................... 31 Table 15: Large Bridges ............................................................................................................... 32 Table 16: Interchange Names and Locations .............................................................................. 34 Table 17: Approximate Tunnel Cross Sectional Area .................................................................. 39 Table 18: Particulars of Tunnels ................................................................................................... 42 Table 19: Design Target of Ventilation ......................................................................................... 44 Table 20: Standard of Emergency Facilities of Road Tunnel ...................................................... 46 List of Figures
Figure 1: Two lane Road Cross section ......................................................................................... 9 Figure 2: Passing Lane Cross Section ........................................................................................... 9 Figure 3: Four Lane Cross Section (Flat) .................................................................................... 10 Figure 4: Four Lane Cross Section .............................................................................................. 10 Figure 5:Two Lane Bridge ............................................................................................................ 31 Figure 6: Cross Section Georgian Standard (Type 1)................................................................. 39 Figure 7: Adopted Cross Section Type 1 ..................................................................................... 40 Figure 8: Support Pattern Type 3 ............................................................................................... 41 Figure 9: Support Pattern Type 1 ................................................................................................. 41 Figure 10: Guideline for natural ventilation (two way traffic) ........................................................ 45 Figure 11: Tunnel Classification ................................................................................................... 45 Engconsult Ltd.
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Glossary
ADT
Annual Daily Traffic
BoQ
Bill of Quantities
CBR
California Bearing Ration
CL
Center Line
DTM
Digital Terrain Model
E&M
Electrical and Mechanical
ESAL
Equivalent Standard Axle Load
FHA
Federal Highway Administration (US)
GoG
Government of Georgia
HFL/HWL
High Flood (Water) Level
JHPC
Japan Highway Public Corporation
RC/RCC
Reinforced (Cement) Concrete
RD
Roads Department, Ministry of Regional Development and Infrastructure
SPT
Standard Penetration test
Engconsult Ltd.
1
I. INTRODUCTION
1. This Supplementary Appendix describes the selection of the alignment of the Ajara bypass
roads and the preliminary design of the chosen alignment. It sets out the design standards
adopted and design concepts for the major components, including major bridges and tunnels.
The alignment and design standards are based on Georgian Road standards1 and have been
discussed and agreed with the Roads Department of the Ministry of Regional Development and
Infrastructure (RD).
2. The original preliminary design of the alignment was based on field inspection, a GPS
centerline survey and the use of digital mapping to a scale of 1:10,000. The agreed alignment
was designed based on field walk over surveys, topographical surveys and geotechnical
investigation of tunnel and major bridge locations.
1
February 2009
Engconsult Ltd.
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II. ALIGNMENT
A. Introduction
1. Location of the Project
3. The proposed Ajara Bypass Road Project is located in Ajara province2 in the western
region of Georgia, and is contained in four districts, Batumi, Kobuleti, Khelvachauri in Ajara and
Ozergeti in Guria.
4. The project road will provide a bypass of the two tourist resorts of Batumi and Kobuleti,
reducing travel time for through traffic from nearly two hours to less than one hour, reducing
congestion on the existing road and reducing road accidents, particularly pedestrian accidents.
a. The Existing Road
5. Starting at Choloki Bridge the 10 km long Choloki-Kintrishi section of the existing coastal
road passes through the main street of Kobuleti resort. Resort infrastructure and houses are
located continuously on both sides of the street. During the resort season these installations and
houses are filled with tourists. The road is straight with a road pavement of 8-10 cm of asphalt
concrete. The pavement is constructed on a 35-40 cm thick gravel base. The width of road
formation is 21-22 m, and the width of carriageway is 12-14m with sidewalks on both sides. The
condition of the road pavement is not satisfactory, with many potholes. The road carries both
the transit and urban traffic and during the resort season is congested with traffic flows
exceeding 10,000 vehicles per day producing high air and noise pollution.
6. The 4.0 km long road section from Kintrishi-Tsikhisziri is also located in flat terrain and lies
between the Samtredia-Batumi railway and the Black Sea, limiting the scope of any widening.
The width of the road formation is 11-12 m and the width of the carriageway 8-9 m. The road
pavement consists of 10cm of asphalt concrete, with 35-40 cm thick gravel base.
7. The 9 km section of road between Tsikhisziri and Chakvi traverses a section where the
hills come down close to the coastline. The section has a road formation of 11-12 m, and the
width of carriageway is 7.0 m. This road section is situated in difficult terrain and geological
conditions and generally follows the contours using small radii curves (20-50m) with gradients
as high as 8%. Traffic accidents are high as design of the section does not meet either the
international or national interstate road standards. To improve the existing road it would be
necessary to construct deep cuts and high fills in poor geological conditions with an area prone
to landslides. The best illustrative example of landslide conditions is the deformations and slides
originated in the cuts at the access to the new tunnel (see below).
8. The 7 km long Chakvi-Makhinjauri road section is identical to the previous road section;
however, 4 km of new road have been recently constructed at the southern end, including
construction of an 800 m long twin tube tunnel under the Green Cape. Although the road
pavement on the approaches to the tunnel is two lanes, earthworks and drainage have been
completed to accommodate four lanes.
9. On the existing Choloki-Makhinjauri section there are 28 culverts, 12 box culverts and 9
reinforced concrete simply supported span bridges.
2
The first 2 kilometers are located in the adjacent Guria province.
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3
10. AADT (2008) is: Choloki Bridge 4,300 vehicles, Choloki-Makhinjauri section, 10,200.
Existing safety and service levels are very low especially in the tourist season.
11. The existing section of road through Batumi starts from Km 96 at Makhinjauri and ends at
Km 111.5 at the Chorokhi River. This section of the existing road mainly consists of Batumi town
streets thus the road conditions only meet city requirements. At present all traffic, including
transit traffic goes through Tbilisi Highway, Gogebashvili, Chavchavadze and Abuseridze streets
and leaves Batumi on the Nara Highway. There is little possibility of upgrading these roads on
their present alignment because of the extensive city roadside development.
12. AADT at Chorokhi bridge (2008) is 4,400, however, traffic is much higher, and congestion
greater on the major city streets.
b. Alternative New Alignments
13. The road alignments proposed in the pre-feasibility studies, including some of the
alternative alignments, were transferred to available topographic sheets and the suitability and
condition of the road alternative corridors were assessed.
14. Combined with field inspections and preliminary geological investigation the possible
alternatives to be evaluated were identified with regard to engineering, environmental and
resettlement feasibility and impacts. Some of the original proposed alignment and alternatives
were found to be infeasible and were dropped from consideration.
15.
The alignments to be considered were plotted on 1:10,000 maps and a 500 m alignment
corridor was digitized from these maps. Initial GIS defined control points where located on the
ground and plotted on the digitized maps, and used as initial control points for the following
topographic surveys. Finally the points were plotted on orthophoto maps to as an aid in
examining the terrain, land use and structures in the alignment corridor.
16. Prior to the topographic survey twelve permanent control points were constructed close to
the alignment and coordinated to the UTM system. It is intended that these points for the basis
for the detail design and construction survey controls.
17. For the purpose of the initial alignment selection it was assumed that the road would be
four lanes, except for the Batumi bypass. Further information on estimated traffic volumes on
the bypass roads indicates that two lanes will be sufficient for the next ten to twenty years. It is
assumed that land would be acquired (or frozen) throughout for four lanes (minimum 50m Right
of Way (RoW). As the two lane road would be designed to be a future four lane road, four lane
road design standards would be used throughout.
2. Principles for Route Selection
18.
In general, a proposed high speed bypass alignment should meet the following principles:
•
It should fit in with the existing Road Network;
•
It should provide easy access from the major towns in the region;
•
It should take account of future traffic distribution;
•
It should be coordinated with local and national development plans;
•
It should minimize civil works quantities and avoid sections with bad geological
conditions or difficult engineering works such as deep cut or high fill so as to minimize
construction cost;
Engconsult Ltd.
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•
It should minimize environment impact along the corridor;
•
It should minimize structural and agriculture land acquisition;
•
It should provide ease of construction, for instance, by choosing economical hauling
distance for local construction material, and avoiding disturbance with existing roads and
utilities as much as possible; and
•
It should take account of opinions from local people in the selection of proposed
interchanges, and the location and arrangement of pedestrian bridges and underpasses.
The above principles were used in the selection of the alignment for the project road.
19.
3. Recommended Alignment
20. In the following sections the kilometer measurements assume that the new alignment
starts at the southern abutment of the Natanebi River Bridge, Km 63.37 on the Senaki-PotiSarpi road, about 1.5 km north of the Choloki River Bridge and uses our recommended
alignment (i.e. the alignment is longer than the prefeasibility alignment). The alignments
discussed are set out in Maps 1-3.
a.
Kilometer 0-14
21. The prefeasibility alignment started at the Choloki River Bridge and used a modified
trumpet interchange to connect to the existing road via an existing access road. It then briefly
swung east and then south to parallel the existing road and traverse low lying ground between
residential strip development and a bund constraining a wet land area. At about kilometer 6 the
wetland area becomes a declared wetland protected area. The alignment paralleled this
protected area at about 200mt distance. At the end of the protected area (Km 10) the alignment
turned south-east to cross the main railway line to Batumi and the Sajavakho-Ozurgeti-KobuIeti
state road at kilometer 14.
22. Under ADB and Government environmental regulations this alignment would go too close
to the protected area. In addition, in April 2009 the Ministry of Environment extended the
wetland protected area buffer zone to include parts of this alignment.
23. An alternative alignment in the prefeasibility was briefly considered which left the existing
road close to Natanebi River, crossed the Choloki River 1.2-1.5 km upstream of the existing
bridge, bypassed (but close to) the protected area, crossed the Samtredia - Batumi railway near
to Ochkhamuri station, running parallel to the rail line to link with the first alternative at Km 14.
This alignment alternative was rejected in the pre-feasibility.
24. After examining both alignments on the ground it was found that the second eastern
alignment could be moved so as to avoid the new protected area buffer zone, minimize
residential land and would need only two additional bridges over 50 m.
25. Two possible alternatives to the start were examined. One leaves the existing Poti Batumi road north of the Choloki River (immediately south of the amusement park), thus starting
the project in Guria province. It then crosses the Choloki on a new bridge and swings east
towards the railway line. The other alternative start is similar to the prefeasibility preferred
alignment and leaves the existing road just south of Choloki River using a modified trumpet
interchange. The advantage of the second option is that it is about 0.5 km shorter and does not
require an additional two lane bridge over the Choloki River. The disadvantage is that the
alignment is constrained over the first kilometer and below the standard for a high class road.
We recommend the first alignment starting south of the amusement park.
Engconsult Ltd.
5
26. Interchanges in this section are proposed at the start of the project and at the SajavakhoOzurgeti-KobuIeti road at kilometer 11.5.
27. The alignment is in flat terrain over this section and includes bridges over the Choloki and
Ochkhamuri Rivers, one minor river bridge, one rail and three road underpasses.
b. Kilometer 14-32
28. Over this section the proposed alignment generally follows the prefeasibility alignment
except between Kilometer 14-17 and 18-20. In the former case the line is mover slightly
eastwards to avoid first a chemical factory and then a water pumping area and associated substation and in the latter case the line is moved to avoid a new cemetery, to avoid going on top of
an existing minor road and finally to allow sufficient height to overpass a new minor access road
and bridge.
29. At Km 22 the prefeasibility alignment cut through the Zeda Achkva ridge. A closer
inspection of this section indicates that the cut would be deep, in erodible material, would
require the demolishment of a number of houses, would cut a significant access road and would
require steep approach grades. It is proposed to replace this cut with a 400m tunnel
30. At Km 28.5 the new alignment joins to the recently reconstructed existing road and goes
through an existing 700 m tunnel to descend to the old road at kilometer 32. This section was
constructed as a two lane road, however, the tunnel is twin bore four lanes total and earthworks
have been mostly completed for four lanes, although significant slope protection will be
required.
31. Over this section one interchange is proposed at Kilometer 28 where the new alignment
meets the existing (new) road. The section includes major bridges over the Kinikishi and
Kinitrishi Rivers, 3 minor river bridges, eleven road underpasses (box culverts or bridges), one
duplication of an existing overpass and one 400m tunnel.
c. Kilometer 32-33.8
32. This section of the alignment follows the existing Kobuleti-Batumi road. It runs parallel to
the coast and the railway line and is heavily developed. The road will require widening to four
lanes plus adequate shoulders as this section will carry both through and local traffic.
Acquisition will be required for about 10 buildings, part of a school frontage and a hotel parking
area.
33. An alternative alignment moving east of the existing road from Kilometer 32-34 would
encounter steep terrain and still be in residential built up areas and is therefore not
recommended.
d. Kilometer 33.8-47.8 Batumi Bypass
34. In the prefeasibility three alignments were examined. The westernmost alignment
encroached on the Batumi municipal area and passed through some heavily built up areas;
even more built up now than when the pre-feasibility was carried out. The advantage of this
alignment was that is was 0.5 kilometers shorter and passed through easier terrain, obviating
the need for a tunnel.
35. The pre-feasibility recommended alignment first rises to cross the rail line, turns southeast through three short tunnels, and descends to the Chakvisi Korolistskali River, crossing the
river (Km 36) and some commercial structures on a 600m bridge. It then follows the slope of the
land to descend to the Bartskhana River, also crossing this and the riverside commercial
Engconsult Ltd.
6
development on a 600m bridge (Km 39); both bridges are about 15m above ground level but will
need long spans. The alignment then gradually rises, following the line of the Batumi
Development Plan (BDP) area to the west of Batumi and runs along but outside the BDP
margin. At Km 40.5 the alignment enters crosses a 200m bridge to enter a 400m tunnel (Peria
Ridge) and then descends to cross the Batumi-Alchaltsikhe road at kilometer 44.5, with an
interchange, to then swing west to join the Senaki-Poti-Sarpi road at kilometer 48. This
alignment ends just before the existing bridge over the Chorokhi River.
36. A third alignment followed the second alignment for the first 5 kilometers and then went
further east, bypassing the developed area around the Bartskhana river and keeping up to 2-3
kilometers east of the BDP boundary. It also used a 400m tunnel, rejoining alignment two just
before the Batumi-Alchaltsikhe road. This alignment was 0.5 kilometers longer and an estimated
8 percent more expensive.
37. Both alignments 2 and 3 were inspected on the ground and it was found that, whilst there
was some new residential development along alignment 2, this was also the case for alignment
3. In addition alignment 3 went through a new cemetery close to Bartskhana River, which would
be difficult to avoid without demolishing a considerable number of residential houses. Thus the
pre-feasibility advantages of alignment 3 appear to have disappeared. Therefore, except for a
realignment at km 38 to avoid a historic house and land, minor realignment at kilometer 45 to
avoid the cement factories and another minor alignment change in the vicinity of the tunnel to
minimize demolishment of houses and avoid two small cemeteries, our recommended
alignment is close to the pre-feasibility alignment 2. It has also been necessary to provide an
additional 400m tunnel at the realignment at km 38, to increase the length of the Peria tunnel to
730m so as to reduce the grade in the tunnel to 3 percent and, because of the higher standards
in the new Georgian road standards relating to vertical grades and curve radii, to lengthen some
bridges and provide some new bridges across valleys in the vicinity of the tunnels.
38. A total of 15 bridges are required, not including interchange bridges. Major bridges are
required over the Chakvisi Korolistskali and Bartskhana rivers (including road and building
overpass) and over valleys approaching portals of both long tunnels, nine bridges/overpasses
are required over minor roads. Interchanges are required at Khelvachauri Road (Km44.6) and
the existing Batumi-Sarpi road (Km 47.8). A partial interchange is required at km 39, close to
Bartskhanan River, (two ramps) to allow access to north Batumi. There are 5 tunnels in this
section, three small tunnels (Km 34) total 550m, one 440m tunnel cutting through Salibauri ridge
at 38km and one 730m tunnel cutting through the Peria ridge at 41km.
39.
The major quantities of the proposed alignment are as shown in Table 1.
Table 1: Major Civil Works’ Quantities
Earth/Rock
Pavement
Retaining
Walls
m2 ‘000
m 000
Box
No
Pipe
No
< 100
no/m
Long
n/m
Interchange
no.
221
187
77
210
0.4
3.0
0.4
3.3
14
33
4
18
23
12
7
5/370
4/98
1/100
12/449
1/100
7/2,180
2
1
1
3
Chainage
Km
1-14
14-28
28-34
34-47.8
Cut
m3
‘000
23
644
9
947
Fill
m3
‘000
1,350
2,057
28
1,309
Engconsult Ltd.
2‘
Culverts
Bridges
7/3,350
Tunnels
no/m
1/440
5/1,540
7
III.
HORIZONTAL ROAD DESIGN STANDARDS
A. Design Criteria
1. Design Standard
40. We have been requested by RD to use the new Georgian national road design standards;
these are set out in Table 2 for a four lane road. These standards are comparable with other
international standards; except for tunnel width standards which are not suitable for small
tunnels (see Section IX below). In addition, the lane width (3.75m in flat terrain) is considered to
be generous; 3.5m is often used, particularly if costs are a consideration. The additional lane
width has not been shown to provide much additional capacity or safety. It is recommended that
for the road widening in urban areas (Km 32-34 below) the shorter width be used to reduce
expensive land acquisition. Note that using 3.75m lane width and two shoulders of 2.5m then
the total carriageway width (not including median) for a two lane road in flat terrain is 12m, wider
than that required for one carriageway of a four lane road.
41. Based on road class and terrain conditions, the design speed proposed for initial analysis
of alternatives will be 120km/h for flat sections, dropping to 100km/h for rolling terrain and
80km/h for mountainous sections, although it is hoped to be able to provide at least 100km/h
design for these sections. To reduce earthworks, however, vertical curve radii have been
reduced to 100kph standard (see below).
Table 2: Georgian Road Standards
No
1
2
3a
3b
4a
4b
4c
5
6
7
8
9
10
11
12
13
14
15
Main Parameters
Design speed
Number of lanes
Lane width (4 lanes)
lane Width (2 lanes)
Shoulder width left
Shoulder width right
Shoulder Width two lane both sides
Minimum width of central reserve
Hard shoulder width for emergency
stop
Verge for central reserve
Maximum longitudinal gradient
Minimum horizontal curvature
Minimum radius of vertical curves
Crest
Sag
Width of acceleration and
deceleration lane
Minimum stopping distance
For straight section
Normal cross fall of carriageway
Maximum gradient of super elevation
Design vertical clearance bridges,
Engconsult Ltd.
Unit
km/h
m
m
m
m
m
m
m
Flat
120
4/2
3.75
3.75
1.0
3.0
2.5
4.0
2.5
Rolling
100
4/2
3.5
3.75
1.0
2.75
2.25
4.0
2.5
Mountainous
80
4/2
3.5
3.75
1.0
2.25
2.0
4.0
2.5
m
%
m
1.0
4
700
1.0
5
450
1.0
6
250
m
m
m
22,600
7,700
3.75
10,000
4,900
3.5
5,000
3,200
3.5
m
%
%
m
250
2.5
7
5
200
2.5
7
5
140
2.5
7
5
8
No
Main Parameters
overpasses
Design clearance of tunnels
Vertical
Horizontal – Two lane road tunnel
- Twin Tube (4 Lanes)
Service walkway width
Unit
Flat
m
m
m
m
11.4
11.4
Rolling
Mountainous
4.5
11.4
10.65
0.75
10.65
10.65
42. Whilst we have designed to these standards (except for tunnel design – see below) we
consider that they are excessive in places. In particular the minimum vertical curve radii are high
compared to other international standards, including TEM standards, and have led to heavy fill,
longer bridges and one additional tunnel. We recommend that these be reconsidered in detail
design to lower the cost.
43. For other concepts of the road design criteria not specified in the Georgian standards, it is
proposed to use TRACECA standards; these are shown in Table 3.
Table 3: Additional Proposed Design Criteria
No
1
Main Parameters
Minimum stopping distance for curves
with radius < 500m
Design loads
For bridges
For Roads
Pavement structure
For roads
For tunnels
Technical parameters of interchanges
and junctions
Design speed
Min. horizontal curves
Max. grade upward
Max. grade downward
One-way carriage way width
Two-way carriage way width
Shoulder width
2
3
4
44.
Unit
m
Flat
250
Rolling
250
Mountainous
125
AK-11,HK-80
Axle 100 KH
.
To be decided
Cement concrete
km/h
m
%
%
m
m
m
40
50
7
8
4
7
1.5
40
50
7
8
4
7
1.5
30
30
8
9
4
7
1.5
Other design concepts include:
•
For 2 lanes road sections, a passing lane will be provided on sections over 3 percent
gradient, depending on length of grade to allow passing of heavy slower vehicles. The
lane width of this lane will be 3.0 meters.
• Where there is a passing lane the width of shoulder on the passing lane side will be
1.5meters.
• The maximum gradient of tunnel sections will be 3 percent so as to allow heavy vehicles
to maintain speed and also to reduce vehicle exhaust fumes in the tunnel section. The
minimum grade will be 1 percent to allow for drainage.
45. Figure 1, Figure 2, Figure 3 and Figure 4 shows proposed typical cross sections3.
3
The cross-sections are diagrammatic and do not show side drains or allowance for guardrail.
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C/L
12.5m
(11.0m)*
2.5
3.75
3.75
(2.0m)
2.5
(2.0m)*
* In mountainous sections
Figure 1: Two lane Road Cross section
C/L
13.5m
2.0m
3.5m
3.5m
3.0m
1.5m
(Passing Lane)
Figure 2: Passing Lane Cross Section
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C/L
26.0m
4.0m
3.0m
3.75m
3.75m
1.0m 3.75m 3.75m
3.0m
(Median)
Figure 3: Four Lane Cross Section (Flat)
C/L
25.5m
(24.5m)***
4.0m
2.75m
3.5m
3.5m
1.0m
1.0m 3.5m
3.5m
(2.25m)*
2.75m
(2.25m)*
(Median)
* Mountainous
Figure 4: Four Lane Cross Section
Rolling/Mountainous
46. The right of way (ROW) is generally 50m and includes allowance for boundary fencing. In
areas with steep cross slope the RoW is increased.
2. Embankment and Cut Slopes
47. The cut slope is designed based on its type (earth or rock) and follows national standards
for natural slopes in stable situations. In general the average ratio of side slopes is 1:0.5 to 1:1.
For short stretches in steep rocky terrain on the main line (between km 14-44) a 1:0.5 cut slope
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has been adopted. For each 5-8 m of cut slope height there is a debris-catching berm 1.5m in
width. The slope surface will be stabilized by grass sodding, mortared rubble facing wall, anchor
rod and reinforcing mat shotcrete, or anchor cable as appropriate.
48. The filling of embankments will mainly make use of soil and rock generated from cutting.
The ratio of the side slopes is designed as 1 Vertical: 1.5 Horizontal for 0-5m high slopes and
1V:1.8H for 5-20m high slopes. At a slope changing point, a 1.5-m wide berm will be provided.
The surface of the slopes shall be protected with sod revetment when the height is less than 4
meters and sodded rubble grids or arches when the height exceeds 4 meters. Where the
alignment is close to rivers solid slope protection or retaining walls will be provided to ensure the
stability of the subgrade under flood levels. In sites with wet and soft grounds the groundwater
or retained surface water may result in a soft base beneath the subgrade, therefore, blind
drains, crushed-stone or band drains will be installed. This generally agrees with international
standards.
49. In sections alongside rivers, riverside slopes will be protected, based on design flood level
and local conditions, with retaining walls.
50. In the preliminary design it has not been possible to provide the optimum balance
between cut and fill and initial estimates show an excess of excavated material because of the
tunnel excavation and cuts through the noses of ridges. The alignment will require further
examination in detail design to provide a better balance and some bridges may need to be
replaced by culverts or spill through abutments.
3. Retaining Structure
51. The retaining structures on the valley side of the alignment have been designed as RCC
or wall anchor wall. In general RCC walls for up to 10m height and anchored wall and
reinforced earth walls, where wall heights are greater than 10m in height. The requirement of
the valley side retaining wall was determined by viewing the natural slope and design cross
section. If the outer road edge was above the surface and natural terrain hill slope was greater
than 1V:1.5H then it was considered that a retaining wall was necessary.
4. Slope Stabilization
52. Upon construction of the road formation, exposed cut and batter will need to be stabilized
using bioengineering and other appropriate stabilization techniques. Preliminary quantities for
bioengineering and other stabilization works are included in the Bill of Quantities (BOQ).
The detail stabilization (including bioengineering, cement pitching, stone pitching etc.)
requirements at specific locations will be made during detail design and construction stage.
5. Design Drawing
53. The geometric design of the project roads plan and profile was undertaken on the basis of
the preliminary engineering surveys. The design drawings will be presented in Volume 3 of the
Final Report. The plan drawings are presented at a scale of 1:2,000 for all road sections. The
vertical profiles are presented at a horizontal scale of 1:2,000 and a vertical scale of 1:500.
54. The topographic contours shown on the plans and vertical natural surface profile along
the design centerline are based on preliminary topographic survey and digitized 1:10,000 plans
and should be reviewed at the time of detail design when more detail cross section surveys are
carried out.
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IV.
GEOLOGICAL SURVEY
A. Introduction
55. The Project area belongs to the area of wrinkled system of Ajara-Trialeti which is situated
within the ring of the Meskheti, Shavshvebi and Chakvi mountain ranges. Geologically the area
consists largely of middle Eocene age sediments. The lower part of the middle Eocene is
lithologically represented with tabular of tuff, tuffo-gravel, argillite and limestone. Those
sediments are mostly spread over middle and upper part of the Kintrishi River, the flanks of the
Meskheti mountain ring, in the lower reaches of the Chorokhi River and the area of Chaisubani’s
village. The upper part of the middle Eocene is represented by a mass of fragmented volcanic
breccias, tuff and clinker stratums. In some places andesite, basalt, tuffo-gravel, tuff and marl
can be found. Those sediments are mainly spread in the Ajara cauldron, the flanks of the
Chakvi and Shavshebi mountains and the lower reaches of the Achara Wyali river. In the middle
part of Chakviskali river intrusive sediments of upper Eocene are found, lithologically
represented by syenites and syenite-diorites. Geomorphologically, north of Project Area
comprises the Kobuleti coastal plain crisscrossed by numerous streams, while southern part is
characterized by hilly ranges with deep gorges.
B. Terrain and Climate conditions
56. The terrain and climate conditions of the project area are dictated by its orographic
location directly close to Black Sea. There are two main areas:
•
A valley plain terrain with humid subtropical air, over humid soil and mires and singledeck mesophile vegetation;
•
A hilly terrain with subtropical air with well developed red soil and partially transformed
vegetation of Kulkheti.
The project area climate falls completely into the West Georgian humid subtropical area, which
is characterized by high humidity, a large volume of atmospheric sediments (more than 1.8002.700 m), low fluctuation of temperatures and monsoon winds. The average annual temperature
around +13°. The lowest temperature during the coldest month in Kobuleti and Batumi is +4.2
and 6.4° respectively and during August, the warmest month, 22.9 and 23.2°.
C. Geomorphologic Characteristics
57. The geomorphologic nature of the area, which falls under the Ajara-Trialeti range tectonic
system and the settling Kolkheti area, is still directly dependent on the morphostructures and
young tectonic profiles. It is notable that the tectonic profile is interrupted and is of a graded
nature, which is shown by the layer nature of the sea and river terraces and absence of
denudation.
58.
There are two sharply designated morphological units within the project area:
•
plain-accumulative valley;
•hilly and gentle mountain terrain.
59. The plain-accumulative valley terrain includes the south part of the Kolkheti valley, which
from the North-East side is bordered by the Kobuleti and Chakvi mountain rings and from South
by the Black Sea and Shavsheti (Lazistani) mountain ring. Morphologically it occupies the
Kobuleti and Kakhaberi accumulative plains, which is framed by deltaic river-sea type sediments
whose maximum capacity varies from 140 m (Kobuleti plain) to 300 m (Kakhaberi plain).
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60. The Kobuleti plain valley is bounded by the Tsikhisdziri volcanic rock hillocks in the south
and by the Natanebi River in the north and represents the newest tectonic sag block, which
incurs settlement of 2 mm annually. The settlement of the structure block was followed with
quarter transgressions and strong river and sea sediment accumulation. Cobble and Eocene
period volcanic rock masses are represented by XXX massif crystallized rock, which proves that
the Chorokhi river deposits were spread out as far as the outfall of the Natanebi River.
61. The Kobuleti plain valley morphology is designated lagoon-mire terrain, which runs along
the shelf zone and sea coast in a narrow line. In the 8-9m depth the sea-alluvial cross section of
the lagoon-mire terrain is substructed.
62. An old bank dike is spread along the coast stretching for 10 km with an average width of
250-300 m and height of 7-12 m. The coastal dike is represented by Fanagori regressive relict,
which is erected with the capacity up to 19 m sand-break stone-gravel sediments.
63. The Kakhaberi accumulative plain belongs to the Chorokhi-Batumi structural block, which
during the whole quarter period was incurring and still incurs settlement from 0.8 m (Batumi) to
1.3 m (Ghorokhi river delta). The Chorokhi River divides the Kakhaberi plain into two unequal
parts. On the southern wide part, where there are several relict lakes, Batumi is located. The
narrow northern part of the Kakhaberi plain is represented by low grove terraces.
64. The gentle mountainous hilly morphological area is the part of the Ajara-Guria highlands
and the Chaqvis and Kobuleti Ridges are its branches and its extreme south part is the
Shavsheti Range western end. The height of this morphological area ranges from 200 – 600 m.
The morphological conditions of this terrain are mostly specified by Middle Eocene volcanic
rocks and the constant intensive chemical process of laterization. In the hilly coastal terrain area
residual fragmentarily sea terrace steps can be found – from Chauduri, including Black Sea and
in water dividing sinciput area – denudation surfaces. The elevated hilly terrain is significantly
cut by the Kintrishi, Chakvistskali, Korolistskskali, Ajaristskali and Chorokhi rivers, which begin
from the high mountains Small Kavkasioni and Pontidebi rise and cross low mountain hilly
areas where the rate of erosive partition equals to 2,0 – 2,5 m/cm2. Most of river water dividing
crowns are represented by undulant-denudative surface. In the spole of the big river’s ravines
two to three step terraces have been developed and small rivers and ravines are creating Vprofile erosive formations with inclined with frequent flood and landslides.
D. Engineering geological conditions of the rocks
65. The tectonic and geological frame of project area has few hard conditions. There are two
main ranges – Ajaristskali syncline and Chakvistavi anticline, which spread over the whole Ajara
region and are complicated with small sized brekiformal ranges.
66. The Ajaristskali syncline occupies the whole upper part of the Ajaristskali river basin. The
Syncline’s south wing is sloping (15-30°) and the north wing is steeper (40-75°); occasionally
rocks are overturned to the south. The Syncline’s widest part (30 km) is in the east part of the
region, the west part narrows to a minimum at the down belt of the Chorokhi River and then it is
cut by the Black Sea coast.
67. The Chakvistavi anticline is located north of the Ajarastskali River. In the west part it has
almost crossing location and in the East part it goes in a North-East direction. The Anticline has
an unsymmetrical structure with a sharp slope at the south wing (40-65°) and gentler slope at
the North (10-30°). These structures have fault dislocations and breaks, which are reflected in
the terrain morphology. The largest tectonic structure of project area is the Middle Eocene
volcanic-sedimentary slopes, which are represented by massive and thick-foliated volcanic
breccias, tufas, with andesite face embedment, tufa conglomerates, and greenstone intrusive
rocks. In the upper part are occasional tuffs, gravel stones, tuff-sandy-stones and margels.
68. All these rocks from an engineer-geological point of view are in rocky mountainous and
partially rocky mountainous conditions. The density of the rocks varies from 2.6-2.9 gr/cm3,
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water-absorption of 0.4 to 5.44 percent, natural condition resistance of 72-143 mpa, and waterabsorption condition 51-130 mpa. In weathered areas the characteristics are lower: density is
2.3-2.4 gr/cm3, water-absorption 2.8-5.22 percent, resistance 47 water absorption 27-50 mpa.
69. Structured by the volcanic rocks the hilly terrain area is almost covered by alluvial-diluvia
valley embedment and therefore despite the high resistance and stability of the rock the area is
significantly damaged by geological processes.
70. The biggest part of the project area is covered by valley formation and litho-geochemical
structure conditions and the capacity of the foundation fully depends on the weatheringdisintegrating, geo-morphological location and climate conditions of the main rocks.
71. In the whole territory of the mountainous Ajara region mechanical destruction processes
of the rocks are occurring, timing intensiveness of its disintegration, creation of exhaustion
areas and capacities are dependent on the petrologic composition, resistance, tectonic disorder
and terrain morphology. In this terrain situation in some places there is a fully weathered profile
(areas of full destruction or highly dispersed and cleft boulders) in a frame of one meter to one
meter capacity. Sometimes there are places of clay sedimentation from the upper to lower
horizons which strongly decreases the filtration processes. In the valley formation there two
main complexes: alluvial-diluvia and hypergene-lateritic.
72. Sediments of alluvial-diluvia complexes are characterized by widely dispersed,
complicated engineer-geological conditions and fully developed multilateral landslides
phenomenon. When at the high slope valleys the sediments capacity are no more than meters,
at the sloping and flat surface this capacity comes up to tens meters. These sediments are
represented by big-fractional, clay-clay lines, clay- RorRovani, RorRovani da dresvis rows.
73. Often fossil soil layers occur and become a divisor of alluvial layers or are replacing these
layers. Mostly at a flat and sloping terrain different percentage of fragmented inclusions are
contained in clay peciaes. sediments.
74. Close to the zones of deep hypergenic there are layers of high porosity clay and claylines
approximately 51 to 56 percent. In other areas porosity is no more than 39-42 percent. Natural
humidity also varies from 36-42 to 11-20 percent.
75. The Table 4 shows the main common conditions of alluvial-diluvia sediments formed by
the volcanic-sedimentary rocks:
Table 4: Conditions of Alluvial Sediments
Rock
Type
Natural
Humidity
Volume
weight
Relative
Density
g/cm3
%
Level of
fluctuation
Plasticity
Number
natural
humidity
Clayline
Clay
36.32
45.28
1.78
1.67
2.73
2.74
Porosity
51.3
56.5
Level of
fluctuation
42
62
Plasticity
No.
12
23
Natural Humidity
Sida
Zvris
kuTxe
2,251
1,921
Compression
0.045
0.085
76. Clay and clay-line mostly are macro-porous. They have weak structural connections and
in cuts no lithiphication and solidification is found. Levels of fluctuation vary from 30-38 to 42-64
percent. They have low water stability; usually dissolving in water from several seconds to 5
hours.
77. In 7-13 m deep cuts their volume weight changes which can be a result of weak zones of
deformed layers. These rocks, both in natural humidity or water impregnated conditions, are
characterized with plastic and fluctuate -plastic consistency.
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78. In the project area alluvial-diluvia rock complexes have sporadic liquidation. In most areas
they create variable water containing underground areas.
79. These areas lose water through a flat surface and valley bottoms which lead to springs,
whose flow varies from 0.1 to 1.0 l/sec. The water is fresh with mineralization of 0.277 m/l,
including Sodium hydrocarbon or Calcium hydrocarbon sulphates.
80. Some valley locations have complex laterite sediments, which are created in the low
mountainous/hilly areas as a result of volcanic rocks deep hyper geneses during the Pliocene
quarter period.
81. Complex hypergenic–laterite is characterized with deep weathering of volcanic rocks
during the Pliocene-quarter period.
82. The alkali volcanic rocks are mostly shaped reddish and yellowish-brown laterites, which
in literature are mentioned as “Batumi laterites”. The Laterites weathered capacities are
measured by tens of meters and in some places reaches 100-150 m. Active relive capacity of
dispersed and disintegrated areas reaches 20-30 m. This area is rich with aluminous soil,
ferrous and hydrochloride; these can be seen in some cuts. They contain up to 20 percent of
E2O3, 40-50 percent of SiO2, and are acidic (Ph-4.7-5.1) and there is an active process of
kaolinization.
83. Laterites are represented with clay-lines and cooperatively rarely by clays; lower layers of
cuts are characterized by strongly weathered surface rocks fragments inclusions up to 10-12
percent.
84. Clay and clayline rocks are characterized with high porosity (60-70 percent), a high range
of natural humidity (from 10-15 to 52-61 percent), and a grain crisp structure. Mostly they have a
low density (1.13-1.63 g/cm3) and a low plasticity number (18-21). The index of its full water
absorption is as high as 65-68 percent and is higher than limit (59-65). They have a high
filtration rate, in a nature humidity condition the solid consistency and increased firm indexes
(internal friction angle) decreases to 3-5 and power of resistance is 0.05-0.45° kg/m2.
85. Usually these rocks are in a natural humid condition in valleys at 5-15 m height and have
high angles (45-60° and more). They have high water stability and therefore there is a less
possibility for deep and big landslip development. However, for a large part of the area a high
consistency of ferrous hydroxides significantly increases plasticity indices and, as a result, in
laterite areas in a condition of abundant atmospheric sediments freely infiltrated waters quickly
change the clay soil consistency parameters and are often close to the water-absorption limit
condition where they change to an unstable condition, leading to landslips and large ravines
development.
E. Geological risks
86. Historically formation and development of natural geological processes always had a
place in Ajara and this development was mostly connected with a wide spectrum of natural
factors, in particular:
•
vertical arrangement contrast of terrain elements, deep and intensive fragmentation of
the terrain and high valley slopes, 65 percent of which have slopes more than 30°;
•
intensive overturn of structural rocks, fissure development, process of deeply weathered
and strong disintegration-friability, significant fall of main conditions and in total low
physical-mechanical indexes of the surface quarter sediments, all these lead to the hard
engineer-geological conditions in the region;
•
an abundance of atmospheric sediments and high humidity, up to 2,000—3,000 mm.
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•
Close location of Ajara’s young mountain range system to Javaxeti and Pontidebi highly
intensive seismic regions, which results in some energetically high earthquakes and
strong tensile growth. For example, 4-5 degree earthquake in 1986 in Kobuleti and
Khelvachauri region caused activation of landslip and gravity processes, which resulted
in damage to 450 houses.
87. During last ten-years significant development in the region caused disturbance to the
geological environment.
88. The situation has become more c complicated because of the formation mechanisms and
intensiveness of the erosive, landslip and flood water processes which have acted together. For
example, 80 percent of cases of flood waters landslip activation.
89. The best proof of this, that at the territory of Kobuleti and Khelvachauri regions the 1990
1:10.000 scale engineer-geological survey identified 124 potential landslip areas and 11
potential flood water sources over 39.6 ha. The total area of the region with geologic processes
causing intensive damage area is 5.1 percent and activating critical risk is 11.7 percent.
90. The National Environmental Agency registered up to 2008 in Kobuleti and Khelvachauri
region: Kobuleti landslips – 78, rock fall areas – 6, river banks ablation – 26 km. Khelvachauri
landslips – 85, flood water ravines – 19, gravity zones – 29, river banks ablation – 21 km.
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V. PAVEMENT DESIGN
A. Introduction
91. In order to determine an adequate technical and economical pavement, a study has been
made using AASHTO Guide for Design of Pavement Structures, 1993, Volume 1, Design
Procedures for new construction or reconstruction. The AASHTO methodology is based on
precise input numbers for material properties, performance, reliability and traffic.
Based on available results of the geotechnical and pavement investigations a preliminary
pavement design has been determined. The road pavement design is based on the following
main relevant input data:
•
Subgrade Strength
•
Traffic
•
Reliability
•
Servicability
B. Pavement Surface Analysis
92. The recommended pavement design is for an asphalt concrete pavement. The reasons
for this are:
•
The alignment passes through areas of poor geology and soils, especially in the initial
peaty area and in some mountainous terrain, There is, therefore, a concern about the
lower subgrade leading to settlement. Normally this would be mitigated by waiting for a
period after the subgrade and base was laid and compacted before applying the surface
layer to allow for any settlement. Given the urgency to complete the project, this is not
possible. If there are some areas of settlement it is much easier and cheaper to repair
asphalt than cement concrete.
•
An anti-skid layer can be incorporated in asphalt concrete surfaces. This is important in
the mountainous areas.
•
The use of asphalt pavement is common in Georgia as is maintenance of asphalt
pavements.
•
Asphalt pavements are now cheaper to construct in Georgia.
93. During detail design, however, a whole of life comparison of both asphaltic and cement
concrete should be carried out.
C. Subgrade strength
94. The subgrade strength has been evaluated based on the California Bearing Ratio (CBR).
The subgrade design CBR has been evaluated for similar road sections.
95. The AASHTO design method uses the Resilient Modulus as a main input factor to
characterize the roadbed soil. Determination of the Resilient Modulus is given in AASHTO Test
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Method T274, however, a direct determination of the resilient Modulus could not be done in
Georgia as the equipment and laboratories for the execution of the required test are not locally
available. As this is not an unusual case, correlations and equations have been developed
which can be used to estimate the Resilient Modulus (MR) from the standard CBR value. In
addition to the correlation given by AASHTO there are various other relationships that are used
around the world:
AASHTO (Heukelom and Klomp)
MR (psi) = 1,500 CBR, valid for values of CBR < 10
Transportation and Road Research Laboratory (TRRL)
MR (psi) = 2,555*(CBR)^0.64
U.S. Army Corps of Engineers (Green and Hall):
MR (psi) = 5,409*(CBR)^0.71
96. The equation suggested in the AASHTO Design Guide is considered reasonable for fine
grained soils with a soaked CBR of 10 or less. The TRRL and AASHTO correlation provide
results within a reasonable range where the U.S. Army Corps of Engineers equation gives
results almost twice of the AASHTO correlation. The TRRL quotation will therefore be used for
the determination of the Resilient Modulus from CBR values for this project.
MR (psi) = 2,555*(CBR)0.64
This is considered a slightly conservative approach.
D. Traffic
97. Studies carried elsewhere have shown that overloading is a serious problem on
unregulated roads. Overloading leads to:
1. Increased /accelerated
potential damage to the pavement which increases
exponentially with the actual increase in the axle loads and determined in terms of
equivalent factor or damage factor according to the following empirical formula:
⎛W ⎞
EF = ⎜ o ⎟
⎝ SA ⎠
4.5
Where
EF -Equivalent damage factor.
Wο - actual axle load.
SA - Standard axle load equal to 10.0 t.
98. Higher structural thickness of the pavement needed to accommodate much higher
stresses applied at the pavement surface and ultimately transmitted to the sub-grade through
various pavement layers.
2. Increased damage to the vehicles and increased cost for maintaining the vehicles.
3. Increased cost for maintaining the road.
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4. Increased potential for road accidents and vehicle breakdown.
99. Although overloading can be and should be controlled at least to some extent by
appropriate regulatory measures it is unlikely that overloading will be controlled completely. It is
therefore necessary to design the pavement to cater for expected or regulated overloading.
1. Determination of damage potential
100. There are no studies on major roads in Georgia examining overloading and therefore the
equivalency factor is unknown. The project road will carry a large percentage of heavy truck
traffic. For this traffic an equivalency factor of 4.6 has been assumed based on HDM4
recommendations and experience elsewhere. Other equivalency factors are set out in Table 5
Table 5: Equivalency factors
Car
Mini-bus
Med bus
0
0.01
0.7
Large
bus
0.8
LGV
MGV
HGV
Artic
0.1
1.25
2.3
4.6
LGV = Light Goods vehicle, MGV = Medium Goods Vehicle, HGV = Heavy Goods Vehicle
Artic = Articulated Goods Vehicle
2. Distribution of traffic between the lanes
101. Since most of the road is to be initially built as a two lane facility it has been assumed
that all traffic will use the same lane. For the widening of the existing road to four lanes it has
been assumed that most of the heavy goods vehicles will use the inside lanes. The percentages
assumed are set out in Table 6.
Table 6: Vehicle % in inside lane (4 lane road)
Car
Mini-bus
Med bus
40%
50%
75%
Large
bus
90%
LGV
MGV
HGV
Artic
60%
80%
90%
100%
102. The traffic load is based on the forecasts of future traffic, vehicle damage factors and
cumulative standard axles for a design life of 20 years. For the pavement design the cumulative
equivalent standard axles for a 20 year (2009-2029) design life are used for the relevant road
sections as set out in Table 7.
Table 7: Cumulative Axle loads
Road Section Km
0
15
28
34
40
103.
15
28
34
40
48
Design life
(years)
20
20
20
20
20
ESAL *106
Total traffic
Design lane
11.3
11.3
11.3
11.3
13.8
13.3
13.1
13.1
13.1
13.1
Detailed traffic data are presented in Supplementary Appendix 6.
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E. Reliability
104. The reliability design factor accounts for chance variation in both traffic prediction and
the performance prediction, and therefore provides a predetermined level of assurance that
pavement sections will survive the period for which they are designed.
105. For a given Reliability level (R), the reliability factor is a function of the overall standard
deviation (So) that accounts for both chance variation in the traffic prediction and normal
variation in pavement performance prediction for a given W18.
106. Values of So developed at the AASHO Road Test corresponds to a total standard
deviation for traffic of 0.35 for rigid pavements and 0.45 for flexible pavements
107. Suggested Levels of Reliability for Various Functional Classifications are given in the
AASHTO Guide. For the project road, which can be classified as a Principal Arterial passing
through rural and urban areas, a Level of Reliability of 95% is recommended.
F. Serviceability
108. The serviceability of a pavement is defined as its ability to serve the type of traffic which
use the facility. The primary measure of serviceability is the Present Serviceability Index (PSI),
which ranges from 0 (impossible road) to 5 (perfect road). Selection of the lowest allowable PSI
or terminal serviceability index (pt) is based on the lowest index that will be tolerated before
rehabilitation, resurfacing, or reconstruction becomes necessary. An index of 2.5 or higher is
suggested for design of major highways and 2.0 for highways with lesser traffic volumes.
109. The original or initial serviceability value po has been observed at the AASHTO Road
Test at 4.2 for flexible pavements and 4.5 for rigid pavements.
110.
The total change in the serviceability index is defined as:
∆ PSI = po - pt
111. Given the projected traffic volumes on the project roads it is recommended to use an
overall terminal serviceability level of 2.0 for the complete length of the road.
112. With a terminal serviceability index pt=2.0 and an initial serviceability value po=4.2 for the
project road the total change in the serviceability index is:
∆ PSI = 4.2 – 2.0 = 2.2
G. Proposed Pavement Structure
113. Taking into consideration the traffic loads and subgrade material alternative pavement
structures have been evaluated. The main reason for the evaluation of the pavement structure
in the Feasibility Study was to find the technical and economical viable solution for use in the
cost estimates and economic evaluation. The currently high costs of bituminous products which
have to be imported are a major cost factor which is reduced with reduction of the thickness of
bituminous layers.
114. The following three alternatives for each road section for the pavement structure have
been evaluated in the feasibility study:
(A) Flexible surface with Asphalt Surface and hydraulic bound base
(B) Flexible surface with Asphalt Surface and bituminous base
(C) Flexible surface with Asphalt Surface and granular base
115. The construction costs of the pavement structures have been estimated for each of the
three options construction with hydraulic bound base (Variant A), bituminous road base (Variant
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B) and construction with granular base (Variant C). Construction cost estimate comprise the
pavement courses, including granular sub-base, only and it does not take account costs of earth
works which does nor differ between the three alternatives.
116. The cost estimate presented in the Feasibility Study indicated clearly lower construction
costs for the pavement structure with granular base. Based on the result of the cost estimate
and cost comparison of the three pavement structure alternatives the pavement design with a
granular base had been recommended. Only this recommended pavement alternative is further
detailed in the following.
117. The first section from . Natanebi River-Road to Qveda Kvirike Village (km 0.0 – km 15.0)
goes through an area of soft peaty soil, which is confirmed with the CBR tests conducted.
However, the section has slightly lesser traffic load (11.3 msa) compared to the other sections
of the design road.
118. Along the road section, Qveda Kvirike road – Chaqvi (km 15 – km 28), the design road
begins to cross river sedimentation geotechnical zone and then enters rolling terrain in cut. The
section has the same traffic load as the first section (11.3 msa). .
119. In the Subsection Chaqvi-Makhinjauri tunnel (km 28 – km 34) the existing road granular
sub base layer has a thickness of not less than 200mm, which is reflected in the CBR test data
obtained. This material should be used for the capping layer.
120. Within the Makhinjauri tunnel- Akhalsheni River road (km 34 – km 40) section of the
design road subgrade soil is represented as similar to that of the section 2, Qveda Kvirike road
– Chaqvi
121. Akhalsheni River road–Chorokhi River (km 40 – km 48) passes the valleys of rivers and
is represented by stronger soil conditions.
122. For each of the above subsections pavement design calculations has been carried out
and are summarized Table 8:
Table 8: Pavement Design Calculations
#
1
2
3
4
5
Section
Natanebi River —Road to
Qveda-Kvirike
Road to Qverda KvirikeCaqvi
Chavqi-Makhinjauri Tunnel
Makhinjauri Tunnel- to
Akhaisheni
Akhalsheni-Chorokhi River
Chainage
Length
km
R
S0
W
CBR
MR
∆PSI
SN
0-15
15
0.95
0.45
11.3
3
5.16
2.2
6
15-29
13
0.95
0.45
11.3
10
11.15
2.2
4.5
28-34
6
15
14.46
2.2
4.2
6
0.45
0.45
13.3
34-40
0.95
0.95
13.1
10
11.15
2.2
4.5
40-48
6
0.95
0.45
13.1
15
14.46
2.2
4.2
123. Because of the fact, that bituminous materials are imported in Georgia and gravel
materials are available in the project area, the depth of the asphalt concrete has been assigned
as minimal in the design of pavement structure, giving importance to gravel materials to option
for cost effectiveness.
H. Summary of Recommended Pavement Structure
1. Pavement Depth
124.
Table 9: Proposed thicknesses of pavement layers,
Table 9: Bituminous base / Granular base
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km
Mm
mm
mm
mm
mm
0-15
15-28
28-34
50
50
50
70
70
70
220
230
180
300
300
300
500
34-40
40-48
50
50
70
70
250
180
300
300
Granular Base
Capping Layer
(Sand-gravel soil)
4
Granular Sub
base
3
Bituminous Binder
1
2
Asphalt concrete
Road Section
Chainage
22
125. Assigned structure of the pavement has been checked to meet AASHTO requirements
for the value of Structural Number, represented in Table 10:
Table 10: Pavement Depth
Pavement Structure
Asphalt wearing Course
Asphalt Concrete Binding Course
Granular base Course
Sand-Gravel Sub-base
Capping Layer (Sand-Gravel Soil)
Conditional Depth
Overall required Depth for SN value (mm)
Depth Factor
0.44
0.4
0.14
0.11
0.08
25.4
1
50
70
220
300
500
153.8
152.4
2
50
70
230
300
3
50
70
180
300
4
50
70
250
300
5
50
70
180
300
115.2
114.3
108.2
106.7
118
116.8
108.2
106.7
2. Wearing Course
126. A continuously graded asphalt concrete based on Marshall test criteria is recommended
for the construction of the structural surfacing. On pavements having a granular base emphasis
should be given to a flexible bituminous mix. The binder for the bituminous mix shall be a 50/70
penetration grade bitumen.
Crushed river gravel will meet the requirements for aggregate production.
3. Binder Course
127. Between the wearing course and Bituminous/Granular base course the binder course of
an asphalt mix based on Marshall test criteria is recommended. The binder for the bituminous
mix should be 50/70 penetration grade bitumen. A nominal mix proportion of 5.0% bitumen in
average is assumed for this binder course. Crushed material from borrow areas with natural
river gravel will meet the main requirements for aggregate production. Recommended maximum
nominal aggregate size is 20mm. Detailed testing of selected material sources is required to
confirm and verify material properties prior to start of construction work.
4. Base Course
Granular Base Course Material
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128. According to the pavement design, graded crushed stone base is recommended for
most of the project sections. It is technically justified and the use of such bases is accepted
practice in Georgia. If it is necessary, adjustment of the grading might be made by mixing in non
plastic fine grained natural material. In any case the blend should be none or slightly plastic and
should produce laboratory soaked CBR values in excess of 80 %.
5. Sub-base
Sub-base of Natural Granular Material
129. This type of sub-base material can be selected from road excavation and/or from borrow
areas. The material consists of river gravel and sand and gravel of glacial and alluvial origin.
Selection within the material sources will be required in some cases. The recommended
plasticity should generally not exceed a plasticity Index of 6.
130. River gravel is often coarse grained and a nominal treatment of the excavation material
by means of screening may be necessary in order to produce a grading to fulfil sub-base
requirements.
131.
For all sub-base of natural granular material a minimum CBR value of 30 % is required.
Sub-base of Crushed Stone Material
132. Material for this purpose will be produced from fresh stone and shall comply with the
requirements of graded crushed stone base as described above for crushed base course except
that a minimum CBR value of 30% is required.
6. Shoulders
133. For better internal drainage of the pavement layers it is advisable to extend the base and
sub-base course across the shoulders to the edge of the embankment or drainage ditches as
the case may be. This has the further advantage of simplifying the construction. As the
shoulders are then made of low or non-plastic material they should be protected against
erosion, wear and the ingress of water. This can easily be achieved by proper compaction and
regular maintenance or the application of topsoil with grassing.
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VI. HYDROLOGICAL STUDY
A. Introduction
134. The rivers in Georgia generally rise in steep mountainous areas and flow to gentler
slopes in the central plain and coastal fringe. Due to variability, both temporally and spatially, in
the rainfall pattern and intensity, the resulting flood flows and the consequent sediment flows
are also variable. The available hydrological and meteorological records of Georgia show that
the range and the consequent standard deviation of the flood flows and the 24-hour maximum
rainfall are very high.
135. The proposed bypass road alignment crosses 27 rivers and rivulets. The culvert and
bridges over the rivers should be designed to be safe during an occurrence of floods within the
expected design life of the structures. At the same time, the design of the river crossing
structures should be economical and within an acceptable risk limit. To determine the different
hydrological parameters required for the safe, efficient and economical design of the river
crossing structures a hydrological study of all the rivers and rivulets which cross the proposed
road alignment of the project was conducted.
B. Methodology
136. The basic data for the hydrological study were the topographical maps published by the
Survey Department, and the project topographical survey. The catchment of the rivers at the
river crossings was manually drawn on the topographical maps of scale 1:25,000 and the
catchment area was estimated by the square-count method. The cross section and the river bed
slope of the rivers at the river crossing were obtained from the topographical survey.
1. Culvert Opening Sizes
137. A road culvert is a river crossing structure having a gross opening of 6 m or less
between its abutments. The openings required for the pipe and box culverts, where the
proposed road alignment crosses the river, were estimated based on the design discharge, the
roughness coefficient of the proposed culvert structure, and the topographical slope in the
vicinity of the river crossings. The slope of the culvert should be kept as close to the
topographical slope as possible to minimize excavation and/or filling. When the topographical
slope is high, the slope of the designed culvert should be reduced to avoid very high flow
velocity (velocity higher than 3 m/second). A free board of 20% should be provided, i.e., the size
of the opening should be determined so that the design discharge can pass through 80% or less
of the cross-sectional area of the opening.
2. Bridge Span
138. The total span of the bridges over the rivers were determined by the cross sectional area
of the river at the crossing, the bed slope, and the roughness of the bed materials at the
proposed bridge location. The cross-sectional area and the bed slope were obtained from the
topographical survey. The roughness of the bed material was estimated from the composition of
the materials and their approximate sizes.
139. The flood level which matched the design discharge at the river cross-section was taken
as the HFL. The free board was added on the HFL to determine the minimum elevation of the
bridge superstructure. The opening in the cross-section at the minimum elevation of the bridge
superstructure was taken as the effective span of the bridge. The total bridge span was
obtained by adding the width of the piers to the effective bridge span.
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3. Freeboard
140. The difference between the elevation of the lowest part of the bridge super structure and
the HFL is the free board. The freeboard in a bridge allows the safe passage of flowing debris
during flooding. The permissible values of free board for bridges for different discharges
commonly used are set out in Table 11.
Table 11: Freeboard Allowances
Discharge
(m3/s)
< 200
201-500
501-2,000
2,001-5,000
>5,000
Vertical Clearance (mm)
600
800
1,000
1,500
>2,000
C. Hydrological Characteristics of Main Rivers
1. River Descriptions
141. The Choloki River flows from the confluence of various streams at an altitude of around
780 m. on the north-west slope of the Ilia Tsikhe Mountain and joins to the Natanebi River 0.6
km. from its mouth (outfall). The length of the river is 24 km., the fall of water surface is 780 m.,
average inclination 32 percent and the catchment area is 159 km2. The average height of the
river basin is 210 m.
142. The main tributaries are the Ghela (12 km. length), Sharistskali (16 km. length) and
Ochkhamuri (19 km. length).
143. The river basin is located on the north-west slopes of Adjara-Imereti mountain ridge. The
upper part of river basin is mountainous relief which is separated by tributaries, ravines and
gorges. The components of the mountainous part of River basin are marl, sandstones, shale
and conglomerates. The lower part of the basin is conglomerate with sandstone, loam and
newer alluvial sediments; the main rocks are covered by loamy soil. The upper basin is Kolkheti
type forest while the lower part is characterized by cultivated lands and plantations of
subtropical plants. Swamps cover 15-20 percent of the lower basin.
144. The river-bed in the upper and middle regions is moderately sinuous, but on the lowland
it is meandering. The flow width changes from 2-4m. to 25 m., the depth from 0.2 m. to 1-3 m.,
and the speed from 2.5 m/s to 0.3-0.5 m/s.
145. River aqueous regime is characterized by water inflows all year round. Water inflows
levels, caused by rains exceed the levels of inflow caused by snow melting in spring. The river
flow reduces in the summer. River’s monthly annual flow distribution shows major changes from
year to year. The river does not ice over.
146. The Achkva River flows from the confluence of various streams at 1,000 m. on the
north-west slopes of Ilia Tsikhe Mountain and flows into the Black Sea near Kobuleti. The length
of the river is 19 km., the fall of the water surface 999 m., the average inclination is 52.6 percent
the catchment area 37 km2, and the average height of river basin is 156 m. The river has 79
tributaries with a total length 80 km.
147. The upper part of the river basin is located on the north-west slopes of Adjara-Imereti
mountain ridge and is separated by tributaries, ravines and gorges. The middle part of the river
basin is hilly; the lower part is situated on seashore lowland.
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148. The geological structure is basically conglomerate with sedimentary rocks of tertiary and
quaternary periods. The main rocks are generally covered by mountainous and forested loamy
soils. The vegetation cover of the river basin is Kolkheti type forest.
149. The river bed is moderately sinuous. The width of flow changes from 2m to 12 m., the
depth from 0.2 m. to 1.5 m., and the speed from 1.1 m/s to 0.2 m/s.
150. The river’s aqueous regime is characterized by water inflows all year round. The river
does not ice over.
151. The Kintrishi River flows from 2,320 m. on the Adjara-Imereti mountain ridge, near the
Khino Mountain (2,599 m.), and flows into the Black Sea one km. south of Kobuleti. The length
of river is 45 km., average inclination 52 percent, the catchment-area is 254 km2 and the
average height of river basin is 835 m. The main tributaries of river are Magalakhevisghele (12
km. length) and Kinkisha (15 km. length).
152. The whole river basin is mountainous; its geological structure is made up of tufa,
andesite, and basalts, with alluvial, diluvia and eluvia sediments. The main rocks are covered by
loamy soil and 70 percent of the river basin is covered by thick mixed forest.
153. The river bed is sinuous and, after the village of Khutsubani, is divided into bayous. The
bayous form little, low islands, (length 50-1000 m., width 50-200 m.). The width of the river flow
changes from 1 to 80 m., the depth from 0.2 to 2 m., and the speed from 1.8 m/s to 0.7 m/s.
154. The aqueous regime of the river is characterized by inundations in spring and water
inflows all over the year. The level of water inflows exceeds the level of inundation caused by
snow melting in spring. The river flow reduces in the summer. River’s monthly annual flow
distribution shows major changes from year to year. The river does not ice over.
155. The Chakvistskali River flows from the Kobuleti mountain ridge, from the southern
slope of Titati Mountain (1,379 m.) at a height 1,300 m. and flows into the Black Sea to the
south of village of Chakvi.
156. The length of the river is 23 km., the fall of water surface 1,300 m., average inclination
56.5 percent, and the catchment-area 176 km2. The river has 496 various tributaries and the
whole length is 337 km.
157. The upper river basin is in mountainous terrain; after the village of Khala it changes into
hilly relief. The river’s flow is moderately sinuous and up to the village of Gorgadzeebi has no
bayous. After the village the river forms several islands, which are covered by 1 m. height water
during high water.
158. The aqueous regime of the river is characterized with floodwaters in spring and water
inflows all year caused by rains, the level of these water inflows exceeds the level of inflow
caused by snow melting in spring. The river flow reduces in the summer. The river’s monthly
annual flow distribution shows major changes from year to year. The river does not ice over.
159. The Chorokhi River flows from Turkey’s, Okus-Badatsagi Mountains, 20 km. south-west
of Isfiri Mountain, at a height of 2,700 m., and flows into the Black Sea in Georgia, 6 km. southwest from Batumi.
160. The length of the river is 438 km., catchment area 22 100 km2, the lower section of the
river is located in Georgia with a length of 26 km., and the fall of water surface of this section is
780 m., the average inclination 30 percent. In Georgia the river has 3 main tributaries:
Machakhelistskali (length 37 km.) Acharistskali (90 km.) and Charnali (13 m.).
161. The river basin relief is mountainous. It covers the northern slopes of the Shavsheti
mountain ridge, western the slopes of Arsiani mountain ridge and the southern slopes of the
Adjara-Imereti mountain ridge. The lower part of the river basin, about 10 km. in length, is
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located in the Kakhaberi lowland. The mountainous part of the river basin is separated by deep
ravines of the tributaries Machakhelastskali and Acharistskali.
162. The geological structure of river basin is a conglomerate of tufa, shale, new andesite
and basalt lavas. The main rocks are covered by layers of loamy soil. The vegetative layer is
mainly deciduous and conifer forest. In the Kakhaberi lowland are cultivated lands.
163. The river bed from the state border to the village of Kapandiba is moderately sinuous
and has 2-3 bayous. After the village the river bed is very sinuous and branched. The bayous
have formed islands, with widths from 20 to 100 m. and lengths from 100 to 300 m. Part of the
islands are covered by plants and grass. The river’s swift flowing and stagnant flow sections are
changing every 500 meters. In the Kakhaberi lowland the river changes river bed frequently.
164. The width of the flow changes from 50 m. (near village of Maradidi) to 120 m. (near
village of Makho), the depth changes from 1.5 m to 4.8 m., and speed changes from 0.7 m/s to
2.5 m/s. The riverbed is stony-gravelly.
165. The river is fed by snow, rain and ground waters. Its aqueous regime is characterized by
floodwaters in spring and, water inflows in autumn and with low river flows in winter and
summer. Heavy inflows in spring starts at the beginning of March, rises to a maximum in May
and ends in late July. In August and September flow reduces substantially, but there are rain
water inflows occasionally during this period. In autumn there are rainwater inflows which are
greater than summer. At the end of November the river flow reduces and stays stable through
until March. In spring the flows are 45 percent of annual flows, in summer 25 percent, in autumn
17 percent and in winter 13 percent.
166. In periods of inundations and water inflows the sedimentation of river changes from
3,700 to 11,000 g/m3. The maximum stable (steady) volume flow rate, observed in May, is
3100kg/s, the minimum is in September at 3.0 kg/s. There are short periods of icing.
167. In Georgia the river Chorokhi is not used for cultivation, however there are weirs and the
Muratli Reservoir is located near Georgian-Turkish border.
168. Other small rivers and streams have similar aqueous characteristics as the rivers
described above.
2. Maximum Flow Rate
169. Hydrological studies have not been carried out for most of the rivers which cross the
bypass alignments. Up until 1990 only flows of the Chakvistskali, Kintrishi and Chorokhi rivers
had been done. Because of this the maximum volume has been calculated based on the
methodology, given in “Technical guideline for calculating rivers maximum flow in Caucasus”4.
170. Using this methodology the water’s maximum volume flow rate with maximal catchment
area of up to 400 km2, is calculated using the formula:
⎡ F 2 / 3 ⋅ K 1,35 ⋅τ 0,38 ⋅ i 0,125 ⎤
3
Q = R⋅⎢
⎥ ⋅ Π ⋅ λ m /s
0 , 44
(L + 10)
⎣
⎦
Where,
R = District parameter; 1.35 for Western Georgia;
F= Catchment area river (km2);
4
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K= Climate coefficient of district. For Ajara this is 9;
τ = Time period (years)
i = River’s flow’s balanced inclination in units, from the source to bridge;
L= length of river from source to bridge(km);
Π = The coefficient characterizing soil in river basin taken from special maps and tables;
λ = Coefficient of river basins tree cover, calculated by the formula:
1
λ=
1 + 0,2 ⋅
Ft
F
where Ft is area of woody part of river basin.
171. Topographic maps (1:25,000 and 1:50,000) have been used to calculate catchments
areas, inclination and length. The resultant maximal volume flow rates are given in Table 12
Table 12: Flow rates of Rivers and Streams.
River
1.Choloki River
2.Ochkhamuri
River
3.Shavi Ghele-1
4. Shavi Ghele
5.Shavi Ghele -2
6.Achkva river
7. stream
8. Kintrishi River
9. Kinkishi River
10.Dekhva-qveda
River
11.Dekhva-zeda
River
12.Shua Ghele
13. stream
14. Chakvistskali
River
15. stream
16. stream
17. stream
18. stream
19. stream
20.Korolistskali
River
21. stream
22. stream
λ
Maximal volume flow rate
m3/sec
τ = 200 τ = 100 τ = 10
years
years
years
L
i
km2
km
cal.
K
Π
83.0
20.2
0.039
9.0
1.19
60
510
440
185
38.0
15.0
0.015
9.0
1.19
55
295
255
105
2.97
1.92
0.86
30.0
1.47
208
36.0
3.40
3.80
1.90
13.5
1.88
42.8
14.0
0.019
0.017
0.019
0.058
0.019
0.054
0.089
9.0
9.0
9.0
9.0
9.0
9.0
9.0
1.19
1.19
1.19
1.19
1.19
1.19
1.19
98
98
99
80
65
70
65
60.0
41.5
22.0
295
38.0
765
360
50.0
35.5
19.0
255
32.5
660
310
21.5
15.0
8.00
105
13.5
275
130
41.0
15.0
0.076
9.0
1.19
70
370
320
135
39.0
13.7
0.083
9.0
1.19
70
370
320
135
11.2
4.47
5.98
3.50
0.079
0.116
9.0
9.0
1.19
1.19
75
60
190
110
165
95.5
68.5
40.0
167
18.5
0.069
9.0
1.19
75
880
760
320
2.44
2.42
1.16
3.97
1.17
2.80
2.65
2.12
4.40
1.65
0.101
0.123
0.101
0.083
0.102
9.0
9.0
9.0
9.0
9.0
1.19
1.19
1.19
1.19
1.19
50
80
70
90
75
68.0
65.5
39.5
91.0
40.0
58.5
56.5
34.0
78.5
34.5
24.5
23.5
14.5
33.0
14.5
49.5
11.4
0.086
9.0
1.19
55
475
410
170
5.00
3.24
3.75
4.00
0.060
0.055
9.0
9.0
1.19
1.19
50
45
120
77.0
105
66.5
43.0
28.0
F
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L
i
km2
km
cal.
14.3
7.75
7.62
22100
0.61
0.91
F
River
23.Bartskhana
River
24.Mejnistskali
River
25.Choroxi river
26. stream
27.KvariaTi Ghele
λ
Maximal volume flow rate
m3/sec
τ = 200 τ = 100 τ = 10
years
years
years
K
Π
0.119
9.0
1.19
55
235
200
83.5
4.80
0.075
9.0
1.19
45
165
140
60.0
436
0.95
1.10
0.030
0.270
0.364
_
9.0
9.0
_
1.0
1.0
_
95
98
_
20.0
30.0
_
18.0
25.0
_
8.00
10.0
percent
3. Chorokhi’s Maximum Flowrate
172. As the River Chorokhi’s catchment area is more then 400 km2, the above methodology
cannot be used.
173. Several weirs were built at the end of 20th century on the river Chorokhi in Turkey; one,
the Muratali, situated near Georgian state border, is still used. The weir regulates the river’s
flow, and changes its flow characteristics in the lower reaches in Georgian territory.
174. In order to make substantial hydrological calculation and to make optimal decisions for
project structures it is necessary to know the conditions of weir use. Unfortunately, despite
many requests to the operators of the weir, this data has not been forthcoming. Therefore, the
hydrological calculations have been carried out based only on data provided through
observations on River Chorokhi in Georgian territory.
175. On projected sections of the river the maximum volume flow rate is calculated based on
data of historical hydrological measurements based on a 63 year observation period of natural
river flow, (1930-1992). In this period the maximal volume flow rate varied from 3,840 m3/s
(1942) to 628 m3/s (1986) .
176. Using data from the hydrographical station at Erges, close to Batumi, the maximum
water flow was estimated as:
Q=
ΣQi
= 1,422 m3/s-s;
Q0
where C v and C s are the coefficients of variation and asymmetry and λ 2 and λ3 are factors
for vegetation coverage which are defined based on nonographs:
where λ 2 =
Σ lg K
ΣK lg K
= − 0.028 and λ3 =
= +0.029-s,
n −1
n −1
C v = 0.38, and Cs = 4 ⋅ C v =1.52.
177. Based on the distribution curve’s parameters and the parameters of the distribution data,
the maximum volume flow rate at Erges hydrological station is set out in Table 13 for different
return periods (years) for a catchment area of 22,000 km2
Table 13: River Chorokhi maximal flow rates
Return period
(Years)
QQ m3/sc
200
100
50
20
10
5
3840
3215
2945
2435
2115
1790
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VII. STRUCTURES
A. Design Standards
1. General
178. Lateral highway drainage is mainly through culverts and bridges. The size of the flood
opening is determined by the catchment area parameters and consideration of existing nearby
structures.
179. There are 111 culverts crossing the bypass roads and these will be designed in
compliance with standard design practice for highways using pipe, or box culverts. They are
used not only for stream and flood water disposal but also for farmland irrigation where
necessary. Sufficient up and down stream training works will be constructed to allow smooth
flow. Box culverts shall also be used for minor road crossings and pedestrian underpasses.
180. For the purpose of easy maintenance circular culverts are designed of 1,500 mm
diameter. Two size cross section of box culverts are suggested by the preliminary design: 2.5 *
4.5 m and 4.5 * 6.0 m according to the Georgian Road Design Standard. The former is
designated for pedestrians and cattle under passing in agricultural areas as well as for small
streams in steep valleys, while the latter is for minor roads to enable the local transport
underpass the design road.
181. The following standards for bridge design have been used for the preliminary design.
These generally follow Georgia and international practice.
•
Design Load: HL-93 loading for the road way according to the AASHTO standard (1993).
•
Design Flood Frequency: A frequency of 1/100 years is adopted for bridges; 1/50 is used
for small bridges and culverts and 1/20 years for side rains.
•
Earthquake: The project road is located in seismic 8 score seismic zone by Richter’s
Scale (as specified by the decree #42 of Ministry of Architecture and Construction, July
7, 1991), which requires necessary anti-seismic measures in the design of all structures
in this section.
•
Navigation Requirement: There are no navigable rivers on the alignment.
•
Deck Width: In line with Georgian road design standard for design speed 100 kph, the
deck width of all the bridges, both small and large, has to be the same as the roadway
width (sub-grade): the bridge deck width is two lanes of 3.5m, 2.5 m shoulders plus a
railing edge beam of 0.5 m on both sides, giving a total width of 13.0 m.. As this is an
access controlled road the width of footpath has been considered oversized and
unnecessary and has been reduced by 0.5 meter. So geometric parameters for all the
bridges are assigned as follows:
o
carriageway – 2 * 3,5 = 7,0 m
o
safety lane both sides – 0,5 m
o
footpath both sides – 0,5+1,5+0,5 = 2,0 m (see Fig. 2.1)
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•
Vertical Clearance: Minimum vertical clearance is 5.0m. (Georgia Road Standards
(2009)).
2. Bridge Cross Sections:
182.
The Bridge cross-section is shown in Figure 5
4.0%
2.50% qano bi /SLOPE
4.0%
2.50% qano bi /SLOPE
Figure 5: Two Lane Bridge
B. Bridges in the Project
183. The project has 37 bridges with a total length of 6,643 m (Table 14); the overall bridge
length is about 16 % of the total alignment, which means that any refinement to the bridge
design and construction in detail design could achieve significant cost savings.
Table 14: Summary of bridges
Item
Small
Large (>50m)
Extra Large (>250m)
Total
Length (m)
Number
643
1,800
4,200
6,643
19
12
6
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1. Large Bridges
184. Table 15 lists the large bridges in the project with span length/s, super structure types,
abutments and pier types. A General Arrangement Drawing of the proposed bridge sites and the
span arrangement for most of these large bridges are provided in the design drawings.
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Table 15: Large Bridges
Start
Chainage
No.
1
23.90
2
26.2
3
35.85
4
38.5
5
40.35
6
42.3
Crossing
River and
connection
road to Zeda
Achkva
Riv.
Chaqvistskali
Riv.
Korolistskali
Riv.
Bartskhana
Valley north of
Peria Tunnel
Valley south of
Peria Tunnel
Maximum
Span
Length
(M)
45
Abutments
Type/Height (m)
RC Pier
Type/Height
(M)
RC Super
Structure
Type
U-type/10
Two Circular
columns /25
PC,
2 web
Two Circular
columns /15
Two Circular
columns /25
Two Circular
columns /25
Two Circular
columns /35
Two Circular
columns /35
PC,
2 web
PC,
2 web
PC,
2 web
PC,
2 web
PC,
2 web
600
45
800
Spill-through /15
45
770
Spill-through /15
45
750
Spill-through /15
45
580
U-type /15
45
700
Spill-through /15
Total
4,200
Note: PC 2 web – Reinforced concrete continuous girder with 2 webs and integral reinforced
concrete deck prestessed in longitudinal and transverse directions.
C. Technical and Design Summary: Bridges
1.
General Design Principles
185. The proposed expressway traverses both flat and rolling/mountainous areas. The
proposed bridges will mainly be aligned in the general direction of the road. Large bridges were
subject to visual geological condition investigation and comparative alignment studies to
determine their final location.
186. Normally bridge structures are used in preference to fill for those alignment sections with
a fill height of more than 20m. However, some bridges in easy terrain fill height of over 20m
could be changed to culverts with fill sub-grade so as to reduce the waste material from cuts.
This should be examined during detail design.
187. Generally bridge location and structure type have been designed following the principle
of “suitability, economy, safety and landscaping”. Bridge design has also taken account of
environmental-friendly design and ease of construction and maintenance.
188. The spans and length of the various bridges have been determined by integrating the
topographical, geological and hydrological conditions with the bridge elevation, longitudinal
grade and radius of horizontal curves. The span of bridges in mountainous areas was also,
where appropriate, determined by flood levels. The elevations of the bridge decks in the flatter
areas of the road are mostly governed by the clearance required for debris and the existing
bridge levels.
The location of the large bridges have also been chosen where the watercourse is straight,
where possible in a stable geological area, and where the maximum designed flow can be
contained in its channel.
a. In order to save investment and improve the efficiency of assembly and
construction, bridge types have been standardized where possible.
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a.
Super-structure:
189. The superstructure for the bridges has been selected depending mainly on the height of
substructure, use of the local materials, economy, and local expertise in design and
construction. Taking into account the topographic and geologic conditions of the alignment,
bridge superstructures are proposed as:
b. prefabricated reinforced concrete T-girders – for single span bridges (12 meter or
18 meters)
c. prefabricated, free supported pre-stressed T-girders – for small bridges up to 250
meter in length
d. Cast in situ pre-stressed concrete continuous girder with 2 webs and integrated
deck slab – for long bridges over 250 meter in length and over 20 meter in height.
190. The length of a bridge is mainly dictated by the width of the natural drainage channel
and the height of fill. These superstructures have been standardized so as to facilitate pre-cast
construction, reduce construction cost and also speed up the construction progress.
191. The type of bridges used for the preliminary design is also based so as to maximize the
use of local materials and thus economize on the cost of the bridges. The span used for superstructure of the bridges is mainly based on the height of the substructure from the foundation
level. The height of the bridge deck level is fixed based on the High Water Level (HWL) plus
freeboard based on the Georgian Road Design Standard. The Bridge deck level is the higher of
the deck level as obtained above or the design level of the road demanded by the vertical
design requirement of the road.
192. For the Preliminary Design, the depth of the T Beam and Box Girders are taken as 1/16
of the Span. The width of Bridge is as shown in the Bridge Cross-Section in the report.
b. Substructure:
193. For pier substructures, columnar piers are proposed. For abutments up to 10 meters in
height inverted U-type of abutment is proposed; for those higher than 10 meters – spill through
type of abutment.
194. The Foundation type for substructures is decided on the geo-technical investigation
carried out. The soil investigation suggests that Spread Footing for the foundation can be used
for most bridges except in the first 14 km. For the preliminary design purpose spread footings
have been used for the bridges from km 14-44. For long and high bridges the foundation level
is fixed where the N-value is more than 50 and below the Scour level. For small bridges
foundation level is taken respective to the N=30 value. For the bridges where the soil
investigation has not been carried out, the assumption is based on a similar type of investigation
data. The Allowable bearing pressure based on the N value of 30 for non-granular soils for
spread footing is taken as 30-60 t/m2 and for granular soil it is taken as 30 t/m2. For first 14 km
of the design road, in peaty soil bridges are designed with pile foundations with 15 -20 meters in
depth based on preliminary calculation of geotechnical capacity of piles.
195. Reverse T type of Abutment has been used for a height of up to 12 m. Box(spill-through)
type of abutment has been used from 12 m and up to 20m height.
196.
Wall type of columnar piers have been assumed for the piers of the Bridges.
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2. Other General Bridge Design Issues
197. As there are more than 50 bridges in the Project, for design drawing and cost estimation
purposes they have been grouped broadly by span length and arrangement. General
arrangement drawings for each span length and arrangement have been produced at a scale of
1:500 and 1:1,000 for profile and plan respectively and at 1:100 and 1:200 for cross-sections.
Typical drawings for small cross drainage such as circular culverts, box culvert, pedestrian
crossings and overpasses have not been included in the drawings.
198.
In the detail design stage, additional detail geological condition investigation will be
required for all bridges, particularly large and extra-large bridges before finalizing the bridge
type and span layout.
199. Bridge deck drainage system design and pavement improvement are important for high
class road operation, as poor design or construction can lead to additional maintenance and
cost. Early damages have occurred of deck drainage and pavement on some highway bridges
in Georgia. Most designers and contractors correctly concentrate on structural safety; however,
this does not mean that careful proper design and construction of accessorial parts of bridge
should be ignored. These details need to be carefully considered in detail design.
D. Interchanges
1. Introduction
200. In the 48 Kilometers from the northern end of the project road at Natanebi River to the
Chorokhi River connection with the existing road, there are five full and two partial interchanges
proposed. The interchange names and locations are given in Table 16. Spacing of interchanges
ranges from 3 - 17 km.
201. The interchanges will be designed to connect to existing major roads and also to provide
access to areas with development or possibility of future, industrial or residential development.
202.
•
•
•
•
•
During design account has been taken of:
Traffic flows leaving and entering the bypass road;
Intervals between interchanges;
Local traffic needs;
Classification of the interchange in terms of design speed and ramp widths;
Land use, interference with existing facilities and costs;
Table 16: Interchange Names and Locations
Chainage (K)
0
Interchange
Natanebi
Connecting Road
Road Name
Kobuleti-Poti
KobulhetiAzurgeti
Road Class
International
Trumpet
State
Diamond
11.3
Ochkhamuri
28.3
28km
Existing S2
State
33.8
Batumi
Existing S2
Town access
Bartskhana
Batumi access
BatumiKhelvachauri
Batumi-Sarpi
39
44.6
Khelvachauri
47.8
Chorokhi
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Type of
Interchange
Town Road
State
International
Modified
Trumpet
Partial
Directional
Partial
Modified
Cloverleaf
Directional
35
203. In all cases, the taper lengths, acceleration and deceleration lengths are at or above
those required by international standard for the selected design speeds. The width of one-way
ramp is 4m with 1.5m shoulder. The interchanges have been design for a two lane main road
but with allowance for future upgrading to four lanes. Designed ramp widths for and entry and
exit lanes have adequate capacity for the road design life. All interchange bridges will have a
vertical clearance of 5m.
204. Landscaping is proposed to be integrated with the design of interchanges and service
areas.
205. Interchanges have been designed to cater for forecast traffic volumes and the existing
and future planned road network and development. Land for all future interchanges upgrading
should be reserved.
2. Interchange Types
206. In order to minimize land acquisition, where ramp traffic volumes are small diamond
interchanges have been selected (Ochkhamuri). For the major connections with the existing road
at Natemebi, 28km and Chorokhi a modified trumpet and a directional interchange have been
selected. At the junction of the Bartskhana where the terrain is unsuitable and land developed a
partial interchange is proposed with just two ramps. At Khelvachauri road where traffic volumes
are higher or are expected to grow because of development, a modified partial cloverleaf
interchange is planned. At the junction with the existing road at km 28 and at the start of the
Batumi bypass where the existing road will split to enter Batumi a partial directional interchange
is planned.
3. Interchange locations
a.
Natanebi
207. The interchange is at the intersection of the project road (Kobuleti bypass) and the
existing Poti-Kobuleti road and will provide uninterrupted traffic flow at the intersection of these
two major roads. It will cater for traffic from the north wishing to travel via the bypass or go
directly to Kobuleti and vice versa.
b. Ochkhamuri
Ochkhamuri interchange is located at 11.3 km from the northern end of the bypass. The
purpose of this interchange is to cater the traffic coming and going to Azurgeti and central
Kobuleti. It is anticipated that interchange will initially have light traffic and so a diamond
interchange is planned with stop signs or traffic signals at the end of the ramps on the
Kobulheti-Azurgeti road. Traffic coming from the south from Batumi or beyond to the center of
Kobuleti would also use this interchange.
208.
c. 28km
209. The interchange is located at 28.3 km where the bypass road joins the existing,
improved, road. This is the start of the existing road widening to four lanes. A modified trumpet
type of interchange is proposed and will provide uninterrupted traffic flow for traffic from Batumi
to Kobuleti as well as bypass traffic.
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d. Batumi Interchange
210. An interchange is required at km 33.8 where the proposed Batumi bypass leaves the
(four lane) existing road. It will allow uninterrupted traffic flow for traffic wishing to enter Batumi
or for through traffic using the bypass. A semi directional interchange is proposed; traffic from
Batumi will not be allowed to turn back onto the bypass and traffic from the bypass will not be
able to turn back to Batumi. This is necessary because of limited space. A bridge is required on
the bypass road as it climbs to enter the first of the small tunnels and the Batumi road
(northbound) would go under this bridge.
e. Bartskhana Interchange
211. A partial interchange is proposed at 39km at the Bartskhana River road for traffic to and
from the south wishing to travel from or to north Batumi. the rail yards and port. This is a busy
congested road and the area is being developed so traffic volumes will rise. Because of the
terrain and existing development, however, this has been designed with just two ramps to cater
for the traffic to and from the south only and may be upgraded later to a partial cloverleaf.
However, this may be difficult unless land is resumed or frozen. With improvement o the existing
road from the interchange west towards the rail yards (1.6 km) a connection to the proposed
Batumi relief road can be made which would attract more traffic from the port and railyard areas
to the bypass.
f.
Khelvachauri Interchange
212. A cloverleaf interchange is proposed at 44.6km at the Batumi-Khelvachauri road giving
access to east Batumi and to the Khelvachauri road for traffic to Keda, Suakhevi and beyond.
This is a busy major road with probable future growth thus a diamond interchange is not
suitable. It may be possible to construct a partial cloverleaf at first and to upgrade to full
cloverleaf as traffic volumes increase.
213.
The preliminary layouts of the interchanges are shown in the drawings in Volume 3.
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VIII. OTHER PROJECT ROAD ELEMENTS
A. At Grade Intersections
214. Two fully access controlled bypass roads are planned with the only access via grade
separated interchanges. The ramp roads to two of these interchanges will connect into the local
road network at grade intersections. The design of these intersection need care since the traffic
from the project road will have been traveling at high speeds and must be given clear warning of
the lower standard of the road and intersection ahead.
B. Roadside Facilities
1. Signs and Markings
215. All traffic signs and road markings will conform to GoG or Vienna Convention standards
for international roads. Detailed schedules for signs and markings are not shown in the
preliminary design but would normally be shown in detail design.
216. Typical road marking layouts for the main line and ramps should be detailed in the final
design. Both road marking and signs should be painted with reflectorized paint in accordance
with international standards.
217. The project road will require continuous communication and monitoring facilities based
on international specification and suitable communication and monitoring facilities for the tunnel
and variable message signs.
2. Roadside Service/Information Stations
218. Service areas are usually but not always provided at interchange locations on high class
roads. It is proposed to include a service area close to Ochkhamuri interchange. This should
provide a good level of service for motorists and therefore unauthorized stopping on the Project
road should not be necessary. The service area should contain the full range of services,
including fuel, food, parking and toilet facilities and possibly overnight accommodation for truck
drivers. Space should be reserved for a future weigh bridge area. Road maintenance facilities
should also be located at the service area.
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IX. TUNNEL DESIGN
A. Introduction
219. The preliminary tunnel design has been developed using the preliminary topographical
and geotechnical investigations. The magnitude and cost of ventilation and illumination has
been estimated from past experience. In the Detail Design stage additional geotechnical
investigation and further study for exhaust gas emission properties of heavy vehicles will be
required to upgrade the tunnel design and E&M design.
B. Standards and dimension of tunnels
220. The Georgian design standard for two way tunnels, initially required by RD to be used in
this project, has an emergency lane on one side of 2.5m wide with a clear width of the road of
11.5m (Figure 9).
221. This is an overly large tunnel cross section compared to most international standards
and will create difficulty in construction in poor ground as well as far more construction time and
cost (43 percent greater) than normal international standards.
222. The twin tube tunnels on the existing road, which will be part of the Kobuleti by-pass
road have a cross section which is close to normal international standards and differ
significantly from the Georgian Standard because the tunnel does not have the extra 2.5m lane.
One of the twin tunnels has 3.5m wide two lanes with 0.7m wide shoulders and inspection
walkways at both sides and the other has 3.75m wide two lanes with 0.5m wide shoulders and
1.1m and 1.2m wide inspection walkways.
223. When there are different tunnels in the same section of road whose cross sections differ
too much, traffic safety cannot be maintained and this may cause a serious risk. For the safety
of the traffic and for safe and economical construction, a smaller internationally accepted cross
section is recommend for the project tunnels, which, for two lane two way tunnels, has two 3.5m
wide lanes, 1.25m wide shoulders and 0.9m wide inspection walkway at a side. After further
discussion with RD it was agreed to use this cross section.
C. Tunnel Design
1. Tunnel Cross Section
224. The ttypical Standard cross section for a 2 lane two way tunnel is shown in Figure 6. For
the portal areas and for sections of weak geotechnical conditions, where unconsolidated
material develops, invert concrete has been specified as shown in Figure 7.
225. The width of the road in tunnels is 2 x 3.5 m lanes with a 1.25m wide shoulders at both
sides (for the safety of two way traffic; this can be decreased to 75cm wide when one way
tunnels are designed) and a walkway, 0.9m wide and 2.0m high, for inspection, maintenance
and emergency. Tunnels have a clear height of 4.5m from the road surface with an extra 20cm
allowed for pavement overlay.
226.
No footpath is designed, because for safety reasons non-motorized traffic and
pedestrians are not allowed to enter the tunnel. Thus, the total horizontal clearance of the tunnel
is 9.5 m and height is about 7 m.
227.
Outside tunnel dimension to be excavated is approximately 12 m wide and 8 m high.
228. When the length of the tunnel is more than one kilometre, emergency parking zones are
generally designed. These are located at intervals of about 500 m to 1 km alternately on both
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sides. However, in this project tunnels are less than 700m and no emergency parking area is
required.
229.
Approximate cross sectional areas for respective cross sections are shown in Table 17.
Table 17: Approximate Tunnel Cross Sectional Area
Tunnel type
Type 1 and 2
Type 3
Excavation area m2
81
93.5
Figure 6: Cross Section Georgian Standard (Type 1)
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Single tube two Lane two way
Two Lane one way (for double tube)
Figure 7: Adopted Cross Section Type 1
2. Tunnel Support Design
230. Tunnel supports are generally designed in accordance with the quality of rock mass by
adopting empirical design methods such as RMR, Q-values or Japan Highway Public
Corporation’s Classification (JH system). These systems are correlated to each other. Design
for support will be re-examined during the detailed design stage, however, for the preparation of
this preliminary study, simplified support design is specified by assuming three types of rock
class; rock mass in shallow depth (Type 3); rock mass of moderately weathered to moderately
hard with fractures (Type 2); and moderately hard to hard and massive rock mass (Type 1).
231. Rock mass in shallow depth (Type 3) corresponds to a highly to completely weathered
tuffaceous rock mass. Rock mass of moderately weathered to moderately hard with fractures
(Type 2) corresponds to moderately weathered tuff breccia to moderately hard tuff
breccia/basaltic rocks with fractured natures. Moderately hard to hard and massive rock mass
(Type 1) corresponds to tuff breccia/basaltic rocks.
232. In accordance with the classes of above rock mass typical Support Patterns are
predetermined as shown in Figure 8 (Type 3) and Figure 9 (Type 1)
233. Major tunnel support components are rock bolts, shotcrete and steel arch support, and
secondary concrete lining is placed in-situ for the safety, serviceability and long term durability.
Shotcrete is used with or without wire mesh.
234. Type 3 Pattern consists of 20cm thick shotcrete, forepoling rockbolts in the arch section,
6m long rockbolts in side walls and H200x200 steel arch support and 40cm thick secondary
lining. Type 1 Pattern consists of 10cm thick shotcrete, rockbolts and 40cm thick secondary
lining. Type 2 Pattern is an intermediate support pattern to be used in transitional portion from
Type 3 to Type 1, which may or may not use steel arch support depending on the actual ground
condition.
235. In cases when tunneling encounters difficult ground, a combination of extra auxiliary
supporting methods such as fore poling along with arch, face bolting, long span fore-poling,
chemical injection and other particular methods are applied to stabilize the excavation
periphery. In this study fore-poling is designed for certain lengths of tunnels and is included in
cost estimates.
236. Due to the aggressive nature of the rock mass and groundwater, anti-sulphate cement
shall be used for the secondary lining concrete.
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Figure 8:
Support Pattern Type 3
Figure 9: Support Pattern Type 1
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3. Project Tunnels
237. The particulars of tunnels are shown in Table 18 and geology and geotechnical condition
of respective tunnels are set out in Section E below.
Table 18: Particulars of Tunnels
Length
m
gradient
%
max.
overburden
m
Vol. of
excavation
m3
22,045
10,222
5,082
Tunnel
Location
km to km
Zeda Achkva
Makhinjauri I
22.1-23.5
33.9-34.1
400 N:83.96 S:81.85
130 N:14.0 S:17.15
0.05
2.4
53
21
Makhinjauri II
34.1-34.3
90 N:20.32 S:22.0
1.9
23
Makhinjauri III
Salibauri Ridge
Peria Ridge
34.3-34.5
37.6-38.1
41.2-42.0
150 N:22.0 S:24.53
440 N: 63.34 S:67.35
700 N:104.4 S:85.06
1.7
1.0
2.6
18
41
72
Sum
1,910
Portal elevation
9,672
36,265
62,382
146,667
4. Method of Tunnel Excavation
238. Construction method is selected taking into account the geotechnical condition of the
rock mass in the tunnel. Generally speaking, a Drill & Blasting method provides fastest progress
where it is applicable and where there is no regulatory difficulty in using explosives.
239. Mechanical excavation by Road-Headers is a safe excavation method. When hardness
of rock mass doesn’t exceed the capacity of Road-Headers, fairly good progress rate can be
expected. Tunnel Boring Machine is not applicable in the project due to the variable nature of
rock mass and uneconomical shape of the tunnel being excavated.
240. Most tunnels in the project may be in moderately hard to moderately soft volcanic to
pyroclastic rocks except in portal areas and may be excavated either by Road-Headers or by
Drill & Blasting methods depending on the hardness of rock mass in particular tunnels, by
adopting short-bench-cut excavation method. Due to the large cross section of excavation full
face excavation method is not applicable and in portal areas where rock mass is completely
weathered and weak, excavation shall be carried out by top heading-and- bench-cut method.
241. Road-headers are recommended to use for the Zeda Achkva Ridge tunnel and the short
tunnels A, B and C because the rock mass is somewhat soft consisting of tuffaceous rock. Giant
breakers may be required for some portion of the cross section and for some distances along
the tunnel to cope with harder rock mass which will probably be encountered. The soft rock
portion in the portal areas can be excavated by power shovels. Tunneling may be done by short
bench excavation method to stabilize the excavation faces. However, the construction method
should be further examined when further geotechnical investigations are carried out during
detailed design.
242. The Salibauri and Peria Ridge longer tunnels may be excavated by Drill & Blasting
method due to the hard nature of the rock mass, with the help of power shovels for the
excavation of portal areas. Tunneling may be done by short bench excavation method except
portal areas.
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5.
Tunnel Portals
243. The portal zone of a tunnel shall be designed with due consideration of the ground
condition, condition of the slopes, surface drainage system and topographic condition. When
tunnel portal is located at an acute angle to the slope, filling of the side of the tunnel portal on
the valley side becomes necessary in order to avoid the heterogeneous loading action of the
ground.
244. Tunnel portals may be designed as concrete shell structures extending 3 to 7 m out from
the slope to protect the portal area from landslides and rock falls. Selection of exact locations
and types of portals shall be carried out during detailed design stage.
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X. FACILITIES FOR TUNNELS
A. Ventilation System
245. Tunnel ventilation design is controlled by the volume and vehicle mix of traffic, the length
and gradient of tunnel, and climate and natural condition.
246. Generally a ventilation system is required when the length of the tunnel is longer than
500 m. However, if the traffic volume is small it will not be required for tunnels of up to 1 km
long.
247. The purpose of ventilation is to reduce the concentration of harmful gasses and particles
such as CO, C, HC, NOx etc. When ventilation to reduce CO concentration is carried out to the
designed target level, other harmful gasses and particles also decrease to a safe level. On the
other hand, soot generated by heavy vehicles generates visibility problems and ventilation
design should also satisfy visibility requirements. Design targets for ventilation are given in
Table 19 and are based on international experience.
Table 19: Design Target of Ventilation
Object of ventilation
CO concentration
Visibility reduction
Design target
100ppm
50% at 100m
248. Ventilation is normally done by a series of jet fans which are fixed to the concrete arch
lining at adequate intervals. However, taking into account the maximum traffic volume of
between 500 and 1000 vehicles/hour after 20 years of operation and that the length of the
tunnels are less than 700m, ventilation is generally not required. This is shown in Figure 10
which sets out the guideline for the effect of natural ventilation in a two way traffic tunnel1.
Beneath the dotted line in Fig.3.7 no mechanical ventilation is required except some in long
tunnels. With one way traffic, natural ventilation is much more effective due to the traffic
movement effect and mechanical ventilation may not be required up to three times longer than
two way traffic. This is well observed in the existing twin tube tunnel. One tunnel has a set of
ventilation fans in two locations but the other has no ventilation equipment but the air is still
clean. The decision as to whether to install ventilation should be further investigated in detail
design when tunnel length is finalized and traffic volumes updated.
249. Due to the relatively short length of tunnels and small volume of traffic ventilation system
has not been or costed in this preliminary study.
B. Illumination
250. For the safety of the traffic illumination is designed to be installed along the tunnel side
walls at about 10 m interval with the addition of transitional illuminations at both tunnel portals.
Illumination is generally required for the tunnels longer than 50 m. The detail required will be
determined in the detailed design stage but the magnitude of illumination required in this
preliminary design has been estimated from past experiences.
C. Emergency Facilities
251. For traffic safety, emergency facilities are planned in accordance with the length and
gradient of the tunnel and volume of traffic. Tunnels are categorized with respect to length and
volume of traffic as shown in Figure 11. This has been based on the probability of accidents
and fires based on past experience in a number of countries. Using the tunnel classes
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categorized in Figure 3.8 standard for emergency facilities is determined and is shown in Table
202.
Figure 10: Guideline for natural ventilation (two way traffic)
Figure 11: Tunnel Classification
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Table 20: Standard of Emergency Facilities of Road Tunnel
252. In this study maximum traffic volume is less than 5,000 vehicle/day and tunnel length is
less than 1 km. Thus, tunnels are classified into D which requires no emergency facilities.
D. Construction and Operation Risks
1. Risks in Tunneling
a.
Risks Common in Tunneling
253. Tunneling is an underground activity where geotechnical conditions generally are not
foreseen precisely in the design stage and tunneling encounters various changes of
underground conditions during implementation, which leads to changes in cost and time
problems as well as safety problems.
254. The stability of the excavated faces generally depends on the quality of rock mass and
influence of groundwater. In specific ground where rock mass is decomposed by hydrothermal
alteration, squeezing may occur and extra time and cost may be required to cope with the
phenomenon.
255. While the quality of rock mass differs in places, when no serious phenomena are
anticipated such as squeezing, rock burst, gas emission and sudden groundwater inflow, then
risks due to change of rock quality is not a big issue provided it is assessed adequately at the
design stage. Misjudgement of quality of rock mass leads to the shortage of cost and time.
b.
Particular Risks in Project
256. In the project, particular risks are the danger of changed underground conditions which
may be accompanied by the appearance of hydrothermally altered rock mass. Although it
cannot yet be determined as to whether such condition exists in the project tunnels it should
become more apparent when further study is carried out during the detailed design stage.
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2. Risks and Targets in Operation and Maintenance
a.
Operation and Maintenance of Facilities and Emergency Response
257. A permanent reliable electric power supply for sole use of the tunnel is necessary for the
operation of the ventilation system (if required) and illumination. The capacity must cover that of
existing tunnels. An emergency generator system is also required for minimum operation of
facilities in the event of main power failure.
Tunnel facilities require proper maintenance immediately after tunnels are opened for traffic. In
cases of emergencies, fire and accidents, immediate responsive actions are required.
b. Safety of Traffic
258. Many vehicles in Georgia are defective, poorly maintained and old. If vehicles
accidentally stop inside the tunnel then both head on and rear end collisions may occur. To
maintain traffic safety, strict control of unacceptable vehicles from entering the toll road is
required.
E.Site condition and recommended method of construction of tunnels
1. Introduction
259. The geology along the by-pass road mainly consists of Tertiary (Eocene) igneous rocks.
In the northern part of the project tuffaceous to brecciate basic rocks are distributed, which are
deeply weathered with gentle slopes. In these area slope failures have been observed in places,
however, many of them are minor.
260. On the other hand the southern area of the project consists mainly of basaltic rocks and
hard tuff breccia, where rock masses are exposed in places with some are forming steep cliff
faces, in particular seen along the coast line near Sarpi. In these areas rock falls are a particular
phenomenon and adequate slope stabilization measures need to be applied at portal areas.
261. All the tunnel sites except the Salibauri tunnel5 were visited based on the preliminary
alignment. Topographic conditions of the portal areas as well as geotechnical conditions were
examined. Further examination was carried out using the geotechnical investigation result
(tomography) and topographical survey result so far available.
262. Followings are the results of observation for each tunnel and recommendation on the
method of tunnel excavation;
2. Zeda Achkva Ridge Tunnel (km 23.1-23.5)
263. The north portal is located in a gentle hillside slope at km 22.9. The portal faces normal
to the topography and no specific difficult is foreseen in construct the portal structure.
264. The south portal is located in the hillside with the portal apparently located at an acute
angle to the slope. It is recommended that, in order to construct a stable portal, a minor cut in
the hill side and embankment in the valley side should be designed during the detailed design
stage.
5
The need for the Salibauri tunnel was not realized until late into preliminary design after surveys were
finished and the tunnel specialist had completed his field work. Later site visits by the road engineer
ascertained that conditions were similar to the nearby Peria Ridge tunnel.
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265. The geology of the tunnel seems to consist of tuffaceous rock which is weathered to
deep into the ground and both portal areas may require a longer tunnel section equipped with
invert concrete. The remaining tunnel section may require a support pattern corresponding to
that of good to poor rock mass condition. The tunnel can be excavated by Drill & Blasting
method or by Road-Headers with a short bench cut excavation method. The final decision as to
whether to use Road-Headers should be made in the detailed design stage after obtaining
further geotechnical information. The portal areas may be excavated by power shovels.
3. Three short tunnels (Makhinjauri I, II, III) between km 33.9 and 34.7
266. All three tunnels are located in gentle hilly area and portals are located in small valleys.
Overburdens of these tunnels are quite small and tunnel construction may significantly affect the
stability of the surface ground. Geology seems to be of tuffaceous rock which is deeply
weathered and tunnel construction in such geotechnical conditions requires heavy tunnel
support which leads to high construction cost. The alignment should be further reviewed during
detail design to minimize the environmental hazards and construction cost.
267. The North portal of Makhinjauri I is located in the middle of the slope where the tunnel
penetrates into the hill at a nearly normal angle. The South portal of the tunnel is located in a
small gentle valley. Because the depth of weathering of the rock mass seems to be very thick
and the overburden is quite small, the tunnel level may need to be lowered by several meters to
maintain the surface vegetation. Moreover, there is a ruined church close to the tunnel
alignment under thin overburden therefore the tunnel support should be rigid to minimize any
possible settlement of the church. For this purpose long span fore-piling is recommended.
Tunneling may be done by short bench cut method with Road-Headers or power shovels. Due
to small overburden and soft nature of the rock mass expected, more than half length of the
tunnel should be equipped with invert concrete lining.
268. Makhinjauri II is located in a gentle slope. The North portal is located in the middle of the
slope and the south portal is also located in a small valley slope. The rock mass seems to be
deeply weathered and tunnelling may be done by short bench cut method with Road-Headers
with the assistance of power shovels in portal areas. Short bench cut excavation method can be
used. Due to small overburden and soft nature of the rock mass expected, about half length of
the tunnel shall be equipped with invert concrete lining.
269. Makhinjauri III is located in a gentle hill where a stable slope extends west towards the
sea. The rock mass can hardly be seen in this area and seems to be completely weathered to a
significant depth. Tunnelling may be done by Road-Headers by short bench cut method with the
assistance of power shovels in portal areas. Occasional appearance of harder rock mass can
be anticipated and rock-breakers may be helpful in such occasion. Due to small overburden and
soft nature of the rock mass expected, tunnel shall be equipped with invert concrete lining for
most of its length.
4. Peria RidgeTunnel (km 41.3 - 42.)
270. The north portal is located in the middle of a gentle slope where the ridge extends. The
south portal is located in a steep slope below the saddle. Both portals initially faced nearly
normal to the slope. However, the south portal was shifted to the east in order to avoid houses
on the alignment.
271. Geology here consists of tuff breccia which is weathered to a depth of several meters.
Except in the portal areas the geotechnical condition of the tunnel should be good because of
the massive nature of the rock mass and tunneling may be done by full-face excavation method
using Drill & Blast.
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5. SalibauriTunnel (Km 37.6-38.1)
272. The need for the Salibauri tunnel arose because of a realignment of the road to avoid a
historic house and land. This was not realized until late into preliminary design after surveys
were finished and the tunnel specialist had completed his field work. Later site visits by the road
engineer ascertained that geotechnical conditions were similar to the nearby Peria Ridge tunnel
and the same construction methods should apply.
273.
The north and south portals are located at the bottom of steep slopes.
6. Existing twin tunnels at km 30
274. In the midway of the project there are existing twin tunnels, which were opened to traffic
in 2007. Both tunnels are nearly 800m long. The north portals are located in the cut slope where
final protection of the slope is not yet finished. The south portals are located beneath the slope
which has been protected by earth anchors; further protection is required.
Overburden is relatively small and the tunnels seem to have been excavated in the soft rock
mass without much difficulty.
275.
There are inspection walkways at both sides of tunnels and illumination is installed.
276. Ventilation fans are fixed in south bound tunnel only. Two sets of jet fan are fixed in two
locations and are working well. However, the other tunnel is without jet fans and seems to be
unpolluted by gasses – although this may change in the summer tourist season. Because each
tunnel is one way traffic natural ventilation works well and, considering the length of the tunnel,
mechanical ventilation generally should not be required. The mechanical ventilation system in
south bound tunnel, therefore, may be redundant.
277.
There appear to be no other installations or emergency facilities.
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ANNEX A
TOMOGRAHPY PROFILES
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ANNEX A: TOMOGRAPHY PROFILES
Geoelectric Profile of the Design Tunnel- Legend
Scale: H- 1:1000; V- 1:500
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p=120-130
Specific Electric Resistance of the Geophysical Layer(GPL), ρ - Om.m
p=120-130
(GPL-1)
I GPL- Loam and Clay with volcanogenic-sediment fragmental inserts of various size; intensively weathered out zone
of main strata. Water saturated
p=20-50
(GPL-11)
II GPL- Splintered, weathered and saturated volcanogenic and sediments strata (tuff breccias, Tuff sandstones, tuffs)
P=85-110
(GPL-III)
III GPL- sounder saturated volcanogenic and sediments strata (tuff breccias, Tuff sandstones)
Layout legend
I
I’
Geophysical Profile with numerical indication
v-7
Point of Vertical Electrical Profiling (VEP)
Project Road
The following pages set out the tomography results.
51
Annex A
A. Zeda Ackva
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Annex A
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Annex A
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Annex A
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Annex A
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Annex A
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Annex A
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Annex A
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Annex A
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Annex A
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Annex A
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Annex A
C. Peria Ridge
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Annex A
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Annex A
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FINAL REPORT
Asian Development Bank
Roads Department
Supplementary Appendix 3
Project Preliminary Cost Estimates
and Schedules
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
i
Table of Contents
I. INTRODUCTION ................................................................................................................... 1 II. COST ESTIMATES ............................................................................................................... 2 A. Introduction ........................................................................................................................ 2 III. Costing Details ................................................................................................................... 3 A. Materials, Labor and Equipment. ....................................................................................... 3 1. Materials ......................................................................................................................... 3 2. Labor & Equipment ......................................................................................................... 3 B. Quantity Estimate ............................................................................................................... 4 C. Unit Rates ....................................................................................................................... 4 D. Land and Resettlement .................................................................................................. 8 E. Consulting Services ........................................................................................................... 8 F. Maintenance and Operation. .............................................................................................. 8 1. Road Maintenance ......................................................................................................... 8 2. Tunnel Operation and Maintenance ............................................................................... 9 IV. Pricing Components ......................................................................................................... 10 A. Foreign Component ......................................................................................................... 10 B. Taxes and Duties. ............................................................................................................ 10 V. Cost Estimates ..................................................................................................................... 11 VI. PROCUREMENT PLAN ................................................................................................... 16 A. Introduction ...................................................................................................................... 16 B. Contract Packages ........................................................................................................... 16 C. Mode of Procurement ................................................................................................... 16 VII. Implementation Schedule ................................................................................................. 18 A. Introduction ...................................................................................................................... 18 B. Comments on Schedule ................................................................................................... 18 List of Tables
Table 1: Unit Construction Cost for Tunnel Types ........................................................................ 5 Table 2: Total Construction Cost for each Tunnel ........................................................................ 5 Table 3: Unit rates (GELs) ............................................................................................................ 8 Table 4: Operation Cost of Tunnel Facilities ................................................................................. 9 Table 5: Maintenance Cost of Tunnel Facilities ............................................................................ 9 Table 6: Detail Cost Estimate – Total Project ............................................................................. 11 Table 7: Detail Cost Estimate – Tranche 1 ................................................................................ 13 Table 8: Proposed Contract Packages Tranche 1 ...................................................................... 17 List of Figures
Figure 1: Tranche 1 Schedule .................................................................................................. 19 Engconsult Ltd.
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I.
INTRODUCTION
1.
This Supplementary Appendix sets out the methodology for calculating the preliminary
design cost estimate. It discusses the derivation of unit rates and quantities and the source and
suitability of local materials where available. Based on the overall cost estimate suitable contract
packages have been suggested and a construction schedule given.
2.
This report set out costs based on quantities based on the final preliminary design cross
sections and bridge locations and type and are prepared for the economic and financial analysis
(Supplementary Appendix 7 and 8). They are based on an analysis of prevailing unit rates for
each cost item and an estimate of quantities based on completed preliminary design.
3.
Cost and schedules have been estimated for a two lane road from 0-28km (Kobuleti
Bypass), widening to four lanes from 28-34km and two lanes from 34-48km (Batumi Bypass).
Land acquisition quantities have assumed a future widening to four lanes.
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II. COST ESTIMATES
A.
Introduction
1.
The break down of unit costs of the major measurable items such as earth excavation,
sub- base, base, asphalt, side drains, minor structures of various types etc have been estimated
based on prevailing unit rates quoted and used in various contracts of similar projects in
Georgia and the quantities of these items estimated from the design drawings prepared based
on the survey data.
2.
Unit rates and costs for items new to Georgia, such as construction of tunnels have been
derived from rates and costs in other countries, adjusted, where feasible for local conditions.
3.
Cost of items which are, at this stage, immeasurable; slope stabilization, bioengineering, insurance, design consultancy services etc. have been estimated on a lump sum
basis, based on the experience of other similar projects. Bio-Engineering and slope stabilization
in themselves include many smaller cost items including tree plantation, mulching / brushing,
grass planting, shotcreteing slopes, retaining walls, boulder pitching, peripheral drains,
horizontal drains, scour protection etc. The final appropriateness and magnitude of these items
depend on the site condition, which will be apparent only after roadway excavation/embankment
filling is carried out. Therefore, these items are estimated for the preliminary design from site
inspection, survey and plotted cross-sections.
4.
Overhead items such as insurance of works, plant, construction equipment etc are also
immeasurable until final design and have been estimated from similar works elsewhere on a
lump sum basis.
5.
During detailed design and project implementation it is probable that refinements of the
alignment will be made leading to a variation in quantities and cost. Whilst this may reduce the
overall estimate it has been assumed that it would lead to an increase in cost and a contingency
of 10 percent has been included in the cost estimate.
6.
Costing has been sub-divided into categories of Civil Works (earth works, subgrade,
pavement, structures, tunnels (including ventilation and lighting), interchanges and roadside
facilities), Miscellaneous Items, Equipment, Land and Resettlement Costs, and Consulting
Services. Equipment costs include monitoring and communication equipment, tunnel lighting
equipment, and also include the cost of a weighbridge to be installed at the service area.
Preliminary environmental mitigation costs include those preliminary costs recommended in the
Environmental Assessment that are not included in other items of the estimate. Consulting
Services for detail design and supervision include overseas and domestic training as
recommended in Supplementary Appendix 5B. Consulting services for detail design and
supervision have estimated assuming an international firm associating with domestic
consultants. All costs are first quarter 2009.
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III. COSTING DETAILS
A.
Materials, Labor and Equipment.
1. Materials
1. For the calculation of unit rates, after examining the results of the geological and
material survey it has been assumed that boulders/rocks, stone aggregates, gravels and
sands will be locally available and at a reasonable haul distance. Steel reinforcement
and cement for common construction are available in the markets at Batumi and, the
nearest markets for the project. Probable sources of common construction materials are
described below:
•
Rock: - The alignment passes some rocky sections, therefore, rock fragments
may be obtained directly from roadway and tunnel excavation.
•
Boulders: - Boulders are available in some of the river beds crossed by the
alignment.
•
Gravel and Sand: - Gravel and sand are available in the Chaqvistskali and Chorki
Rivers. Smaller quantities are available from other rivers crossed by the alignment.
2.
Gravel and sand obtained from these sources will require to be sieved and washed
before use. For most of the route haul distances of sand and gravels will be from 20-30 km.
3.
Crushed stones / Aggregates: - It has been assumed that crusher plants will be installed
at suitable locations along the alignment for crushing rocks and boulder obtained from tunnel
excavation and the river bed. Suitable locations for installation of crusher plants would be near
Km 14 and near the mouth of Choroki river (Km 48) Other plants could be erected at suitable
locations in flat areas.
4.
Lime, Cement and Bitumen: - Georgia produces lime & cement, but high grade cement
is in limited quantities. High grade cement mainly for bridges and tunnel will be imported. It has
assumed that bitumen would also be imported in bulk quantity from Turkey.
5.
Timber: - Timber is a scarce material in Georgia. Therefore, use of timber in construction
should be avoided as much as possible. Timber is available in … in limited quantities. Locally
produced plywood is also available in local markets in limited quantity.
6.
Structural Steel: - Structural steel for construction of bridges and other structures is not
produced in Georgia and will be imported.
7.
For the preliminary design initial evaluation only has been carried out of material sources
and quantity. A more specific materials source study and analysis will be required in the Final
Design.
2. Labor & Equipment
8.
Skilled and unskilled labor for general works such as earth excavation, form works, rebar bending and binding, placing concrete, landscaping etc. are available in the area of the
project in sufficient quantity. However, specialist skilled labor for works such as erection of
major bridges, construction of tunnels etc will need to be imported.
9.
General construction equipment such as excavators, dozers, road rollers, tippers, trucks
etc may be obtained in limited quantities in the local markets, however they may not be in
suitable condition for a project of this scale and new equipment will be imported. All specialized
equipment will be imported.
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B.
Quantity Estimate
10.
Quantity estimation of earth and rock excavation has been calculated from the
measured cross sections and geological investigations.
11.
are:
Adopted road formation widths for different terrain based on the typical cross section
•
14.5m– for two lane road in Plain and Rolling terrain
•
13.5m – for two lane road in Mountainous & Steep terrain
12.
In the preliminary design cost estimates a two lane road has been assumed except for
the section km28-34 where the existing road will be widened to four lane. A passing lane has
been included on the uphill side where longitudinal gradients exceed 3 percent.
13.
During the topographical survey road cross sections taken only at bridge and
intersection locations. Other cross sections were extrapolated from the 1:10,000 digitised
mapping. The road was designed, as much as feasible, so as to balance cut and fill, however,
particularly in the first 14 km this was not possible and a significant amount of additional fill will
be required.. To try to balance cut and fill suitable earth retaining structures, buried culverts,
high fill in bridge approaches etc were applied where possible; this will need further refinement
in detail design. Using the geotechnical report the roadway excavation was classified as
excavation in common soil, hard soil, soft rock and/or hard rock.. Quantities of retaining
structures were also computed based on typical design cross sections for differing terrain.
14.
Quantities for both bypass roads are shown in Tables 3.7 and 3.8.
15.
Pavement quantities were estimated from the pavement design (Supplementary
Appendix 2. Design). Quantities of slope stabilization, scour protection etc. were estimated from
the design drawings for typical sections of road.
16.
Bridges and culverts sizes were calculated based on calculated design flood discharge
and the road geometry for bridge or culvert locations as set out in Supplementary Appendix 2.
Most of the major bridges are high enough above the natural terrain so that flood levels are not
an issue. Unit quantities of retaining walls, culverts and road side drains were estimated from
cross sections and typical drawings.
17.
Quantities of tunnel works were taken off the details in the preliminary design drawings.
18.
Quantities related to special items like the service area , interchanges, pedestrian
underpasses etc are computed based on the design drawings. Quantities of bio-engineering,
roadside facilities and other items which are not available at the preliminary design stage were
estimated on a lump sum or kilometer basis for sections of similar terrain based on costs of
similar work.
C.
Unit Rates
19.
There has been little recent major road work construction in Ajara province except for
the road improvement and tunnel at Green Cape (Km28-32 on the Project roads alignment.
Unfortunately, for various reasons, the contract costs for this road are unreliable and cannot be
used. There has, however, been recent and ongoing road improvement on the main East-West
highway. Where feasible the rates for this work have been used in the calculation of unit rates
for preliminary design standard estimate cost items. To account for impact of the economic
downturn which has reportedly lowered bid prices by over 20 percent below engineers
estimates, some of the rates have been adjusted downward.
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20.
In particular historic unit rates were derived from four recent projects in Georgia and
adjusted to present prices:
•
D
•
B
•
R, and
•
U
21.
Unit rates for minor structural items, pipe culvert, box culverts, slab culvert, and side
drains etc. were calculated from base item unit rates. The unit costs of retaining walls, road
side drains, culverts include all auxiliary woks such as excavation, formwork, filter materials,
backfill etc as needed to complete the item in all respects.
22.
Bridges were divided into 3 types, small reinforced concrete (RC) bridges (total length
less than 50mt), small pre-stressed concrete girder bridges (spans to 30mt), and large PC girder
bridges (spans up to 40m). Costs for RC bridges were based estimated costs for recently
constructed RC bridges, adjusted for average span length and pier height. Cost for simply
supported girder and box girder pre-stressed concrete bridges have been based on unit rate of
similar bridges in Georgia, adjusted for average span length and pier height.
23.
Unit rates and costs for special items, most of which will be imported, are based on the
rates and costs of recently completed similar toll road projects in other countries adjusted where
feasible for Georgian conditions, taxes, duties etc.
24.
There is no significant experience to date of road tunnel construction in Georgia. For this
reason hardly any equipment or materials for use for road tunnel construction and operation
exists in Georgia. Almost all the equipment and materials will need to be imported from other
countries. Given this situation tunnel costs have been estimated after considering costs for
tunnels in other countries in Europe.
25.
Unit costs for tunnels are assumed for each type of tunnel and facilities per meter. Cost
estimates for each tunnel have been calculated based on these unit costs and length of each
tunnel type shown in the preliminary design plan and profile drawings. The estimates are set out
in Table 1.
26.
Tunneling costs are estimated based on the assumption that the quality of rock mass is
relatively poor so as to avoid underestimation. Further detailed study of tunnel costs will be
required in the detailed design stage when final alignment is fixed and geologic survey for
tunnels are completed.
27.
Total construction costs for each tunnel are given in Table 2.
Table 1: Unit Construction Cost for Tunnel Types
Tunnel Type
Type 3
Type 2
Type 1
Extra support
Tunnel Illumination
Unit cost / m
GEL
42,000
27,500
19,000
2,400
2,000
Table 2: Total Construction Cost for each Tunnel
Zeda Achkva Tunnel (L=400m)
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Tunnel Type/ Length
Facility
m
Type 3
Type 2
Type 1
Extra support
North portal
South portal
Illumination
Unit cost Total
cost
1000 US$
1000 US$
50
150
200
50
25,000
16,369
11,310
1,429
400
1,190
Total
1,250,000
2,455,357
2,261,905
71,429
60
100
476,190
6,515,041
Makhinjauri I (L=150m)
Tunnel Type/
Facility
Length
m
Unit cost
1000 US$
Total cost
1000 US$
Type 3
Type 2
Type 1
Extra support
Long span pipe
roof*
North portal
South portal
Illumination
100
30
0
10
90
25,000
16,369
11,310
1,429
2,500,000
491,071
0
14,286
0
59880
60
60
154,762
3,160,239
130
1,190
Total
*: To protect church above
Makhinjauri II (L=90m)
Tunnel Type/
Facility
Length
m
Type 3
Type 2
Type 1
Extra support
North portal
South portal
Illumination
Unit cost Total
cost
1000 US$
1000US$
50
40
0
20
25,000
16,369
11,310
1,429
90
1,190
90
Total
Makhinjauri III (L=150m)
Engconsult Ltd.
1,250,000
654,762
0
28,571
60
60
107,143
2,040,596
7
Tunnel Type/ Length
Facility
m
Type 3
Type 2
Type 1
Extra support
North portal
South portal
Illumination
Total
Unit cost Total
cost
1000 US$
1000US$
50
100
0
40
25,000
16,369
11,310
1,429
150
150
1,190
1,250,000
1,636,905
0
60
60
60
178,571
3,065,656
Salibauri Ridge (L=440)
Tunnel Type/ Length
Facility
m
Type 3
Type 2
Type 1
Extra support
North portal
South portal
Illumination
Unit cost Total
cost
1000 US$
1000US$
50
280
370
60
25,000
16,369
11,310
1,429
440
1,190
Total
1,250,000
4,583,333
4,184,524
90
60
60
523,810
10,541,877
Peria Ridge Tunnel (L=730m)
Tunnel Type/ Length
Facility
m
Type 3
Type 2
Type 1
Extra support
North portal
South portal
Illumination
Total
Unit cost Total
cost
1000 US$
1000US$
50
280
400
60
25,000
16,369
11,310
1,429
730
1,190
1,250,000
4,583,333
4,523,810
90
60
60
869,048
18,646
28.
Unit rates and overall costs for the project road are high, reflecting he high costs of
imported materials in Georgia (Table 3) and the need to import some technology. The overall
direct cost for both bypass roads is $5.6 million per kilometer, although for the Batumi bypass,
with it’s high number of tunnels and bridges it is $9.4 million/km. As a comparison of direct
construction cost per kilometer for recent ADB project estimates it was $10 million per kilometer
in Nepal for a two lane access controlled road in mountainous territory and for toll roads (4 lane)
in PRC it ranges from $6 million per kilometer in Guangxi province, $7 million in Central Sichuan
and $9.5 million in Gansu Province. All these projects are in mountainous terrain with many
bridges and tunnels.
Engconsult Ltd.
8
Table 3: Unit rates (GELs)
D.
Item
Unit
Labor (unskilled)
Reinforcement Bar
Steel mesh
Cement
Asphalt
Sand
Rubble
Crushed stone
Diesel Fuel
Person-day
ton
m2
ton
ton
m3
m3
m3
Kg
Georgia
2008/09
Land and Resettlement
29.
As of the time of production of this Report detail land and resettlement quantities were
not available. The quantity of land and structures assumed is based on preliminary
measurements from the affected land plots..
E.
Consulting Services
30.
Consulting services for the Project include detail design, supervision of construction and
training of local road personnel. It has been assumed that both detail design and supervision
would be carried out by international consultants assisted by domestic consulting firms.
31.
The scope of the supervising consulting services have been based on similar Bank
funded projects in other countries and is described in detail in Supplementary Appendix 5.
Given the high numbers of domestic professional staff required it may be necessary to use
foreign staff for some of the domestic engineering positions. The cost of design and supervision
staff are based on recent contracts in Georgia.
32.
Training for domestic staff of the Roads Department will be required in various areas
(Supplementary Appendix 5). A total of 87 person months is recommended, the estimated cost
has been included in the construction cost estimate.
F.
Maintenance and Operation.
1. Road Maintenance
33.
Maintenance costs are required for both the economic and financial analyses.
Maintenance on the existing and Project roads consist of three operations a) Routine &
Recurrent Maintenance, b) Periodic Maintenance and c) Emergency Maintenance. In addition
there is maintenance of tunnels and service areas on the Project road. The cost of maintaining
the existing road is required only for the economic evaluation. Costs for Routine, Periodic and
Emergency maintenance for the existing road were taken from recent actual costs incurred by
Roads Department and are set out in Supplementary Appendix 7, Economic Evaluation. Costs
for maintenance of the new road are based on a preventative maintenance program. The costs
of Periodic Maintenance, except for pavement rehabilitation, have been averaged as an annual
cost for the analysis, although this cost occurs periodically. Minor maintenance cost of bridges
and cross drainage is also included in this cost. Maintenance costs for the Project Road will be
small in the early years of operation, rising as cumulative traffic volumes increase. It was
assumed that a full reseal of the asphalt paved toll road is carried out every 15 years and this is
costed separately.
Engconsult Ltd.
9
2. Tunnel Operation and Maintenance
34.
Operation cost of tunnels is estimated based on the past experience and is shown in
Table 4 for each 10 year period. It is based provision of electricity from the national grid with a
present electricity cost of NR7.55/KWH although it may prove cheaper to install a dedicated
power source.
35.
During the initial stage of operation, say the first 5 years, the volume of traffic is relatively
small and the ventilation fans will operate in a restricted mode; thus the cost for the first 10
years is reduced. For the second 10 years ventilation operation gradually increases to the
designed load and for the third 10 years ventilation operation is at full capacity.
36.
Illumination operation is required from the start of operation and constant operation cost
is assumed.
Table 4: Operation Cost of Tunnel Facilities
1st 10 years
Tunnel
Lengt
h
Usage
(MWH/y
ear/m)
0.25
0.25
unit price
(MWH)
US$’000
0.1
0.1
Zeda Ackva
400
Makhinjauri I
150
Makhinjauri
90
0.25
II
Makhinjauri
130
0.25
III
Salibauri
440
0.25
Peria
730
0.25
Total
1800
Source: Consultants Estimates
2nd 10 years
3rd 10 years
MWH
‘000
US$
MWH
‘000
US$
MWH
‘000
US$
100.0
37.5
10.0
3.8
100.0
37.5
10.0
3.8
100.0
37.5
10.0
3.8
0.1
22.5
2.3
22.5
2.3
22.5
2.3
0.1
32.5
3.3
32.5
3.3
32.5
3.3
0.1
0.1
110.0
182.5
485.0
11.0
18.3
48.5
110.0
182.5
485.0
11.0
18.3
48.5
110.0
182.5
485.0
11.0
18.3
48.5
37.
Maintenance cost is also estimated based on past experience elsewhere and includes
labor, spare parts and replacement of equipment and is shown in Table 5.
Table 5: Maintenance Cost of Tunnel Facilities
Tunnel
length
Usage
$US'000/year/m
0-10
10-20
years
0.012
0.012
0.012
0.012
Zeda Ackva
400
Makhinjauri I
150
Makhinjauri
90
0.012
II
Makhinjauri
130
0.012
III
Salibauri
440
0.012
Peria
730
0.012
Total
1800
Source: Consultants Estimates
1st 10 years
2nd 10
years
3rd 10
years
20-30
000 US$
000 US$
000US$
0.12
0.12
4.8
1.8
4.8
1.8
48
18
0.012
0.12
1.08
1.08
10.8
0.012
0.12
1.56
1.56
15.6
0.012
0.012
0.12
0.12
8.76
18
8.76
18
87.6
180
Engconsult Ltd.
10
IV. PRICING COMPONENTS
A.
Foreign Component
38.
Foreign and local component of the cost items are estimated based on the use of labor,
materials, and equipment in for each item. It is assumed that local materials and labor would be
used as much as possible in the works. However, full or partial import of materials such as
cement, high tensile and rebar steel and bitumen will be required, as will most machinery and
equipment, spare parts and particular materials for construction of long span bridges, tunnels
and slope stabilization Cost of the imported materials have been included in the foreign
component. However, cost of the materials such as petrol diesel, oil, etc is included in the local
component as it is assumed that, although Georgia imports these items they would be
purchased locally. An overall foreign component of 36 percent of total base line costs has been
estimated.
B.
Taxes and Duties.
39.
There are two components to taxes and duties included in the total cost estimates, VAT
and import duties. An estimate has been made of each of these items. As the contracts will be
open to international bidders it has been assumed that a foreign contractor would be awarded
the contract and the import items have been estimated under this assumption.
40.
For infrastructure construction work the contractor pays a VAT which is charged at 18
percent whenever a goods or service is sold. VAT has been assumed to be incurred on the total
contract price.
41.
Import duties may be levied on imported materials and equipment for the project road.
The import tariffs are small in Georgia and have been estimated at 3 percent. For ADB work
these duties are normally not payable and have therefore been deleted from the total costs. This
is discussed further in supplementary Appendix 6.
Engconsult Ltd.
11
V. COST ESTIMATES
42.
The total estimated baseline construction cost of the Project including both bypasses
and 6 km of road widening is estimated at GEL 445 million ($ 2661 million) in March 2009
prices, including, land, design and supervision and physical contingencies of 10 percent but not
including price contingencies or interest during construction. The costs for the components of
the project are:
1.
2.
3.
Kobuleti Bypass
Existing Highway Widening
Batumi Bypass
GEL 207 million ($124 million)
GEL 15 million ($9 million)
GEL 222 million ($133 million)
43.
The detail project cost estimate of the total project is set out in Table 6 and for the
Tranche 1 components in Table 7.
Table 6: Detail Cost Estimate – Total Project
I. Investment Costs
A. Subgrade Works
General site clearance
Tree felling and removal
Clearing and Grubbing
Earth Excavation- Common Soil
-Soft Rock
- Hard Rock
Embankment Filling – Common
Soil
Removal of Unsuitable Materials
Dismantle Existing Structures
Roadside Drain – Masonry Lined
Concrete Lined
Unlined
Catch Drains
Sub-Surface Drains
Chute and Scour Protection
River Training Works
Subtotal Subgrade Works
B. Pavement
Preparation of Subgrade
Sub Base
Upper Base
Asphalt Concrete surface course
Subtotal Pavement
C. Structures
Circular Culverts, 1500 mm
Box Culverts, 2,5X4,0 m
1
Unit Cost
GEL
Cost
Gel Million
Unit
Quantity
Ha
No
m3
1,485
18
4
0.17
0.31
0.91
5
5.89
5
10
1.35
1.75
7
33.21
3
m km
No
m
m
m
m
m
m2
m2
114
17,100
228,000
1,178,6
65
270,951
174,670
4,744,3
65
159,600
300
30,400
3,040
45,600
4,000
11,020
4,829
9,000
2
8,000
19
49
7
9
58
60
140
0.36
2.40
0.58
0.15
0.32
0.04
0.64
0.29
1.26
49.62
m2
m2
m2
m3
696,000
696,000
696,000
69,600
1
6
12
420
0.70
4.18
8.35
29.23
42.46
No
No
42
42
15,500
55,000
0.65
2.31
m3
3
m
m3
m3
At March 2009 exchange rate of 1.67, the $US cost does not allow for differential domestic/international inflation
during the construction period
Engconsult Ltd.
12
Box Culverts, 4,5X6,0 m
Small Bridges RC < 50m
Large Bridges RC Box Girder
Large Bridges RC Prestressed
Interchanges
Separated Intersections
Over/Under passes
Pedestrian crossings
(Over/under)
Retaining Walls
Subtotal Structures
D. Tunnel Works –Single Tube
Civil Works Type DI
Type DII
Type DIII
Extra Support
Long Span Pipe Roof
Tunnel Portals
Tunnel Illumination
Emergency Generator
Provision of Power Supply
Subtotal Tunnel Works
E. Slope Stabilization/ Bio Engineering
Dry Stone Masonry Walls
Landscaping
Subtotal Stabilization
F. Roadside Facilities
Service/weighbridge Area
Signing and Road Marking
Steel Guardrails
New Jersey Barriers
Boundary Fencing
Subtotal Roadside facilities
G. Miscellaneous
Relocation of
Transmission/service Lines
Environmental protection
Noise barrier
Temporary Works
Realignment of Existing Roads
Maintenance of Existing Roads
Subtotal Miscellaneous
I. Equipment
Monitoring, Comms, Enforcement
Weigh Bridges
Subtotal Equipment
J. Land and resettlement
Land Acquisition
Structures
Engconsult Ltd.
Unit
No
m
m
m
No
No
No
Quantity
27
643
4,200
1,800
6
1
12
Unit Cost
GEL
105,000
16,150
27,000
23,500
1,500,000
240,000
255,000
Cost
Gel Million
2.84
10.38
113.40
42.30
9.00
0.24
3.06
No
10
75,000
0.75
m
2,660
750
2.00
186.93
m
m
m
m
m
No
m
LS
LS
720
870
350
250
90
12
1,940
4
4
17,000
25,000
38,000
2,200
2,200
95,000
1,800
35,000
22,000
12.24
21.75
13.30
0.55
0.20
1.14
3.49
0.14
0.09
52.90
m2
m2
13,300
12,500
350
40
No
KM
m
m
m
1
48
76,000
2,000
76,000
80,000
10,000
105
155
40
4.66
0.50
5.16
0.00
0.08
0.48
7.98
0.31
3.04
11.89
km
1
50,000
0.05
1
341
1
1
650,000
1,044
200,000
300,000
0.65
0.36
0.20
0.30
1
500,000
0.50
LS
m
Amount
Amount
km.
year.
2.06
Ls
No
1
1
ha
2
m
2,357,7
95
23,571
417,000
60,000
0.42
0.06
0.31
0.00
10
23.58
300
7.07
13
Unit
Subtotal Land and resettlement
K. Consulting
Survey and Design
Supervision
Subtotal Consulting
L. Over Heads
Insurance Etc
Subtotal Over Heads
Quantity
Unit Cost
GEL
Amount
Amount
1
1
7,000,000
15,350,000
LS
1
250,000
Total, GEL
Contingencies
Grand Total GEL
Total, $
Cost
Gel Million
30.65
0.00
7.00
15.35
22.35
0.25
0.25
404.6
40.5
445.1
266.5
Table 7: Detail Cost Estimate – Tranche 1
I. Investment Costs
A. Subgrade Works
General site clearance
Tree felling and removal
Clearing and Grubbing
Earth Excavation- Common Soil
-Soft Rock
- Hard Rock
Embankment Filling – Common
Soil
Removal of Unsuitable Materials
Dismantle Existing Structures
Roadside Drain – Masonry Lined
Concrete Lined
Unlined
Catch Drains
Sub-Surface Drains
Chute and Scour Protection
River Training Works
Subtotal Subgrade Works
B. Pavement
Preparation of Subgrade
Sub Base
Upper Base
Asphalt Concrete surface course
Subtotal Pavement
C. Structures
Engconsult Ltd.
Unit Cost
GEL
Cost
Gel Million
Unit
Quantity
Ha
No
m3
m3
m3
m3
1,485
18
4
5
5
10
0.12
0.21
0.64
2.48
0.64
0.52
7
24.05
m3km
No
m
m
m
m
m
m2
m2
80
11,942
159,223
496,832
128,902
51,561
3,435,6
79
79,800
180
21,230
2,123
31,845
2,793
7,696
3,372
6,285
2
8,000
19
49
7
9
58
60
140
0.18
1.44
0.40
0.10
0.22
0.03
0.45
0.20
0.88
m2
m2
m2
m3
486,050
486,050
486,050
48,605
1
6
12
420
0.49
2.92
5.83
20.41
m3
14
Circular Culverts, 1500 mm
Box Culverts, 2,5X4,0 m
Box Culverts, 4,5X6,0 m
Small Bridges RC < 50m
Large Bridges RC Box Girder
Large Bridges RC Prestressed
Interchanges
Separated Intersections
Over/Under passes
Pedestrian crossings
(Over/under)
Retaining Walls
Subtotal Structures
D. Tunnel Works –Single Tube
Civil Works Type DI
Type DII
Type DIII
Extra Support
Long Span Pipe Roof
Tunnel Portals
Tunnel Illumination
Emergency Generator
Provision of Power Supply
Subtotal Tunnel Works
E. Slope Stabilization/ Bio Engineering
Dry Stone Masonry Walls
Landscaping
Subtotal Stabilization
F. Roadside Facilities
Service/weighbridge Area
Signing and Road Marking
Steel Guardrails
New Jersey Barriers
Boundary Fencing
Subtotal Roadside facilities
G. Miscellaneous
Relocation of
Transmission/service Lines
Environmental protection
Noise barrier
Temporary Works
Realignment of Existing Roads
Maintenance of Existing Roads
Engconsult Ltd.
Unit
No
No
No
m
m
m
No
No
No
Quantity
35
34
17
298
1,400
1,150
3
1
9
Unit Cost
GEL
15,500
55,000
105,000
16,150
27,000
23,500
1,500,000
240,000
255,000
Cost
Gel Million
0.54
1.87
1.79
4.81
37.80
27.03
4.50
0.24
2.30
No
10
75,000
0.75
m
1,575
750
1.18
m
m
m
m
m
No
m
LS
LS
200
150
50
60
0
2
400
1
1
17,000
25,000
38,000
2,200
2,200
95,000
1,800
35,000
22,000
3.40
3.75
1.90
0.13
0.00
0.19
0.72
0.04
0.02
m2
m2
7,878
8,125
350
40
2.76
0.33
No
KM
m
m
m
1
34
62,000
2,000
50,000
80,000
10,000
105
155
40
0.08
0.34
6.51
0.31
2.00
km
1
26,000
0.03
1
341
1
1
338,000
1,044
104,000
144,000
0.34
0.36
0.10
0.14
1
240,000
0.24
LS
m
Amount
Amount
km.
year.
15
Subtotal Miscellaneous
I. Equipment
Monitoring Comms, Enforcement
Weigh Bridges
Subtotal Equipment
J. Land and resettlement
Unit
Quantity
Ls
No
1
1
Total, GEL
Contingencies
Grand Total GEL
Total, $
Engconsult Ltd.
Cost
Gel Million
342,000
60,000
0.34
0.06
10
15.05
m
1,505,1
77
5,906
300
1.77
Amount
Amount
1
1
7,000,000
9,000,000
7.00
9.35
LS
1
172,500
0.17
Land Acquisition
Structures
Subtotal Land and resettlement
K. Consulting
Survey and Design
Supervision
Subtotal Consulting
L. Over Heads
Insurance Etc
Subtotal Over Heads
Unit Cost
GEL
ha
2
202.3
20.2
222.5
133.2
16
VI. PROCUREMENT PLAN
A.
Introduction
44.
The Project road is made up of 48 km consisting of 28 km of Kobuleti two lane road, 6
km of existing road widening and 14 km of Batumi by pass two lane road. The first two sections
make up the first tranche of the project, while Batumi bypass forms the second tranche. It is
proposed that detail design start in August 2009, that 2 contracts of the first tranche be let by
July 2010, the remaining contracts of tranche 1 by October 2010. Tranche 2 contracts will start
in 2011. For the purpose of this analysis only tranche 1 contracts have been calculated
45.
It should be possible to complete tranche 1 contracts (Kobuleti bypass and existing road
widening the end of first quarter 2013. Three separate civil works contract packages are
proposed for the 32 kilometers, including one for the road widening.. It should be noted,
however, that these packages are based upon preliminary design and could be amended during
detail design.
B.
Contract Packages
46.
The contract packages proposed for Tranche 1 comprise 3 packages of civil works, 2 for
landscaping, one for signs and road marking, one for boundary fencing and guard rail and 3
packages for equipment. The packages are based on the preliminary design cost estimates.
47.
The price for the two new road civil works contracts is $$23 million and $74million. This
would attract international bidders, especially as qualified bidders could bid for more than one
section.
48.
The contract to widen the existing road is $4.6 million and could be done by a domestic
contractor or by a bidder bidding for two contracts together.
49.
It is assumed that vertical slicing of packages will be used (i.e. include pavement
surfacing in the civil works packages).
50.
Four contracts are specified to supply and install road furniture (signs, markings, posts
etc) and to carry out landscaping. These contracts would be carried out immediately the paving
work was complete.
C.
Mode of Procurement
51.
It is proposed that two larger civil works packages be International Competitive Bidding
(ICB) and the existing road widening be National Competitive Bidding (NCB).
52.
The contracts for landscaping, fencing, guard rail and signs, marking have been
proposed as National Competitive Bidding (NCB). Equipment packages would be by ICB/IS
unless locally sourced.
53.
The sections and packages are numbered from the zero point (Km 0) at the northern
end of the project south towards Batumi. Contractors may be allowed to bid for more than one
package. The actual geographical limits of each package were determined from considerations
of size, road connections and access to site.
Engconsult Ltd.
Table 8: Proposed Contract Packages Tranche 1
No
Earth/Roc
k cut
Chainage
Engconsult Ltd.
Cut
m3 ’000
644
9
Fill
m3 ’000
1,350
2,057
28
Retaining
Walls
Km
m
C1
0.0-10.0
141
C2
10.0-28.0
996
C3
28-34.0
438
Signs & Road marking
Boundary Fence &Guard
Rail
LS1
Landscaping
E1
Communication, Monitoring and Enforcement Equipment
E2
Tunnel M&E
E3
Weigh Bridge
Small
Large
Bridge
m
212
86
Bridge
m
170
2,380
100
Ichang
e
Tunnel
m
No
2
1
440
Cost Mill
Contra
ct
GEL
$US
Type
43.3
123.6
8.4
0.34
25.9
74.2
5.0
0.2
ICB
ICB
NCB
NCB
8.5
5.0
NCB
0.32
0.417
0.735
0.06
0.19
0.25
0.44
0.36
NCB
IS
IS
IS
17
18
VII. IMPLEMENTATION SCHEDULE
A.
Introduction
54.
The project area is affected by seasonal rains and some small snowfalls; work may be
limited over two months of the year. Otherwise is not expected that weather conditions will
seriously affect work progress.
55.
All sections of the road are accessible by existing roads although most roads will need
improvement for heavy equipment. There is an existing minor road which would give access to
the vicinity of the tunnel.
56.
Schedules for both preconstruction activities and construction work are set out in Figure
3.1 and 3.2. These assume a very quick period for pre-construction procedures and delays by
either Government or ADB would delay start of construction.
B.
Comments on Schedule
57.
The schedule assumes the construction of a two lane road with completion in four years.
The timing will be dictated by the bridge and tunnel works, however there are no specific
construction items which would slow overall progress and he three year construction period
should be ample time to complete the road sections.
58.
The progress of the tunnel excavation, which is followed by secondary lining being
carried out at about 200 m apart, is assumed to be about 20 m/month for Type 3, 45 m/month
for Type 2 and 60 m/month for Type 1. This means that tunnel excavation should be complete
within a year after providing access. Necessary niches for facility installation should be prepared
during the secondary lining concrete activity and the installation of facilities can start
immediately after completion of the tunnel lining. As a relatively long access road is required it is
estimated that the tunnel construction will be 20 months.
59.
The pre-construction activity schedule for the project road is shown in Figure 1. This
shows that mobilization should be feasible for the first contracts by July 2010.
60.
Figure 1 shows the construction schedule assuming a July 2010 start and a 3 year
construction period; it is unlikely that this can be shortened. An October 2013 opening date is
assumed for the complete Kobuleti bypass, although some construction activities (service area
and some signing etc) may continue later into 2013. Assuming that technically expert
construction and supervision companies are employed, especially for the bridge and tunnel
works, it is considered that the implementation schedule is achievable.
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Figure 1:
2009
Activity
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Q1
Q2
Q3
Tranche 1 Schedule
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
Q4
Approval of Advance Procurement
Tranche I (34 km) - Kobuleti Bypass
tranche I
tranche II
Detailed Design and Bid Documents
Review of Detailed Design by the Government
Construction Supervision
defects liability period
Recruitment of Supervision Consultants
Supervision and Preparation of Project 2
Prequalification for Civil Works
Contract 1 & 2 - Km 0-11 & Km 28-34
Bid Documents and ADB's Approval
Civil Works Procurement
defects liability period
Civil Works Implementation
Contract 3 - Km 11-28
Bid Documents and ADB's Approval
Civil Works Procurement
defects liability period
Civil Works Implementation
Capacity Development for Road Network
Road Safety Improvement
19
FINAL REPORT
Roads Department
Asian Development Bank
Supplementary Appendix 4
Road Safety Component
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
i
Table of Contents
I. Introduction ............................................................................................................................ 1 A. Background ........................................................................................................................ 1 B. Framework of Road Safety Improvement........................................................................... 1 II. Road Safety in GEORGIA ..................................................................................................... 3 A. Responsibility for Road Safety in Georgia. ........................................................................ 3 B. Other Road Safety Work in Georgia .................................................................................. 3 C. Present Conditions and Analysis of Road Accident Data ............................................... 3 1. Number of Road Accidents & Trends ............................................................................. 3 2. Accident History on the Existing Road ........................................................................... 4 3. Accident Database System ............................................................................................ 5 D. Road Safety Strategy and Organization ......................................................................... 5 1. Georgia Traffic Safety Strategy ...................................................................................... 5 III. Road Safety audit of project road ....................................................................................... 9 A. Background ........................................................................................................................ 9 B. Review of Typical Project Layouts & Design Plans .......................................................... 10 1. Design Planning ........................................................................................................... 10 2. Design Speed ............................................................................................................... 10 3. Roadway Cross-section ................................................................................................ 10 4. Safety-barriers & Edge-delineators .............................................................................. 11 5. Sign and Marking .......................................................................................................... 11 6. Visibility ......................................................................................................................... 11 7. Bridges & Culverts ........................................................................................................ 11 8. Road Tunnels ............................................................................................................... 12 9. Climbing Lanes ............................................................................................................. 12 10. Axle-Load Control Complex ...................................................................................... 12 IV. ROAD SAFETY COMPONENT........................................................................................ 13 A. Coordination with World Bank projects ............................................................................ 13 B. Awareness Campaigns for Road Safety .......................................................................... 13 1. Safety Code for Access-Controlled Roads & Tunnels .................................................. 14 2. Roadside Community Awareness Campaign ............................................................... 14 3. Pedestrian Awareness Campaign for Open Access Section of Road. ......................... 14 4. Awareness Campaign for Heavy Vehicles ................................................................... 15 5. Publicity through Television and Newspaper ................................................................ 15 V. Intelligent Transport Systems .............................................................................................. 16 A. Introduction ...................................................................................................................... 16 B. The Current Situation ....................................................................................................... 16 1. Review of ITS in Georgia .............................................................................................. 16 2. International Practice .................................................................................................... 16 C. ITS for the Roads in the project .................................................................................... 17 1. Project Road Proposed ITS Arrangements .................................................................. 17 2. Recommended ITS for the Project ............................................................................... 17 3. Future ITS proposals .................................................................................................... 18 VI. Long-Term Measures to Achieve Tunnel and Road Safety ............................................. 21 VII. Recommendations ........................................................................................................... 22 Engconsult Ltd.
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List of Tables
Table 1: Recorded Number of Road Accidents ............................................................................ 3 Table 2: Accidents on project road ............................................................................................... 4 Table 3: ITS Recommendations ................................................................................................. 19 Table 4: Cost Estimate for Road Safety Components ................................................................ 22 List of Figures
Figure 1: Trend of Road Accidents in Nepal ................................................................................. 4 Engconsult Ltd.
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GLOSSARY
AADT
AASTHO
ADB
GIS
GOG
ITS
MFF
RD
RoW
RSA
TD
VMS
WB
Average Annual Daily Traffic
American Association of State Highway and Transportation Official
Asian Development Bank
Geographical Information System
Government of Georgia
Intelligent Transport System
Multi Facility Financing
Road Department, Ministry of Regional Development and Infrastructure.
Right of Way
Road Safety Audit
Transport Department of the Ministry of Economic Development
Variable Message Sign
World Bank
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I.
A.
INTRODUCTION
Background
1.
There were 867 fatalities from road-traffic accidents in Georgia in 2008, a rise of over
18% from 2007. The fatality rate relative to the vehicle fleet at 16 per 100,000 vehicles in 2007
is significantly higher than other Eastern European countries and much higher than other
developed countries in EU 1 . Both the fatalities and serious injuries resulting from traffic
accidents in Georgia over the past few years show an upward trend and road-safety is thus
becoming a serious social issue in Georgia.
2.
World Bank review of statistics for 19962 showed that about 66% of deaths from road
accidents occur in "urban" areas and 34% occur on "rural" roads. Whereas on rural roads in
Georgia (where wearing of front seat seatbelts is compulsory and there is visible and effective
police enforcement of speeding) deaths were only increasing at 3% per year, deaths on "urban"
roads were increasing at around 25% per year; in 2006 the high increases and a significant
proportion of road deaths occurred in towns or built up areas along major roads. Over 30% of
those killed nationally in 2006 were pedestrians. This is almost double the percentage in many
West European countries3. The fact that seatbelts are not worn and vehicle speeds are often
excessive in "urban" areas and that there are very few facilities to ensure pedestrian safety or to
guide drivers through hazardous locations on the road network are major causes of these
accidents and fatalities. This project will provide a bypass to two congested areas, Kobuleti and
Batumi which, at present, incur traffic and pedestrian congestion, especially in the summer
holiday season.
3.
Asian Development Bank (ADB) considers road safety an important issue and has made
an effort to promote road safety by providing “Road Safety Guidelines for the Asian and Pacific
Region”. Similarly, the Government of Georgia (GoG) through the Transport Department of
Ministry of Economic Development (TD) has recently produced a Georgian National Traffic
Safety Strategy (2008). Both the ADB and GoG guidelines on road-safety therefore apply to the
Project Road.
4.
This Supplementary Appendix: (i) describes present state of road safety conditions in
Georgia and issues relevant to the Project Road; and (ii) discusses the safety audit carried out
on the preliminary design and the need for further audits, (iii) recommends a road safety
component for the project, and (iv) discusses a possible Intelligent Transport System (ITS)
component to be included in the project and the overall MFF.
B.
Framework of Road Safety Improvement
5.
For the safe design of any road, it is necessary to formulate a road safety component to
effectively prevent or reduce the road accidents along the road. As the Project Road is a new
construction along a new alignment, there are no existing accident blackspots4 to consider and
therefore the objective is to prevent road-accidents by incorporate adequate countermeasures.
Successful road-safety practices generally require improvements to engineering, education and
enforcement (the principle of three “Es”). With the above in mind, there are three aspects
outlined in the safety component for this Project road to effect comprehensive road safety
measures.
1
World Bank working paper.
World Bank Appraisal Report 2nd E-W Highway Improvement
3
e.g. Germany 14%, France 11%, Sweden 14%, Netherlands 8%
4
Accident blackspots are locations where accidents are concentrated
2
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6.
A safety audit of the preliminary design of the proposed project road, combined with a
study of general trends in road safety in Georgia, has led to minimization of potentially
hazardous or critical locations related mainly to alignment and road profile.
7.
To ensure smooth traffic control efficient enforcement is required by the Traffic Police
(Patrol Police). This enforcement aspect is important and will be crucial during the opening
years of road operations when many road-users and roadside communities will be unfamiliar
with the concept of an access controlled, high speed highway. Effective and strict enforcement
are also necessary to control non-motorized/slow-moving traffic, to regulate axle-loads and to
mitigate traffic disruptions due to accidents (incidence management).
8.
Education of road-users is an important part of the road safety component to assure the
desired effect of other parts of the component. Successful road safety will largely depend on
how effective the education programs or safety campaigns are. This is a nationwide need and is
therefore best included in the overall MFF.
9.
The incorporation of some elements of an ITS will help alert drivers and road authorities
of changes to road conditions or dangers ahead.
10.
Finally, an effective emergency response system is important to safeguard road-users
during emergencies once the project road opens. The emergency response system will require
coordination amongst concerned authorities, with logistic support to deal with emergencies
related to road accidents, vehicle breakdown or tunnel incidents.
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II. ROAD SAFETY IN GEORGIA
A.
Responsibility for Road Safety in Georgia.
11.
Responsibility for road safety in Georgia is spread amongst three ministries and
cooperation between the three appears somewhat sketchy.
12.
The Interior Ministry, through the Patrol Police is responsible for attending and reporting
on road accidents as well as enforcing traffic regulations and laws. The police record all
accidents to which they attend and the data is entered into a computerized data base; however,
analysis of this data appears to be minimal.
13.
The Road Safety Division of the Roads Department of the Ministry for Regional
Development and Infrastructure is responsible for ensuring that the road infrastructure is
designed, constructed and maintained in a safe manner. It carries out road safety
improvements, sometimes at the request of the patrol police, and other times after having
manually analyzed the data collected by the police. It is also responsible for installing and
maintaining road signs and markings.
14.
The Transport Department of the Ministry of Economic Development was instrumental in
producing a Road Safety Strategy for Georgia (D.1 below).
B.
Other Road Safety Work in Georgia
15.
Little work has been carried out in road safety in Georgia prior to 2002. A road sign audit
was carried on all international roads in 2003 by Roads Department and some improvements
have been made to infrastructure since then.
16.
A PHRD funded road safety study in 2007 led to a summary Georgian Traffic Safety
Strategy but this is only being spottily implemented, mainly because it does not include a time
bound action plan.
17.
World Bank (WB) has ongoing road safety projects in Georgia, mainly as part of the E-W
Highway upgrading and is proposing a new road safety component in its 3rd East West highway
Improvement. This component will develop road safety audit guides, train MRDIRD staff in their
use and use the E-W Highway upgrading as a pilot to use the audit guides. It also intends to
update the traffic sign and marking audit for all main roads; it is important that any road safety
component for the MFF project should complement those studies. .
C.
Present Conditions and Analysis of Road Accident Data
1. Number of Road Accidents & Trends
18.
The number of the road accidents in Georgia including the number of the fatalities and
injuries are shown in Table 1 and Figure 1.
19.
The table shows that both accidents and fatalities have been rising steadily over the last
eight years, and have risen by 20 percent between 2007 and 2008 (18 percent for fatalities).
The overall annual growth since 2001 has been 17.6 percent for accidents and 6.5 percent for
fatalities. The growth rate for alcohol related accidents has grown at the same rate as accidents
Table 1: Recorded Number of Road Accidents
Year
2001
2002
Accidents
1,937
2,011
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Alcohol related
123
na
Injuries
2,370
2,509
Fatalities
558
515
4
Year
Accidents
Alcohol related
Injuries
2003
2,113
123
2,585
2004
2,936
86
4,069
2005
3,870
329
5,546
2006
4,795
225
7,084
2007
4,946
311
7,349
2008
6,015
378
9,063
Source: Ministry of Internal affairs of Georgia, Department of Police
Fatalities
572
637
581
675
737
867
10,000
Number
8,000
6,000
4,000
2,000
0
2001 2002 2003 2004 2005 2006 2007 2008
Year
Accidents
Injuries
Fatilities
Figure 1: Trend of Road Accidents in Nepal
20.
The Patrol Police identify the major causes of accidents to be the poor condition of the
roads and vehicles, erratic behavior of pedestrians and speeding, which is thought to be the
dominant cause of accidents on the main roads. However other reasons, easily observed on
both urban and rural roads, are driver recklessness (speeding, dangerous overtaking)
inadequate consideration for pedestrians, and inadequate safety facilities.
2. Accident History on the Existing Road
21.
There were 220 accidents along the existing Poti to Sarpi road in 2008 with 406 injuries
and 43 fatalities. This is a rise of 59 percent in accidents and 72 percent in fatalities, an
alarming rate of growth. The very high rate of injuries to accidents would indicate that many
accidents that do not cause injury are not officially reported. A summary of these accidents and
the reasons given by the police for them is set out in Table 2.
Table 2: Accidents on project road
Cause of Accident
Speeding
Maneuvering
Violation
Technical Fault
Crossing Center Line
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%
33
19
12
11
5
Cause of Accident
Not Keeping Distance
Alcohol
Passing unlawfully
Tiredness
Other
%
6
3
2
1
13
22.
Little work has been carried out on the cost of accidents in Georgia but PHRD
consultants in 2007 indicated that economic losses were at least US$100 million per year
(around 1.4 % of annual 2007 GDP), although further work has indicated that this figure is very
low.
23.
In the economic evaluation for this study (Supplementary Appendix 6) the economic cost
of road accidents has been estimated as:
•
•
Average cost per accident along Project bypass road : GEL.57,600 (US$ 34,500)
Average cost per accident along existing roads: GEL.46,000 (US$ 27,600)
3. Accident Database System
24.
A comprehensive database system for road accidents is an essential tool to investigate
causes behind road-accidents and develop effective countermeasures to mitigate future
accidents at accident blackspots. It is also an essential aid in outlining broad road safety
strategies and countermeasures to prevent accidents at hazardous locations at proposed or
new roads.
25.
In Georgia a simple database containing accident records was installed by the police in
2007 and accidents appear to be reported in sufficient detail that they could be used to provide
a reasonable analysis of the cause and type of accidents on main roads and to identify black
spots. World Bank, in their Second East West Highway Project have formulated a plan for a new
accident data base system and, in the next phase will migrate historic data and train staff in its
use. It is important that data from the existing project road be included and that new road data
be input as it becomes available.
D.
Road Safety Strategy and Organization
1. Georgia Traffic Safety Strategy
26.
GoG has begun to realize the problem of poor road safety and has made some attempt
to alleviate the problem. For instance, the Patrol Police are now better equipped and thus more
efficient in enforcement, some major roads have been resurfaced or rehabilitated, a drunken
driving law has been introduced and enforced, and traffic monitoring devices have been
installed in Tbilisi. However, there is much to be done.
27.
In July 2008, GoG endorsed the National Traffic Safety Strategy presented by the
Transport Department of Ministry of Economic Development (TD). The main goals were:
•
•
•
•
Improve infrastructure in accordance with revised safety standards;
Complete the legislative base for road safety reform;
Provide the institutional framework for road safety; and
Increase public awareness of road safety.
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a. Strategy Actions
28.
The main actions to achieve those goals were stated as:
•
•
•
•
•
•
•
•
Patrol Police
o Police Patrolling Instead of Police Posts (implemented 2004)
o Installing Video-cameras on some road sectors to prevent and identify traffic
infringements (ongoing).
o Additional equipment for enforcement -radar speed traps and alcohol breath
testing (ongoing)
o "One Call" service (Fire, Rescue, Emergency and Police services) – 022
(proposed).
Legislation
o Restrictions on use of Mobile phones in vehicles
o Proportional Penalties for speeding and drunk driving (at present there is one
fixed penalty)
o Increase penalties for drunk drivers and aggressive driving.
o Introduce compulsory seat belt wearing for back seats on rural roads and for
front seats in urban areas.
o Regulate design of Entrances to Commercial premises
Infrastructural Measurements
o Revise road standards (introduced March 2009)
o Road construction/Reconstruction (ongoing)
ƒ East-West Highway widening.
ƒ Chuberi-Sakeni Road
ƒ rehabilitation of Tbilisi-Senaki-LeseliZe Highway sectors: Agaiani-Igoeti
(13 km) and lgoeti-Sveneti (25 km). Total cost of the reconstruction
process is 41.4 million USD;
ƒ Rehabilitated Nataxtari-Agaiani (16 km) - sector of Tbilisi-Senaki-LeseliZe
Highway.
ƒ Rehabilitation of Urban Roads (50m GEL proposed)
ƒ rehabilitative of parts of Chumburi-Senaki Highway and entrance road to
Batumi International Airport
Action Plan
o Preparation of prioritized road rehabilitation and maintenance action plan
Pedestrian Safety
o More Pedestrian Tunnels.
o Pedestrian Overpasses at places of high intensity traffic
o Pedestrian walkway on bridges.
o Provision of walkways and crossings at all urban tunnels.
o Barriers on footpaths of central city streets to stop parking.
o Improve Bus Stops and Entrance Roads placement to reduce congestion
o Provision of central island at pedestrian crossings.
o Provide facilities for disabled persons at pedestrian tunnels and overpasses.
o Provision of Speed Reduction Devices near schools
o Providing Islands and Kerbs instead of painted lines, at U-turns, and raised
central islands at all roundabouts.
Equip road and railway intersections with essential facilities and traffic signs
Provide animal and man proof fencing along RoW of major highways
Road Signs
o More road signs to be provided in urban and rural roads
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•
•
•
•
o Provide essential temporary road signs during road reconstruction.
Road Lightning
o Improve lightening facilities on international highways, and minor roads;
o Improve lighting on high traffic roads.
Maintenance, design research, scientific and expert activities.
o Improve periodic maintenance and rehabilitation of roads;
o Research into minimization of the effect of natural disasters;
o River-bed and coastal protection methods;
Institution Framework
o Expert Group: creation of a special expert group of representatives of competent
authorities, which will have a coordination role and prepare needed information
and data for the Georgian Transport and Communication Policy Development
Commission. The Working Group will be made up of representatives of: Ministry
of Economic Development of Georgia; Ministry of Internal Affairs of Georgia;
Ministry of Education and Science; Ministry of Health, Labour and Social
Protection; Ministry of Finances and other Interested Authorities.
Improve public awareness on traffic safety
o Civil Information: The Ministry of Internal Affairs of Georgia and TV and radio
media provide information on traffic safety. This should be continued.
o Devise appropriate informational campaigns.
o Pilot Project in some schools regarding traffic safety rules to be continued and
enlarged.
o Consider publishing fliers and brochures and distribute them to schools and other
educational institutions.
b. Responsibility for Strategy
29.
Under the new strategy the following authorities will be the main entities in road safety.
a.
The supervisory authority would be the Georgian Transport and Communication
Policy Development Commission. The main functions of the Commission would
be to separate the economical and technical regulation fields of transport and
communication sectors policy directions, and facilitation of infrastructure
improvement. They would ensure appropriate monitoring and coordination of
Georgian National Road Safety Strategy.
b. Georgian National Road Safety Strategy Implementation Authority: The Ministry
of Economic Development of Georgia: Department of Transport, Road
Department would ensure data collection of road accidences and road facilities
from the relevant organizations, analyze information, and prepare
recommendations for the Georgian Transport and Communication Policy
Development Commission for determination of future activities. Ministry of
Internal Affairs of Georgia would prepare and transfer information regarding road
accident to the Ministry of Economic Development of Georgia and would provide
special training and instruction for (telephone) 022 staff for effective perception of
information and coordination with proper authorities.
c. Local Self-Government Authorities would harmonize roads construction,
rehabilitation and maintenance in accordance with "Road Projection Geometrical
and Structural Standards".
30.
As can be seen there are significant differences in responsibilities under the strategy as
compared to the existing situation.
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31.
Whilst the strategy is wide ranging it lacks substance and, in particular, it does not set
out a time bound action plan for implementation. Consequently little progress has been
achieved in implementing the strategy. It is understood that such an action plan is being
proposed.
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III. ROAD SAFETY AUDIT OF PROJECT ROAD
A.
Background
32.
A Road Safety Audit (RSA) is a systematic process for checking the road safety
implications of highway improvements and new road schemes. The main objective of an audit is
to minimize future road accident frequency and severity once the road has been built and
comes into use. The audit needs to consider all road users, particularly pedestrians and cyclists.
Having identified potential road safety problems, the auditor makes recommendations for
improvement.
33.
In the pre-construction phase, the road safety audit has the greatest potential to improve
safety as it examines the design before a road facility is built. Pre-construction phase RSAs can
be conducted on any proposed road project that is likely to alter interactions between different
road users or between road users and the road environment.
34.
Preliminary design RSAs are conducted on the preliminary design drawings which
normally show only general details regarding the road alignment and profile, with typical crosssections only. Design drawings for interchanges are normally at a larger scale which allow for
closer examination. A base map can show vertical contours, watercourses, and existing roads,
structures, and property lines. In this project the base map was at 1:10,000 scale on which the
initial alignment was plotted. The alignment and profile was then developed from the
topographic survey of the alignment corridor.
35.
The main purpose of the preliminary design RSA is to:
•
•
Avoid wasting time and effort in redesigning basic elements during detailed design;
Ensure safety isn't compromised when project elements which meet only the
minimum design standards interact;
• Evaluate whether any departures from standards will significantly impact safety;
• Evaluate horizontal and vertical alignments (roadway and roadside cross-sections),
interchange configuration, intersection layout, to ensure they do not present safety
hazards;
• ensure the needs of all road user groups are being met.
36.
During the preliminary design RSA, the safety engineer should see how the planned
road improvement will tie in to the existing road network and examine adjacent roadways to
determine how consistent the design will be from the perspectives of different road users.
37.
Whilst fundamental decisions regarding route choice, the overall design, and layout of
the project are being decided the safety engineer (in this case also the design engineer) can
suggest significant physical changes, such as horizontal and vertical alignment, provision of a
median, lane and shoulder width, footpaths, and channelization. Interchanges should be
reviewed for upstream/downstream effects, potentially conflicting movements, and sight
distances. In this project many of these elements were set through the use of new Georgian
road standards5. When alternative options were being considered, each one was reviewed from
a road safety viewpoint.
38.
It is important to carry out this preliminary audit when significant land acquisition is
required, as in this project, before acquisition is finalized in the event that the RSA leads to
recommendations for significant changes to horizontal alignment that would require additional
land.
5
2009
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39.
Further RSAs should be carried out at the detail design stage, the construction stage
and the pre-opening stage.
B.
Review of Typical Project Layouts & Design Plans
1. Design Planning
40.
The Project Road is planned to be fully access-controlled, except for a six kilometer
section of existing road widening, with the prime objective to provide a quick bypass of Kobuleti
and Batumi. To ensure safety of the vulnerable road-users and as a pre-requisite for an
access-controlled road, non-motorized, slow-moving vehicles and pedestrians should be
restricted along the road. In order to enforce this restriction, boundary fencing is proposed at the
boundary of the road right-of-way. In addition, police enforcement and education is also
recommended to educate roadside communities.
41.
Access to the Project road is restricted through interchanges (which will be gradeseparated) proposed at Natanebi River (Km 0), Ozurgeti Road (Km 14), existing road (Km 28),
start of Batumi bypass (Km 34), Khelvachauri (km 44) and at the end of the project (km 48) with
the existing road.
42.
Average Annual Daily Traffic (AADT) at the opening year (2013/4) is forecasted to vary
from 2,400 on Kobuleti bypass to 1,600 vehicles on the Batumi bypass, rising to 5,700 and
3,700 respectively in 2034. Based on assumed design capacity of the Project road (AADT of
12,000 vehicles), the two-lane carriageway will be adequate. In the unlikely case that the
alternative border post between Turkey and Georgia is not opened or the border between
Turkey and Armenia remains closed, the volumes by 2034 would require the road to be widened
to four lanes. There are therefore no capacity constraints foreseen in the design period of the
Project Road and potential conflicts due to traffic congestion will be minimized
2. Design Speed
43.
Following the Georgia road standard for four lane roads, a design speed of 120 kph for
flat terrain, reducing to 80 kph in mountainous terrain has been proposed for the two lane road.
The design speed is justified and should be conducive to safe driving.
3. Roadway Cross-section
44.
Georgian standards stipulate, 3.75m lanes in each direction with 2.5m shoulders in flat
terrain, dropping to 2.0m in mountainous terrain (two lane road). This is adequate to allow
vehicles to pull completely off the driving lane in the event of a breakdown or an emergency.
45.
With a two lane high speed road, head-on collisions between opposing traffic could be a
serious safety issue, especially in flatter terrain where speeds will be high, although the wide
shoulder and controlled access should help to minimize such accidents. However it is
recommended that reflective thermoplastic road-marking be used along the whole road and
concrete delineator posts 6 be placed on the valley-side for hill-cut sections in rolling or
mountainous terrain and both sides for embankment sections in flat terrain.
6
Prismatic concrete delineator posts basically improve delineation of the formation edge and cannot act as safetybarrier.
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4. Safety-barriers & Edge-delineators
46.
Steel guard-rails are proposed along the valley-side of all sections of the Road in steep
terrain. It is also recommended that single-beam steel guard-rails be placed on all sections of
road having vertical drop of 3 m or more. The start and end of all guard-rails should be splayed
away and buried into the ground so as not to pose a safety-hazard itself.
47.
At road-section with a vertical-drop of less than 3 m concrete post-delineators should be
provided at both edges and on the valley-side on sections cut/fill sections.
48.
“New Jersey” type median barriers are proposed for a four kilometer section of the
existing road widening where land restrictions make the provision of a wide central median
infeasible.
5. Sign and Marking
49.
At this stage of design, no detailed sign and marking plan for the road is provided.
However, it is recommended that the new Road Traffic Signs and Marking standard be used as
this generally follows the Vienna Convention UNECE on road traffic signs which is
internationally accepted. It is understood that the new Georgian Signs/markings standard is to
be based on this.
6. Visibility
50.
The potential locations where visibility or sight-distance could be constrained would be
sharp corners (blind corners), locations obscured by summits and tunnel entrance/exits. Given
that the design has retained a minimum horizontal radius of >600m wherever possible there
should be no visibility problems along the road.
7. Bridges & Culverts
51.
The full carriageway including the shoulder will be continued along all culverts. Georgian
standards have a small (0.5m) shoulder across bridges but have a footpath on both sides of up
to 2.5m (minimum 0.6m). For a fully access road two wide footpaths are inappropriate as
pedestrians are not allowed in the RoW. It would be safer to widen the shoulder width to 2.0m
and to have a minimum width footpath on one side only for maintenance or emergency use.
52.
Based on the design plans, the following interchanges are proposed:
•
Modified trumpet interchanges are proposed at Natanebi River (Km 0), and at the
end of the project (km 48) with the existing road.
• Aligned trumpet-interchange at existing road (Km 28), start of Batumi bypass (Km
34).
• Partial Cloverleaf interchange at Ozurgeti Road (Km 14), and Khelvachauri (km 44).
53.
Deceleration and acceleration lanes are proposed before exit and after entry ramps,
respectively, to all interchange. Georgian standards require these to be 3.75m in flat sections
which is satisfactory.
54.
Visibility at interchanges is generally based on criteria satisfying decision sight-distance.
Decision sight-distance is the distance required for a driver to detect a complex road
environment, perceive hazard, analyze it and take action.
55.
While a detailed assessment is not currently feasible, preliminary study shows that there
is adequate visibility from all access-roads to interchange entry-ramps.
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Based on AASHTO (and TRACECA) Standard, design-speed for ramps would be 30 kph and
40 kph for mountainous and flat terrain, respectively.
8. Road Tunnels
56.
Five tunnels are proposed along the project road, two are medium size (600m and
700m) and three are small (<250m). The three small tunnels are connected by short bridges or
fill, about 150m in length. All tunnels have straight alignments.
57.
The Project proposes single two lane, two way tunnels. Cross-sectional drawings agree
with Georgian standards and are larger than international standards with 3.5m lanes and 0.7m
shoulders on each side with an emergency lane of 2.5 in one direction only and with an effective
vertical-clearance of 4.5 m. In addition, a 0.75m wide maintenance-footpath is proposed. The
overall width is excessive given the short length of the tunnels but is satisfactory from a road
safety view point.
58.
Because of the length of the tunnels and the low traffic volumes over the first ten years
of operation no ventilation or other safety-facilities are required. This should be reassessed
during detail design.
59.
Based on current profile, there should be no visibility issues at the longer tunnel portals
despite the combined effect of both horizontal and summit curve approaching some portals. The
impact on visibility because of transition from dark to light or vice-versa while entering and
exiting the tunnels should be assessed in detail in detail design, especially in the three small
connected tunnels.
60.
While there will be illumination and provision for emergency power, all vehicles should
put their headlights on while traveling through tunnels to avoid accidents during sudden poweroutages
61.
Other tunnel safety aspects are discussed in Supplementary Appendix 2, Design.
9. Climbing Lanes
62.
Climbing-lanes are proposed on grades greater than four percent to allow overtaking of
slow underpowered vehicles and minimize dangerous overtaking maneuvers which are common
on Georgian roads.
10. Axle-Load Control Complex
63.
It is recommended that weighbridge stations be included on both bypasses to ensure
truck overloading does not occur as this not only damages the pavement but is dangerous to
other traffic. For the project road these would be placed in the proposed service areas on each
bypass.
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IV. ROAD SAFETY COMPONENT
A.
Coordination with World Bank projects
64.
WB has been a major force in promoting road safety in Georgia. This has been done
mainly by including road safety components in their road construction projects and through
advice to MRDIRD and other GoG ministries and departments.
65.
WB plans to include a specific road safety component in their Third East West Highway
Improvement project which will, amongst other items develop road safety audit guides which
they will use as a pilot application on the E-W Highway improvement work.
66.
In order to complement this work it is recommended that the guides also be used on this
project during and after construction7. An audit of RDMRDI sections of the existing road should
also be carried out.
B.
Awareness Campaigns for Road Safety
67.
Education is an integral part of any road-safety strategy and is of significant importance
for this project as it is a controlled-access road with significant lengths of tunnel.
68.
The Project road will comprise of three sections - (i) access-controlled Kobuleti bypass
(28km), (ii) the free-access six kilometer widening of the existing road, and (iii) the access
controlled Batumi bypass (14km). The first and second of these sections comprise Tranche 1,
while Tranche 2 consists of the third section. The first and third of these sections will be
restricted, with no admittance to pedestrians, slow and non-motorized traffic, while there will be
mixed traffic and pedestrians in the middle widened section.
69.
The following paragraphs suggest awareness campaigns which could be included in the
scope of the first tranche of the MFF.
70.
The safety awareness campaign for the access-controlled section should take into
consideration safety-issues related to high-speed traffic and the likely implication to both the
road-users and roadside communities. The target-groups would therefore be (i) road-users and
drivers of all types of vehicles and (ii) roadside communities.
71.
For the former the issues which should be addressed are safe driving code of behavior
while driving on an access-controlled road including road tunnels and education about safety
facilities and response in the event of incidences such as accidents.
72.
For the roadside communities, the issues to be addressed would be to educate the
communities on the dangers of accidentally or forcefully breaking through the safety boundary
fence to the access-controlled road. In order to develop good public relations with the roadside
communities, it is also important to consult with them during detail design about, and to later
publicize the design of, sufficient pedestrian and tractor underpasses and non-disruption of the
existing local roads, foot-trails, etc.
73.
Suggested campaigns should be designed by the detail design or supervision engineers
and should include:
7
Also for detail design if the guides are ready.
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1.
Safety Code for Access-Controlled Roads & Tunnels
74.
This program should consist of educating drivers and Patrol Police (PP) about the
correct code of behavior while driving in the access-controlled sections of the road including the
tunnels. The program should consist of design of materials to be used in the training and the
actual education/training should be conducted to all road-users through joint collaboration with
Traffic Police and MRDIRD.
75.
In the initial period, the education should be carried out through concerned associations
of transport entrepreneurs and PP. In the latter part of the Program, consultants should update
the existing manuals for drivers incorporating the above code. It is recommended that the
syllabus for the written test for driving-licenses should include special reference to high speed
roads. The following actions are therefore proposed for this Program:
•
•
•
•
•
Preparation of code of behavior for access controlled roads.
o This will comprise introduction of various signs and marking for access-controlled
roads, driving conduct in tunnels in case of fire-hazard or accidents
o Provide information on various emergency facilities available
Provide trainer training to PP.
Conduct training/discussions at regional associations of transport operators.
Incorporate into and update existing driving manuals
Coordinate with PP to introduce the updated driving manual in written test for driving
licenses.
2. Roadside Community Awareness Campaign
76.
This program would carry out safety education of the roadside communities within the
access-controlled section of the Project and would target school children and concerned
residents within the immediate vicinity of the road. The campaign should be conducted through
local community based organizations in collaboration with MRDIRD and PP. This Program could
consist of the following:
•
Preparation of brochures highlighting code of conduct around access-controlled
roads; safety implications; instructions regarding non-access for pedestrians to the
project road and information about emergency services available along or close to
the road.
• Lectures and training to local trainers (PP or NGO).
• Supervision of implementation of awareness campaign by local trainers to students
and residents
77.
Road safety brochures and posters should be posted in schools and village community
centers.
3. Pedestrian Awareness Campaign for Open Access Section of Road.
78.
This campaign should use posters and literature related to increased danger from
heavy-vehicles and safe pedestrian behavior when walking along heavily trafficked roads. This
program should be conducted in schools in Kobuleti and Batumi:
•
•
•
Prepare posters and other literature
Conduct lectures, mock sessions at schools with the assistance of MRDIRD and PP.
Evaluate effectiveness of campaigns
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4. Awareness Campaign for Heavy Vehicles
79.
The main message behind this campaign will be to underscore the importance of
observing safe-driving habits with special consideration given to pedestrians and non-motorized
vehicles on mixed traffic road sections. This campaign should be conducted at truck and bus
operator’s depots. The following activities should be considered:
•
•
Design and printing of brochure and stickers.
Conduct lectures at transport operators depots with the assistance of MRDIRD and
PP.
• Distribute brochures and stickers to transport operators.
• Evaluate effectiveness of campaign.
5. Publicity through Television and Newspaper
80.
The Project should produce and broadcast a documentary on television highlighting the
following issues pertaining to the Project roads:
• Code of driving behavior on high speed roads and tunnels.
• Information on emergency facilities available on high speed roads.
81.
The documentary could be aired several times a year and the possibility of airing the
documentary on national television on a free basis should be explored.
82.
For newspaper publicity a set of road safety advertisements/information should be
designed and placed in national and regional papers.
83.
It is estimated that a total of 6 person months will be required for an international road
safety expert plus 16 person months of domestic road safety experts and two person months of
a domestic media specialist.
84.
In addition to he training and awareness programs set out above it will be important to
increase and improve enforcement measures on the new road. As part of the World Bank road
safety program for the E-W highway support is proposed to PP with training and equipment to
deliver the enforcement element of the overall road safety plan. It is proposed that PP from
Ajara who would patrol the Project roads be included in this training and that additional road
safety enforcement equipment be procured through the project for use on the project and other
roads in Ajara. This would include radar equipment for speed control, breathalyzer equipment to
control drunk driving and onboard computer equipment to allow quick recording of accidents at
the accident scene.
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V. INTELLIGENT TRANSPORT SYSTEMS
A.
Introduction
85.
Intelligent Transport Systems (ITS) is a term that is used widely (and loosely) to
encompass a wide range of technological solutions applied to the transport sector to improve
the performance of the transport system. These improvements include some or all of the
following (and overlapping) functions:
•
•
•
•
Safety and traveler information (speed signs, warning signs, etc)
Enforcement (over-speed, over-weight, non payment of tolls, etc)
Monitoring (traffic speeds, over-weight, traffic counting, etc)
Toll and revenue collection (e.g. electronic tolling)
86.
The relative emphasis placed on ITS for these functions varies from place to place,
depending on factors such as specific need (arising from topographical and environmental,
traffic volumes, delays and vehicle speed considerations), local technological skills and ability to
reliably construct and maintain a relatively high technology system, and budget considerations
for both construction and on-going maintenance.
B.
The Current Situation
1. Review of ITS in Georgia
87.
At the present time, other than for the simplest facilities such as fixed signs and traffic
signals and the introduction of variable message signs (VMS) on a section of the widened E-W
Highway, there are no ITS facilities in Georgia. There are also no immediate plans for ITS
introduction.
88.
With the construction of the project road, one of the first limited access high speed roads
in Georgia, it is appropriate to consider the introduction of further ITS and to develop a plan and
standards for future ITS facilities on other roads, including major urban roads.
2. International Practice
a.
ITS Standards
89.
With the wide variety of ITS hardware and software functions and the ever-increasing
number of system suppliers, ITS standards are becoming ever more important.
90.
In the United States, the US National ITS Architecture provides a common framework for
planning, defining and integrating ITS, and defines:
• Functional requirements (e.g. what monitoring, data collection, reporting is required);
• Physical components (e.g. video surveillance cameras); and
• Information flows and physical sub-systems of the overall integrated system.
91.
Other countries that are introducing ITS are also developing and/or adopting similar ITS
standards (e.g. European countries under common European standards). By specifying how
systems and components inter-connect, the standards promote inter-operability. The standards
do not attempt to specify or limit the type or supplier of any component: what the standards do is
ensure that, no matter what component is used, it will talk to and be able to be understood by all
other components.
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92.
In Europe ITS standards have been developed and are frequently reviewed. These
standards allow inter-operability between systems and between countries. The main focus of
ITS in Europe now is the actual implementation of ITS.
93.
The ‘Trans-European Network for Transport’ project is intended to allow a number of
existing different and separate ITS to inter-connect. This is seen as an important step in
developing a homogeneous ITS network across Europe.
94.
Typical features of the pan-European system are:
•
•
Automatic vehicle location and tracking;
Traveler information, both before trip for trip planning and during trip, including
Variable Message Signs (VMS), web cameras, internet road, traffic and weather
status and on-board route planning systems;
• Vehicle tolling / user charges systems;
• Highway management, including incident detection and control;
• Vehicle speed and weight monitoring and enforcement.
95.
ITS in North America is well developed, and includes a wide range of applications across
all transport sectors, using a wide range of communication systems and providing a wide range
of services.
96.
Common communication systems include GPS, internet, dedicated short range
communications and FM broadcasting.
Common services include:
•
•
•
•
•
C.
Traveler information,
Traffic management;
Electronic toll collection;
Commercial vehicle management; and
Advanced vehicle safety systems (e.g. vehicle to vehicle proximity detection)
ITS for the Roads in the project
1. Project Road Proposed ITS Arrangements
97.
The specific ITS proposals for the Project road and other projects in the MFF should be
defined during later stages of the project, however the following proposals could be considered:
•
•
•
•
•
Surveillance cameras on project roads at key locations (such as interchanges, tunnel
portals and other ‘high risk’ areas) to give warning of incidents (potential or actual
accidents etc;
Advisory maximum speed change display VMS;
Gantry-mounted driver information VMSs;
Vehicle weight detection on all international roads; and
Development of an ITS national standard for Georgia.
2. Recommended ITS for the Project
98.
The specific features which could be incorporated on the Project are discussed below.
Use of VMS and cameras will require a control building located which could be in Batumi or
close to the project road in the proposed service areas.
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a.
Surveillance Cameras
99.
The main use of surveillance cameras is to quickly identify changed or emergency traffic
conditions. In particular well supervised surveillance systems can pinpoint traffic accidents and
alert emergency services and note deterioration of traffic conditions due to either weather or
landslides etc. Cameras should be placed at all ‘high risk’ locations such as tunnel portals,
major bridges, high cut areas and high accident risk locations.
b. Use of Variable Message Signs
100. VMSs need to be spaced close enough to provide timely information to road users,
particularly in ‘high risk’ areas, on road conditions, accidents, weather and speed limitations.
Where it is not practicable to provide this frequency of fixed location VMSs, then mobile VMSs
should be used (and moved from location to location as required).
101. It is recommended that non-road related information not be displayed on VMS, including
commercial advertising. This distracts the driver and its frequent use will detract from the
urgency of important road, speed or weather information. VMS speed limit information is also
important to advise drivers of reduced speeds either for incidents, road works or weather or
change in design speed. This is particularly important at tunnel locations for incident
management. VMS should be used in conjunction with the surveillance cameras.
c. Vehicle Weight Detection
102. A Weigh Bridge station is recommended to be installed on Kobuleti bypass as part of the
Tranche 1 works. All loaded trucks should be weighed to avoid overloading of the road
pavement and consequent accelerated deterioration. Overweight vehicles should not be allowed
on the project road. Combine with the weigh station at Sarpi border post this should help ensure
safeguarding the road pavement from overloading.
d. Adoption of ITS Standards
103. With the introduction of high standard, high speed, roads in Georgia, it would be
appropriate to promote, at the national level, the need to develop and adopt national ITS
standards. Given the amount of effort, time and cost developing and testing standards in other
countries (e.g. United States) there may be considerable scope to draw upon that international
experience as the basis for national ITS standards. This needs to be further discussed with
Government.
3. Future ITS proposals
104.
a.
As a second step other ITS technologies could gradually be introduced.
Weather Condition Monitoring
105. ITS technology allows weather conditions that impact on road safety / operations to be
automatically detected and to automatically update VMSs accordingly. Since the project roads
will pass through mountainous areas that experience fog, snow and ice, this should also be
incorporated into the ITS system.
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b. Speed Limit Monitoring and Enforcement
106. Speed limits can be monitored and enforced very easily with speed cameras. These can
be at fixed locations or mobile. The key to enforcement is for motorists to consider that there is
sufficiently high probability of being ‘caught’ (coupled with a sufficiently high penalty) so as to
deter speeding. In order to incorporate this technology there needs to be good coordination
between the road authorities and the patrol police.
107. The initial ITS installation should allow for fixed location speed detection to be later
incorporated into some overhead VMS gantry, enforcing speed limits every 20-30 miles of
travel.
c. Automatic Toll Collection
108. It has been assumed that initially if any tolls are levied on project roads they will be
collected manually. Plans should be prepared, however, for future electronic system of toll
collection and the system initially installed should allow for an easy transition.
d. Management Information Reporting
109. The ITS should be designed to so that it can readily produce key management
information reports, such as vehicles using the roads, by direction, by vehicle type and by time
period, number of overloaded vehicles and number of speeding vehicles. A series of simple
standard reports should be designed to clearly show key trends (e.g. changes in traffic volumes
and changes in the proportion of overloaded vehicles). Non-standard reports should also be
able to be easily specified and produced. Selected reports should be made available to
planners, maintenance companies, enforcement agencies and prospective investors in the
roads.
110.
ITS recommendations are summarized in Table 3.
Table 3: ITS Recommendations
Item
Immediate
VMS Displays
Recommendation
Fixed
location
message signs
variable
20-30 kms apart on average
Fixed location variable speed
signs
20-30 kms apart on average
Mobile VMSs
3-4 in each 50-70 km of
international road.
Comment
Every
20-30
minutes
(depending on speed), with
particular attention to location
near ‘high risk’ locations
Every
20-30
minutes
(depending on speed), with
particular attention to location
near ‘high risk’ locations
Able to be rapidly deployed in
case of major incidents / lane
restrictions, etc
Video Surveillance
Fixed
location
surveillance.
video
On average around 3 km
apart, subject to sight lines
Cameras with variable focal
length.
Cameras able to be rotated /
raised / lowered
Cameras to provide full
Engconsult Ltd.
To cover as much as possible
of the project road. Later
extension to full coverage.
Could also later be integrated
with vehicle speed, weight and
toll payment monitoring and
enforcement
at
selected
20
Item
Recommendation
coverage within tunnel / on
major
bridges
/
at
interchanges
Comment
locations.
Tunnel cameras should adjust
for variable brightness.
Loaded trucks weighed
each end of project road.
Overweight
photographed
apprehended.
Vehicle Weight Monitoring and
Enforcement
Fixed location
at
vehicles
or
Future
Weather Monitoring
In locations where roads are
subject to fog, snow, ice
In location where roads are
subject to high cross winds
Would
update
preceding
VMSs. Should be taken in to
account
in
determining
location of VMSs
Fixed location
At each overhead VMS gantry
Speeding
photographed.
Variable location
By Police, focusing on high
speed / high risk areas
Visibility
Wind
speed
and
Speed
Monitoring
Enforcement
direction
and
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vehicles
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VI. LONG-TERM MEASURES TO ACHIEVE TUNNEL AND ROAD SAFETY
111. In order to provide long term improvements in road safety improvements must be made
and maintained in engineering, education and enforcement.
112. In engineering, daily safety inspections and regular safety-audits should be conducted
throughout the project road with particular emphasis on safety-structures such as safety-barriers,
road marking and signing, bridge and culverts, hazardous or critical locations and tunnels.
113. The education aspects outlined above should be sustained on a long-term basis. This is
crucial for roads which allow high-speeds and introduces new concepts.
114. The ITS measures outlined above should be gradually incorporated on all international
roads.
115. Lastly, strong enforcement of traffic rules along the road and in tunnels with stiff
penalties for traffic violators is necessary. In this aspect, Patrol Police should be well equipped
with all necessary logistics (patrol vehicles, equipment) and be adequately staffed. A system of
introducing a toll-free number for emergencies with direct communication with Patrol Police
should also be introduced8 so that road-users themselves can assist in identifying incidences or
road-accidents. The number to be used should be well publicized at intervals along the road.
8
This has been suggested in the Georgian Road Safety Strategy
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VII. RECOMMENDATIONS
116. The previous sections discussed all issues pertaining to the project including RSAs,
safety implications during operations awareness campaigns and implementation of ITS. Due to
importance and complexity involved, it is pertinent that all aspects identified in the RSAs are
backed by implementation and that awareness and educations aspects be implemented.
117. RSAs should be conducted during construction and operation to monitor whether
previous audit recommendations have been implemented or not.
118. For effective traffic and incidence management, adoption of various ITS technologies
particularly variable message signs and speed cameras, etc, should be considered in the future.
119. The project should assist Police to revise the safe driving manual so as to include safety
aspects, traffic rules and code of behavior on high speed roads and road tunnels and they
should include these subjects in the syllabus for written examination while applying for driving
licenses.
120. National (ITS) standards for effective and efficient operation of major roads should be
developed and ITS components gradually introduced on international roads.
Table 4 summarizes tentative total cost of all road-safety components except cost of following
structures and components:
Table 4: Cost Estimate for Road Safety Components
Total
('000
US$)
Description
1
Safety Code – High speed road
2
Roadside
Section
3
4
5
Pedestrian Awareness for School-Children
Awareness for HV Drivers
Road-Safety Publicity in TV
6
Road-Safety Publicity in Newspaper
7
ITS
7
8
9
10
11
Community
Awareness
70
-
Access-Controlled
Enforcement equipment for PP
Provision of weigh bridges on bypass roads
Provision of static and mobile VMS on bypass roads
Installation of surveillance cameras on bypass roads
Development of National ITS standards
Road Safety Enforcement Equipment
Total for Safety Component
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15
15
60
15
100
60
100
150
80
100
715
FINAL REPORT
Roads Department
Asian Development Bank
Supplementary Appendix 5
Terms of Reference for
Detailed Design
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
i
Table of Content
I. Consultants Terms of Reference ................................................................................ 1 A. Background .............................................................................................................. 1 B. Project Road Description ......................................................................................... 1 C. Objective and Outcome........................................................................................ 2 D. Scope of work ....................................................................................................... 2 E. Terms of Reference ................................................................................................. 3 1. Engineering Design .............................................................................................. 3 2. Contracts .............................................................................................................. 5 3. Traffic Engineering and Road Safety ................................................................... 6 4. Financial ............................................................................................................... 6 5. Social/Resettlement ............................................................................................. 6 6. Environment ......................................................................................................... 7 7. Project Framework and Monitoring of Impacts .................................................... 7 8. Supervision Consultants ...................................................................................... 7 F. Reports and Timing.................................................................................................. 8 1. Resettlement Action Plans ................................................................................... 8 2. Draft Engineering Drawing and Tender Documents ........................................... 9 3. Final Engineering Drawings and other Documents ............................................. 9 4. Penalties. .............................................................................................................. 9 G. The Consultants ................................................................................................... 9 1. The Required Expertise ..................................................................................... 10 H. Requirements for key staff. ................................................................................ 10 Engconsult Ltd.
1
I.
A.
CONSULTANTS TERMS OF REFERENCE
Background
1.
Georgia is located south of the Caucasus mountain range, with Russia to the north,
Armenia and Turkey to the south, Azerbaijan to the east, and the Black Sea to the west. It has a
population of 4.5 million. Georgia, due to its geographic location, provides the shortest transit
link between Central Asia and Europe. Hence, transport plays a pivotal role in supporting the
national economy, and development of the transport sector is vital to increasing economy of the
region through reduced transport costs and increased transit revenues.
2.
The 81 km Poti – Batumi – Sarpi road along the western coast of the country, mostly
located in the Ajara Autonomous Republic, is a key highway and international transit route in
Georgia. It is connected to the major Black Sea ports of Georgia, viz. Batumi and Poti, and a
number of beach resorts including Batumi and Kobuleti. Due to heavy traffic on this road there
has been significant increase in traffic congestion and accidents particularly at Batumi and
Kobuleti during the tourist season. The Government plans to construct two bypass roads around
Batumi and Kobuleti to address these problems and with ADB assistance is carrying out a
feasibility study and preliminary design. The study, (TA-7059-GEO), has identified a 48.4 km
alignment between Choloki River north of Kobuleti to Chorokhi River south of Batumi, to bypass
Kobuleti, Makhinjauri and Batumi. The Government requested ADB’s help to prepare the detail
design and construction drawings and finance the construction of the bypass roads. The road
will be constructed with the help of ADB financing. The Roads Department of the Ministry of
Regional Development and Infrastructure (RD) will be the executing agency.
B.
Project Road Description
3.
A full description of the alignment proposed in the Preliminary Design is set out in he
attached alignment report and maps.
4.
It is proposed to construct the road with two lanes only on all sections except for six
kilometers where the existing two lane road will be widened to four lanes. The design cross
sections should, however, show both two and four lane design. All horizontal design parameters
shall conform with a four lane road, except that on the two lane sections the road pavement
crossfall shall conform to two lane road standards. The right of way of the road and land
acquisition shall be sufficient for a four lane road and shall be not less than 50m, except on the
urban section of road (approximate km 32-34), where the road widening is constrained by
existing railway right of way and buildings.
5.
The proposed road can be spilt into four sections:
•
•
•
•
Section 1. The first 14 kms is in flat terrain with resettlement required. It includes three
low level river bridges, one road overpasses, one rail overpass and two grade separated
interchanges.
Section 2. The next section from Km 14 to 28 is in rolling terrain with five river bridges
(two major), eleven road overpasses, one 400m tunnel and one grade separated
interchange.
Section 3. The next section from Km 28 to 33.8 involves widening of the existing two
lane road to four lanes..
Section 4. The final section (Batumi bypass) from Km 33.8 to 48.4 is in mountainous
terrain. It includes 3 small (<200mt) and two medium (400m and 700m) tunnel. It also
includes 14 bridges including two major river and two long valley crossings, and two
grade separated interchanges. Box culverts are recommended for minor road crossings .
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C.
Objective and Outcome
6.
The main outcome of the consulting services will comprise
•
•
•
•
final detail design and construction drawings of the road based on the
feasibility/preliminary design alignment (shown on the plan provided with the bid
documents) to provide an access controlled two and four lane high class highway from
Choloki Bridge to Chorokhi Bridge, with detail construction drawings and full BOQs and
Contract Documentation suitable for international bidding;
updating of the preliminary EIA (based on preliminary design) based on final design
alignment following ADB and Government of Georgia (GoG) requirements and
preparation of an Environmental Management Plan;
preparation of updated social and resettlement action plans based on the final design
alignment; and
preparation of a road safety program along the road corridor relating to particular risks of
high speed roads.
D.
Scope of work
7.
The broad scope of work includes:
8.
Preparation of detail design construction drawings and documentation of about 48km of
high standard road from Choloki to Chorokhi, including 6 (about 1.95 km total) of single tube
tunnels and about 37 (6,640m) small and large bridges. Preparation of BoQs suitable for
international construction contracts and full bidding documents. More details of the proposed
bridges and tunnels are set out in the alignment report.
9.
Assist RD throughout the contract tendering process in preparation of tendering
documents and procurement.
10.
Carry out social, resettlement, road safety and environmental assessment, based on the
final alignment and complete all statutory documentation to achieve compliance under ‘The
Laws on Environmental Impact Permit and on Ecological Examination, 2008’and the Georgian
laws/ legislation on land acquisition and resettlement, ADB’s Policy on Involuntary
Resettlement, 1995 and ADB’s Policy on Indigenous Peoples, 1998 .
11.
Ensure that the detailed design minimizes the land acquisition and resettlement by
avoiding sensitive habitat areas and by adopting best engineering solutions. Ensure that social
impact assessment is carried out and the Land Acquisition and Resettlement Plan (LARP) is
updated using a detailed measurement survey based on the final alignment. Ensure that
subproject-specific social mitigation measures are incorporated into contract documents. Ensure
that necessary input is provided to the RD during the implementation of LARP for the initial
contract packages.
12.
Ensure, through consultation with affected people, that all existing rights of way across
the alignment are maintained. In particular ensure that sufficient pedestrian and agricultural
vehicle under or overpasses are included.
13.
Ensure that all environmental mitigation measures as recommended in the EIA are
incorporated in the final project design and that the recommendations for environmental
management plans are included in the tender documentation and that all the necessary
resources and capacity building to implement the environmental mitigation measures, as
recommended in the EIA and EMP, are identified and costed appropriately in the final project
design.
14.
Preparation of a road safety improvement program; and
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15.
Review benchmark indicators and monitoring system prepared during preliminary design
in line with ADB's Guidelines1 for Preparing a Design and Monitoring Framework and collect
necessary remaining baseline monitoring data.
E.
Terms of Reference
16.
The terms of reference (TOR) for the consultants include but are not limited to the
following;
1. Engineering Design
a. Detail Design of the Project Road:
(a) Carry out topographical and hydrological surveys/studies for detailed design and quantity
computation purposes. Establish survey control points giving horizontal coordinates relative to
national grid and bench marks giving levels relative to the national datum. The control points,
which shall also be tied to the UTM coordinate system, shall be permanent and shall be located
in pairs with an interval of 3-5 km. Each pair shall be located 200-250m apart with unrestricted
visibility between them. Twelve control points have been placed during detail design and tied to
the UTM coordinate system. The coordinates will be supplied to the consultant and use can be
made of these points. Cross sections should be measured not more than 20 m apart and will
range from 50m wide in the flat areas to up to 100m in the hilly/mountainous areas.
(b) Review the preliminary design alignment and proposed highway design standards and
suggest alternatives if necessary. Detail design shall use the Georgian RD standards where
appropriate and other agreed international standards.
(c) Review available data relating to traffic and pavement strength. Carry out additional
classified traffic counts and axle load surveys as required and estimate present and future traffic
and axle loads to a level of accuracy necessary for designing appropriate pavement structures
in accordance with best international practice2 as may be agreed. The consultant will prepare a
“whole of life” comparison of asphalt concrete and cement concrete and recommend which
pavement type to use. Detail pavement design should not be completed until agreement is
obtained from RD. The consultant is encouraged to investigate alternate lower cost
environmentally friendly pavement designs for consideration by RD.
(d) Carry out a detailed study of the availability of construction materials such as aggregates,
water, bitumen, cement, steel etc. and possible access to the existing quarry sites. Investigate,
test and define new sources and available quantities of construction materials and prepare a
material sources map and report with indicative properties and quantities.
(e) Identify acceptable spoil areas to be clearly designated in the contract documents; and
quantify the haulage requirements based on the material and spoils locations.
(f) Survey any existing services, irrigation systems and oil pipelines that may cross the project
road or are located within the road reserve and liaise with service owners and authorities to
determine requirements for service diversions, improvements, and/or protection works. The
Consultants shall prepare detailed plans and proposals for the relocation of the services
affected by the proposed road work, including volume and quantities of required work.
(g) Review existing hydrological and drainage data and collect such further data as may be
required. Check all stream beds and cross drainage channels above and below the road
alignment for possible erosion effects; design and quantify any necessary protective works;
1
www.adb.org/Documents/guidelines/guidelines-preparing-dmf/default.
2
e.g. UK Transport Research Laboratory, Overseas Road Note 31
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Specify, design and quantify side drainage and line drains where necessary to eliminate scour
and erosion and to carry surface and subsurface water from the road formation;
(h) Assess the requirement for slope protection measures adjacent to the road, and design costeffective remedial works.
(i) Prepare detailed design construction drawings for all elements of road works. Plan and
longitudinal profile will be at the scale of 1:1,000 showing existing roads, tracks, rivers, ground
levels, formation and design levels, gradient etc.
Cross-sections will be drawn at 20 meter
interval at the scale of 1:100.
b. Tunnel Design
(j) Carry out a geological and hydrological survey of the rock mass comprising the tunnel
corridor.
(k) Review the preliminary design of the 6 tunnels (approximate lengths ranging from 100m to
700m) and, in co-operation with the Highway Design Engineers, establish final alignments for
the tunnels.
(l) Carry out a detailed design and prepare construction drawings of tunnel civil works including,
but not limited to, tunnel support design, secondary lining for various selected tunnel types,
design of tunnel portals including slope cut, slope protection and surface drainage, design of
drainage behind the secondary lining and invert,
(m) Carry out detailed design for ventilation3 and illumination for each tunnel including fixing
details and preparation of particular specification and BOQ. The selection of the ventilation
system should include an automatic monitoring and management systems to ensure normal
climate conditions in the tunnel. Design power-saving systems for each tunnel, considering
management of the transition between the outside daylight and artificial lighting in the tunnel.
Design should include independent transformers. Design and report on a suitable fire fighting
system and specify suitable equipment for analyzing toxic gases, traffic lights, video system,
devices for dimension control and loudspeaker communication and warning systems for tunnels
over 400m.
c. Bridge Structures:
(n) Georgia has experienced seismic activities with earthquakes registering magnitudes up to 8
on the Richter scale; the design shall take this constraint into consideration with particular
attention to specifications for bridges. Review all available seismic data and information relevant
to the bridges and recommend seismic design acceleration based on the Georgian Seismic
Standard.
(o) Examine possible bridge formats considering both structural steel and concrete and obtain
the RD’s statement of no objection to the recommended formats.
(p) Review the work done during preliminary design. Determine maximum river flood levels and
review possible scour risk for each bridge.
(q) Prepare detailed design calculations for each bridge or other highway structure in
accordance with the agreed relevant design codes and standards and prepare detail drawings
suitable for construction. Prepare a Bill of Quantities for each bridge.
(r) State of the art investigation is expected for the foundations of bridges and structures to be
constructed.
3
Ventilation has not been specified in the preliminary design but this should be reviewed after traffic forecasts and
tunnel lengths are updated.
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(s) The design of all structures shall consider site access such that costs of any improvements
to existing roads and road connections from existing roads to the bridge sites are not excessive;
the cost of such improvements and new construction when combined with the bridge
construction costs shall be minimized.
(t) Prepare a cost estimate of each bridge and other structure including the cost of roads
improvements and temporary roads.
(u) Drawings for structures will use various scales between 1:100 and 1:10 depending on the
structure and requirement for readability of the drawings.
d. Testing and Survey
(v) The Consultants shall review any relevant data and undertake additional soils and materials
investigations as required to analyze the material properties of base and sub base layers, and
subgrade/roadbed soil.
The Consultants shall investigate suitable materials for road
embankment, pavement and structures and propose using the most economical solutions. The
Consultants should confirm or defined the locations for borrow pits and asphalt plants
installation if needed. The list of drilling, sampling and test activities to be performed during the
contract at all bridge, tunnel and other sites shall be described in the technical offer of the
consultant and costs should be detailed. The list may be adjusted during the project and
reported upon by the Consultants.
(w) The Consultants shall incorporate any temporary works and/or diversions required during
the construction period. All temporary works or diversion designed or proposed should be able
to cater for the uninterrupted flow of traffic for the period concerned. The Consultants shall use
agreed Georgian or international standards for traffic control at temporary road works and
diversion sites. The Consultants shall ensure that adequate provisions are made for access to
all adjacent properties during the construction. The Consultants shall prepare proposals for
traffic management and obtain the RD’s agreement to these proposals. They shall ensure that
adequate provision is made in the bidding documents for contractors to be responsible for all
aspects of traffic management during construction, including operations of sections of single
lane working, construction and maintenance of temporary diversion roads to an acceptable
standard and maintenance of any existing secondary roads utilized as diversion roads
2. Contracts
(x) For a time schedule for production of contract documentation and drawings see ‘F. Reports
and Timing’ below.
(y) Review the preliminary contract packages set out in the preliminary design. Prepare a
schedule of appropriate contract packages suitable for international bidding and detailed project
implementation schedules showing anticipated progress of works and expenditures for each
contract package;
(z) Produce complete detail drawings, design and construction specifications and detailed BOQ
and other tender documentation suitable for procurement under ICB in accordance with ADB's
Guidelines for Procurement;
(aa) Produce a comprehensive Engineer's Estimate for the cost of works in each contract and
assist Government with procurement of civil works; in particular review Tenders, Contractor’s
design proposals and construction supervision;
(ab) Prepare a construction technical specification defining materials used in construction and
minimum workmanship standards for all aspects of the work.
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3. Traffic Engineering and Road Safety
(ac) Review the preliminary design forecast for normal, generated and induced traffic flows for
20 years and amend if necessary taking into account domestic and foreign/transit trade and any
new development projects which might affect traffic on the Project Road. Carry out any
additional traffic survey as required.
(ad) Carry out traffic safety studies as required and design and carry out a road safety audits of
the detail design and review the road safety component for the project, including road safety
awareness campaigns prepared during preliminary design and to be implemented as a separate
TA project.
(ae) Coordinate safety aspects for tunnel construction, operation and maintenance point of view;
Propose long term measures to achieve tunnel safety standards
4. Financial
(af) Prepare an overall project cost estimate table for the proposed investment, taking into
account all relevant financial costs and benefits. Prepare a project financing plan, including
proposed ADB lending, counterpart funds and other loans.
(ag) Review possible toll levels for an Operation and Maintenance (O&M) concession for the
Batumi bypass as discussed in the preliminary design and amend if necessary. Identify project
revenue and cost risks and conduct relevant sensitivity analyses. If required by RD/ADB
prepare a model O&M concession contract with a discussion paper for Government setting out
full explanation of the concession and advice on areas of negotiation.
(The financial analysis will be guided by, and outputs prepared in accordance with, ADB's
Guidelines for the Financial Governance and Management of Investment Projects, ADB's
Operations Manual, ADB's Project Administration Instructions, and the ADB Loan Disbursement
Handbook).
5. Social/Resettlement
(ah) For the detailed design phase the consultants will review the Land Acquisition and
Resettlement (LAR) work carried during the preliminary design and, following the finalization of
the alignment (to be achieved by the first 40 days of detailed design work), they will carry out
the following tasks:
•
Review the Land Acquisition and Resettlement Plan (LARP).. If some sections of the
road are realigned during detailed design, resurvey those sections and update the data
base on impacts and Affected Persons (APs) as needed and prepare final (LARP)..
•
Carry out a final consultation with all APs.
•
Jointly with the local government provide assistance to the land owners (preparation of
land parcels cadastrial drawings together with electronoic version) during land
registration process to ensure that all APs are legalized.
•
Assist EA during land acquisition process to ensure that compensation is paid to the
land owners and provisions of Land Acquisition and Resettlement Framework (LARF)
are followed.
•
Update/re-scope the LARPs already prepared including figures on expropriation.
•
Assist the external monitoring agency authorized by ADB in the preparation of a final
compliance report proving that all APs have either been compensated as required by the
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LARPs or have been expropriated in accordance with the procedures defined under the
Law on Expropriation..
(ai) Update the social impact assessment in the influence zone as required and assess the
impact of project on poverty reduction. Assist RD to implement information campaigns and
stakeholder participation
(aj) Prepare of updated (final) LARP in Georgian language for RD and government, also for the
disclosure to APs based on ADB’s requirements;
(ak) Coordinate with NGOs and various agencies during RP implementation in terms of
availability of information regarding ongoing procedures and disclosure to public in line with the
current legislation.
(al) Prepare training modules and dissemination materials and conduct workshops with RD and
Rayon officials and NGOs on the issues concerning principles and procedures of land
acquisition, entitlement and compensation disbursements, grievance readdressing and
monitoring of resettlement operations;
(am) Assist RD and liaise with ADB during LARP implementation. In particular prepare a
scheduled action plan detailing all tasks for the compensation program and monitor the
implementation of compensation. Coordinate with various agencies for timely land acquisition
and disbursement of compensation to AP.
6. Environment
(an) Conduct further detailed field and desk studies that will lead to the submission of all
necessary statutory and other required documents to achieve environmental clearance for the
Project. Ensure that all potential contractors are made aware of requirements for all
environmental mitigation measures including EIA and EMP through the tender documentation.
(ao) Review and verify the assumptions, assessments and recommendations made in the EIA
made under TA 7059 –GEO and design and supervise surveys and updating of all necessary
documentation based on the final detailed designs. Environmental Management Plans will be
prepared for all roads sections to guide the management of environmental impacts during
construction.
7. Project Framework and Monitoring of Impacts
(ap) review and/or edit the draft project framework in the preliminary design report following
ADB's Project Performance Management System (PPMS). Collect/develop additional baseline
indicators for monitoring the impact of the project as required.
8. Supervision Consultants
(aq) The Consultants shall prepare ToR for the supervision consultants based on the draft ToR
prepared during preliminary design.
e. Procurement
(ar) The consultants shall assist RD throughout the tendering processes up to selection of
contractors in the preparation of bid documents, and pre-qualification (PQ) documents, and in
the evaluation of PQ and bid proposal.
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F.
Reports and Timing
17.
The detail design and all associated work will be completed within eleven (11) months of
the commencement of consulting services (CC). Full documentation for two construction
contracts of approximately $60 million total construction cost will be completed within four (4)
months of the CC. These contracts will be agreed with RD and ADB but it is anticipated that
they will be at the northern area of the alignment, one in flat terrain (0-14km) with three low level
two lane river bridges, road and rail overpasses and two interchanges, and the second
upgrading of the existing road to four lanes (28-34km) with one two lane bridge. A further
contract in rolling/mountainous terrain (14-28km), including one single bore (two-way) tunnel
and two major and three minor low level bridges will be completed in seven (7) months of the
CC. The detail time schedule will be:
Time from CC
3 months
3.5 months
4 months
5 months
6 months
7 months
9 months
10 months
11 months
Item
Updated LARP for two contracts
Draft contract documents and draft
final drawings for two contracts
Final Design Drawings and BQ for two
contracts
Updated LARP for third contract
Draft contract documents and draft
final drawings for third contract
Final Design Drawings and BQ for third
contract
Updated LARP for remaining projects
Draft contract documents and draft
drawings and BQ for remaining
construction contracts
Final design Drawings and BQ for
remaining contracts
18.
Unless otherwise specified below the consultants will submit 2 copies of all reports,
technical working papers, and progress reports to ADB in English, except for the technical
drawings, of which only one copy should be submitted to ADB; and 5 copies of each to the
Government in English and Georgian. The timetable for submitting the reports will be:
•
•
An inception report setting out the initial findings, review of preliminary design and
alignment alternative, and detailed work schedule and plan, within 4 weeks of the
commencement of consulting services;
Monthly progress reports at the end of each month, outlining the progress of work during
the previous month, the work program for the subsequent month, and major issues to be
addressed.
1. Resettlement Action Plans
19.
The Consultant shall submit one set of Resettlement Action Plans suitable for land
acquisition on reproducible stable medium and 6 copies thereof to the Government, whenever
any change in horizontal alignment is involved. The plans shall be made available to the
Government as the work progresses to facilitate timely action for acquisition of the necessary
right-of -way.
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2. Draft Engineering Drawing and Tender Documents
20.
One month in advance of the date on which final engineering designs and tender
documents are due, the consultants shall submit draft final plans and bid documents (6 copies
of the complete set to the Government and 3 copies of bid documents and 1 copy of
engineering drawing (A3 size with A1 size soft copy) to ADB) suitably bound and indexed. The
Government will review these designs and documents in consultation with ADB and furnish their
comments to the consultants within 21 days after receipt. The consultants will also submit in
English and Georgian (5 copies to the Government and 2 copies in English only to ADB) the
following documents suitably bound:
•
•
•
detailed cost estimates for each contract with work item rate analysis.
complete design calculations for road works, structures and tunnel presented in a form
which enables calculations to be checked independently; and;
Geo-technical and materials report.
3. Final Engineering Drawings and other Documents
21.
The consultant shall furnish 15 copies of all engineering drawings (A3 size with A1 size
soft copy), specifications, pre-qualification documents and bid documents including geotechnical and material reports to the Government in English and Georgian and one copy (A3
size drawings) to ADB. In addition, the consultants will submit all original engineering drawings
together with 5 sets of contract prints, detailed cost estimates and design calculation to the
Government and two sets of detailed cost estimates of design calculations to ADB. In addition,
the consultant will also submit all engineering design drawings, estimates, design calculations
and reports to the Government in two sets in a digital format (CD ROM).
4. Penalties.
22.
In the event that the consultant does not keep to the contract terms and conditions
penalties will be applied, such penalties will be specified in the contract between the consultant
and the Government. In particular there will be penalties if the consultants exceeds the time
schedule set out in these Terms of Reference.
G.
The Consultants
23.
The Consultants are expected to have extensive experience in high standard road
design to international standards, including tunnels and major bridges, and relevant previous
experiences in highway detailed design in the region. The consultant shall demonstrate
capability in designing to major international design codes (British, American, etc. as
appropriate).
24.
The Consultant will work closely with the staff of the Ministry of Regional Development
and Infrastructure, Road Department, local officials, and other related ministries/agencies, as
well as Asian Development Bank (ADB)'s Georgia Resident Mission. The consulting firm will be
responsible for all aspects of the project.
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1. The Required Expertise
25.
The team proposed by the consultant shall be composed of skilled and experienced
specialists, who will carry out necessary engineering works that may be required to perform the
services. The team should be, at a minimum, composed of the following:
Required Expertise
a. International Experts
Team Leader/Senior Highway Engineer
Bridge / Structural Engineer
Tunnel Engineer
Geotechnical / Pavement Engineer
Tunnel Ventilation & Lighting Specialist
Contracts and Procurement Specialist
Financial Specialist
Environmental Specialist
Social Development/ Resettlement Specialist
Geologist1
Hydrologist / Drainage Engineer1
Traffic/Road Safety Engineer1
b. Domestic Specialists
Highway Engineer
Bridge / Structural Engineer
Tunnel Engineer
Survey Engineer
Contract & Procurement Engineer
Hydrologist / Drainage Engineer
Geologist / Geotechnical Engineer
Traffic Engineer
Environmental Specialist
Resettlement / Social Specialist
1
. May be replaced by domestic specialists if suitably qualified and experienced
26.
The team should also include cost estimator, CAD draftsmen, translators (with
knowledge of technical terminology), and other counterpart staff.
27.
It is anticipated that up to 100 person months of professional international and 170
person months of professional domestic staff may be required, not including technical and
administrative support staff, however, the consultants should note that the required expertise
and total person months are indicative and the consultant is responsible in ensuring that the
staff nominated are sufficient to complete the works successfully.
H.
Requirements for key staff.
f.
Team Leader/ Senior Highway Engineer
28.
The team leader must have expertise in all aspects of high speed road design with
experience in leading a team of multi-discipline experts. The team leader will have overall
responsibility for implementing the project and managing the international and domestic team of
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consultants with expertise in tunnel, bridge and road engineering, cost estimation and contract
documentation, BOT concessionary contracts, geology, traffic engineering, road safety, social
development, and environment.
29.
He/she should be a senior engineer with a minimum of 15 years of relevant experience
covering road design and construction projects in various countries and preferably having
experience in Georgia. He should have good communication and reporting skills.
Highway Engineer
30.
Should be familiar with the design of urban and rural highways or other major road
schemes incorporating major bridges, tunnels and major grade separated interchanges, should
have a minimum of 12 years experience and preferable having experience in the region. He/she
should be familiar with highway design software as well as detailed electronic designs for
contract drawings.
Bridge/Structural Engineer
31.
The Bridge/Structural Engineer should be a qualified structural engineer with at least 15
years experience in bridge and structure engineering, including at least 10 years of assignments
in developing countries including the Caucasus region. The candidate should have a thorough
understanding and experience with international standards and “best practices”, and of modern
bridge construction.
Tunnel Engineer
32.
Should have a minimum of 15 years experience in the design of road and other tunnels
in mountainous areas including preparation of specifications and evaluation of construction
methods.
Geologist
33.
Should have a minimum of 10 years experience in geological investigation for roads,
bridges and tunnels.
Ventilation Specialist
34.
Should have a minimum of 10 years experience in detail design of tunnel ventilation
systems and fixing details.
Tunnel M&E Specialist
35.
Should have a minimum of 10 years experience in detail design of tunnel lighting and
other mechanical and electrical details and fixing details.
Contracts Specialist
36.
Should have a minimum of 10 years experience in the preparation of Contract
Documents and Specifications for major road or infrastructure projects using FIDIC and
evaluation of PQ and bid proposals. He/she should be familiar with ADB standard bidding
documents and procurement guidelines.
Geotechnical / Pavement Engineer
37.
The Geotechnical/Pavement Engineer should be a senior engineer with university
degree in his/her field, or higher with a minimum of 15 years of relevant experiences in
pavement design of road projects with extensive knowledge in materials of roads and pavement
and materials investigations. He/she should be familiar with international pavement design
guidelines and state-of-the art pavement construction technologies. He/she should be familiar
with the preparation of Contract Specifications for materials and testing.
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Hydrologist/Drainage Engineer
38.
The Hydrologist/Drainage Engineer should have a minimum of 15 years relevant major
highway and bridge experience designing drainage systems using international codes and
methods. He/she should be familiar with local condition, calculation and design methods.
Financial Specialist
39.
Should have a minimum of 15 years experience. Should have proven experience in
financial analysis of major road or infrastructure projects using loan financing and experience in
drafting infrastructure concession contracts.
Traffic/Road Safety Engineer
40.
Should have 15 years experience in traffic analysis and forecasting and road safety
analysis and design of road safety programs.
Social Development/ Resettlement Specialist
41.
The specialist should have a master’s degree in social science with a minimum 10 years
of work experiences. Up- to- date knowledge of ADB’s safeguards policies and procedures,
particularly on social impact assessment, poverty assessment, land acquisition, and
resettlement, and its implementation are desirable. Experiences in ADB funded projects or
projects funded by multilateral agencies in the transport sector will be preferable. The specialist
shall also have experience in working in multidisciplinary teams with good communication skill.
42.
The National social development and resettlement specialist should be a graduate in
social science and should have 5 years of working experience. The specialist should be familiar
with the Georgian laws/legislations/regulations and procedures related to land acquisition and
resettlement in Georgia. Experience in similar projects will be preferable.
Environmental Specialists
43.
The Environmental Specialist (ES) shall have at least 15 years experience and familiarity
with all aspects of environmental management and with significant experience in environmental
management and monitoring of projects, environmental assessment and / or implementation of
environmental mitigation measures on construction projects. The ES shall also have experience
working in teams of multi-discipline experts and leading a national team of consultants.
Candidates with higher degrees in environmental engineering or environmental science or
environment management are preferred.
44.
The Environmental Specialist National (ESN) shall at least be a graduate in
environmental science, environmental engineering or a related discipline with significant
experience in environmental management and monitoring of projects, environmental
assessment and / or design and implementation of environmental mitigation measures.
Engconsult Ltd.
FINAL REPORT
Asian Development Bank
Roads Department
Supplementary Appendix 6
Traffic Forecasts and
Economic Evaluation of the Project
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
i
Table of Content
I.
TRAFFIC SURVEYS
1
II.
EXISTING TRAFFIC
1
A.
Historic traffic on the existing road
1
B.
Base year traffic
3
C.
Traffic flow pattern
4
III. FUTURE TRAFFIC DEMAND
5
A.
Introduction
5
B.
Growth of Normal Traffic
5
C.
1. Introduction
5
2. Elasticities
5
3. GDP and traffic forecasts
7
Corridor diversions
1. Introduction
7
2. The Samtskhe-Javakheti road project
8
3. Adopted corridor diversions
8
D.
Adopted traffic
E.
Diversion from other modes
IV. ECONOMIC EVALUATION
A.
B.
C.
7
8
14
15
Approach
15
1. Introduction
15
2. Alternatives considered
16
3. Evaluation period and residual value
16
4. Pricing assumptions
17
5. Project benefits
18
Evaluation of project 1 – the Kobuleti bypass
26
1. Road sections
26
2. Costs
28
3. Evaluation results
29
Evaluation of tranche 2: the Batumi bypass
31
1. Road network
31
2. Costs
31
3. Evaluation results
33
D.
Benefits distribution
34
E.
Combined project evaluation (tranches 1 and 2)
35
1. Base case
35
2. Case B traffic
36
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F.
Sensitivity and risk
37
1. Tranche 1 (Kobuleti)
37
2. Tranches 1 and 2
40
List of Tables
Table 6-1
Traffic surveys
1
Table 6-2
Historic traffic at project sites
2
Table 6-3
Foreign registered traffic
2
Table 6-4
Base year traffic on existing road sections
3
Table 6-5
Seasonal traffic flow pattern
5
Table 6-6
GDP and traffic growth rates
7
Table 6-7
Base case traffic (case A): no corridor diversion, veh/day
11
Table 6-8
Case B traffic: diversion to the Kartsakhi corridor, veh/day
11
Table 6-9
Tranche 1 traffic projection, case A (base case), veh/day
12
Table 6-10
Tranche 1 traffic projection, case B, veh/day
13
Table 6-11
Tranches 1 and 2 traffic projection, case A (base case), veh/day
14
Table 6-12
Standard conversion factor calculation
17
Table 6-13
Typical road user costs
20
Table 6-14
Basic vehicle characteristics
21
Table 6-15
Economic values of vehicles, labor and time
22
Table 6-16
Fuel and oil prices
23
Table 6-17
Accident statistics, Sarpi-Poti road
24
Table 6-18
With and without project accident rates
25
Table 6-19
With and without average numbers of accidents per year
25
Table 6-20
Kobuleti: existing and bypass road sections
27
Table 6-21
Kobuleti bypass economic costs
28
Table 6-22
Kobuleti bypass maintenance costs
28
Table 6-23
S-2 maintenance expenses, 2007-8
29
Table 6-24
Do minimum maintenance costs
29
Table 6-25
Tranche 1 (Kobuleti) base case: economic evaluation
30
Table 6-26
Tranche 1 (Kobuleti) base case: costs and benefits
30
Table 6-27
Kobuleti traffic case B: discounted costs and benefits
31
Table 6-28
Batumi bypass economic costs
31
Table 6-29
Tranche 2 – Batumi bypass: existing and bypass road sections
32
Table 6-30
Batumi bypass maintenance costs
33
Table 6-31
Tranche 2 (Batumi) base case economic evaluation
33
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Table 6-32
Tranche 2 (Batumi) base case: costs and benefits
34
Table 6-33
Benefits distribution, tranche 1
35
Table 6-34
Journey time savings
35
Table 6-35
Tranches 1 and 2 base case: costs and benefits
36
Table 6-36
Tranches 1 and 2: costs and benefits for case B traffic
37
Table 6-37
Sensitivity tests: tranche 1
38
Table 6-38
Input ranges for risk analysis
38
Table 6-39
Results of risk analysis, tranche 1
39
Table 6-40
Sensitivity tests: tranches 1 and 2
40
Table 6-41
Results of risk analysis
41
Table 6.42
Sensitivity results for tranches 1 and 2, 30 percent RV
42
List of Figures
Figure 6-1
Daily traffic pattern, Chorokhi
4
Figure 6-2
Elasticities of vehicle numbers
6
Figure 6-3
Traffic forecasts
9
Figure 6-4
OD survey results
10
Figure 6-5
Frequency distribution of tranche 1 EIRR
39
Figure 6-6
Frequency distribution of EIRR (tranches 1 and 2)
41
Figure 6-7
Frequency distribution of EIRR (tranches 1 and 2, 30% RV)
43
Engconsult Ltd.
1
I.
TRAFFIC SURVEYS
1.
Roads Department carries out classified counts at three sites on the existing
road three times a year (see tabulated values for 2006-8 below). No origin and
destination (OD) surveys have been carried out.
2.
3.
Two sets of project traffic surveys were carried out:
•
manual classified counts on 26-27 March and 1-2 April
•
OD surveys on 11-12 May (originally to have been carried out in early
April but delayed as an indirect result of the civil unrest in the country at
that time)
Table 6-1 shows details of the surveys.
Table 6-1
Traffic surveys
Location
Type
Days
Dates
Choloki bridge
1 x 12h & 1 x 24h classified counts
2
24-25 Mar (Tues-Wds)
Chakvi-Makinjauri tunnel
1 x 12h & 1 x 24h classified counts
2
24-25 Mar (Tues-Wds)
Batumi south (Chorokhi br)
1 x 12h & 1 x 24h classified counts
2
24-25 Mar (Tues-Wds)
2
11-12 May
2
11-12 May
Manual classified counts
OD survey and classified counts
Choloki bridge
Batumi south (Chorokhi br)
Approx 1,100 interviews & 12h
classified count
II.
EXISTING TRAFFIC
A. Historic traffic on the existing road
4.
Roads Department radar counts are available at three sites on the existing
project road (road S-2). Allocation to vehicle class is based on vehicle speed and
length. Classification is probably fairly reliable for articulated trucks and small
vehicles (cars and mini-buses) but less so for intermediate sizes. From north to
south on the Senaki-Poti-Sarpi road the three sites are (i) the Choloki river crossing
(km64), (ii) the Chakvi-Makhinjauri (C-M) tunnel at km95 and (iii) the Chorokhi river
crossing (km115).
5.
Counts take place in April, July and October. Heavy goods traffic shows no
discernible seasonality, but car and minibus traffic certainly does and is typically 3050 percent higher in July than it is in April or October. In order to estimate AADT
from the 24h data derived from the counts, July values were taken to apply to 180
days, April to 90 days and October to 95 days. It is assumed that additional
weekend holiday traffic offsets the usual reduction at religious festivals.
6.
Table 6-2 summarizes counts and estimated AADT at the three sites, and the
project counts in late March 2009. Original counts were obtained from the Roads
Department and re-analysed; as a result the figures in Table 6-2 differ slightly from
those in the JICA Highway Improvement Study report (2008).
Engconsult Ltd.
2
7.
There have been two regional shocks during this period – the Russian
embargo on imports from Georgia in October 2006 and the conflict in S Ossetia in
August 2008 – and of course the global recession that started during 2008. Any
effect of the Russian embargo is not immediately apparent in the data, but the
effects of the recession and the regional conflict are apparent in the fall in traffic
growth in 2008.
Table 6-2
Site
Historic traffic at project sites
Year
April
July
October
Average
AADT
veh/day
Choloki bridge
(km64)
C-M tunnel
(km95)
Chorokhi bridge
(km115)
% change
2006
2,214
3,345
2,927
2,829
2,957
2007
4,184
3697
3,640
3,840
3,802
29%
2008
3,819
4952
4,030
4,267
4,433
17%
2009
a
c
-18%
3,302
b
2,847
3,655
a
2006
6,614
7,467
N/A
N/A
7,035
2007
8,098
10,142
8,595
8,945
9,235
31%
2008
9,545
10,840
9,552
9,979
10,185
10%
2009
a
c
-18%
7,596
8,361
d
2006
3,600
3,433
N/A
N/A
3,518
2007
3,489
7,563
3,560
4,871
5,517
57%
2008
4,224
5,814
4,483
4,840
5,076
-8%
2009
a
b
c
20%
5,644
6,132
6,108
Sources: roads department counts and consultants’ assumptions
Note:
(a) project count, March 2009
(b) project count, early Mary 2009
(c) adjusted using historic seasonality
(d) estimated assuming
8.
Numbers of vehicles with foreign registration plates were noted during the
project counts and are summarized in Table 6-3. The table shows:
•
nearly all articulated trucks have foreign registrations and the absolute
numbers are similar at all three sites
•
70-80 percent of large buses at the northern and southern sites are
foreign but only 30 percent are recorded between Batumi and Kobuleti
•
the substantial percentages of foreign registered LGVs and medium
buses at Chorokhi – but not further north – suggests a significant trade
in goods and passengers between the border and Batumi
Table 6-3
Choloki
C-M tunnel
Chorokhi
Foreign registered traffic
Car
Minibus
LGV
MGV
HGV
Artic
Total (2
way)
16
1
3
23
0
1
11
238
294
1%
0.2%
7%
71%
0%
1%
18%
89%
9%
43
9
4
13
1
0
1
239
309
1%
0.4%
8%
31%
1%
0%
1%
80%
4%
216
17
51
47
51
4
14
266
665
Engconsult Ltd.
Med bus Large
bus
3
Car
Minibus
6%
2%
Med bus Large
bus
30%
79%
LGV
MGV
HGV
Artic
Total (2
way)
20%
4%
7%
93%
12%
Sources: consultants’ traffic counts, March 2009
B. Base year traffic
9.
Traffic in the base year (2009) is based on project counts. At Choloki bridge
March 2009’s count was 14 percent lower than that recorded a year earlier, while at
the C-M tunnel it was 20 percent lower. At both sites March counts were expanded
to full year values using seasonal factors for July and October observed in 2007-8.
At Choloki bridge and the tunnel this produced AADTs of 3,655 and 8,361 veh/day –
around the levels of traffic experienced in 2006-7 and 18 percent below 2008’s
AADT.
10. At Chorokhi bridge, however, the March 2009 count was 34 percent higher
than that recorded a year earlier and the later count in May supported this increase.
Most of the increase in March was attributable to cars, buses and medium goods
vehicles, while mini-bus and heavy goods vehicle counts were consistent with
records from 2008. Knowing of no local factors that could produce such an
anomalous result it was decided to use historic seasonality to give an AADT of
6,108. (Anecdotally, city officials in Batumi confirm that traffic has not reduced).
11. Base year traffic on the existing road is shown in Table 6-4. Traffic north of
Kobuleti (sections K1 and K1a) is taken as equal to the seasonally adjusted 2009
Choloki AADT in Table 6-2. Traffic south of Kobuleti and north of Batumi center is
taken as equal to the seasonally adjusted C-M tunnel AADT. South of the A306
junction (section B3) traffic is equated to the Chorokhi bridge AADT. Traffic on
section B2 is the average of the tunnel and Chorokhi bridge AADTs.
Table 6-4
Base year traffic on existing road sections
Sections
Car
Mini-bus Med bus
Large
bus
LGV
MGV
HGV
Artic
Total
Project 1: Kobuleti bypass
K1-K1a
K2-K6
Average
veh/day
2,057
890
48
32
153
86
73
316
3,655
PCU/day
2,057
1,157
72
64
199
129
146
790
4,614
veh/day
5,455
2,120
56
46
207
106
63
308
8,361
PCU/day
5,455
2756
84
92
269
159
126
770
9,711
veh/day
4,247
1,683
53
41
188
99
67
311
6,688
%
63.5
25.2
0.8
0.6
2.8
1.5
1.0
4.6
100%
PCU/day
4,247
2,187
80
82
244
148
132
777
7,899
Project 2: Batumi bypass
B1
B2
B3
veh/day
5,455
2,120
56
46
207
106
63
308
8,361
PCU/day
5,455
2756
84
92
269
159
126
770
9,711
veh/day
4,708
1,556
118
54
236
96
119
318
7,205
PCU/day
4,708
2,022
177
108
307
144
238
795
8,499
veh/day
4,000
1,001
182
63
268
87
177
331
6,108
Engconsult Ltd.
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Sections
Car
Mini-bus Med bus
Large
bus
LGV
MGV
HGV
Artic
Total
PCU/day
4,000
1,301
273
125
348
130
353
828
7,359
veh/day
4,794
1,611
113
54
235
97
115
319
7,337
%
65.3
22.0
1.5
0.7
3.2
1.3
1.6
4.3
100%
PCU/day
4,794
2,095
170
107
305
146
229
796
8,642
veh/day
4,408
1,662
71
45
202
98
81
313
6,871
%
64.1
24.2
1.0
0.7
2.9
1.4
1.2
4.6
100%
PCU/day
4,408
2,160
106
89
262
148
162
783
8,118
Average
Combined project
Average
Source: consultants’ estimates
Notes: (a) PCU equivalents are in Table 6-13
(b) details of road sections are in sections B and C
(c) averages are weighted by distance
C.
Traffic flow pattern
12. The daily flow pattern for Chorokhi (Figure 6-1) shows a pattern typical for an
inter-urban road carrying a high proportion of long distance goods and passengers.
Instead of urban morning and evening peaks the traffic is fairly uniform from 09h00
to 22h00. Most of the night-time traffic is heavy goods and passenger vehicles.
Figure 6-1
Daily traffic pattern, Chorokhi
9%
8%
Percent of daily traffic
7%
6%
5%
4%
3%
2%
1%
0%
09h0010h00
11h0012h00
13h0014h00
15h0016h00
17h0018h00
19h0020h00
21h0022h00
23h0000h00
01h0002h00
03h0004h00
05h0006h00
07h0008h00
13. The annual flow pattern is strongly seasonal. Concerned that the HDM-4
seasonal flow pattern option might not adequately reflect conditions on the Ajara
coast, a slightly more seasonal pattern was adopted, based on project traffic counts
and historic evidence of seasonality.
Engconsult Ltd.
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Table 6-5
Seasonal traffic flow pattern
Pattern
Total
Hours per year
950
1,100
1,720
1,430
3,560
8,760
Percent of AADT in period
25%
25%
25%
15%
10%
100%
Sources: consultants’ estimates
III.
FUTURE TRAFFIC DEMAND
A. Introduction
14.
The demand for travel on project corridor roads comprises:
•
normal traffic – travel that would arise without the bypass;
•
diverted traffic – traffic choosing to use the bypass in preference to
travel on the existing roads
•
generated traffic – travel that only arises because of the existence of the
bypass
15. This section deals with the first two of these: generated traffic is discussed in
section IV.A.5 below.
B. Growth of Normal Traffic
1. Introduction
16. The demand for transport is related to the output of the economy. Traffic is
almost invariably positively correlated with economic activity, measured in various
ways, and traffic growth similarly with growth in economic activity. In the most
general terms the relationship is as follows:
Q = k (Y ) e
where Q is some measure of demand for transport, k is a constant and e is the
elasticity of demand for transport with respect to some measure of real economic
activity, Y. Elasticity is the proportional change in demand per unit change in
economic activity, so an elasticity of 0.2 implies a 2 percent growth in travel demand
in response to a 10 percent increase in real economic activity.
17. In the case of passenger traffic, the measure of economic activity would
typically include measures of population or household as well as income growth. As
the population of Georgia is essentially static (see Supplementary Appendix 1),
forecasts of passenger traffic will depend solely on GDP.
18. For goods traffic GDP is the usual measure of economic activity is GDP. In
this case the trade component of GDP is especially significant.
2. Elasticities
19. The following statistics are both indicative of transport demand and are
available:
Engconsult Ltd.
6
•
numbers of registered vehicles
•
tonne-km and passenger-km data
•
vehicle counts
20. Registered vehicle statistics are not of the best quality. Annual licensing is no
longer required. Instead the only requirement is registration on change of ownership.
As a result the numbers of registered vehicles almost certainly include vehicles that
are no longer used. They therefore probably overstate the total number of vehicles,
though not necessarily annual growth rates. There are also inconsistencies between
data obtained by this project (from the Ministry of Internal Affairs), data published in
the 2008 Statistical Yearbook of Georgia and data reproduced in the JICA Highway
Improvement Project. For goods vehicles and all vehicles the most plausible series
comprise JBIC data from 2000 to 2006 for trucks and other goods. For passenger
vehicles a hybrid series is used: JBIC data from 2000 to 2006 followed by Ministry of
Internal Affairs data for 2007-8. (For more detail see Supplementary Appendix 1).
21. Figure 6-2 shows a plot of indices of registered vehicles against GDP, also
expressed as an index. Best fit power curves indicate elasticities as follows: (i) 1.34
for all vehicles, (ii) 1.30 for passenger vehicles and (iii) 1.69 for goods vehicles.
Figure 6-2
Elasticities of vehicle numbers
Reg vehicles (2002 = 100)
200
180
160
140
120
100
100
110
120
All vehicles
130
140
150
GDP (2002 = 100)
Passenger veh
160
170
Goods veh
22. Tonne-km and passenger-km data are also available from the statistical
yearbook but are considered too unreliable to use.
23. Project area traffic data – both historic data from the roads department and
project counts – are available at three stations from 2004 to March 2009. Historic
data for 2002-7 are also available at six other stations in Georgia. Both sets
produced elasticities (for all vehicles) of about 2.2 – well above the range usually
used.
24. Lower elasticities have been used in other recent studies in Georgia. For the
MCG Samtskhe-Javakheti road project feasibility study the consultants used 1.2 for
passenger traffic and 1.0 for goods (based on TRACECA assumptions rather than
project analysis). The JICA study referred to above varied elasticities over time, but
Engconsult Ltd.
7
for the early years in the evaluation used 1.0 for goods traffic, approximately 1.05 for
cars and 0.95 for buses.
25. Project corridor traffic is heavily influenced by trade, both in services (tourism)
and goods. Trade grows faster than the economy as a whole: data in
Supplementary Appendix 1 indicate that the growth in Georgian trade has in recent
years been roughly 5 percent faster than GDP and justifies the use of elasticities
that are higher than usual.
26. Taking the above into account, adopted elasticities are 1.2 for passenger
traffic and 1.4 for goods traffic.
3. GDP and traffic forecasts
27. GDP forecasts are in Supplementary Appendix 1. Applying the elasticities in
section 2 above gives forecast increases in traffic shown below.
Table 6-6
GDP and traffic growth rates
2009
2010
2011
2012
2013
2014
2015 on
GDP growth
0%
1.5%
2.0%
3.0%
4.0%
4.0%
4.0%
Passenger vehicles
0%
1.8%
2.4%
3.6%
4.8%
4.8%
4.8%
Goods vehicles
0%
2.1%
2.8%
4.2%
5.6%
5.6%
5.6%
Sources: Supplementary Appendix 1 and consultants’ calculations
C. Corridor diversions
1. Introduction
28. Currently, almost all road traffic between Turkey and Georgia, Azerbaijan,
Armenia and Central Asia is obliged to use the S-2 between Sarpi and Kobuleti.
(There is another Turkish/Georgian border further east, at Vale, but connecting
roads are poor and very little traffic uses it). This situation will not persist indefinitely
and the economic returns to the project are likely to be affected by two
developments:
•
improvement of road links between Georgia and Turkey further east
(see below). This development appears certain but the timing of the
Turkey-Georgia border opening is not
•
the re-opening of the Turkey-Armenia border, closed since 1993. This
development is not certain, as it depends on ratification of a
“normalization package” by the two governments
29. Traffic case A assumes no corridor diversions: all traffic currently using the
Sarpi-Kobuleti corridor will continue to do so. This case acknowledges the high
degree of uncertainty inherent in forecasts of border openings. It is the base case.
Traffic case B (discussed below) assumes that a proportion of traffic for which the
new route across the Turkey-Georgia border would be shorter will in fact divert to
the new route. Relatively few vehicles currently travel between Turkey and Armenia
via Georgia and so the effect of opening of the Turkey-Armenia border is not
considered as a separate traffic case. (See Figure 6-4: Azerbaijan is by far the most
Engconsult Ltd.
8
significant transit origin/destination. Armenia only accounts for 5-6 percent of traffic
to or from origins/destinations from Tbilisi and beyond).
2. The Samtskhe-Javakheti road project
30. The Samtskhe-Javakheti road project is being financed by the Millennium
Challenge Georgia Fund (MCG). When complete it will provide an improved
transport connection between Tbilisi and the region to the south-west of the capital
and ultimately between Tbilisi and Turkey. It will also shorten journey times between
Turkey and Azerbaijan and Turkey and Armenia. Road improvements will be
complete by late 2010. There is a new border post (and improved road connections)
on the Turkish side of the border but as yet no progress has been made on the
Georgian side.
31. Once the new road is open, the distance from Erzurum in Turkey to Tbilisi via
Kars and Ninotsminda will be 575km, compared with 675km via Sarpi – a drop of 15
percent. The distance from Erzurum to Gori will drop by 40km; for destinations
further west in Georgia the Sarpi route will remain shorter. Even trips to and from
Tbilisi and further east will not immediately switch to the shorter route. The Sarpi
route is likely to be faster (especially outside the tourist season) and less prone to
adverse weather conditions.
32. This new route is referred to as the Kartsakhi corridor, Kartsakhi being the
Georgian village closest to the border.
3. Adopted corridor diversions
33. The OD survey results (see Figures 6-3 and 6-4) indicate that 25 to 40
percent of all traffic at Chorokhi bridge (Batumi S) and Choloki (Kabuleti N) – and
30-50 percent of goods traffic – would find the Kartsakhi corridor attractive. It is
assumed that 40 percent of all trip ends east of Gori and 20 percent of those in the
zone around Gori actually divert to the Kartsakhi corridor. The impact of corridor
diversions is discussed below in section D.
D. Adopted traffic
34. Manual assignments for traffic cases A and B were made on the basis of the
OD results, shown in Figure 6-4. In general, assignment was straightforward and left
little scope for doubt. Only some of the traffic using the existing C-M tunnel is
recorded by the Choloki OD survey, however: trips purely between Kobuleti and
Batumi were not recorded. A conservative assumption was made, namely that 20
percent of the AADT at the tunnel less the AADT north of Kobuleti would divert to
the bypass. (This does not apply to existing road section K6, which will be widened
to become bypass section KB3 under the project and will take all corridor traffic).
35. Some of the OD results for Choloki, especially the southbound trips
originating in Tbilisi and zones east of Tbilisi, appear too low and if used as
presented would have overstated the proportion of case B traffic diverting to the
bypass. To offset this, the overall proportion of traffic using the Kobuleti bypass was
reduced to make it consistent with the proportion using the Batumi bypass.
36. Adopted traffic on the existing and bypass road sections for cases A and B
are shown in Tables 6-7 and 6-8, and graphically in Figure 6-3. Tables 6-9 and 6-10
Engconsult Ltd.
9
show tranche 1 traffic for each year for the two traffic cases and Table 6-11 the base
case for tranches 1 and 2.
Figure 6-3
Traffic forecasts
12,000
AADT (vehicles)
10,000
8,000
6,000
4,000
2,000
0
2005
2010
Existing rd, case A
37.
2015
2020
Existing rd, case B
2025
Bypass, case A
2030
2035
Bypass, case B
To summarize:
•
diversion to the Kartsakhi corridor (i.e. case B traffic ) reduces project
corridor traffic by approximately 20 percent. Goods traffic diverting to
the bypass is reduced by 30 percent
•
the percentage of project corridor traffic diverting to the bypass is 42-43
percent in both case A and case B. Goods traffic diverting to the bypass
is 60-61 percent of project corridor goods traffic
•
opening traffic on the two lane section of the Kobuleti bypass in 2014
will be 3,600 veh/day (no diversion to the Kartsakhi corridor) and 2,800
if corridor diversion takes place. The four lane section will carry
respectively 10,200 and 8,600 veh/day
•
opening traffic on the Batumi bypass in 2014 will be 3,400 veh/day
(case A) and 2,800 veh/day (case B)
•
in 2033, the last evaluation year, bypass traffic on the two lane sections
will be 6-8,000 veh/day, depending on the traffic case, i.e. still short of
the levels that would normally justify an additional lane
38. Local traffic, i.e. traffic between points within the urban centers of Batumi and
Kobuleti, is outside the scope of diversion to the bypass but adds to congestion on
existing roads and so affects journey times and vehicle operating costs. To take
account of this effect, light and medium passenger and light goods traffic has been
doubled on the urban sections of the existing road (sections K1a and B2 in Tables
6-16 and 6-22).
Engconsult Ltd.
10
Figure 6-4
OD survey results
Northbound at Chorokhi (Batumi south)
Origin
Origin
Origin
All vehicles
Turkey
Batumi
Destination
Turkey Batumi Kobuleti Ozurgeti Poti Swaneti Kutaisi Akhaltsikhe Gori Tbilisi
Telavi Larsi Yerevan Baku
1
2
3
4
5
6
7
8
9
10
11
12
13
14 Total
1
1,332
19
19
69
5
531
21
52
390 2,438
2
196
79
42
79
19
183
27
19
19
663
0 1,332
215
79
61
0
148
24
0
714
48
0
71
409 3,101
Total
Passenger vehicles
Turkey
1
1,173
Batumi
2
Total
0 1,173
Goods vehicles
Turkey
1
159
Batumi
2
Total
0
159
Northbound at Choloki (Kobuleti north)
Origin
Turkey
Batumi
Kobuleti
Origin
Passenger
Turkey
Batumi
Kobuleti
Origin
All
Goods
Turkey
Batumi
Kobuleti
Total
Origin
Origin
79
79
0
0
3
3
0
0
61
79
140
19
19
8
5
8
5
0
445
165
610
21
21
0
86
18
104
27
27
0
0
39
19
58
257
19
276
2,034
615
2,649
13
133
13
133
404
48
452
1
2
3
0
4
0
4
0
0
0
0
0
0
0
0
6
234
127
361
15
427
30
457
3
6
10
16
14
438
32
470
0
13
0
13
0
45
3
48
61
350
42
392
4
29
0
29
0
0
0
0
0
0
0
0
3
0
0
0
106
1,546
244
1,790
1
2
3
0
0
0
0
0
0
0
0
0
0
0
0
0
42
8
50
0
95
0
95
0
3
0
3
5
37
5
42
0
0
0
0
0
11
0
11
4
40
3
43
0
4
0
4
0
0
0
0
0
3
0
3
12
0
0
0
21
235
16
251
Southbound at Chorokhi (Batumi south)
Destination
Turkey Batumi
All vehicles
1
2 Total
Turkey
1
0
0
0
Batumi
2 1,190
0 1,190
Kobuleti
3
18
178
196
Ozurgeti
4
0
68
68
Poti
5
18
38
56
Swaneti
6
0
0
0
Kutaisi
7
47
68
115
Akhaltsikhe
8
2
18
20
Gori
9
0
0
0
Tbilisi
10
466
180
646
Telavi
11
13
47
60
Larsi
12
0
0
0
Yerevan
13
41
18
59
Baku
14
349
18
367
2,144
633 2,777
Southbound at Choloki (Kobuleti north)
Destination
Turkey Batumi Kobuleti
All vehicles
1
2
3
Turkey
1
0
0
0
Batumi
2
0
0
0
Kobuleti
3
0
0
0
Ozurgeti
4
0
214
99
Poti
5
0
396
92
Swaneti
6
0
6
0
Kutaisi
7
7
259
56
8
0
16
0
Akhaltsikhe
Gori
9
3
17
0
Tbilisi
10
6
129
38
Telavi
11
0
12
3
Larsi
12
0
0
0
Yerevan
13
0
0
0
Baku
14
3
0
0
19 1,049
288
Notes:
19
39
58
Turkey Batumi Kobuleti Ozurgeti Poti Swaneti Kutaisi Akhaltsikhe Gori Tbilisi
Telavi Larsi Yerevan Baku
1
2
3
4
5
6
7
8
9
10
11
12
13
14 Total
1
6
15
3
19
65
4
15
127
2
4
276 522
9
475
13
56
390
33
3
1,781
3
135
30
10
37
3
45
260
4
0
0
411 552
19
512
13
59
435
33
0
3
0 2,041
Total
Total
19
196
215
Pax
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Turkey
Total
0
0
0
313
488
6
322
16
20
173
15
0
0
3
1,356
Pax
1
2
3
4
5
6
7
8
9
10
11
12
13
14
(i) main towns within each zone identified for convenience
(ii) totals do not necessarily represent adopted daily traffic
Engconsult Ltd.
Destination
Turkey Batumi
1
2
0
0
1,035
0
18
178
0
68
18
37
0
0
45
68
0
18
0
0
401
141
13
0
0
0
37
18
236
18
1,803
546
1
0
0
0
0
0
0
6
0
3
6
0
0
0
0
15
Total
0
1,035
196
68
55
0
113
18
0
542
13
0
55
254
2,349
Destination
Batumi Kobuleti
2
3
0
0
0
0
0
0
193
86
357
84
6
0
234
45
16
0
13
0
121
36
10
3
0
0
0
0
0
0
950
254
Goods
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Total Goods
0
1
0
2
0
3
279
4
441
5
6
6
285
7
16
8
16
9
163
10
13
11
0
12
0
13
0
14
1,219
Destination
Turkey Batumi
1
2
0
0
155
0
0
0
0
0
0
1
0
0
2
0
2
0
0
0
65
39
0
47
0
0
4
0
113
0
341
87
Total
0
155
0
0
1
0
2
2
0
104
47
0
4
113
428
Destination
Turkey BatumKobuleti
1
2
3
0
0
0
0
0
0
0
0
0
0
21
13
0
39
8
0
0
0
1
25
11
0
0
0
0
4
0
0
8
2
0
2
0
0
0
0
0
0
0
3
0
0
4
99
34
Total
0
0
0
34
47
0
37
0
4
10
2
0
0
3
137
11
Table 6-7
Base case traffic (case A): no corridor diversion, veh/day
Without bypass, veh/day
2009
Pax Goods
K1
3,027
628
K2-K5
7,677
684
K6
7,677
684
B1
7,677
684
B2
6,461
773
B3
5,246
862
With bypass, veh/day
2009
Pax Goods
Existing roads
K1
1,141
232
K2-K5
4,785
261
K6
7,677
684
B1
5,430
260
B2
3,883
304
B3
3,195
363
Bypass sections
KB1
1,886
KB2
2,892
KB3
7,677
BT1
2,247
BT2
2,579
BT3
2,050
Ex roads
Bypass
Diversion
Notes:
3,574
2,437
41%
Total
3,655
8,361
8,361
8,361
7,234
6,108
K1
K2-K5
K6
B1
B2
B3
2014
Pax Goods Total
3,697
792 4,489
9,375
863 10,238
9,375
863 10,238
9,375
863 10,238
7,891
976 8,867
6,406 1,088 7,494
K1
K2-K5
K6
B1
B2
B3
2033
Pax Goods Total
8,596 2,113 10,709
21,801 2,301 24,102
21,801 2,301 24,102
21,801 2,301 24,102
18,349 2,601 20,950
14,897 2,901 17,798
1,373
5,046
8,361
5,690
4,187
3,558
2014
Pax Goods Total
Existing roads
K1
1,394
292 1,686
K2-K5
5,843
330 6,173
K6
9,375
863 10,238
B1
6,631
328 6,959
B2
4,741
383 5,124
B3
3,902
458 4,360
2020
Pax Goods Total
Existing roads
K1
1,847
405 2,252
K2-K5
7,741
457 8,198
K6
12,421 1,197 13,618
B1
8,785
455 9,240
B2
6,282
532 6,814
B3
5,169
636 5,805
2033
Pax Goods Total
Existing roads
K1
3,241
780 4,021
K2-K5 13,587
879 14,466
K6
21,801 2,301 24,102
B1
15,420
876 16,296
B2
11,026 1,022 12,048
B3
9,074 1,222 10,296
396
423
684
424
469
499
2,282
3,315
8,361
2,671
3,048
2,549
Bypass sections
KB1
2,303
KB2
3,532
KB3
9,375
BT1
2,744
BT2
3,149
BT3
2,504
Bypass sections
KB1
3,051
KB2
4,680
KB3
12,421
BT1
3,635
BT2
4,172
BT3
3,317
Bypass sections
KB1
5,355
KB2
8,214
KB3
21,801
BT1
6,381
BT2
7,323
BT3
5,823
1,333 6,688
1,422 9,636
2,301 24,102
1,425 7,806
1,579 8,902
1,679 7,502
267
427
62%
3,842
2,864
43%
4,365
2,977
41%
10,150
6,921
41%
900 11,050
1,437 8,359
61%
43%
Total
500 2,803
533 4,065
863 10,238
534 3,278
592 3,741
630 3,134
337
539
62%
4,702
3,515
43%
5,783
3,943
41%
693 3,744
740 5,420
1,197 13,618
741 4,376
821 4,993
873 4,190
468
748
62%
6,251
4,691
43%
Case B traffic: diversion to the Kartsakhi corridor, veh/day
Without bypass, veh/day
2009
Pax Goods Total
K1
2,165
456 2,621 K1
K2-K5
6,512
513 7,025 K2-K5
K6
6,512
513 7,025 K6
B1
6,021
454 6,475 B1
B2
4,625
521 5,146 B2
B3
3,760
553 4,313 B3
2014
Pax Goods
2,644
575
7,953
647
7,953
647
7,353
573
5,648
658
4,592
698
With bypass, veh/day
2009
2014
Pax Goods Total
Pax Goods
Existing roads
Existing roads
K1
829
171 1,000 K1
1,012
216
K2-K5
4,069
196 4,265 K2-K5
4,969
247
K6
6,512
513 7,025 K6
7,953
647
B1
4,261
183 4,444 B1
5,204
231
B2
2,796
214 3,010 B2
3,414
270
B3
2,300
249 2,549 B3
2,808
314
Bypass sections
KB1
1,336
KB2
2,444
KB3
6,512
BT1
1,760
BT2
1,829
BT3
1,460
Notes:
2020
Pax Goods Total
4,897 1,099 5,996
12,421 1,197 13,618
12,421 1,197 13,618
12,421 1,197 13,618
10,454 1,353 11,807
8,487 1,509 9,996
(i) local and generated traffic not included
(ii) percentages diverted do not include sections K6/KB3, which follow the same alignment with and without
the project
Table 6-8
Ex roads
Bypass
Diversion
K1
K2-K5
K6
B1
B2
B3
2,858
1,908
40%
Total
3,219
8,600
8,600
7,926
6,306
5,290
K1
K2-K5
K6
B1
B2
B3
2020
Pax Goods Total
3,503
797 4,300
10,536
897 11,433
10,536
897 11,433
9,742
795 10,537
7,483
912 8,395
6,084
967 7,051
K1
K2-K5
K6
B1
B2
B3
2033
Pax Goods Total
6,149 1,532 7,681
18,494 1,724 20,218
18,494 1,724 20,218
17,099 1,528 18,627
13,135 1,754 14,889
10,678 1,860 12,538
1,228
5,216
8,600
5,435
3,684
3,122
2020
Pax Goods Total
Existing roads
K1
1,341
299 1,640
K2-K5
6,583
343 6,926
K6
10,536
897 11,433
B1
6,894
320 7,214
B2
4,523
374 4,897
B3
3,721
436 4,157
2033
Pax Goods Total
Existing roads
K1
2,354
575 2,929
K2-K5 11,554
659 12,213
K6
18,494 1,724 20,218
B1
12,100
615 12,715
B2
7,940
720 8,660
B3
6,531
838 7,369
Bypass sections
KB1
3,795
KB2
6,939
KB3
18,494
BT1
4,999
BT2
5,195
BT3
4,147
Total
285
317
513
285
307
304
1,621
2,761
7,025
2,045
2,136
1,764
Bypass sections
KB1
1,632
KB2
2,984
KB3
7,953
BT1
2,150
BT2
2,234
BT3
1,783
359
400
647
359
388
383
1,991
3,384
8,600
2,509
2,622
2,166
Bypass sections
KB1
2,162
KB2
3,953
KB3
10,536
BT1
2,848
BT2
2,960
BT3
2,363
194
302
61%
3,052
2,210
42%
3,490
2,329
40%
245
381
61%
3,735
2,710
42%
4,623
3,086
40%
498 2,660
554 4,507
897 11,433
498 3,346
538 3,498
532 2,895
340
528
61%
4,963
3,614
42%
8,115
5,417
40%
958 4,753
1,066 8,005
1,724 20,218
913 5,912
1,034 6,229
1,022 5,169
654
1,010
61%
8,768
6,427
42%
(i) local and generated traffic not included
(ii) percentages diverted do not include sections K6/KB3, which follow the same alignment with and without
the project
Engconsult Ltd.
12
Table 6-9
Year
Tranche 1 traffic projection, case A (base case), veh/day
Without project
With project
Existing road
Existing road
Bypass
Generated traffic
Total
2009
6,326
0
0
0
0
2010
6,588
0
0
0
0
2011
6,862
0
0
0
0
2012
7,147
0
0
0
0
2013
7,443
0
0
0
0
2014
7,752
4,233
3,559
410
8,202
2015
8,131
4,439
3,734
430
8,602
2016
8,528
4,654
3,918
450
9,023
2017
8,945
4,880
4,111
472
9,463
2018
9,382
5,118
4,313
495
9,926
2019
9,841
5,366
4,525
519
10,411
2020
10,322
5,627
4,748
544
10,919
2021
10,787
5,879
4,963
568
11,411
2022
11,274
6,143
5,189
594
11,925
2023
11,782
6,418
5,424
620
12,462
2024
12,313
6,706
5,670
648
13,024
2025
12,868
7,006
5,928
677
13,611
2026
13,448
7,320
6,197
707
14,224
2027
14,054
7,648
6,478
739
14,865
2028
14,688
7,991
6,772
772
15,535
2029
15,350
8,349
7,080
806
16,235
2030
16,042
8,723
7,401
842
16,966
2031
16,765
9,114
7,737
880
17,730
2032
17,521
9,522
8,088
919
18,529
2033
18,311
9,949
8,455
960
19,364
Source: consultants’ calculations
Notes: (a) traffic is weighted by distance; as the bypass is slightly longer than the existing
road, the sum of project traffic on the bypass and the existing road slightly exceed the without
project traffic
(b) local traffic is not included, nor is traffic on the common alignment between km28 and km34
Engconsult Ltd.
13
Table 6-10
Year
Tranche 1 traffic projection, case B, veh/day
Without project
With project
Existing road
Existing road
Bypass
Generated traffic
Total
2009
5,120
0
0
0
0
2010
5,332
0
0
0
0
2011
5,553
0
0
0
0
2012
5,784
0
0
0
0
2013
6,023
0
0
0
0
2014
6,273
3,491
2,826
337
6,654
2015
6,579
3,661
2,965
353
6,978
2016
6,900
3,838
3,110
370
7,319
2017
7,237
4,025
3,263
388
7,676
2018
7,590
4,220
3,423
407
8,050
2019
7,961
4,425
3,591
427
8,443
2020
8,349
4,640
3,767
447
8,854
2021
8,725
4,848
3,938
467
9,253
2022
9,117
5,065
4,116
488
9,669
2023
9,528
5,291
4,303
510
10,104
2024
9,957
5,528
4,498
532
10,558
2025
10,405
5,776
4,701
556
11,033
2026
10,873
6,034
4,914
581
11,529
2027
11,362
6,304
5,137
607
12,048
2028
11,874
6,586
5,370
634
12,590
2029
12,408
6,881
5,613
662
13,156
2030
12,966
7,189
5,868
691
13,748
2031
13,550
7,511
6,134
722
14,366
2032
14,160
7,847
6,411
754
15,013
2033
14,797
8,198
6,702
788
15,688
Source: consultants’ calculations
Notes: (a) traffic is weighted by distance; as the bypass is slightly longer than the existing road, the
sum of project traffic on the bypass and the existing road slightly exceed the without project
traffic
(b) local traffic is not included, nor is traffic on the common alignment between km28 and km34
Engconsult Ltd.
14
Table 6-11
Year
Tranches 1 and 2 traffic projection, case A (base case), veh/day
Without project
Existing road
With project
Existing road
Bypass
Generated traffic
Total
2009
6,667
0
0
0
0
2010
6,944
0
0
0
0
2011
7,232
0
0
0
0
2012
7,532
0
0
0
0
2013
7,844
0
0
0
0
2014
8,170
4,702
3,515
457
8,674
2015
8,569
4,931
3,688
479
9,097
2016
8,988
5,170
3,870
502
9,542
2017
9,428
5,421
4,061
526
10,008
2018
9,889
5,685
4,261
552
10,497
2019
10,372
5,961
4,471
578
11,010
2020
10,879
6,251
4,691
606
11,548
2021
11,369
6,531
4,904
633
12,069
2022
11,882
6,824
5,127
662
12,612
2023
12,417
7,129
5,360
691
13,180
2024
12,977
7,449
5,604
722
13,774
2025
13,562
7,782
5,858
754
14,394
2026
14,173
8,131
6,124
788
15,043
2027
14,812
8,495
6,403
823
15,720
2028
15,480
8,876
6,694
859
16,429
2029
16,178
9,273
6,998
898
17,169
2030
16,907
9,689
7,316
938
17,942
2031
17,669
10,123
7,648
979
18,750
2032
18,466
10,576
7,996
1,023
19,595
2033
19,298
11,050
8,359
1,069
20,478
Source: consultants’ calculations
Notes: (a) traffic is weighted by distance; as the bypass is slightly longer than the existing road, the
sum of project traffic on the bypass and the existing road slightly exceed the without project
traffic
(b) local traffic is not included, nor is traffic on the common alignment between km28 and km34
E. Diversion from other modes
39. Air traffic through Batumi airport is currently negligible (see section IV of
Supplementary Appendix 1), leaving rail as the only other significant mode in the
corridor.
Engconsult Ltd.
15
40. The railway line to Batumi is predominantly a means of transporting oil and
refined products from Baku to Batumi port. Rail is far more efficient than road at
carrying commodities over long distances, especially when the fixed investment
costs are all sunk. Bypass improvements would not change rail’s cost advantage.
41. Roughly 20 percent of Kobuleti-Batumi’s visitors arrive by train. The trains are
seldom full; those using them doubtless prefer their safety and comfort over the
faster but less comfortable and more hazardous bus services. The bypass will make
little difference to this assessment for the overwhelming proportion of rail
passengers who are long distance travelers. It is concluded that diversion from rail
would be negligible.
IV.
ECONOMIC EVALUATION
A. Approach
1. Introduction
42. The main objective of the project is to divert transit traffic away from the
existing coastal road. The latter, especially through the urban areas of Batumi and
Kobuleti, is congested, accident-prone and in a poor condition.
43. HDM-4 is used to evaluate the project. The (combined) project is divided into
two projects:
•
project 1: Kobuleti to Makhinjauri (the Kobuleti bypass)
•
project 2: Makhinjauri to Sarpi (the Batumi bypass)
44. Dividing the project up in this way makes it easier to identify optimum
solutions in terms of timing and construction standard. It also matches the tranches
of financing envisaged under the proposed multi-tranche financing facility (MFF).
Each project is evaluated separately before combining them as a single project
evaluation.
45. This section explains how the economic feasibility of each project has been
established by comparing its costs and benefits. It is arranged in three parts: after
this introductory section, sections B and C deal with the evaluation of projects 1 and
2 respectively, section D with the combined project and section E with risk and
uncertainty, confined to project 1.
46. All predicted project costs and benefits are measured in economic prices1
using an international price numeraire and a US dollar unit of account. That is,
tradable goods are expressed in world market prices plus transport costs (border
parity prices), while non-tradable goods are converted from domestic prices (less
taxes etc) multiplied by a standard conversion factor (SCF) and divided by the
official exchange rate (OER). Costs and benefits include: (i) the economic costs of
1
Economic prices measure the value of project inputs and outputs in terms of the
consumption of real resources. They differ from financial (retail market) prices. For goods that
are not tradable this means excluding taxes and subsidies and making adjustments where
market prices do not reflect the value of resources consumed (see note below on shadow
wage rates). For tradable goods it means using world market (border) prices and adding
transport costs.
Engconsult Ltd.
16
construction, (ii) the economic costs of maintaining the new road, (iii) savings in
vehicle operating costs (VOCs) and road user time costs2, (iv) savings in the
economic costs of accidents and (v) an estimate of the benefits of “generated” traffic
(i.e. traffic that is currently suppressed by the relatively high costs of travel on
existing roads).
47. The direct impacts of the bypass – the savings in VOCs, user time costs etc –
are relatively easy to quantify and value. Less so are the longer-term impacts of the
project on regional incomes and growth – Ajara Autonomous Republic is heavily
dependent on tourism receipts and citrus fruit exports. The government is also keen
to foster more diversified growth around Batumi. Longer-term changes may be nontransport responses to the changed transport system or multiplier effects arising
from purchases by firms and individuals. These effects are impossible to forecast
with any reasonable accuracy. Given this uncertainty the best available measure of
the changes brought about by the project alone is given by its direct impacts on
transport costs, travel times and accident costs. These direct savings represent a
conservative proxy for the broader benefits of improved transport.
48.
The usual 12 percent discount rate is adopted.
2. Alternatives considered
49. For each evaluation a single project case (traffic case A – see above) are
compared with a do minimum alternative. For section K6 of project 1 – the 5.6km
section from Chakvi to Makhinjauri where all traffic will use the bypass – opening
traffic will be around 10,000 veh/day and a four lane standard is proposed.
Elsewhere, however, early runs of HDM-4 demonstrated that the economic return on
a four lane bypass fell well below 12 percent and a two lane standard has therefore
been adopted. For the same reason the original proposal of a new alignment from
Chorokhi to Sarpi has been dropped.
3. Evaluation period and residual value
50. Each project is evaluated over 20 years following opening. Although each
project will be phased slightly differently, the first full year of benefits will be 2014.
51. To account for the value of the project remaining at the end of the evaluation
period, a negative cost is included in 2033 equivalent to the remaining unused
portion of the project’s life (i.e. its residual value (RV) – referred to by HDM-4 as a
salvage value). A weighted life of 60 years is used for both projects, based on the
following assumptions about individual project components: land, earthworks,
consultants’ services etc (25 percent of total costs) 100 years; structures (61
percent of costs) 50 years; pavement (14 percent of costs) 25 years. After 20 years’
operations an asset with an expected life of 60 years should have an economic
salvage value of 65 percent of initial cost.
52. At ADB’s request an evaluation of the combined tranches was undertaken
using a residual value of 30 percent of the initial cost. The results of this appear in
section IV.F.
2
Measured, for passengers, in terms of the value of travel time saved and, for freight, in
terms of the savings in inventory cost tied up during transport.
Engconsult Ltd.
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4. Pricing assumptions
53. The economic evaluation uses first quarter 2009 prices. Cost estimates are
already at 2009 prices and therefore require no adjustment for inflation.
54. A standard conversion factor (SCF) is used to convert the domestic market
prices (less taxes) to international economic prices. This is calculated using the
simple trade weighted formula presented in ERD Technical Note no 11, Feb 2004.
The calculation is set out in Table 6-22; the SCF for 2007, 0.97, is adopted. It is
approximate: in the table both imports and exports are expressed on an fob basis
(whereas imports should be expressed cif) and export subsidies – small and
probably declining in accordance with WTO rules – are not published in standard
sources.
Table 6-12
Standard conversion factor calculation
2005
2006
2007
2008
Imports, USD m
-2,687
-3,686
-4,984
-6,050
Exports, USD m
1,472
1,667
2,088
2,509
Import duties, GEL m
123
132
34
n/a
Excise taxes, GEL m
286
336
374
n/a
Export subsidies, GEL
m
10
10
10
-
Av GEL/USD
1.81
1.78
1.67
1.49
SCF
0.95
0.95
0.97
-
Sources: IMF country reports and EIU country report for March 2009 (see also Supp App 1)
Notes: (i) values in GEL converted to USD using tabulated average exchange rates
(ii) export subsidies are not published but are believed to apply to agricultural commodities
55. The official exchange rate (OER) in April 2009 is USD1 = GEL1.67. Adopting
an SCF of 0.97 this means that financial market prices of non-tradable goods are
converted to USD by first multiplying their domestic prices (less taxes and other
adjustments – see below) by 0.97 and then using the OER to convert to USD.
56.
Other adjustments are made as follows:
•
unskilled labor is priced using a shadow wage rate factor of 0.70 (i.e. 70
percent of the estimated wage rate on the project)3. This is low, but
reflects the low productivity of unskilled labor drawn specifically from
poor areas. The same factor has been used in recent work on the
Masalli-Astara expressway in Azerbaijan (see appendix 10 of the RRP
for the Azerbaijan MFF, Sep 2007). Unskilled labor costs amount to an
estimated 15 percent of the project’s total financial costs
•
the principal tradable input is reinforcing steel, which is imported from
Ukraine at a CIF price of GEL900/t. This differs little from the border
parity price implied by the world price for reinforcing bars in Jan-Mar
3
A “shadow” price represents the opportunity cost to the economy of using resources. A
shadow wage rate factor of 0.7 implies that hiring an additional unskilled person on a project
only displaces output worth 70 percent of the wage paid. That is, without the project, the
unskilled person would be producing relatively little (e.g. working on the land) – his or her
opportunity cost to the economy would thus be lower than the going rate for unskilled labor.
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18
2009 of USD470/t (see World Bank commodity price data for April
2009) and therefore does not merit an adjustment
•
contracting companies face a profits tax of 15 percent; it is assumed
that a contractor’s net margin is 5 percent of total financial cost
57. At the time of reporting land and resettlement costs are estimated at a
financial cost of GEL34m. In principle the financial costs of land acquisition and
resettlement should not differ greatly from economic costs and for the moment,
therefore, no adjustment is made.
5. Project benefits
a) Road user cost savings – VOCs
58. Savings in road user costs (RUCs, i.e. VOCs and user time costs) constitute
the major proportion of bypass benefits. Traffic diverting to the bypass enjoys higher
speeds on a smoother riding surface with better vertical and horizontal alignment,
less congestion and a shorter journey. Traffic continuing to use the existing road
also benefits from a reduction in the volume of traffic and hence level of congestion.
All these changes affect vehicle speeds and VOCs.
59. VOCs are estimated for all the vehicle types for which traffic forecasts were
prepared. For this study the following eight vehicle types are used:
•
large cars (medium cars plus SUVs – see below)
•
minibuses
•
medium buses
•
large buses
•
light goods vehicles (LGVs)
•
medium goods vehicles (MGVs)
•
heavy goods vehicles (HGVs)
•
articulated trucks
60. Historically most vehicles were manufactured within the Former Soviet Union
(FSU) but the proportion of vehicles of FSU or Russian origin is declining rapidly and
vehicle characteristics, shown in Table 6-14, are therefore based on western or
Japanese models. SUVs form a significant part of the fleet but were not counted
separately from cars during the project traffic counts. A hybrid category of “large
car”, representing 25 percent SUVs and 75 percent medium cars, is therefore used
in the economic analysis.
61. Table 6-15 shows the economic prices of new vehicles, tires, labor and time.
Vehicle and tire prices are quoted US dollar prices in Georgia less import duty (in
the case of cars and SUVs) and VAT at the standard rate of 18 percent in the case
of all other vehicles. Crew costs vary widely. Those in Table 6-15 are believed to be
representative and include social costs. Overheads are the costs of insurance and
(for commercial vehicles) administration, training etc.
62. Fuel costs are shown in Table 6-16. Two approaches are used. The first
takes the world market price for oil (taken as USD70 per barrel) and adds margins
Engconsult Ltd.
19
for refining, transport from Azerbaijan, distribution and retail. The other deducts
taxes from retail prices in Georgia and converts the result to USD using the SCF
and the OER. The former gives an economic price of USD0.59/liter and the latter
USD0.47 for petrol. The values given by the border price approach are used.
b) Road user cost savings – journey time savings
63. Values adopted for working and non-working journey time savings are also
shown in Table 6-15. The values placed by travelers on travel time savings are best
established using revealed or stated preference surveys. In the absence of survey
results there are two approaches to valuing time savings:
•
use of an empirical relationship between VOT and GDP per head
derived using regression between pairs of values from stated and
revealed preference studies; or
•
use of appropriate income levels.
64. The latter approach is used here. The national average GDP per head at
purchasing power parity is approximately USD5,000 (see Supplementary Annex 1),
with an urban value of around USD5,500, or USD4/h. Accordingly the range
adopted for working time ranges from USD3/h for a working bus passenger to
USD4/h for a car passenger. These are close to the values adopted in the JICA
study in 2007, though somewhat higher than those in the Samtskhe-Javakheti
feasibility study.
65. Further justification for adopting higher than usual values of time can be
adduced from tourism. Batumi is the third largest city in Georgia and up until 2007
the growth in tourist arrivals was very strong (see Supplementary Appendix 1, Table
1-10). Even in 2008, which experienced much lower than average economic growth,
Ajara tourist arrivals were 285,000 (209,000 domestic plus 76,000 foreign). This is
large compared with a resident Batumi population of around 122,000. Fairly high
tourist income multipliers are to be expected (definitely in excess of unity) as most
goods and services consumed by tourists will be regionally produced and not
subject to “leakage”. The same reasons support higher than usual values for bus
passengers making working trips, although working trips only represent 10-20
percent of the total.
66.
A non-work trip is assigned 40 percent of the value of a working trip.
Although it is conventional to take 0-25 percent, recent work suggests that nonworking travelers place much higher values than this on travel time savings. For
example, stated preference work by IT Transport for the UK Department for
International Development (Valuation of Travel Time Savings: Empirical Studies in
Bangladesh, Ghana and Tanzania: IT Transport for DFID, July 2005) recommends
two approaches to the valuation of travel time savings by non-working adults: (i)
0.55 x the weighted average wage rate per hour adjusted by the SCF, or (ii) 0.37 x
household consumption per hour.
67. The real value of passenger travel time will increase as income rises.
Unfortunately, HDM-4 does not acknowledge this. A way around this difficulty is to
calculate the equivalent increase in the average value that will produce the same
present value as an annually increasing amount. The adopted increase, 25 percent,
is equivalent, on average, to an annual growth of 3 percent.
68. Goods in transit are unproductive – they represent inventory costs. Thus
there is a value in reducing travel times. This value can be substantial for that
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20
portion of goods that are time sensitive, i.e. where the shipper or recipient bears
substantial costs arising from late collection or delivery. Such detail is not available
here. For a load of 1 tonne with a value of USD10,000 and a discount rate of 12
percent, saving one hour is worth USD0.14, or USD0.28 for a 2t payload. This is
close to HDM-4’s default value of USD0.3/hour, which is adopted. In practice goods
in transit savings are negligible compared with other benefits.
c) Road user costs – typical values
69. Table 6-13 shows road user costs for typical conditions on the bypass and on
existing roads. The largest savings accrue to large goods vehicles and medium and
large buses.
Table 6-13
Typical road user costs
Section
Car
Minibus
Med
bus
Large
bus
LGV
MGV
HGV
Artic
Existing roads without bypass (operating speeds 33-51km/h; IRI=5; high side friction):
VOC, USD/km
0.22
0.33
0.33
0.89
0.24
0.49
0.79
1.24
Travel time cost, USD/km
0.20
0.37
0.74
1.22
0.03
0.06
0.07
0.01
Total RUC
0.42
0.69
1.07
2.10
0.27
0.55
0.86
1.24
Bypass (operating speeds 80-105km/h; IRI=2; low side friction);
VOC, USD/km
0.22
0.30
0.30
0.72
0.22
0.44
0.71
1.11
Travel time cost, USD/km
0.10
0.20
0.45
0.72
0.02
0.04
0.04
0.00
Total RUC
0.32
0.50
0.75
1.43
0.24
0.48
0.75
1.12
Source: consultants’ HDM-4 runs
Engconsult Ltd.
Table 6-14
Basic vehicle characteristics
Engconsult Ltd.
Vehicle class
Large car
Minibus
Medium bus
Bus
Light goods
Medium goods
Heavy goods
4x2 tractor +
tandem trailer
HDM-4 base type
Car large
Minibus
Bus medium
Bus heavy
Light truck
Medium truck
Heavy truck
Articulated truck
1.0
1.3
1.5
2.0
1.3
1.5
2.0
2.5
Petrol
Diesel
Diesel
Diesel
Diesel
Diesel
Diesel
Diesel
4
4
6
6
6
6
10
14
Radial
Radial
Radial
Bias
Radial
Bias
Bias
Bias
2
2
2
3
2
2
3
4
10,000
80,000
100,000
100,000
100,000
100,000
100,000
100,000
200
2,000
2,000
2,000
2,600
2,600
2,600
2,600
2,000
2,200
2,200
2,200
3,300
3,300
3,300
3,300
Service life (yr)
15
10
10
10
8
8
8
8
Av no of passengers
3
9
18
30
1
2
2
0
% time private use
100
10
0
0
20
0
0
0
Work related passenger
trips, %
50
20
20
10
0
0
0
0
Gross vehicle weight, t
1.4
3.20
7.5
15.0
3.00
13.00
20.00
30.00
PCUs
Fuel type
No of tyres
Tyre type
No of axles
Km/year
Hours driven/year
a
Working time, h/year
Source: manufacturers’ and consultant’s estimates
Notes:
(a) working time = driving time + time spent loading, unloading and waiting for work. Working time has to be specified for HDM-4. Large values used for cars and motor-cycles in order to
avoid spurious savings in time related VOCs
21
Table 6-15
Economic values of vehicles, labor and time
Unit
Large car
Engconsult Ltd.
Typical model:
Minibus
Medium bus
Bus
LGV
MGV
HGV
Articulated truck
Renault
Traffic
Temsa +
Mitsubishi
Temsa +
Mitsubishi
Renault
Master
Isuzu + Tegeta
MAN + Tegeta
MAN + Tegeta (4x2
tractor + tandem)
Vehicle cost
USD
18,000
23,000
46,000
90,000
24,000
54,000
100,000
100,000
Replacement tyre
USD
125
80
170
330
80
170
330
330
Maintenance labour
USD/h
2.00
2.00
2.50
3.00
2.50
3.00
3.00
3.50
Crew
USD/h
0.00
2.00
2.00
3.00
2.00
4.00
4.00
5.00
USD
900
1,100
2,300
10,000
1,200
2,700
6,500
6,500
USD/h
4.00
3.00
3.00
3.00
0.0
0.0
0.0
0.0
USD/h
1.60
1.20
1.20
1.20
1.20
1.20
1.20
0.0
Annual overhead
Passenger working time
Passenger non-working time
a
Source: local dealers, recent construction contracts, consultants’ estimates
Note:
(a) 40 percent of value of working time. Although it is conventional to take 0-25 percent, recent work (e.g. Valuation of Travel Time Savings: Empirical Studies in Bangladesh, Ghana and
Tanzania: IT Transport for DFID, July 2005) suggest that non-working travellers place much higher values than this on travel time savings
22
23
Table 6-16
Fuel and oil prices
Unit
Petrol
Diesel
USD/litre
0.44
0.44
USD/litre
0.05
0.02
USD/litre
0.05
0.05
USD/litre
0.05
0.05
USD/litre
0.59
0.56
USD/litre
0.47
0.50
GEL/litre
1.12
1.18
Lubricating oil
Using border price of oil
Crude oil
Refining
a
b
Rail/road transport
b
Distribution and retail
b
Economic price at the pump
Using financial retail pump prices
Economic price at the pump
Financial pump price
Notes:
c
d
6.00
e
(a) based on FOB spot price of $70/bbl (1bbl = 159 litre)
rd
(b) refining and distribution margins deduced from GTZ: International Fuel Prices 2005, 4 edition, 2005
and other published sources
(c) applying the OER of GEL1.67 = USD1 to the financial price less taxes (32 percent plus a 5 percent
retailer’s margin) and multiplying by the SCF of 0.97
(d) typical prices in April 2009 (petrol varied from GEL1.05-1.20/liter)
(e) based on a retail price range of GEL70-80 per 5l container in Tbilisi in April 2009
d) Generated traffic
70. Generated traffic is additional trips made by existing users of the corridor
because journeys are now cheaper or quicker and trips made by others who, in the
absence of the project, are deterred from making them because the cost or time is
perceived to be prohibitive. The benefit of generated traffic is calculated as 0.5*(T2T1)*(C1-C2), where T1 and T2 are the number of trips made without and with the
bypass and C1 and C2 the road user costs without and with the bypass.
71. Construction of the bypass will reduce RUCs on the existing roads. Estimates
of generated traffic are made by calculating the RUC savings on the existing roads
and then applying price elasticities. A wide range of elasticities is in use, ranging
from -0.2 to -1.0 (a price elasticity of -1.0 means that a 20 percent drop in RUCs
generates a 20 percent increase in traffic). The Kobuleti and Batumi bypasses
change RUCs by 5-20 percent, depending on vehicle type and road conditions.
Assuming an elasticity in the range -0.5 to -1.0 implies generated traffic of 2.5-20
percent of normal traffic. For evaluation purposes 10 percent is taken, but is only
applied to light-medium passenger vehicles and light goods vehicles.
e) Accidents
72. Accident rates change following a change in road geometry. In general, a
limited access bypass will reduce accident rates but, because speeds are higher,
may increase accident severity. HDM-4 models the change in accident costs by
comparing the costs and rates of three classes of accident: (i) a fatal accident, (ii) an
accident involving injuries but no fatalities and (iii) an accident causing only damage.
While damage only data are not to hand, injury and fatality data are available for
2007-9 on the existing Sarpi-Poti road and are summarized in Table 6-17.
Engconsult Ltd.
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Table 6-17
Accident statistics, Sarpi-Poti road
2007
2008
Jan-Apr
2009
Average
Total accidents
139
222
42
Fatalities
25
43
5
Injuries
264
406
73
No of fatal accidents
19
32
5
No of non-fatal accidents
120
190
37
av no of fatalities per accident
0.18
0.19
0.12
0.18
av no of injured persons per accident
1.90
1.83
1.74
1.84
av no of fatalities per fatal accident
1.3
1.3
1.0
1.3
av no injured persons per fatal accident
2.2
1.4
0.8
1.6
No of injured persons per non-fatal accident
1.9
1.9
1.9
1.9
All accidents:
Fatal accidents:
Sources: police records and consultants’ calculations
Note:
injured persons are assumed to include pedestrians
73. The estimated 2008 vehicle-km for the Sarpi-Poti road is 170 million. This
implies accident rates per million veh-km as follows:
•
total accidents: 1.30
•
fatalities: 0.26
•
fatal accidents: 0.18
•
non-fatal accidents: 1.12
74. In the absence of local or regional data or research findings the impact of the
bypass on accident rates and accident severity has to be inferred from other
projects. For example, in 2001 accident rates per million PCU-km were 0.34 and
0.84 on Chinese expressways and class III highways respectively. South African
research (reported in Predicting Changes in Accident rates in Developing Countries
following Modifications in Road Design, TRL, 1995) found a base accident rate of
0.24 “personal injury collisions” per million veh-km on a multi-lane highway,
increasing to 0.34 for a two lane road, increasing to 0.64 if junctions were at-grade
(rather than grade-separated). The case for assuming increased severity on the
bypass rests on the link between speed and severity, which has been the subject of
much research. For example, a Swedish international risk model for predicting
accidents (see TRL report cited above) relates the frequency of fatalities to the
fourth power of the relative increase in speed. Thus, if the bypass increased the
average operating speed from 60 to 80km/h, the frequency of fatalities would be
predicted to rise threefold.
75. Table 6-18 shows (i) a summary of the accident analysis for the existing road
taken from the column headed “average” in Table 6-17 and (ii) the consultants’
assumptions for the bypass. Overall, the number of accidents per million veh-km is
assumed to drop by about 50 percent, from 1.3 (=0.18+1.12) to 0.68 (=0.08+0.6),
whereas the number of fatalities per average accident rises by 50 percent, from 0.18
to 0.24. The first five columns represent assumptions. Columns 6 and 7 are results
calculated using the assumptions. For example, if the bypass carries 100m veh-km,
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25
the expected number of accidents is 68 (=100x(0.08+0.6)), of which 8 will be fatal,
with a total of 8x2.0=16 deaths, giving a severity per accident of 16÷68=0.24. The
expected number of injuries is 8x1.9 arising from fatal accidents and 60x2.3 from
non-fatal incidents, i.e. a total of 153.2 injuries, equivalent to a severity per accident
of 153.2÷68=2.25.
Table 6-18
With and without project accident rates
Road type
Accidents/million veh-km
Severity per average accident
Fatal accident
Non-fatal
All
Fatalities Injuries
Fatal
accidents
Non-fatal
accidents
Fatalities
Injuries
Injuries
Existing road
0.18
1.12
1.3
1.6
1.9
0.18
1.84
Bypass
0.08
0.6
2.0
1.9
2.3
0.24
2.25
Sources: consultants’ assumptions
76. The table below shows with and without project average numbers of
accidents per year over the evaluation period. Values are for combined tranches 1
and 2, base case traffic case.
Table 6-19
Without project
With project
Sources:
With and without average numbers of accidents per year
Fatal accidents
Non-fatal accidents
Total
42
259
301
23
162
185
consultants’ HDM-4 runs for combined tranches 1 and 2, base case traffic.
77. The “human capital” approach to valuation is to estimate the sum of (i) an
appropriate proportion of income foregone, (ii) marginal emergency and medical
costs and (iii) marginal damage costs.
78. A representative range of incomes is from USD2,400 (2008 GDP/head
converted to USD at the OER) to USD5,500 (PPP estimate of urban income used
for journey time savings). Thus the cost of a fatality based on a 12 percent discount
rate and 20 years’ foregone income ranges from USD18,000 to USD41,000. If
marginal emergency services and damage costs add a further 20 percent, the total
cost of a fatality is USD22-49,000. The mid-point value of USD36,000 is adopted.
For comparison, a recent evaluation for ADB in Azerbaijan (appendix 10 of RRP for
a Proposed MFF for the Republic of Azerbaijan: Road Network Development
Program, Sep 2007) valued a fatality at USD25,000.
79. Injury costs vary widely. Work in India (Dinesh Mohan: Social Cost of Road
Traffic Crashes in India, Proc First Safe Community Conference on Cost of Injury,
Viborg, 2002) estimated that the social cost of a serious injury was 20-45 percent of
that of a fatality, while a minor injury was only worth 4 percent. Minor injuries are
usually under-reported. Assuming that also to be true in Georgia and taking the midpoint of 32 percent, a serious injury would be valued at USD11,500.
80.
Average accident costs can now be calculated using Table 6-18 data:
•
on the existing road: USD27,600
•
on the bypass: USD34,500
Engconsult Ltd.
26
81. The percentage of GDP lost to road accidents can be estimated using
national data in Supplementary Appendix 4. In 2008 there were 867 fatalities and
9,063 injuries. Applying the values adopted here gives a total social cost of
USD135m, or 1.3 percent of GDP. This is at the lower end of the usually accepted
range of 1 to 3 percent.
B. Evaluation of project 1 – the Kobuleti bypass
1. Road sections
82. For economic evaluation purposes the existing S-2 road (from Choloki bridge
in the north to the start of the Batumi bypass at Makhinjauri) is divided into six
homogeneous sections. Section K1a, around Kobuleti town, carries additional local
traffic (i.e. traffic that would never use the bypass – see section III.D).
83. The proposed bypass is divided into three sections. Each bypass section is
defined by interchanges either with the S-2 or (at Kobuleti town) or with the Ozurgeti
road.
84. HDM-4 section definitions for the existing road and proposed bypass are
shown in Table 6-20.
Engconsult Ltd.
Table 6-20
Kobuleti: existing and bypass road sections
Width Shoulder
m
m
Friction
Rise + fall Rises & Horiz curve
o
/km
m/km
falls
no/km
Speed
limit km/h
Surface
thickness mm
Engconsult Ltd.
XMT
Lanes
XFRI
km
XNMT
Section
K1: Choloki br-Kabuleti center
7.1
2
12
1
0.7
0.7
0.9
10
2
50
50
80
K1a: Choloki-Kabuleti
4.1
2
12
1
0.6
0.6
0.6
10
2
50
25
80
K2: Kabuleti-railway br
4.0
2
8
1
0.7
0.7
0.9
10
2
50
50
100
K3: Railway br- Chakvi N
4.5
2
8
1
0.7
0.7
0.9
100
20
500
50
100
K4: Chakvi N-Chakvi
2.3
2
7
1
0.7
0.7
0.9
10
2
50
50
100
K5: Chakvi-bypass IC
3.9
2
10
1
0.7
0.7
0.9
10
10
100
50
100
K6: Bypass IC-Makhinjauri
5.6
2
10
1
0.7
0.7
0.9
10
2
50
50
100
Total
31.5
Existing road sections:
Bypass road sections:
KB1: km0-11.3
11.3
2
7
2
1.0
1.0
1.0
15
2
75
120
125
KB2: km11.3-28.2
16.9
2
7
2
1.0
1.0
1.0
15
2
75
120
125
KB3: km28.2-33.8
5.6
4
14
2
1.0
1.0
1.0
15
2
75
120
125
Total
33.8
Notes:
(a) K1a is the urban section of K1 to which local traffic is added (see section D); K3 is steep and has many hairpin bends
(b) XNMT = non-motorized traffic friction factor (range 0.6-1.0); XFRI = roadside friction (range 0.6-1.0); XMT = friction arising from roadside activities and
motorized traffic (range 0.4-1.0). A friction factor of 0.9 means speeds are 90 percent of their undisturbed values
(c) existing road: IRI = 6m/km at the end of 2008, 5 potholes/km (also end 2008). Bypass has IRI=2 on completion
(d) existing road: seasonal traffic flow pattern adopted (see section II.C); HDM-4 default two lane road speed flow curve adopted. Bypass: HDM-4 free flow
traffic pattern and default two lane wide speed flow curve adopted
(e) K6 includes the Chakvi-Makhinjauri tunnel and has the same alignment as KB3
(f) all other characteristics assume HDM-4 default values. Pavement has an asphaltic concrete surface with an asphalt mix pavement on a granular base
27
28
2. Costs
a) Project costs
85. Project financial costs are taken from Supplementary Appendix 3. Table 6-21
shows the derivation of the cost at economic prices. The residual value is 65
percent of the economic cost in Table 6-21.
Table 6-21
Kobuleti bypass economic costs
Item
USD m, 2009 prices
Financial base cost + physical contingencies
133.2
Financial base cost + physical contingencies per km
3.94
Adjustment to economic prices
Shadow wage adjustment: 0.3 x 15% x $133m financial construction cost
-5.99
Adjustment for VAT (financial base cost + physical contingencies)x(1-1/1.18)
-20.32
Adjustment for contractor’s company taxes: 15% x net margin of 5% x fin cost
less VAT
-0.85
SCF applied to non-tradable inputs: 0.03 x 80% x financial cost
-3.20
Total adjustment
-30.36
Cost at economic prices
102.8
Cost at economic prices per km
3.04
Source: consultants’ estimates
Notes: costs/km based on 33.8km
86. The cost of maintaining the bypass road comprises routine maintenance of
the highway (drain cleaning, crack sealing etc) and the periodic cost of an overlay
once pavement condition has deteriorated to the point where routine maintenance is
no longer adequate. In addition there are small costs involved in operating the
tunnels (both the existing 800m C-M tunnel, which has ventilation equipment, and
the 600m of new tunnel, which will have lighting but no ventilation).
87. The Roads Department generally budgets GEL3,400/km (excluding VAT)
(USD2,000) for routine maintenance of a two lane road and have indicated that they
would consider this appropriate for the project roads, at least initially. HDM-4
calculates maintenance costs in response to modeled deterioration, not as an
annual amount. If overlay and tunnel maintenance costs are excluded, the unit costs
in Table 6-22 generate maintenance costs that approximate those budgeted by the
Roads Department.
Table 6-22
Kobuleti bypass maintenance costs
Item
Unit
Clearing snow etc
Cost
USD/km
Crack sealing
Pothole patching
50mm overlay
b
Tunnel maintenance
Intervention
150
Annual
USD/m
2
10
Wide structural cracking>=10%
USD/m
2
12
At >=10 potholes/km
USD/m
2
a
USD/km
15
At IRI=6
250
Annual
Source: current Ajara road maintenance contract and consultants’ estimates
2
Note:
(a) plus preparatory works: edge repair at USD14/m2 and patching at USD12/m
Engconsult Ltd.
29
(b) includes existing 800m C-M tunnel as well as proposed 400m tunnel. Costs are per highway
km.
b) Do minimum costs
88. Roads Department has supplied the current road maintenance contract for
Ajara and extracted the actual expenditure for 2007-8 on the Choloki-Sarpi section
of the S-2.
Table 6-23
S-2 maintenance expenses, 2007-8
Item
2007
2008
Winter maintenance, USD/km
290
220
Routine maintenance, USD/km
1,420
1,800
Maintenance of C-M tunnel, USD
22,300
32,800
Source: Roads Department
Note:
values exclude VAT
89. Essentially, routine maintenance costs approximately USD2,000/km and
maintaining the tunnel approximately USD500 per highway km. For modeling using
HDM-4, the unit costs in Table 6-24 were used: if overlay costs are excluded, HDM4 generates approximately the same costs as those actually incurred.
Table 6-24
Do minimum maintenance costs
Item
Unit
Clearing snow etc
Cost
USD/km
Intervention
250
Annual
USD/m
2
10
Wide structural cracking>=10%
USD/m
2
12
At >=10 potholes/km
50mm overlay
USD/m
2
a
Tunnel maintenance
USD/km
Crack sealing
Pothole patching
15
At IRI=6
500
Annual
Source: current Ajara road maintenance contract and consultants’ estimates
Note:
(a) plus preparatory works (see Table 6-20)
3. Evaluation results
a) Case A (base case) traffic
90. Table 6-25 shows the summary of base case discounted costs and benefits
from HDM-4. The striking feature is the high proportion of time saving benefits. This
arises because:
•
the existing road is highly congested
•
the bypass is 2.3km (7 percent) longer than the existing road, leading to
a small proportion of VOC savings
91. Evidence of the importance of journey time savings is available from
calculated operating speeds. Using HDM-4 average speeds, use of the bypass
around Kobuleti approximately halves total journey time, from 0.8h to 0.4h. This is
an average for the entire year and as such probably underestimates savings during
the summer holiday season. Under free flow traffic conditions the consultants’
Engconsult Ltd.
30
vehicle took 0.67h (implying an average speed of 47km/h), suggesting that 0.8h
(39km/h) is reasonable for an annual average.
Table 6-25
Tranche 1 (Kobuleti) base case: economic evaluation
PV, incremental
Benefits, USDm
cost, USDm
82.7
Time
VOC
Accident
savings
savings
savings
104.7
12.6
6.3
84.7%
10.2%
5.1%
NPV,
Total
USDm
123.6
40.6
EIRR %
16.2
Source: consultants’ HDM-4 runs
Note:
all PVs discounted at 12 percent; totals may not agree as the result of rounding
92. Table 6-26 shows incremental costs and benefits and is compiled from HDM4 output. Benefits from generated traffic are lower than usual; this is because the
drop in road user costs on the existing road sections are not great and so the
resulting increase in traffic is also not large (see also section IV.5.d).
Table 6-26
Year
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Tranche 1 (Kobuleti) base case: costs and benefits
Incremental costs, USDm
Capital Recurrent Total
23.22
30.52
28.05
20.96
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.50
-1.28
0.00
-65.61
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.01
0.01
-0.33
0.36
-0.33
0.58
-0.24
0.58
-0.21
0.58
-0.21
0.58
-0.21
0.35
0.10
0.36
0.01
VOC
Road user cost savings, USDm
Time savingsGenerated Accident
traffic
savings
Total
Net benefits
USDm
23.22
30.52
28.05
20.96
0.01
0.01
0.01
0.01
0.01
-0.33
0.36
-0.33
0.58
-0.24
0.58
-0.21
0.58
-0.21
0.58
-0.21
-0.15
-1.18
0.36
-65.60
0.00
0.00
0.00
0.00
1.05
1.16
1.30
1.51
1.76
2.05
2.25
2.57
2.71
3.06
3.23
3.62
3.89
4.35
4.60
5.10
5.33
3.20
3.35
5.08
0.00
0.00
0.00
0.00
12.95
13.69
14.48
15.32
16.22
17.18
18.19
19.25
20.37
21.58
22.86
24.21
25.63
27.11
28.63
30.21
31.70
35.75
41.91
49.09
0.00
0.00
0.00
0.00
0.29
0.31
0.33
0.35
0.37
0.40
0.42
0.45
0.47
0.51
0.54
0.57
0.61
0.65
0.69
0.73
0.78
0.75
0.88
1.05
0.00
0.00
0.00
0.00
0.87
0.91
0.96
1.00
1.05
1.10
1.16
1.21
1.27
1.33
1.40
1.47
1.54
1.61
1.69
1.78
1.86
1.95
2.05
2.15
0.00
0.00
0.00
0.00
15.16
16.07
17.07
18.18
19.40
20.72
22.02
23.48
24.82
26.48
28.02
29.87
31.67
33.72
35.61
37.82
39.67
41.65
48.19
57.37
-23.22
-30.52
-28.05
-20.96
15.14
16.05
17.05
18.16
19.39
21.05
21.65
23.81
24.24
26.72
27.44
30.09
31.09
33.93
35.03
38.03
39.82
42.83
47.83
122.97
PV at 12%
82.7
0.3
83.0
Percent of total road user cost savings
EIRR
12.3
9.9%
102.7
83.0%
2.4
1.9%
6.4
5.1%
123.7
100.0%
40.6
16.2%
Source: consultants' HDM-4 runs
Note:
generated traffic includes both VOC and time savings, hence there are differences between the PVs in
this table and those in the evaluation summary
b) Case B traffic
93. Table 6-27 shows the effect of diversion to the Kartsakhi corridor. As
expected, it reduces the economic returns significantly, although the project remains
worthwhile at a 12 percent discount rate.
Engconsult Ltd.
31
Table 6-27
Kobuleti traffic case B: discounted costs and benefits
PV, incremental
Benefits, USDm
cost, USDm
Time
VOC
Accident
savings
savings
savings
81.8
6.9
5.2
87.1%
7.4%
5.5%
82.8
Total
93.9
NPV,
EIRR %
USDm
11.1
13.3
Source: consultants’ HDM-4 runs
Note:
all PVs discounted at 12 percent
C. Evaluation of tranche 2: the Batumi bypass
1. Road network
94. The existing S-2 road (from the start of the Batumi bypass at Makhinjauri to
the interchange with the approach road to the Chorokhi bridge) is divided into three
homogeneous sections. Section B2, in the center of Batumi, carries additional local
traffic (see section D). There is also an inner transit traffic route within Batumi
whose surface is poorly laid concrete slabs; they have been given an IRI of 7m/km.
95. The proposed bypass is likewise divided into three sections, each linking tow
interchanges. HDM-4 section definitions for the existing and proposed roads are
shown in Table 6-28.
2. Costs
a) Project costs
96. Project financial costs are taken from Supplementary Appendix 3. Table 6-28
shows the derivation of the cost at economic prices. The residual value is 65
percent of the economic cost in Table 6-28.
Table 6-28
Batumi bypass economic costs
Item
USD m, 2009 prices
Financial base cost + physical contingencies
133.0
Financial base cost + physical contingencies per km
9.57
Adjustment to economic prices
Shadow wage adjustment: 0.3 x 15% x $133m financial construction cost
-5.99
Adjustment for VAT (financial base cost + physical contingencies)x(1-1/1.18)
-20.31
Adjustment for contractor’s company taxes: 15% x net margin of 5% x fin cost
less VAT
-0.85
SCF applied to non-tradable inputs: 0.03 x 80% x financial cost
-3.20
Total adjustment
-30.35
Cost at economic prices
102.6
Cost at economic prices per km
7.38
Source: consultants’ estimates
Notes: costs/km based on 13.9km
Engconsult Ltd.
Table 6-29
Tranche 2 – Batumi bypass: existing and bypass road sections
Friction
Engconsult Ltd.
Rise + fall Rises
Horiz
o
m/km
& falls curve /km
no/km
Speed
limit
km/h
Surface
thickness mm
XMT
Width Shoulder
m
m
XFRI
km
XNMT
Section
B1: Makhinjauri-Batumi cr
5.3
10
2
0.6
0.6
0.6
10
2
50
50
80
B2: Batumi cr-A306 jn
3.8
10
2
0.6
0.6
0.6
10
2
50
50
80
B3: A306 jn - Chorokhi IC
4.1
10
2
0.6
0.6
0.7
10
2
50
50
100
Total
13.2
Existing road sections:
Bypass road sections:
BT1: km33.8-39.2
5.4
7
2
1.0
1.0
1.0
15
2
75
120
125
BT2: km39.2-44.6
5.4
7
2
1.0
1.0
1.0
15
2
75
120
125
BT3: km44.6-47.7
3.1
7
2
1.0
1.0
1.0
15
2
75
120
125
Total
13.9
Notes:
(a) B2 is the urban section to which local traffic is added (see section D)
(b) XNMT = non-motorized traffic friction factor (range 0.6-1.0); XFRI = roadside friction (range 0.6-1.0); XMT = friction arising from roadside activities and
motorized traffic (range 0.4-1.0). A friction factor of 0.9 means speeds are 90 percent of their undisturbed values
(c) IRI = 6m/km at the end of 2008 (except for B2, IRI=7), 5 potholes/km (also end 2008); bypass: IRI = 2m/km on completion
(d) existing road: seasonal traffic flow pattern adopted (see section II.C); HDM-4 default two lane road speed flow curve adopted. Bypass: HDM-4 free flow
traffic pattern and default two lane wide speed flow curve adopted
(e) A306 is the Batumi-Akhaltsikhe road (interchange with Batumi bypass)
(f) all other characteristics assume HDM-4 default values. Pavement has an asphaltic concrete surface with an asphalt mix pavement on a granular base
32
33
97. Maintenance costs are compiled on the same basis as that adopted for the
Kobuleti bypass – see Table 6-30 below. Do minimum costs are calculated on exactly
the same basis as they are for Kobuleti, but omitting tunnel costs.
Table 6-30
Batumi bypass maintenance costs
Item
Clearing snow etc
Crack sealing
Pothole patching
50mm overlay
a
Tunnel maintenance
Unit
Cost
km
Intervention
150
Annual
m
2
10
Wide structural cracking>=10%
m
2
12
At >=10 potholes/km
m
2
km
15
At IRI=6
130
Annual
Source: current Ajara road maintenance contract and consultants’ estimates
Note:
(a) illumination costs per highway km for 1,540m of new tunnel
3. Evaluation results
98. Table 6-31 shows the summary of base case discounted costs and benefits from
HDM-4. As in the case of tranche 1, and for the same reasons, savings are dominated
by time savings. In this case the bypass is 5 percent longer than the existing road.
99. Evidence of the importance of journey time savings is available from calculated
operating speeds. Using HDM-4 average speeds, use of the bypass around Batumi
saves approximately 15 minutes and reduces the without project journey time of 25
minutes by about 60 percent. This is an average for the entire year and as such
probably underestimates savings during the summer holiday season. (The consultants’
vehicle, under free flow traffic conditions, took 22 minutes).
100. Table 6-31 shows that the economic case for tranche 2 is quite weak. This arises
from high initial costs and low traffic: economic investment costs are USD7.4m/km and
opening traffic is only 3,400 veh/day, whereas tranche 1’s cost is USD3.0m/km and
opening traffic 3,600 veh/day.
Table 6-31
Tranche 2 (Batumi) base case economic evaluation
PV, incremental
cost, USDm
77.4
Benefits, USDm
Time
VOC
Accident
savings
savings
savings
70.8
11.7
3.5
82.3%
13.6%
4.1%
Total
86.0
NPV,
USDm
8.7
EIRR %
13.1%
Source: consultants’ HDM-4 runs
Note:
all PVs discounted at 12 percent
101. Table 6-32 shows incremental costs and benefits and is compiled from HDM-4
output.
Engconsult Ltd.
34
Table 6-32
Year
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Tranche 2 (Batumi) base case: costs and benefits
Incremental costs, USDm
Capital Recurrent Total
8.21
22.57
32.83
38.98
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.57
0.89
-0.23
0.00
-0.05
-66.68
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.04
-0.10
0.10
-0.10
0.21
-0.10
0.21
-0.10
0.21
-0.10
0.21
-0.04
0.12
0.00
0.11
0.00
Road user cost savings, USDm
Time savingsGenerated Accident
traffic
savings
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.32
9.08
0.06
0.48
1.42
9.58
0.06
0.51
1.54
10.11
0.07
0.53
1.69
10.68
0.07
0.56
1.86
11.29
0.08
0.59
2.03
11.93
0.09
0.61
2.18
12.63
0.10
0.64
2.39
13.36
0.11
0.68
2.53
14.15
0.12
0.71
2.78
15.00
0.13
0.74
2.94
15.91
0.15
0.78
3.20
16.83
0.16
0.82
3.38
17.82
0.18
0.86
3.67
18.87
0.20
0.90
3.83
19.97
0.23
0.94
2.70
21.12
0.26
0.99
3.78
22.38
0.29
1.04
3.12
23.03
0.29
1.09
3.16
23.53
0.34
1.14
3.59
25.60
0.37
1.20
VOC
8.21
22.57
32.83
38.98
0.00
0.00
0.00
0.00
-0.04
-0.10
0.10
-0.10
0.21
-0.10
0.21
-0.10
0.21
-0.10
-0.36
0.86
-0.11
0.00
0.06
-66.67
PV at 12%
77.4
0.1
77.4
Percent of total road user cost savings
EIRR
11.6
13.5%
70.3
81.7%
0.6
0.7%
3.5
4.1%
Total
Net benefits
USDm
0.00
0.00
0.00
0.00
10.93
11.57
12.25
13.00
13.81
14.66
15.55
16.53
17.51
18.66
19.77
21.01
22.24
23.64
24.97
25.07
27.48
27.53
28.17
30.76
-8.21
-22.57
-32.83
-38.98
10.93
11.56
12.25
13.00
13.85
14.76
15.44
16.63
17.30
18.76
19.56
21.11
22.02
23.74
25.33
24.22
27.60
27.52
28.11
97.44
86.1
100.0%
8.7
13.1%
Source: consultants' HDM-4 runs
Note:
generated traffic includes both VOC and time savings, hence there are differences between the PVs in
this table and those in the summary evaluation table
D. Benefits distribution
102. Table 6-33 shows the distribution of benefits for tranche 1 (Kobuleti), traffic case
A. The striking feature is the proportion of benefits accruing to foreign registered
vehicles, nearly of which will be transit traffic. The policy implication is that Georgia
should explore ways of recouping some of its infrastructure costs from transit traffic by
means of tolls or transit fees.
Engconsult Ltd.
35
Table 6-33
Benefit
Benefits distribution, tranche 1
Passenger
vehicles
Goods vehicles
Total
Percent
12.3
10.0%
PV in USDm
VOC (normal traffic)
Time savings
1.7
10.6
a
101.5
1.1
102.6
83.0%
b
2.3
0.1
2.4
1.9%
c
5.1
1.2
6.3
5.1%
110.6
13.0
123.6
100%
52
42%
Generated traffic
Accident savings
Total
Foreign registered vehiclesd
e
Source: consultants’ calculations
Notes: (a) some goods vehicles carry one or two passengers
(b) HDM-4 splits generated traffic by VOC and time savings: in this table passenger vehicle benefits
are HDM-4 time savings
(c) split using the fleet composition on the existing roads
(d) based on the proportions of foreign registered vehicles observed at the C-M tunnel (see Table
6-3)
(e) percentages may not appear to add up to 100% as a result of rounding
E. Combined project evaluation (tranches 1 and 2)
1. Base case
103. The combined evaluation makes use of incremental costs and road user cost
savings exported from HDM-4 for each tranche. The combined streams of incremental
costs and benefits are shown in Table 6-35. The base case EIRR of 14.8 percent is
above the 12 percent threshold but is vulnerable to lower than forecast traffic growth
(section E) and the possibility of corridor diversion (see case B below).
104. Reducing the residual value to 30 percent of initial cost (see section IV.A.3)
reduced the EIRR from 14.8 to 14.3 percent.
105. Journey time savings, taken from sections B and C are shown in Table 6-34.
Table 6-34
Journey time savings
Existing roads
Bypass
Hours
km
Hours
km
Tranche 1 (Kobuleti)
0.8
32
0.4
34
Tranche 2 (Batumi)
0.4
13
0.17
14
1.2
45
0.57
48
Total
Source: current Ajara road maintenance contract and consultants’ estimates
Engconsult Ltd.
36
Table 6-35
Year
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Tranches 1 and 2 base case: costs and benefits
Incremental costs, USDm
Capital Recurrent
Total
31.43
53.09
60.88
59.94
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.57
0.89
-0.73
-1.28
-0.05
-132.29
VOC
Road user cost savings, USDm
Time savings Generated Accident
traffic
savings
0.00
31.43
0.00
53.09
0.00
60.88
0.00
59.94
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
-0.03
-0.03
-0.43
-0.43
0.47
0.47
-0.43
-0.43
0.79
0.79
-0.34
-0.34
0.79
0.79
-0.31
-0.31
0.79
0.79
-0.31
-0.31
0.79
0.22
-0.25
0.64
0.47
-0.26
0.10
-1.17
0.47
0.42
0.02 -132.27
0.00
0.00
0.00
0.00
2.36
2.58
2.85
3.19
3.62
4.07
4.43
4.96
5.23
5.85
6.17
6.82
7.27
8.01
8.43
7.80
9.11
6.32
6.51
8.67
0.00
0.00
0.00
0.00
22.02
23.26
24.59
26.00
27.51
29.11
30.81
32.61
34.53
36.58
38.76
41.05
43.44
45.98
48.60
51.34
54.08
58.77
65.44
74.69
0.00
0.00
0.00
0.00
0.35
0.37
0.40
0.42
0.45
0.49
0.52
0.56
0.59
0.64
0.68
0.74
0.79
0.85
0.91
0.99
1.07
1.05
1.22
1.42
PV at 12%
160.1
0.4
160.5
Percent of total road user cost savings
EIRR
23.9
11.4%
173.0
82.5%
3.0
1.4%
0.00
0.00
0.00
0.00
1.35
1.42
1.49
1.56
1.64
1.72
1.80
1.89
1.98
2.08
2.18
2.29
2.40
2.51
2.64
2.77
2.90
3.04
3.19
3.35
Total
Net benefits
USDm
0.00
0.00
0.00
0.00
26.09
27.63
29.32
31.18
33.21
35.39
37.56
40.01
42.33
45.14
47.79
50.88
53.90
57.36
60.58
62.89
67.16
69.18
76.36
88.13
-31.43
-53.09
-60.88
-59.94
26.07
27.62
29.30
31.16
33.24
35.82
37.09
40.44
41.54
45.48
47.00
51.19
53.11
57.67
60.36
62.25
67.42
70.35
75.94
220.41
9.9
209.8
4.7% 100.0%
49.3
14.8%
Source: consultants' HDM-4 runs
2. Case B traffic
106. The combined streams of incremental costs and benefits for the case where
some traffic takes the Kartsakhi corridor are shown in Table 6-36. The combined project
just achieves an acceptable EIRR. If the residual value is 30 percent of the initial cost
the EIRR falls from 12.4 to 12.1 percent.
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Table 6-36
Tranches 1 and 2: costs and benefits for case B traffic
Incremental costs, USDm
Capital Recurrent
Total
Year
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
23.22
61.00
58.53
61.61
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.57
0.00
-3.34
-0.94
-132.83
VOC
Road user cost savings, USDm
Time savings Generated Accident
traffic
savings
0.00
23.22
0.00
61.00
0.00
58.53
-0.05
61.55
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
-0.42
-0.42
0.46
0.46
-0.42
-0.42
0.79
0.79
-0.29
-0.29
0.74
0.74
-0.29
-0.29
0.74
0.74
-0.26
-0.26
0.70
0.70
-0.18
-0.75
0.70
0.70
-0.05
-3.38
0.66
-0.27
0.15 -132.69
0.00
0.00
0.00
0.00
1.85
2.01
2.04
2.26
2.53
2.84
3.06
3.46
3.68
4.10
4.35
4.81
5.16
5.76
6.10
6.80
6.12
6.68
1.82
0.76
0.00
0.00
0.00
0.00
17.86
18.85
19.89
20.99
22.15
23.38
24.69
26.09
27.58
29.16
30.84
32.60
34.47
36.47
38.53
40.69
42.94
45.29
47.62
49.60
0.00
0.00
0.00
0.00
0.28
0.30
0.32
0.34
0.36
0.38
0.41
0.43
0.46
0.49
0.53
0.56
0.60
0.64
0.69
0.74
0.79
0.85
0.82
0.84
PV at 12%
157.9
0.4
158.3
Percent of total road user cost savings
EIRR
16.8
10.2%
137.4
83.5%
2.3
1.4%
0.00
0.00
0.00
0.00
1.11
1.16
1.22
1.28
1.34
1.40
1.47
1.54
1.62
1.70
1.78
1.87
1.96
2.05
2.15
2.26
2.37
2.48
2.61
2.73
-23.22
-61.00
-58.53
-61.55
21.08
22.31
23.45
24.84
26.36
28.43
29.18
31.95
32.54
35.74
36.75
40.13
41.45
45.18
46.76
51.23
51.52
58.69
53.14
186.62
8.1
164.5
4.9% 100.0%
6.2
F. Sensitivity and risk
1. Tranche 1 (Kobuleti)
a) Sensitivity
107. Table 6-37 shows how tranche 1’s EIRR reacts to changes in:
benefits
•
traffic case
•
construction costs
•
traffic growth
•
delayed opening
Engconsult Ltd.
Net benefits
USDm
0.00
0.00
0.00
0.00
21.09
22.33
23.47
24.86
26.38
28.01
29.63
31.53
33.34
35.45
37.49
39.84
42.19
44.92
47.46
50.49
52.21
55.30
52.86
53.93
Source: consultants' HDM-4 runs
•
Total
12.4%
38
108. The EIRR remains above 12 percent for all costs up to 1.5 times base and for
benefits above 0.7 times base, and is fairly robust in the face of a fall in traffic, including
opening of the Kartsakhi corridor. A modest improvement is achieved by delaying
construction and opening by a year.
Table 6-37
Sensitivity tests: tranche 1
Scenario
(a)
EIRR percent
NPV in USD
million
16.2%
40.6
Base case
(b)
Traffic case B (Kartsakhi diversion)
13.3%
11.1
(c)
Benefits less 10%
15.0%
28.3
(d)
Benefits less 20%
13.7%
15.9
(e)
Cost increased by 10%
15.1%
32.3
(f)
Cost increased by 20%
14.2%
24.0
(g)
RV reduced from 65% to 30%
16.0%
38.0
(h) Combination (c) and (e)
14.0%
20.0
(i) Traffic Growth + 10%
17.6%
58.8
(j) Traffic Growth -20%
13.1%
9.8
Switching
a
factor
0.67
1.49
(k) Opening delayed by a year
17.0%
48.9
Notes: (a) the switching factor is the factor times the base value of the indicated item that will produce an
EIRR of 12 percent
b) Risk analysis
109. Table 6-38 shows the ranges used for variables included in the risk analysis. The
negative skew applied to costs reflects (a) the weak construction market in 2009 and (b)
the scope for optimization of the alignment. The negative skews applied to all benefits
reflect the scope for loss of some corridor traffic.
Table 6-38
Input ranges for risk analysis
Variable
Triangular distributions
Multiplying factors
Minimum
Maximum
VOC benefits
0.5
1.2
Generated traffic
0.5
1.2
Time savings
0.5
1.2
Accident savings
0.5
1.2
All investment & operating costs
Source: consultants’ assumptions
0.8
1.1
110. The results of 1,000 simulations using RiskAMP are shown graphically in Figure
6-5 and summarized in Table 6-39. As the input distributions are mostly skewed
against the base case EIRR, the resulting frequency distribution of EIRRs is itself
slightly negatively skewed. The result is mean and median EIRRs that are lower than
Engconsult Ltd.
39
the base case value. However, in only 3.4 percent of cases is the EIRR below the 12
percent threshold.
Table 6-39
Results of risk analysis, tranche 1
Statistic
Value, percent
Base case EIRR (Table 6-21)
16.2
RiskAMP results:
Mean EIRR
15.4
Median EIRR
15.5
Range of EIRRs
10.2-20.2
Percentage of EIRRs < 12 percent
3.4
Source: consultants’ estimates
Figure 6-5
Frequency distribution of tranche 1 EIRR
12.0%
Percent falling in class interval
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
10%
12%
13%
15%
EIRR
Engconsult Ltd.
16%
18%
20%
40
2. Tranches 1 and 2
a) Sensitivity
111. See Table 6-40. The EIRR remains above 12 percent for all costs up to 1.3
times base and for benefits above 0.8 times base, but is vulnerable to a fall in traffic,
including opening of the Kartsakhi corridor. The improvement arising from a delayed
opening is proportionately greater than it is in the case of tranche 1 alone, indicating in
the particular benefits of a delay to tranche 2 (Batumi).
Table 6-40
Sensitivity tests: tranches 1 and 2
Scenario
EIRR percent
NPV in USD
million
(a) Base case
14.8%
49.3
(b) Traffic case B (Kartsakhi diversion)
12.4%
6.2
(c) Benefits less 10%
13.7%
28.3
(d) Benefits less 20%
12.4%
7.4
(e) Cost increased by 10%
13.8%
33.3
(f) Cost increased by 20%
12.9%
17.2
12.3
(g) Combination (c) and (e)
12.7%
(h) RV reduced from 65% to 30%
14.3%
45.0
(i) Traffic Growth + 10%
16.6%
81.5
(j) Traffic Growth -20%
11.3%
-6.4
Switching
a
factor
0.77
1.31
(k) Opening delayed by a year
15.5%
61.4
Notes: (a) the switching factor is the factor times the base value of the indicated item that will produce an
EIRR of 12 percent
b) Risk analysis
112. Input ranges are the same as those adopted for tranche 1 (Table 6-38). The
results of 1,000 simulations using RiskAMP are shown graphically in Figure 6-5 and
summarized in Table 6-41. As the input distributions are mostly skewed against the
base case EIRR, the resulting frequency distribution of EIRRs is itself slightly negatively
skewed. The result is mean and median EIRRs that are lower than the base case value.
However, in 14 percent of cases the EIRR is below the 12 percent threshold.
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Table 6-41
Results of risk analysis
Statistic
Value, percent
Base case EIRR (Table 6-31)
14.8
RiskAMP results:
Mean EIRR
14.0
Median EIRR
14.1
Range of EIRRs
8.7-18.5
Percentage of EIRRs < 12 percent
14.4
Source: consultants’ estimates
Figure 6-6
Frequency distribution of EIRR (tranches 1 and 2)
12.0%
Percent falling in class interval
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
10%
12%
13%
15%
EIRR
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16%
18%
20%
42
c) Tranches 1 and 2 with 30 percent residual value
113. At ADB’s request an additional set of evaluations was prepared, this time using a
residual value (RV) equal to 30 (rather than 65) percent of the initial cost. The results
are summarised here as well as being shown in Tables 6.37 and 6.39. In general,
reducing the residual value in this way reduces the EIRR by around 0.5 percent.
114. Table 6.42 shows the sensitivity table and Table 6.43 the risk analysis results.
Table 6.42
Sensitivity results for tranches 1 and 2, 30 percent RV
Scenario
(a) Base case
EIRR percent
NPV in USD
million
14.3%
45.0
(b) Benefits less 10%
13.3
23.9
(c) Benefits less 20%
12.2
2.9
(d) Cost increased by 10%
13.4
28.4
(e) Cost increased by 20%
12.5
11.9
(f) Combination (c) and (e)
12.4
7.4
(g) Traffic Growth -10%
12.9
15.5
(h) Traffic Growth -20%
11.0
-10.3
Note:
(a) traffic growth for an EIRR of 12% is -16% times the base case
Engconsult Ltd.
Switching
a
factor
0.79
1.27
a
0.84
43
Figure 6-7
Frequency distribution of EIRR (tranches 1 and 2, 30% RV)
12.0%
Percent falling in class interval
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
8%
10%
12%
13%
EIRR
Engconsult Ltd.
15%
16%
18%
FINAL REPORT
Asian Development Bank
Roads Department
Supplementary Appendix 7
Institutional and Financial Assessment
and
Financial Evaluation of the Project
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
i
Table of Contents
I. INTRODUCTION
II. ROADS DEPARTMENT INSTITUTIONAL ANALYSIS
A. Institutional arrangements
C. Road maintenance
D. Capacity building requirements
III. ROADS DEPARTMENT FUNDING
A. Road fund
B. Transport taxes
C. Roads Department expenditure
IV. FINANCIAL MANAGEMENT CAPACITY OF THE TRRC
A. Assessment
V. FINANCIAL MANAGEMENT CAPACITY OF ROADS DEPARTMENT
VI. PROJECT MANAGEMENT ARRANGEMENTS FOR ADB PROJECTS
A. Structure of PMU
B. PMU costs
1. Financial management and procurement staff
2. External expert support for the PMU
3. TA costs
VII. TRANSPORT SECTOR PPP AND TOLL ROADS IN GEORGIA
A. Transport sector PPP
1. Introduction
2. Roads sector
B. Rikoti tunnel tolls
C. Prospects for tolling the Ajara bypass
D. Proposed PPP TA
1. Rationale
2. Objective
3. Activities
4. Cost estimate
VIII. FINANCIAL EVALUATION OF THE AJARA BYPASS
A. Introduction
B. Investment cost and financing plan
1. Tranche 1: Kobuleti
2. Tranches 1 and 2
C. O&M and interest expenses
D. Tolls
1. Collection systems
2. Vehicle classes
3. Toll levels
E. Financial evaluation
1. Approach
2. Evaluation of tranche 1: Kobuleti
3. Evaluation of tranches 1 and 2
F. Incremental maintenance expenses
Annex A
TRRC’s Response to Financial Management Questionnaire
Annex B
RD’s Response to Financial Management Questionnaire
Engconsult Ltd.
1 2 2 3 4 6 6 6 6 10 10 13 14 14 15 15 16 16 17 17 17 18 18 19 19 19 20 20 21 23 23 23 23 25 26 27 27 27 27 28 28 29 29 30 ii
List of Tables
Table 1: Road fund income
Table 2: Roads Department expenditure and financing, 2006-9
Table 3: Roads Department budgeted expenditure, 2009
Table 4: Roads Department expenditure, 1996-2009
Table 5: Pipeline of trunk road projects
Table 6: TRRC documentation
Table 7: TRRC’s 2009 budget
Table 8: TRRC project status
Figure 3: RD’s finance department
Figure 4: Proposed project management arrangements
Figure 5: Proposed funds flow arrangements
Table 9: PMU financial management staffing costs
Table 10: External support for the PMU
Table 11: TA costs
Table 12: Transport sector PPP projects in Georgia
Table 13: Rikoti tunnel tolls and exemptions
Table 14: PPP TA activities
Table 15: PPP TA cost estimate
Table 16: Rikoti tunnel tolled traffic records
Table 17: Tranche 1 investment cost by financier
Table 18: Financing plan, tranche 1
Table 19: Weighted average cost of capital
Table 20: Bypass investment cost by financier
Table 21: Financing plan, tranches 1 and 2
Table 22: Vehicle classes for tolling
Table 23: Fineval assumptions
Table 24: Tranche 1 evaluation results
Table 25: Tranches 1 and 2 evaluation results
6 7 8 8 9 10 11 12 13 14 15 16 16 16 17 18 20 21 22 23 24 25 25 26 27 29 29 30 List of Figures
Figure 1: Roads Department: institutional context ..................................................................... 3 Figure 2: Roads Department organization ................................................................................. 5 Figure 3: RD’s finance department ........................................................................................... 13 Figure 4: Proposed project management arrangements ......................................................... 14 Figure 5: Proposed funds flow arrangements .......................................................................... 15 Engconsult Ltd.
1
I.
INTRODUCTION
1.
The purpose of this supplementary appendix is (i) to review the institutional and financial
structure of the implementing agency (the Roads Department), (ii) to report on the financial
management capacity of the department and of the TRRC, (iii) to present the legislative context
and experience of tolling in Georgia and (iv) to undertake a financial evaluation of the proposed
bypass.
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II.
A.
ROADS DEPARTMENT INSTITUTIONAL ANALYSIS
Institutional arrangements
2.
Institutional arrangements changed in February 2009. Up to February 2009 the Roads
Department (RD) was part of the Ministry of Economic Development (MED). In February 2009
the MED was reorganized and a new ministry created, the Ministry of Regional Development
and Infrastructure (MRDI) and RD and the United Transport Administration (UTA) were moved
from the MED to the MRDI. The Transport Department, a policy unit, remains with the MED. A
body related to RD is the Transport Reform and Rehabilitation Center (TRRC).
3.
The functions of these roads sub-sector bodies are as follows:
•
the Transport Department is responsible for strategy and policy (and covers the
other transport modes with the exception of rail)
•
RD is responsible for implementing road construction, maintenance and
rehabilitation of international and interstate roads (but not local or urban roads)
•
the UTA is principally responsible for the international aspects of road haulage,
aviation and maritime transport
•
the TRRC is the project implementation unit (PIU) set up to implement World Bank
road projects. It is physically located within the Roads Department but its staff are
not government employees
4.
In addition to the above there are several organisations that have looser ties to the
Roads Department but are nonetheless of importance. Principal amongst the latter is the
Millennium Challenge Fund Georgia (MCG), responsible for the Samtskhe-Javakheti road
project.
5.
Figure 1 shows RD’s institutional context.
B. Roads Department organization
6.
Following restructuring several years ago, RD is now a small, fairly non-hierarchical
organisation with 160 staff members (down from 195 in 2007), mostly based in Tbilisi. See
Figure 2. Although its parent ministry changed earlier in 2009 its internal structure appears to
have changed little when compared with that reported by the JBIC Study for Project Formulation
for Highway Improvement Project, 2008. Officials at the department have however indicated that
its structure may still change following some changes at the top of the organisation. The
department has no planning section (this being the remit of the Transport Department) and no
internal financial audit section.
7.
There are five small regional offices: in Sagarejo, responsible for the regions Kakheti,
Kvemo Kartli, and Mtkheta Mtianeti; in Borjomi for the regions of Shida Kartli and Samcke
Javakheti; in Kutaisi for the regions Racha Lechkhum, Kvemo Svaneti and Imereti; in Poti for
the regions Guria and Samegrelo Zemo Svaneti; and in the Autonomous Republic of Ajara. No
formal organizational structure has yet been established for local roads; most local governments
lack technical staff, equipment and a secure source of funding for road maintenance and
rehabilitation. Municipalities are responsible for urban roads.
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Ministry of Economic
Development (MED)
Ministry of Regional
Development and
Infrastructure (MRDI)
Transport Department
•
roads strategy &
policy
Roads Department
•
road construction,
maintenance etc
TRRC
•
PIU for World Bank
projects
UTA
•
international
haulage
agreements etc
Figure 1: Roads Department: institutional context
C.
Road maintenance
8.
The department has no direct labor force: it contracts out all its maintenance and
construction activities.
9.
The country is divided into 34 routine maintenance zones, each of which covers 150250km of roads. (Zone 33 includes the S-2 in Ajara plus some other roads). Contractors bid
against a bill of quantities drawn up by the department. Maintenance requirements are
established from an annual condition survey. The last round of bidding took place in 2007 and
was for a period of 27 months. These contracts will expire in 2009 and will be re-bid for a period
of 12 months. Supervision (i.e. checking both quality and the quantities of work undertaken) was
also contracted out to a private company. This function has now been brought back into the
department; the department has 20 people who will act as supervisors.
10.
Contractors are quite small: each zone has a separate contractor. They provide their
own plant, labor and materials, although some hire plant and vehicles from a government
agency (not the Roads Department).
11.
The World Bank is supporting the RD in its efforts to improve the efficiency of its road
maintenance activities. It believes that a shift from contracted out maintenance to performance
based road maintenance contracts (PBCs) could produce further savings (up to 50 percent). A
proposed project component of the TEWHP will assist in developing a comprehensive
framework for the introduction of PBC in Georgia. The international consultant, in collaboration
with a small RD team, will apply the PBC framework to a preliminary assessment of a
concession for the maintenance of the East-West Highway and an area-wide contract for
rehabilitation and maintenance for 250-300km of main and secondary roads centered around a
regional RD Office.
12.
Maintenance of those sections of main roads that pass through municipalities is the
responsibility of the municipality. (In the case of the S-2 in Ajara this exclusion only applies to
8km within Batumi).
13.
Periodic maintenance contracts are also awarded on a bill of quantities basis.
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D.
Capacity building requirements
14.
Roads Department discharges its responsibilities – technical and financial –
satisfactorily. However, despite some progress on policy and institutional reforms, carried
through with considerable World Bank support, institutional capacity in the road subsector
remains limited. It does for example face an ever increasing works program (see Supplementary
Appendix 1: RD expenditure is expected to quadruple 2008-10) and this may raise quality
issues: there is limited staff experience in the management of roads projects, especially in the
areas of bridge and tunnel engineering and safeguards. The proposed tranche 1 and tranche 2
projects contain particularly challenging bridge and tunnel works, and resettlement issues, and it
is therefore proposed to strengthen RD’s capacity in these areas (see below).
15.
It lacks PPP capacity (see section VII). The other area where capacity building is
proposed is public-private partnerships (PPPs). As discussed in section VII, Georgia’s record in
the roads sector is limited. It is therefore proposed to strengthen its PPP capacity as part of
tranche 1 activities (see below).
16.
The country’s road safety record is poor. The problems include poor interagency cooperation, inappropriate and unenforced speed limits, ubiquitous use of mobile phones while
driving and a complete lack of regard for pedestrians. The MED is developing an action plan for
road safety. A road safety TA is also proposed as part of this project: see Appendix 4.
Engconsult Ltd.
Figure 2: Roads Department organization
Engconsult Ltd.
MRDI
Chairman
First deputy chairman
•
•
•
Financial management
accounts
budgeting
tolls
•
•
•
Legal department
•
•
legal drafting (road law
amendment etc)
RD legal representation
legal compliance checks
Administration
HR
office management
Deputy chairman
•
•
•
•
Technical policy
•
design
road standards
road condition survey
R&D
Rehabilitation
planning & commissioning
of rehabilitation
Deputy chairman
Deputy chairman
Development and resettlement
•
•
•
annual construction plan
resettlement planning
bridge condition survey
•
•
Periodic maintenance
planning and
commissioning of routine
maintenance
reports on emergencies
•
•
•
Roads operations
co-ordination with local
government
police liaison (blackspots,
diversions)
signing
Regional offices:
Ajara
Sagarejo
Borjomi
Kutaisi
Poti
5
6
III.
A.
ROADS DEPARTMENT FUNDING
Road fund
17.
From 1995 to 2004 Georgia had a road fund. In 2003 its income was GEL40m. It was
financed by a portion of fuel tax (30 percent of the fund’s 2003 income), the proceeds of Rikoti
tunnel tolls, the international transit tax and a road usage tax levied on individuals and
enterprises.
18.
According to a World Bank project appraisal report (Proposed Credit for a Secondary
and Local Roads Project, May 2004) the fund did not perform particularly well. It terms of the
use of funds, the Bank concluded that routine maintenance and rehabilitation were the principal
beneficiaries; little was spent on periodic maintenance. The fund’s income was prone to
fluctuation and decline (see Table 1) and leakage. The Bank also commented on its inadequacy
– the Bank’s 2004 estimate of annual routine and periodic maintenance requirements was
GEL172m.
Table 1: Road fund income
1999
Fuel tax & Rikoti toll
revenue
Vehicle license fees
Transit fees
2003
14
2000
GEL million
4.6
5.6
10.7
N/A
N/A
2.0
9.6
12
Source: World Bank project appraisal report (Proposed Credit for a Secondary and Local Roads Project, May 2004)
Note:
table does not show all sources of income
19.
The World Bank considered that the prospects for increasing road fund income were
promising, provided road user charges were raised to regional norms and collection made more
effective. In 2004, however, the government abolished special funds, including the road fund,
and since then the sub-sector has been funded directly from the state budget and from donor
funds.
B.
Transport taxes
20.
Along with the special funds, most transport related taxes were also abolished in 2004.
The international transit tax and road usage fees were abolished. Vehicles are now subject to a
small registration fee (of GEL56) on change of ownership, collected by the police, and new
vehicles are subject to import duty and VAT, but there is no longer an annual fee. Fuel tax plus
VAT amounts to 32 percent. The proceeds of the remaining transport taxes, as well as toll
receipts from the Rikoti tunnel, are now part of state revenue.
C.
Roads Department expenditure
21.
Table 2 shows RD expenditure from 2006-9. Expenditure shown in this table excludes
local and urban roads, which ceased to be a RD responsibility in 2006. There is no separate
contribution from AR Ajara.
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Table 2: Roads Department expenditure and financing, 2006-9
2006a
Staff expenses
New road construction
state budget
TRRC
Subtotal
Rehabilitation
state budget
TRRC
MCGc
Subtotal
Routine maintenance
Miscellaneous (including bridge
works)
Grand total
Financed by:
donor and counterpartd funds
state budget
1.2
2007a
2008a
GEL million
1.2
2.0
2009b
2.2
N/A
N/A
52.6
N/A
N/A
74.0
13.7
53.7
67.4
13.7
205.7
219.4
N/A
N/A
0.0
93.9
22.0
29.8
N/A
N/A
0.0
165.4
25.5
10.8
122.5
5.3
34.5
162.3
25.5
15.2
121.5
80.0
50.2
251.7
25.8
21.4
199.5
276.9
272.4
521
-
63
214
102
170
339
182
Source: Roads Department and Transport Department
Note:
(a) actual expenditure for fiscal year – 1 Jan to 31 Dec. All figures include VAT where applicable
(b) budget forecast
(c) the MCG compact became effective April 2006 but MCG accounts show no roads expenditure until 2008.
The only MCG roads project is rehabilitation of the Samtskhe-Javakheti road
(d) counterpart funds are from state budget sources
22.
The striking feature of Table 1 is the sub-sector’s dependence on donor funding. Of the
forecast GEL521m expenditure in 2009, GEL336m is either from donor sources or represents
counterpart funds.
23.
A more detailed breakdown of 2009’s budgeted expenditure is given below.
Unfortunately the budget does not distinguish between rehabilitation and maintenance – and nor
do the statements of actual expenditure in 2007-8. Similarly there is no breakdown by class of
road. Routine maintenance in the budget amounts to GEL26m, or about GEL3,800 (USD2,300)
per km. This is consistent with the department’s approach to budgeting, which is as follows:
•
routine maintenance for main roads is budgeted at GEL4,000/km (including
bridges)
•
routine maintenance for secondary roads is budgeted at GEL2,600/km (including
bridges)
•
the repair of winter damage is budgeted separately and accounts for approximately
GEL5m in a typical year
(All costs include VAT).
24.
The department’s budget is lower than conventionally expected: for example, using the
World Bank’s ROCKS database, a network with Georgia’s characteristics would be expected to
need approximately USD4,000 (GEL7,000) per km.
25.
GEL119m from state funds is budgeted for periodic maintenance and rehabilitation. This
understates total rehabilitation expenditure, however, as both the World Bank’s secondary roads
and the MCG’s Samtskhe-Javakheti project are rehabilitation projects. If these are included,
funds for rehabilitation and periodic maintenance amount to GEL150m, or GEL22,000
(USD13,000) per km. For a network of 6,900km in a lower-middle-income country this appears
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reasonable, i.e. should stabilise road condition within a reasonable horizon. Support for this
comes from Roads Department figures showing that 1,722km of roads have been rehabilitated
or received periodic maintenance over the period 2004-8, equivalent to about 5 percent of the
network per year.
Table 3: Roads Department budgeted expenditure, 2009
GEL million
Total
State funds
Staff expenses
Other admin expenses
Periodic maintenance and rehabilitation
Routine maintenance
Minor new construction
Bridge works
Miscellaneous
State counterpart funds
East-West Highway (WB)
Secondary Roads (WB)
MCG (Samtskhe-Javakheti)a
Tbilisi-Telavi (WB)
BTC etc
Grants and credits
East-West Highway (WB)
Secondary Roads (WB)
MCG (Samtskhe-Javakheti)
Tbilisi-Telavi (WB)
BTC etcb
521
284.2
237.1
284.2
2.2
1.7
119.1
25.8
4.0
9.7
19.5
102.2
102.2
61.8
24.0
11.1
4.5
0.8
237.1
128.6
56.0
39.2
10.5
2.8
Source: Roads Department 2009 budget (there are minor differences between this table and Table 1)
Note:
(a) counterpart funding for the MCG project amounts to payment of VAT
(b) includes roads funded by BP as part of the BTC (Baku-Tbilisi-Ceyhan) pipeline project
26.
The position in 2008 was similar: of GEL272m, GEL94m were from donor funds.
Allowing that a separate Transport Department source shows GEL102m from external sources
leaves around GEL175m from the state budget (of which some will be earmarked as
counterpart funds). The same Transport Department source shows GEL63m in 2007 from
external sources and GEL214m from the state budget.
27.
Table 4 shows that In both nominal and real GEL terms road expenditure has risen
dramatically since 1996, principally as a result of access to donor funds.
Table 4: Roads Department expenditure, 1996-2009
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Current GELm 31 30 32 35 32 61 88 100 95 141 200 277 272 521
Const
2009 91 71 72 71 58 106 146 158 142 197 258 327 292 521
GELm
Sources: Transport Department to 2005; Roads Department thereafter
28.
RD does not forecast its expenditure beyond 2009. Table 4 shows expected project
starts in 2009-11 and was provided by the Transport Department.
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Table 5: Pipeline of trunk road projects
Road
Sveneti-Rikoti (E-60):
Sveneti-Ruisi
Ruisi-Agara
Agara-Rikoti
Rikoti tunnel
rehabilitation
Zestaponi-Samtredia
Vaziani-Gombori-Telavi
Tbilisi-Rustavi
Ajara bypass
Akhalkalaki-Turkey border
Sources: Transport Department; this project
Engconsult Ltd.
Donor
Length km
Start year
Est cost,
USD million
World Bank
15
12
33
4
2009
2010-11
2010-11
2009
127
46
116
JICA
State budget
State Budget
ADB
State budget
77
64
10
45
36
2009-10
2009
2010
2010
2009-11
200
18
10
IV.
A.
FINANCIAL MANAGEMENT CAPACITY OF THE TRRC
Assessment
29.
The TRRC is the project implementation unit (PIU) for World Bank projects in the
transport sector. Its functions, as set out in a typical World Bank loan agreement, are “to carry
out [at the request of Georgia – the borrower] the financial management for the project and
assist the Roads Department of the Ministry of Regional Development and Infrastructure in the
procurement under the project in accordance with the implementation agreement”. In practice it
advises the Roads Department on procurement and is responsible for documenting the
procurement process. It is then responsible for financial management during contract
implementation.
30.
At the consultants’ request the TRRC completed ADB’s financial management
assessment questionnaire. The completed questionnaire is at Annex A to this supplementary
appendix.
31.
The TRRC also supplied relevant documentation as listed below. In addition to the
documents listed in Table 6 the consultants obtained a World Bank financial supervision report
dated January 2009.
Table 6: TRRC documentation
No
Title
Author
1 Operations manual for First East-West Highway Improvement
Project
2 Financial statements for quarter ending 31.12.08 for grant H204GE
3 Funds flow diagram
4 Correspondence between World Bank and MoF re IBRD loan
7671-GE
5 Loan agreement for Secondary and Local Roads Additional
Financing
6 Interim financial report (IFR) for Second East-West Highway
Project to 31.12.08
7 IFR for First East-West Highway Project to 31.12.08
8 Operations manual for the Infrastructure Pre-Investment Facility
project
9 Operations manual for the Second East-West Highway project
10 Financial and accounting management manual
TRRC
11 Operations manual for the Secondary and Local Roads project
12 Terms of reference for the financial accounting department
TRRC
13 Terms of reference for the audit of project financial statements of…
14 Charts of accounts (three sets)
TRRC
15 CV of financial manager, TRRC
16 CV of finance assistant, TRRC
17 Audited accounts of First East-West Highway Improvement project Deloitte &
to 31.12.07
Touche
18 Management letter related to doc no 17
Deloitte &
Touche
19 Minutes of negotiation between Georgia and World Bank for
World
additional financing of Secondary and Local Roads project
Bank
Source: TRRC
Note:
all the above are in English
Engconsult Ltd.
Date
Dec 2005
Undated
Undated
Dec 2005
Dec 2007
Jan 2009
Feb 2009
June 2008
June 2008
Feb 2008
11
32.
The TRRC was created by presidential decree no 119 of 16 April 1995. It was originally
known as the “Europe-Asia Transport Corridor Problem Center”. The name was changed to
“investment center” by decree no 161 of 21 April 2000. Strictly, the name TRRC only applies to
its role as the World Bank PIU, but as this is its only role at present, the name TRRC will be
used here. It has a staff of twelve. Although physically located in the Roads Department its staff
are not departmental employees. It is understood that the government has for some time been
anxious to merge the TRRC with the Roads Department. While this view was not shared by
TRRC staff whom the consultants met, the World Bank’s stance appears to be fairly neutral.
33.
The TRRC is headed by a director. Including the director, six professional staff members
are trained in financial management and accounting; the remainder are procurement specialists.
The chief professional officer has been with the TRRC since it was founded. The World Bank’s
project document for the Second East-West Highway Project, however, commented in late 2007
on high staff turnover. This was taken up with the director, who stated that there had been no
resignations in the past five years. The chief accountant has been in post since the TRRC
started and the current director was appointed in 1997.
34.
The TRRC’s operating expenses were originally met from the First East-West Highway
project. With the completion of this project, USD0.72m was included in the Second East-West
Highway project to cover TRRC’s operating expenses, hiring of consultants and project audit
fees for 3.5 years. TRRC’s compensation packages are subject to monitoring by the Roads
Department. The 2009 budget is summarized in Table 7.
Table 7: TRRC’s 2009 budget
Item
Salaries (including social costs)
Utilities, postage, travel, fuel, spare parts etc
Translation, office equipment maintenance etc
Total
Financed by: IDA (70 percent)
Government of Georgia (30 percent)
GEL
191,810
45,960
15,660
253,430
177,400
76,030
Source: TRRC
35.
The TRRC uses a modified cash basis for accounting and runs ORIS software. The
World Bank (in its January 2009 financial management supervision report) considers the
software satisfactory for accounting and reporting purposes. Excel is used to finalize reports
submitted to the World Bank. There is a written financial and accounting management manual,
most recently updated in January 2009 (document 10 in Table 6).
36.
Audits of project accounts have always been “clean” (i.e. issued without qualification) as
far as the consultants can ascertain from information supplied by the TRRC and the World
Bank. Management letters issued by the TRRC’s auditors, Deloitte & Touche have (in document
no 18 in Table 5) pointed to deficiencies in (i) data back-up, (ii) reconciliation of expenditure
financed by the government with the Treasury Department and (iii) documentation of tender
files. The World Bank’s supervision report confirms that auditors’ recommendations concerning
(i) and (ii) have been implemented. The action plan for the TRRC in the same report covers (i)
timely submission of auditors’ reports, (ii) timely submission of financial management reports
(FMRs) and interim financial reports (IFRs) and (iii) implementation of the auditors’
recommendation regarding project documentation.
37.
The TRRC has a substantial current workload, however, listed in Table 8, and has (of
course) no experience of handling ADB projects.
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Table 8: TRRC project status
Project
First East-West Highway Improvement Project
Second East-West Highway Improvement Project
Infrastructure Pre-Investment Facility
Secondary and Local Roads Project
Second East-West Highway Improvement Project –
additional financing
Secondary and Local Roads Project – additional
financing
Source: World Bank and TRRC
Engconsult Ltd.
Status as at Feb 2009
Almost completely disbursed
Approx 50% of SDR22.4m
disbursed
Approx 75% of SDR3.5m disbursed
Almost completely disbursed
No disbursements yet of SDR12.8m
No disbursements yet of USD70m
13
V.
FINANCIAL MANAGEMENT CAPACITY OF ROADS DEPARTMENT
38.
At the consultants’ request RD staffs were able to complete some of ADB’s financial
management assessment questionnaire. Completed sections are shown in Annex B to this
supplementary appendix.
39.
The structure of RD’s finance department is shown in Figure 3. Excluding staff working
on Rikoti tolls, it has 16 members. The financial management and analysis section appears to
be responsible for budget planning. Staffing is said to be adequate for the tasks in hand. There
are no unfilled posts and turnover is said to be low (no resignations in the past 18 months).
Financial management
department
(3 managers)
Accounts (6 staff)
Financial management
& analysis (7 staff)
Toll section (14 staff)
Figure 3: RD’s finance department
40.
The finance department has no experience of externally funded projects: both foreign
and counterpart funds for such projects are managed by the TRRC (counterpart funding is
transferred directly from the Ministry of Finance to contractors and does not pass through RD). It
does not operate commercial bank accounts; its funds are held in a Ministry of Finance account
at the National Bank of Georgia. RD is funded quarterly in advance.
41.
The department runs ORIS accounting software (as do the TRRC and other Georgian
government departments) and claims to produce accruals based accounts.
42.
The ability to control project costs appears limited. Activities are coded by purpose and
geography rather than contract. Thus, expenses associated with a road whose maintenance
was contracted out to several companies would appear against a single code.
43.
RD is subject to occasional scrutiny by Georgia’s supreme audit institution, the Chamber
of Control. The last such scrutiny took place in 2008. RD is also subject to external audit,
auditors being appointed annually by competitive tender. RD has no internal audit department.
44.
In summary, RD’s financial management capacity appears adequate for its current tasks
but would need considerable strengthening if it were to handle externally financed projects.
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VI.
A.
PROJECT MANAGEMENT ARRANGEMENTS FOR ADB PROJECTS
Structure of PMU
45.
The TRRC was set up as a temporary organization to undertake the financial
management of World Bank road projects. Although it may in future become part of RD, it
remains for the moment a separate body. Financial management of ADB projects should
strengthen the long term capacity of RD, not the TRRC. It is therefore proposed that the ADB
PMU is formed within RD, with procurement and financial management support from TRRC.
46.
The proposed arrangement envisages the MRDI as executing agency (EA) and RD as
implementing agency (IA). The chairman of RD will be responsible for overall supervision of the
program. RD will establish a PMU headed by the deputy chairman of RD. It will comprise
technical staff seconded from RD and TRRC. A steering committee will be established with
representatives of the cabinet office, MRDI, RD, Transport Department (of behalf of MED), the
Ministry of Finance and the PMU head. The steering committee will be chaired by a deputy
minister of MRDI and will meet at least every six months to ensure interagency coordination,
review implementation progress, and provide approvals and guidance as necessary. Figure 4
illustrates the proposed set-up.
Steering committee
(Cabinet office, MRDI, RD,
MED, MoF, PMU head)
MRDI (EA)
Roads Department (IA)
TRRC:
PMU
Detailed design
i) financial management
ii) procurement
Supervision
External experts:
i) tunnel & bridge
engineering
Capacity building TAs
ii) safeguards
Road safety TA
Contract 1
Contract 2 etc
Figure 4: Proposed project management arrangements
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47.
The PMU will handle day-to-day implementation activities. It will also undertake periodic
functions such as (i) preparation of PFRs, (ii) engagement and supervision of consultants and
contractors, (iii) preparation of reports and (iv) obtainment of approvals from ADB and the
government. The PMU will report to the chairman of RD. The PMU will be supported by a team
of externally contracted qualified technical, safeguards, financial, and support staff to
supplement resources in RD.
Proposed funds flow arrangements are shown in Figure 5.
Treasury
ADB
Payment
Withdrawal application
plus certified
claim/invoice &
RD/PMU approval
Payment advice
RD/PMU approval
Application for
counterpart fund
release
Payment advice
Payment
48.
Certification by project
engineer
Contractor’s or
consultant’s claim or
invoice
Figure 5: Proposed funds flow arrangements
B.
PMU costs
1.
Financial management and procurement staff
49.
In order to undertake procurement and financial management in accordance with ADB
procedures, the TRRC would need to recruit and train additional staff. The PMU would also
have to hire support staff and budget for financial audit. Based on the TRRC’s 2009 budget the
cost for six additional professional staff, three support staff, additional overheads and training for
the professionals in the first year is shown in Table 9. The four year (2010-13) total implied by
Table 9 is USD0.60m.
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Table 9: PMU financial management staffing costs
Item
6 x professional staff at GEL20,000 (USD12,000)/yr
3 x support staff at GEL10,000 (USD6,000)/yr
Office etc overheads at 30% x staff costs
Audit fees (say)
Annual total
Initial training (say)
First year total
USD
72,000
18,000
27,000
20,000
137,000
50,000
187,000
Source: consultants’ estimates
2.
External expert support for the PMU
50.
In addition to financial management, the PMU will require external expert support in the
following areas:
•
construction
•
safeguards
51.
Construction experts will be required to monitor construction implementation and
supervision. Their task will be to ensure that implementation complies with the detailed design
and meets Georgian and international standards as appropriate. It is envisaged that intermittent
inputs by international bridge and tunnel engineers would be required.
52.
The role of the environmental and resettlement experts will be to ensure compliance by
the independent consultants hired by the IA.
Table 10: External support for the PMU
Item
Bridge engineer, 1 month/year, at USD25,000/mon
(international)
Tunnel engineer, 1 month/year, at USD25,000/mon
(international)
Environmentalist, 6 months/year, at USD2,500/mon
(domestic)
Resettlement expert, 6 months/year, at USD2,500/mon
(domestic)
Total
Total USD over 4 years
100,000
100,000
300,000
300,000
800,000
Source: consultants’ estimates
3.
53.
TA costs
Table 11 lists the proposed TAs and their estimated costs.
Table 11: TA costs
TA
Road safety (see Supplementary Appendix 4 and Appendix
13)
Capacity building TAs:
Transport strategy study (Appendix 13)
Training and capacity development (Appendix 13)
PPP TA (this supplementary appendix)
Total
Source: consultants’ estimates
Engconsult Ltd.
Total USD
725,000
600,000
750,000
454,000
2,529,000
17
VII.
A.
TRANSPORT SECTOR PPP AND TOLL ROADS IN GEORGIA
Transport sector PPP
1.
Introduction
54.
Public-private partnerships in the transport sector have made relatively little headway in
Georgia; there are none in the roads sector. Table 12 lists some transport sector examples.
Table 12: Transport sector PPP projects in Georgia
Project
Tbilisi airport, 2008
Sector
Aviation
Batumi airport
Aviation
Batumi container
terminal
Batumi port
Maritime
Poti port oil terminal
Maritime
Maritime
Details
The project company (TAV Georgia) has an 11.5 yr
lease on the airport from 2006 with investment
responsibility for a new terminal, taxiways and runway
widening (est cost $76.5m).
The project company is owned by Turkish
shareholders. IFC and EBRD have loan participation.
20 year lease with investment responsibility for new
terminal (now complete). $28.5m payment to
government. Project company controlled by TAV
Airports Holding Co.
48 year concession held by ICTSI of the Philippines
Management contract held by KazTransGas; GoG is
contracting party.
Construction and operation of a new oil terminal.
Project company is Channel Energy (Poti) Ltd, a JV
company formed in 2000 between Channel Energy
Ltd (Eire) and Poti Sea Port (Georgia). EBRD loan
participation up to $11.6m in parallel with $8m from
the Black Sea Trade Development Bank.
Source: EBRD and World Bank PPI websites; local knowledge
55.
Some of the reasons for the slow progress are to be found in EBRD’s annual
assessments of concession laws. Its 2008 assessment (Concession Laws Assessment 2007/8)
rated Georgia’s legal environment for private sector development as “low compliance” with
international best practice. It noted the following:
•
the scope of application (of the relevant law) is unclear
•
there are few provisions for the selection of concessionaires
•
the contracting authority is not clearly defined
56.
The EBRD did however note some positive features, for example concessionaires’ right
to bring claims against public agencies for abuse of power.
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2.
Roads sector
57.
The Road Law of 1994 permits the imposition of tolls on an existing road and allows the
creation of a private, tolled facility. The only conditions are that:
•
there must be an alternative, untolled route that is open to traffic
•
the proceeds of the toll must be used to maintain and develop the tolled facility
58.
There is no explicit prohibition of making profits from tolling – although such a prohibition
might be inferred from the second condition. There is no provision for the regulation of tolls.
59.
In 2007 the MED launched an expression of interest for a design and build concession
for the Natakhtari-Rikoti section of the East-West Highway. The World Bank was in dialogue
with the MED over this proposal and its Second East-West Highway project appraisal report
states that the Bank and the government agreed that the Bank could withdraw if it were not
satisfied with the proposed concession agreement.
60.
MED’s discussions with a potential investor in the East-West Highway broke down, or
were cancelled, during 2007. Earlier, in 2005, a structural survey of the Rikoti tunnel,
preparatory to a pilot PPP transaction, was proposed by the Public Private Infrastructure
Advisory Facility (PPIAF), but was eventually cancelled. Thus, despite PPP activities in other
sectors, no market for the provision of privately funded roads in Georgia has developed.
61.
In view of the lack of progress in roads PPP, a capacity building technical assistance
(TA) project is proposed – see section D below.
B.
Rikoti tunnel tolls
62.
The Rikoti tunnel is 1.75km long, has two lanes in a single bore. It was built in 1983 and
is in poor condition. It is on the East-West Highway a few kilometers west of Khashuri. It is in
poor condition and has no ventilation. Average tolled traffic through the tunnel is around 5,700
vehicles/day.
63.
Tolls are levied by virtue of Roads Department order no 6 of January 1999. This order
set the toll rates, which have not been changed since. Order no 6 was amended by order no 74
of 2000, which listed categories of individuals who are exempt from paying the charge. Both
orders apply only to the Rikoti tunnel. Tolls are paid in cash and are only payable when the
alternative route is open. (The alternative route has a very poor alignment and is frequently
closed in winter). Tolls and categories of exempt persons are set out in Table 13.
64.
Toll proceeds are not used for tunnel maintenance; they are simply part of RD’s
revenue. RD employs 14 people in its toll section.
Table 13: Rikoti tunnel tolls and exemptions
Item
Tolls
1. Passenger vehicles with up to 30 seats
2. Trucks carrying a load of up to 10t
3. Large vehicles not in category (1) or (2)
Exempt categories
GEL1.00
GEL2.00
GEL3.00
Police
Traffic police
Employees of the prosecution service
Employees of the intelligence service
65.
Tunnel traffic by toll class is summarised in Table 11. In addition to traffic, the table also
shows, for 2008-9, the number of days on which tolls were collected. During 2008 tolls were
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only collected on 75 percent of possible days. Tolls are not collected when the alternative route
is closed (usually by snow), but for most of August 2008 the reason was the conflict in South
Ossetia.
66.
Annual revenue based on 2007’s tolled traffic records would be GEL2.2m. Revenues are
strongly seasonal: monthly receipts in December-February are about 60 percent of the annual
average.
C.
Prospects for tolling the Ajara bypass
67.
In section VI the tolls needed to cover defined operating and maintenance expenses are
calculated. There remains however the broader question of whether the bypass is suitable for
tolling.
68.
69.
In favor of tolling are the following:
•
as required by law there is an alternative, toll-free route
•
the bypass saves time rather than distance and so is particularly attractive to those
with high values of time. Thus the toll would be progressive in the sense that it
would apply to the better off
•
the Rikoti tunnel shows that tolling of a single facility is feasible
However, against tolling must be reckoned:
•
Georgia has no experience of awarding such a concession in the transport sector
(Rikoti tolls do not cover defined expenses)
•
a proposal to toll would hinder the fast-track implementation of the project, as
would the legal process required to establish toll rates
•
tolling would reduce the economic internal rate of return of the bypass, both by
deterring traffic that would use it if it were free and by adding the cost of toll plazas
and toll operations to project costs
70.
On balance it is considered that the arguments against tolling outweigh those in favor of
it. It is therefore recommended that tolling not be introduced, at least in the short term, but that
the possibility be kept under review and re-appraised once demand for the bypass has been
clearly established.
D.
Proposed PPP TA
1.
Rationale
71.
The Government of Georgia supports the involvement of the private sector in
infrastructure. Evidence of this in the transport sector was the early efforts by the MED to
involve the private sector in the East-West Highway.
72.
The usual rationale for PPP is that, when facing appropriate incentives, a private
company will deliver a more cost-effective service to users than the public sector. In Georgia’s
case there is also a transit argument: transit countries may derive little direct economic benefit
from the traffic that used its infrastructure. This is undoubtedly so in the case the Ajara roads
projects, where it is estimated that some 42 percent of benefits go to transit traffic (see
Supplementary Appendix 6). Similar cases will arise from other bypass projects (e.g. those
proposed for the EW Highway). If a way can be found to recoup some infrastructure costs from
foreign beneficiaries without jeopardising the project’s economic return, then Georgia will
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benefit. It can be seen as a way of capturing the negative externalities of transit traffic as a
financial cash flow.
73.
RD, with World Bank support, is proposing to shift from contracted out maintenance to
performance based road maintenance contracts (PBCs) that could produce further savings (of
up to 50 percent). A proposed project component of the Third East-West Highway Project will
assist in developing a comprehensive framework for the introduction of PBC in Georgia. This
will give RD valuable experience in the design of appropriate incentives.
74.
The purpose of this TA is to move RD a step further than PBCs and prepare them for
deeper involvement by the private sector in road provision.
2.
Objective
75.
The objective will be to put RD in a position where it can invite bids for PPP contracts
without having to embark on time consuming preparatory studies. It should also complement
and improve delivery of PBC contracts.
76.
At the end of the TA it should be able to (i) identify and if possible implement any legal
changes that will need to be made, (ii) identify those types of asset that are best suited to PPP
(bridges, tunnels, bypasses etc), (iii) devise an appropriate payment vehicle (toll, shadow toll,
performance payments etc), (iv) devise suitable standard forms of contract and (v) obtain clear
guidance on the forms of guarantee, tax break etc that may be available from government.
3.
77.
Activities
Table 14 lists the principal activities.
Table 14: PPP TA activities
Activities
Legal:
review existing legislation and draft amendments as necessary
review existing contracts and identify lessons learned
Economic/financia
l:
identify assets for private sector involvement
recommend payment vehicle
at an outline level, undertake financial evaluations
undertake a review of the market for finance for infrastructure in
Georgia (donors, commercial banks etc) and the guarantees that may
be available
Contractual:
devise appropriate standard forms of contract
devise suitable procurement strategies
Other:
undertake a market review amongst potential bidders (attitude to
Georgia country risk etc)
Engconsult Ltd.
21
4.
Cost estimate
Table 15: PPP TA cost estimate
Individual
Rate, USD/mon
International:
Team leader/PPP expert (international)
30,000
Legal expert (international)
50,000
Economist/financial analyst
25,000
Contracts expert
25,000
Domestic:
Deputy team leader/PSP expert
4,000
Lawyer
10,000
Economist/financial analyst
3,000
Contracts expert
3,000
Support staff, translators accommodation
LS
etc
Total
Source: consultants’ estimates
Engconsult Ltd.
Months
Total USD
4
2
3
3
120,000
100,000
75,000
75,000
4
2
3
3
16,000
20,000
9,000
9,000
30,000
454,000
Table 16: Rikoti tunnel tolled traffic records
Year Toll class
Jan
2006
Engconsult Ltd.
2007
2008
2009
1
2
3
Total
1
2
3
Total
1
2
3
Total
Daysa
1
2
3
Total
Daysa
39,484
3,028
6,807
49,319
32,208
2,676
6,374
41,258
10
57,389
3,519
9,800
70,708
16
Vehicles tolled in month by toll category
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
187,687 134,022 111,901 96,429 81,024
9,400 9,954 7,968 7,196 8,406
16,154 15,234 14,544 12,208 13,282
213,241 159,210 134,413 115,833 102,712
68,916 86,307 119,670 109,540 115,334 160,569 226,903 161,857 143,009 106,128 44,289
5,994 7,666 7,492 8,637 8,756 10,612 11,497 12,146 11,924 8,849 5,655
13,226 16,749 17,091 19,489 19,577 20,142 21,222 22,282 23,452 19,035 9,188
88,136 110,722 144,253 137,666 143,667 191,323 259,622 196,285 178,835 134,012 59,132
44,778 106,270 29,992 135,997 123,722 179,558 52,877 149,498 140,087 145,787 111,027
4,176 8,396 2,556 10,231 8,461 10,972 2,685 9,898 10,047 10,042 9,160
9,575 19,519 5,170 24,095 21,552 24,667 5,802 25,386 25,127 26,515 19,458
58,529 134,185 37,718 170,323 153,735 215,197 61,364 184,782 175,261 182,344 139,645
12
28
9
31
29
31
7
30
31
30
26
115,695 112,888
5,787 5,603
18,279 18,813
139,761 137,304
27
29
Feb
Total
Mar
611,063
42,924
71,422
725,409
1,384,014
102,258
208,263
1,692,972
1,253,810
89,302
213,243
1,554,341
274
287,982
14,911
46,895
347,773
72
Source: Roads Department
Note:
(a) number of days in month during which tolling took place (alternative route usually closed during other days)
22
23
VIII.
A.
FINANCIAL EVALUATION OF THE AJARA BYPASS
Introduction
78.
Although tolls are ruled out in the short term (see section V), they remain a longer term
possibility. The basis for the evaluation is that of an operation and maintenance concession: a
private company is awarded the right to toll the bypass. From the proceeds of the tolls the
company is expected to cover all the operation and maintenance costs (including overlays but
excluding reconstruction or widening) for a period of 20 years. ADB interest expenses might
also be met from tolls.
79.
It is assumed that a conventional, traffic-based toll arrangement is implemented. In the
absence of a transit fee, traffic-based tolls provide a way for Georgia to extract some of the
producer surplus that Turkish (and other foreign) operators will derive from use of the bypass.
On the other hand, it will expose the concessionaire to traffic risk – a risk that he cannot
manage. Other arrangements, such as payments for road condition, lane availability and safety
performance, might well provide better value for money and should be considered before
contracts are drafted.
80.
The purpose of this section is twofold:
•
to assess the levels of toll that would be required to cover, at most, operation,
maintenance and interest expenses
•
to compare the incremental costs of maintenance with the Roads Department’s
budget
81.
By law, tolls may only be applied if there is an alternative road that is not tolled. This
means that the four lane section of project 1 (the Kobuleti bypass), where both the existing and
the bypass alignments are the same, cannot be tolled. Deducting the four lane section leaves a
42km tolled bypass.
B.
Investment cost and financing plan
1.
82.
Tranche 1: Kobuleti
Table 17 shows the investment cost for tranche 1 split between ADB and Georgia.
Table 17: Tranche 1 investment cost by financier
ADB
Amount
% of
USD m
cost
category
A Investment cost (2009 prices)
1 Civil works
Subgrade
16.4
16.4
100.0
Pavement
14.8
14.8
100.0
Structures
40.8
40.8
100.0
Tunnels
5.0
5.0
100.0
Slope stabilization
1.4
1.4
100.0
Roadside facilities etc
4.6
4.6
100.0
Miscellaneous
0.4
0.4
100.0
2 Equipment
0.2
0.2
100.0
3 Land and
10.1
0.0
0.0
Total
USD
m
Engconsult Ltd.
Amount
USD m
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
10.1
Georgia
% of cost
category
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
100.0
24
ADB
Amount
% of
USD m
cost
category
Total
USD
m
resettlement
4 Environmental
2.5
protection
5 Design & supervision
7.8
6 TAs:
Capacity building
1.8
Road safety
0.7
7 Taxes and dutiesa
18.5
Subtotal (A)
125.0
B Project management
PMU
1.4
Subtotal (B)
1.4
Total base costs
126.4
(A+B)
C Contingencies:
physicalb
12.3
pricec
20.8
IDCd
Total at current prices
3.5
163.0
Amount
USD m
Georgia
% of cost
category
2.5
100.0
0.0
0.0
7.8
100.0
0.0
0.0
0.0
0.7
0.0
96.5
100.0
100.0
0.0
77.2
0.0
0.0
18.5
28.5
0.0
0.0
100.0
22.8
1.4
1.4
100.0
100.0
0.0
0.0
0.0
0.0
99.3
78.5
28.5
22.8
11.2
20.1
91.8
96.5
1.0
0.7
8.2
3.5
3.5
132.7
100.0
81.4
0.0
30.3
0.0
18.6
Source: consultants’ estimates (see Supplementary Appendix 3 for base costs)
Notes: (a) VAT at 18 percent on all costs except land and TA and resettlement and 5 percent duty on all foreign
costs
(b) 10 percent on all items except PMU and TAs
(c) see Supplementary Appendix 1 for domestic and international inflation assumptions
(d) interest during construction on ADB loan
83.
The financing plan in Table 18 is predicated on counterpart funding from the Georgia
state budget only for land and resettlement costs and taxes and duties. The remainder is
financed by an ADB Special Funds loan, which carries the following terms:
•
interest rate 1 percent per annum during the grace period of eight years, 1.5
percent thereafter
•
the loan is amortised over 32 years with equal semi-annual repayments of principal
•
there are no front-end or commitment fees
•
borrowed funds are denominated in Special Drawing Rights
Table 18: Financing plan, tranche 1
Year
2009
2010
2011
2012
2013
Total
Share
ADB, USDm
3.3
17.1
41.3
41.2
29.7
132.7
81.4%
Source: consultants’ estimates
Engconsult Ltd.
Georgia, USDm
7.0
6.0
5.0
6.8
5.5
30.3
18.6%
Total USDm
10.3
23.1
46.4
48.0
35.2
163.0
100%
25
84.
The real weighted average cost of capital (WACC) is estimated at 2.3 percent, using the
ADB methodology (Table 18). In this table government funds are assumed to have the same
opportunity cost as National Bank of Georgia 91 day certificates of deposit (trading with an
average 13 percent yield on 30 March 2009). (Sovereign eurobond yields to maturity (in 2013)
were 18 percent on the same date).
Table 19: Weighted average cost of capital
Item
ADB loan
Georgia
grant
Total
1.00
A
Proportion of capital
0.81
0.19
B
Nominal rate
1.5%
13%
C
Tax rate
15%
0%
D
Tax adjusted cost of capital, Bx(1-C)
1.28%
13%
E
Inflation rate
0.5%
6%
F Real cost adjusted for tax,
(1+D)÷(1+E)-1
1.28%
6.6%
G
1.04%
1.23%
Weighted cost of capital = AxF
WACC
2.3%
2.3%
Source: consultants’ estimates
85.
The relevance of WACC calculated as above is limited. Commercial investors would
price their claims on the basis of asset risk and return, whereas a WACC of 2.3 percent is an
imputed price for public sector borrowers. For a commercial investor a necessary condition is
that the asset’s long term financial internal rate of return (FIRR) exceeds its WACC.
2.
86.
Tranches 1 and 2
Table 20 shows the investment cost for tranches 1 and 2.
Table 20: Bypass investment cost by financier
ADB
Amount
% of
USD m
cost
category
A Investment cost (2009 prices)
1 Civil works
Subgrade
25.0
25.0
100.0
Pavement
21.5
21.5
100.0
Structures
93.7
93.7
100.0
Tunnels
26.5
26.5
100.0
Slope stabilization
2.5
2.5
100.0
Roadside facilities etc
5.9
5.9
100.0
Miscellaneous
0.7
0.7
100.0
2 Equipment
0.2
0.2
100.0
3 Land and
18.4
0.0
0.0
resettlement
4 Environmental
3.0
3.0
100.0
Total
USD
m
Engconsult Ltd.
Amount
USD m
Georgia
% of cost
category
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
18.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
26
Total
USD
m
protection
5 Design & supervision
10.8
6 TAs:
Capacity building
1.8
Road safety
0.7
7 Taxes and dutiesa
37.2
Subtotal (A)
246.1
B Project management
PIU
1.4
Subtotal (B)
1.4
Total base costs
247.5
(A+B)
C Contingencies:
physicalb
24.4
pricec
46.8
IDCd
Total at current prices
6.1
324.8
ADB
Amount
% of
USD m
cost
category
Amount
USD m
Georgia
% of cost
category
10.8
100.0
0.0
0.0
1.8
0.7
0.0
190.6
100.0
100.0
0.0
77.4
0.0
0.0
37.2
55.5
0.0
0.0
100.0
22.6
1.4
1.4
192.0
100.0
100.0
77.6
0.0
0.0
55.5
0.0
0.0
22.4
22.5
45.1
92.5
96.3
1.8
1.7
7.5
3.7
6.1
265.7
100.0
81.8
0.0
59.1
0.0
18.2
Source: consultants’ estimates (see Supplementary Appendix 3 for base costs)
Notes: (a) VAT at 18 percent on all costs except land and resettlement and 5 percent duty on all foreign costs
(b) 10 percent on all items
(c) see Supplementary Appendix 1 for domestic and international inflation assumptions
(d) interest during construction on ADB loan
87.
18.
The financing plan shown in Table 21 has the same basis as that for tranche 1 in Table
Table 21: Financing plan, tranches 1 and 2
Year
2009
2010
2011
2012
2013
Total
Share
ADB, USDm
3.4
17.6
72.8
87.0
84.8
265.7
81.8%
Georgia, USDm
6.9
15.7
7.6
12.8
16.0
59.1
18.2%
Total USDm
10.3
33.3
80.4
99.8
100.8
324.8
100%
Source: consultants’ estimates
88.
C.
WACC is also the same as for tranche 1: 2.3 percent.
O&M and interest expenses
89.
O&M expenses are generated by HDM-4 as part of the economic evaluation
(Supplementary Appendix 6). The same values are used here, converted to financial prices by
adding VAT. In addition, toll administration and operation expenses are added at USD7,000/km
(not assessed rigorously: this is a typical value taken from work in China and Africa).
Engconsult Ltd.
27
D.
Tolls
1.
Collection systems
90.
A variety of toll collection systems is in operation around the world. These are the broad
categories:
•
plazas on the mainline: drivers pay as they pass through each plaza. Charges
reflect distance travelled but mainline queuing reduces bypass travel time savings.
Each plaza has to be sized to accommodate the full road capacity
•
pay on entry: a fixed fee is paid irrespective of distance travelled. Reduces
queuing and simple to operate and audit but likely to dissuade those making short
trips from using the bypass
•
pay on exit: as above
•
closed tolling: collect ticket on entry, pay according to distance travelled on exit.
Seen as “fair” but less simple to operate and audit than other systems
91.
The assumption here is that closed tolling is operated, as the principal aim of the project
is to reduce congestion on the existing roads by encouraging use of the bypass.
2.
Vehicle classes
92.
Pavement wear is largely a function of axle load and weight based tolling has been
adopted in some countries in order to reflect this. It requires use of electronic weighbridges and
is comparatively sophisticated. Adopting weight based tolling on this project would be
counterproductive if it led to heavy goods vehicles using existing roads (without weighbridges)
instead.
93.
The adopted alternative is the conventional one of increasing tolls with vehicle size, on
the assumption (only roughly true) that the value of a new road is greater for larger vehicles. A
typical set of 4 classes is shown in Table 22, together with the ratios of each toll rate to the toll
for a passenger car or SUV. The ratios are typical of those adopted in many countries.
Table 22: Vehicle classes for tolling
Definition
1
Cars &
SUVs
2
Minibuses and
LGVs
Ratio to class 1 vehicle toll
1
1.5
3
Buses
and
MGVs
2.0
4
HGVs and
articulated
trucks
3.0
Source: consultants’ estimates
3.
Toll levels
94.
Tolls have to strike a balance between achieving a high economic internal rate of return
(EIRR) and a high FIRR. The former is achieved at zero toll; the latter is achieved at a (much
higher) toll that just persuades the marginal vehicle to divert to the bypass. Experience suggests
that a toll at around one third to one half of perceived savings will produce a good compromise,
i.e. it will generate revenues close to their maximum without jeopardising an acceptable EIRR.
95.
HDM-4 calculates an average journey time saving of about 0.7h, which is worth
approximately USD6 for a car carrying three people, implying a toll rate of 4-6US¢ per veh-km
Engconsult Ltd.
28
(GEL0.07-0.10). This in turn implies that the charge for a car should not exceed around 5¢
(GEL0.08) per veh-km, with charges for other vehicles scaled up using Table 18 ratios. The
implied charge for a car using the Kobuleti bypass would thus be no more than USD1.40
(GEL2.40), and for the entire bypass USD2.10 (GEL3.50) – 2 to 3 times the Rikoti tunnel charge
for a small vehicle.
96.
The consultants’ financial evaluation model, Fineval, requires input tolls expressed per
PCU-km. For case A traffic on the bypass (see Supplementary Appendix 6), the weighted
average toll for all vehicles that is equivalent to a car toll of 5¢ is 5.55¢ (GEL0.093) per PCU/km.
97.
Rikoti tunnel tolls have never been increased (nor is there any such provision in existing
legislation). This is typical of many jurisdictions: tolls are left unchanged at their initial nominal
levels for several years. They may then be increased in order to capture some or all past
inflation. Complete indexation is unusual (and is not necessarily appropriate as debt service
expenses, often a large part of total costs, are seldom linked to inflation). Scenarios run here
are:
•
no indexation – the real value of tolls falls from year to year
•
partial indexation: tolls are indexed every five years. In the meantime they are left
unchanged
•
complete indexation
E.
Financial evaluation
1.
Approach
98.
Fineval works on the premise that a road is financed by a mixture of debt, equity and
grant, and toll income is used to operate the road, service the debt and distribute any remaining
surplus to shareholders. This arrangement is referred to here as a “full” concession.
99.
The premise here is different in three respects:
•
an O&M concession would not normally imply recovery of initial costs
•
the concessionaire would include a profit element in his price for undertaking
maintenance works (rather than take equity returns)
•
revenue and expenditure profiles will differ sharply and more so than under a full
concession: income rises as traffic rises, but interest expenses fall over time, while
maintenance costs tend to be both “lumpy” and uncertain as overlays are required
towards the end of the concession period
100. To handle the revenue and expenditure mismatch the operator would probably have to
deposit net proceeds in a sinking fund. When in credit the fund earns interest, when in deficit the
operator has to borrow to make up the shortfall. Adequate financial performance is signalled by
adequacy of the sinking fund, i.e. its ability to meet O&M expenses as they fall due with a nil (or
negligible) closing balance at the end of the term.
101.
Fineval assumptions are shown in Table 23.
Engconsult Ltd.
29
Table 23: Fineval assumptions
Item
O&M expenses
Toll collection efficiency
Accounts receivable
Accounts payable
Interest expenses on ADB loan
Contractor’s margin on O&M
expenses
Nominal GEL deposit interest ratea
(sinking fund)
Nominal GEL borrowing rate (to
cover short term sinking fund
deficits)a
Assumption
From corresponding HDM-4 run + 18% VAT
90%
Nil
1% x operating costs
1.5% x outstanding principal (as Table 12), repaid
over 32 years, converted to GEL at 1.67
20%
8%
15%
Source: consultants’ estimates
Note:
(a) rates for corporate borrowers in early June 2009; time deposits can attract up to 10 percent, but it is
unlikely that a weighted average greater than 8 percent could be achieved in practice
2.
Evaluation of tranche 1: Kobuleti
102. Results for tranche 1 are shown in Table 24. The range of tolls is solely the result of
alternative approaches to indexation. In terms of FIRR, each scenario produces sensibly the
same result: an FIRR of -1.0 percent.
Table 24: Tranche 1 evaluation results
Toll scenario
No indexation
Partial indexation
Full indexation
Requireda base toll
per PCU-km
GEL0.049 (2.9¢)
GEL0.034 (2.0¢)
GEL0.029 (1.7¢)
Base charge per km
Car
Articulated truck
GEL0.027 (1.6¢)
GEL0.080 (4.8¢)
GEL0.019 (1.1¢)
GEL0.056 (3.3¢)
GEL0.016 (1.0¢)
GEL0.047 (2.8¢)
Source: consultants’ estimates
Note:
(a) weighted average toll at 2009 prices required to cover O&M and ADB interest expenses
103. Tolls to achieve an FIRR equal to the WACC would have to be approximately five times
those in Table 19. For example, a fully indexed toll of GEL0.14 would be required (compared
with GEL0.029 in Table 23).
104. Tolls to recover O&M, but not interest expenses, would be approximately a quarter of
those in Table 24. For example, a fully indexed toll of GEL0.01 would be required (compared
with GEL0.029 in Table 24).
105. Using Table 24 results, the total charge for using the two lane section of the Kobuleti
bypass would be GEL0.8 for a car and GEL2.30 for an articulated truck (assuming no
indexation). These are modest charges relative to the journey time saving benefits of using the
bypass.
3.
Evaluation of tranches 1 and 2
106. Results for tranches 1 and 2 are shown in Table 25. The range of tolls is solely the result
of alternative approaches to indexation. In terms of FIRR, each scenario produces sensibly the
same result: an FIRR of -0.8 percent.
Engconsult Ltd.
30
Table 25: Tranches 1 and 2 evaluation results
Toll scenario
No indexation
Partial indexation
Full indexation
Requireda base toll
per PCU-km
GEL0.078 (4.7¢)
GEL0.053 (3.2¢)
GEL0.046 (2.8¢)
Base charge per km
Car
Articulated truck
GEL0.042 (2.5¢)
GEL0.13 (7.8¢)
GEL0.024 (1.4¢)
GEL0.08 (4.8¢)
GEL0.018 (1.1¢)
GEL0.05(3.0¢)
Source: consultants’ estimates
Note:
(a) weighted average toll at 2009 prices required to cover O&M and ADB interest expenses
107. Tolls to achieve an FIRR equal to the WACC would have to be approximately four times
those in Table 25. For example, a fully indexed toll of GEL0.19 would be required (compared
with GEL0.046 in Table 25).
108. Tolls to recover O&M, but not interest expenses, would be approximately a third of those
in Table 25. For example, a fully indexed toll of GEL0.015 would be required (compared with
GEL0.046 in Table 25).
109. Using Table 25 results, the total charge for using the two lane section of the bypass
would be GEL1.8 for a car and GEL5.5 for an articulated truck (assuming no indexation). As in
the case of tranche 1 these are modest charges relative to the journey time saving benefits of
using the bypass.
F.
Incremental maintenance expenses
110. Total maintenance expenses over 20 years from HDM-4 for tranches 1 and 2 are
USD9.3m (at 2009 financial prices), or USD0.5m (GEL0.8m) per year. These values include
overlay costs of USD5m towards the end of the evaluation period.
111. Total maintenance expenses represent 3.0 percent of RD’s 2009 routine maintenance
budget of GEL25.8m (Table 2). Overlays would not normally be considered part of routine
maintenance. If they are deducted the burden falls to 1.3 percent, a small and easily tolerated
increase. This is the long term position: for the first few years there should be very little
additional expenditure at all.
Engconsult Ltd.
31
ANNEX A:
TRRC’s RESPONSES TO FINANCIAL MANAGEMENT QUESTIONNAIRE
Topic
1.
Response
Implementing Agency
What is the entity’s legal status /
registration?
1.2
Has the entity implemented an externallyfinanced project in the past (if so, please provide
details)?
1.3
What are the statutory reporting
requirements for the entity?
1.4
Is the governing body for the project
independent?
1.5
Is the organizational structure
appropriate for the needs of the project?
2.
Funds Flow Arrangements
2.1
Describe (proposed) project funds flow
arrangements, including a chart and explanation of
the flow of funds from ADB, government and other
financiers.
Public Law Legal Entity
Yes (7 WB Projects and 4
Grants)
The World Bank, Ministry
of Finance of Georgia, Line
Ministry, Roads
Department, State
Treasury Service
Yes
Yes
See attached Chart 1
2.2
Are the (proposed) arrangements to
transfer the proceeds of the loan (from the
government / finance ministry) to the entity
satisfactory?
Yes
2.3
What have been the major problems in the
past in receipt of funds by the entity?
N/A
2.4
In which bank will the Imprest Account be
opened?
2.5
Does the (proposed) project implementing
unit (PIU) have experience in the management of
disbursements from ADB?
2.7
Does the entity have/need a capacity to
manage foreign exchange risks?
Engconsult Ltd.
Remarks
There are no problems
with regard to receipt of
funds after opening
Project Accounts for cofinancers and
Government funds at
the State Treasury
Service
PIU has experience in
At present all Project
Accounts are opened at the cooperating with local
and foreign commercial
State Treasury Service
banks
No
PIU has experience in
management of
disbursements from
IDA, IBRD and Trust
Funds
Yes
32
2.8
Topic
How are the counterpart funds accessed?
2.9
How are payments made from the
counterpart funds?
2.10
If part of the project is implemented by
communities or NGOs, does the PIU have the
necessary by such agencies?
2.11
Are the beneficiaries required to contribute
to project costs? If beneficiaries have an option to
contribute in kind (in the form of labor), are proper
guidelines formulated to record and value the labor
contribution?
3.
Staffing
3.1
What is the (proposed) organizational
structure of the accounting department? Attach an
organization chart.
Response
Through the State Treasury
Service
There are sub-accounts
with special treasury codes
for each Project are
opened at the State
Treasury Service and
payments are made based
on submitted liabilities and
payment orders
No
Yes, contribution is made
only in form of 30% cofinancing of all project
costs. Therefore, there are
no proper guidelines
formulated to record and
value the labor contribution
Accounting Department
consists of Chief
accountant and
Accountant, Finance
Department consists of
Finance Manager and
Finance Assistant
See attached Terms of
Reference of Finance
Department and CVs of
finance staff
Yes
3.2
Identify the (proposed) accounts staff,
including job title, responsibilities, educational
background and professional experience. Attach
job descriptions and CVs of key accounting staff.
3.3
Is the project finance and accounting
function staffed adequately?
3.4
Is the finance and accounts staff
Yes
adequately qualified and experienced?
3.5
Is the project accounts and finance staff
No
trained in ADB procedures?
3.6
What is the duration of the contract with the Automatically renewable 6finance and accounts staff?
months contract
3.7
Indicate key positions not contracted yet,
N/A
and the estimated date of appointment.
Yes, please see attached
3.10
Does the project have written position
TRRC FMM
descriptions that clearly define duties,
responsibilities, lines of supervision, and limits of
authority for all of the officers, managers, and staff?
Engconsult Ltd.
Remarks
PIU has enough
reporting and
monitoring features built
into its systems to track
the use of project
proceeds by the Roads
Department
33
Topic
3.11
At what frequency are personnel
transferred?
3.12
What is training policy for the finance and
accounting staff?
Response
N/A
Finance and accounting
staff has opportunity to
attend ILO Training
Courses and World Bank
workshops
4.
Accounting Policies and Procedures
Yes
4.1
Does the entity have an accounting system
that allows for the proper recording of project
financial transactions, including the allocation of
expenditures in accordance with the respective
components, disbursement categories, and sources
of funds? Will the project use the entity accounting
system?
Yes
4.2
Are controls in place concerning the
preparation and approval of transactions, ensuring
that all transactions are correctly made and
adequately explained?
Yes, see attached Chart of
4.3
Is the chart of accounts adequate to
Accounts
properly account for and report on project activities
and disbursement categories?
Yes
4.4
Are cost allocations to the various funding
sources made accurately and in accordance with
established agreements?
4.5
Are the General Ledger and subsidiary
Yes
ledgers reconciled and in balance?
Yes
4.6
Are all accounting and supporting
documents retained on a permanent basis in a
defined system that allows authorized users easy
access?
Segregation of Duties
Yes
4.7
Are the following functional responsibilities
performed by different units or persons: (i)
authorization to execute a transaction; (ii) recording
of the transaction; and (iii) custody of assets
involved in the transaction?
Yes
4.8
Are the functions of ordering, receiving,
accounting for, and paying for goods and services
appropriately segregated?
Yes
4.9
Are bank reconciliations prepared by
someone other than those who make or approve
payments?
Budgeting System
4.10
Do budgets include physical and financial
Yes
targets?
Yes
4.11
Are budgets prepared for all significant
activities in sufficient detail to provide a meaningful
tool with which to monitor subsequent
performance?
Engconsult Ltd.
Remarks
34
Topic
Response
Yes
4.12
Are actual expenditures compared to the
budget with reasonable frequency, and
explanations required for significant variations from
the budget?
4.13
Are approvals for variations from the
Yes, in advance
budget required in advance or after the fact?
4.14
Who is responsible for preparation and
PIU Director and Finance
approval of budgets?
Manager
Yes
4.15
Are procedures in place to plan project
activities, collect information from the units in
charge of the different components, and prepare
the budgets?
Yes
4.16
Are the project plans and budgets of project
activities realistic, based on valid assumptions, and
developed by knowledgeable individuals?
Payments
Yes
4.17
Do invoice-processing procedures provide
for: (i) Copies of purchase orders and receiving
reports to be obtained directly from issuing
departments? (ii) Comparison of invoice quantities,
prices and terms, with those indicated on the
purchase order and with records of goods actually
received? (iii) Comparison of invoice quantities with
those indicated on the receiving reports? (iv)
Checking the accuracy of calculations?
Yes
4.18
Are all invoices stamped PAID, dated,
reviewed and approved, and clearly marked for
account code assignment?
Yes
4.19
Do controls exist for the preparation of the
payroll and are changes to the payroll properly
authorized?
Policies And Procedures
4.20
What is the basis of accounting (e.g., cash,
Modified cash based
accrual)?
method
4.21
What accounting standards are followed?
IPSAS
Yes
4.22
Does the project have an adequate policies
and procedures manual to guide activities and
ensure staff accountability?
4.23
Is the accounting policy and procedure
Yes
manual updated for the project activities?
Yes
4.24
Do procedures exist to ensure that only
authorized persons can alter or establish a new
accounting principle, policy or procedure to be used
by the entity?
Yes
4.25
Are there written policies and procedures
covering all routine financial management and
related administrative activities?
Engconsult Ltd.
Remarks
35
Topic
Response
Yes
4.26
Do policies and procedures clearly define
conflict of interest and related party transactions
(real and apparent) and provide safeguards to
protect the organization from them?
4.27
Are manuals distributed to appropriate
Yes
personnel?
Cash and Bank
4.28
Indicate names and positions of authorized
Mr. George Tsagareli
signatories in the bank accounts.
Ms. Marina Majagaladze
N/A
4.29
Does the organization maintain an
adequate, up-to-date cashbook, recording receipts
and payments?
N/A
4.30
Do controls exist for the collection, timely
deposit and recording of receipts at each collection
location?
4.31
Are bank and cash reconciled on a monthly
N/A
basis?
N/A
4.32
Are all unusual items on the bank
reconciliation reviewed and approved by a
responsible official?
4.33
Are all receipts deposited on a timely
N/A
basis?
Safeguard over Assets
4.34
Is there a system of adequate safeguards
Yes
to protect assets from fraud, waste and abuse?
Yes
4.35
Are subsidiary records of fixed assets and
stocks kept up to date and reconciled with control
accounts?
4.36
Are there periodic physical inventories of
Yes
fixed assets and stocks?
4.37
Are assets sufficiently covered by
Yes
insurance policies?
Other Offices and Implementing Entities
4.38
Are there any other regional offices or
No
executing entities participating in implementation?
4.39
Has the project established controls and
procedures for flow of funds, financial information,
accountability, and audits in relation to the other
offices or entities?
4.40
Does information among the different
offices/implementing agencies flow in an accurate
and timely fashion?
4.41
Are periodic reconciliations performed
among the different offices/implementing agencies?
Engconsult Ltd.
Yes
Yes
Yes
Remarks
PIU has enough
experience in
performing cash
operations and
maintaining cash-books
See attached FMM
Roads Department is
involved in project
implementation
36
Topic
Other
4.42
Has the project advised employees,
beneficiaries and other recipients to whom to report
if they suspect fraud, waste or misuse of project
resources or property?
5.
Internal Audit
5.1
Is there an internal audit department in the
entity?
Response
Remarks
Yes
WB, MOF, MORDI,
RDMRDI
N/A
See attached FMM for
internal control
procedures
5.2
What are the qualifications and experience
of audit department staff?
5.3
To whom does the internal auditor report?
5.4
Will the internal audit department include
the project in its work program?
5.5
Are actions taken on the internal audit
findings?
6.
External Audit
6.1
Is the entity financial statement audited
regularly by an independent auditor? Who is the
auditor?
6.2
Are there any delays in audit of the entity?
When are the audit reports issued?
6.3
Is the audit of the entity conducted
according to the International Standards on
Auditing?
6.4
Were there any major accountability issues
brought out in the audit report of the past three
years?
6.5
Will the entity auditor audit the project
accounts or will another auditor be appointed to
audit the project financial statements?
6.6
Are there any recommendations made by
the auditors in prior audit reports or management
letters that have not yet been implemented?
6.7
Is the project subject to any kind of audit
from an independent governmental entity (e.g., the
supreme audit institution) in addition to the external
audit?
6.8
Has the project prepared acceptable terms
of reference for an annual project audit?
7.
Reporting and Monitoring
N/A
7.1
Are financial statements prepared for the
entity? In accordance with which accounting
standards?
7.2
Are financial statements prepared for the
implementing unit?
Engconsult Ltd.
N/A
N/A
N/A
Yes
Deloitte & Touch
No
Yes
No
Deloitte & Touch
No
Yes
Yes
Yes, IPSAS
N/A
Tax Inspection,
Chamber of Control,
Finance Police, etc.
37
Topic
7.3
What is the frequency of preparation of
financial statements? Are the reports prepared in a
timely fashion so as to useful to management for
decision making?
Response
Yes
7.4
Does the reporting system need to be
adapted to report on the project components?
7.5
Does the reporting system have the
capacity to link the financial information with the
project's physical progress? If separate systems
are used to gather and compile physical data, what
controls are in place to reduce the risk that the
physical data may not synchronize with the
financial data?
7.6
Does the project have established financial
management reporting responsibilities that specify
what reports are to be prepared, what they are to
contain, and how they are to be used?
No
Yes
Yes
7.7
Are financial management reports used by
Yes
management?
Yes
7.8
Do the financial reports compare actual
expenditures with budgeted and programmed
allocations?
Yes
7.9
Are financial reports prepared directly by
the automated accounting system or are they
prepared by spreadsheets or some other means?
8.
Information Systems
8.1
Is the financial management system
computerized?
8.2
Can the system produce the necessary
project financial reports?
8.3
Is the staff adequately trained to maintain
the system?
8.4
Does the management organization and
processing system safeguard the confidentiality,
integrity and availability of the data?
Supporting documents – see list in main text
Engconsult Ltd.
Yes
Yes
Yes
Yes
Remarks
Weekly, monthly,
quarterly, annual
Financial Statements
for different
organizations
PIU produces following
quarterly reports PMR ( Project
Monitoring Report) and
its relevant FMR
(Financial Monitoring
Report)
Formats of Financial
Reports differ
depending on the
addressee – World
Bank, Georgian
Government, etc.
38
ANNEX B
RD’S RESPONSES TO FINANCIAL MANAGEMENT QUESTIONNAIRE
Note : Roads Department was unable to complete the questionnaire. Only those sections that were completed are
shown here.
Topic
Response
4. Accounting Policies and Procedures
4.1 Does the entity have an accounting system that
allows for the proper recording of project financial
transactions, including the allocation of expenditures in
accordance with the respective components,
disbursement categories, and sources of funds? Will the
project use the entity accounting system?
4.2 Are controls in place concerning the preparation and
approval of transactions, ensuring that all transactions
are correctly made and adequately explained?
4.3 Is the chart of accounts adequate to properly
account for and report on project activities and
disbursement categories?
Yes
4.4 Are cost allocations to the various funding sources
made accurately and in accordance with established
agreements?
Yes
4.5 Are the General Ledger and subsidiary ledgers
reconciled and in balance?
Yes
4.6 Are all accounting and supporting documents
retained on a permanent basis in a defined system that
allows authorized users easy access?
Yes
Yes
Yes
Segregation of Duties
4.7 Are the following functional responsibilities
performed by different units or persons: (i) authorization
to execute a transaction; (ii) recording of the transaction;
and (iii) custody of assets involved in the transaction?
4.8 Are the functions of ordering, receiving, accounting
for, and paying for goods and services appropriately
segregated?
Yes
4.9 Are bank reconciliations prepared by someone other
than those who make or approve payments?
Yes
Budgeting System
4.10 Do budgets include physical and financial targets?
4.11 Are budgets prepared for all significant activities in
sufficient detail to provide a meaningful tool with which to
monitor subsequent performance?
4.12 Are actual expenditures compared to the budget
with reasonable frequency, and explanations required for
significant variations from the budget?
Engconsult Ltd.
Yes
Remarks
Accounting
software "ORIS
Accounting"
39
Topic
4.13 Are approvals for variations from the budget
required in advance or after the fact?
4.14 Who is responsible for preparation and approval of
budgets?
4.15 Are procedures in place to plan project activities,
collect information from the units in charge of the
different components, and prepare the budgets?
4.16 Are the project plans and budgets of project
activities realistic, based on valid assumptions, and
developed by knowledgeable individuals?
Payments
Response
4.17 Do invoice-processing procedures provide for: (i)
Copies of purchase orders and receiving reports to be
obtained directly from issuing departments? (ii)
Comparison of invoice quantities, prices and terms, with
those indicated on the purchase order and with records
of goods actually received? (iii) Comparison of invoice
quantities with those indicated on the receiving reports?
(iv) Checking the accuracy of calculations?
4.18 Are all invoices stamped PAID, dated, reviewed
and approved, and clearly marked for account code
assignment?
Yes
4.19 Do controls exist for the preparation of the payroll
and are changes to the payroll properly authorized?
Policies And Procedures
Yes
Yes
4.20 What is the basis of accounting (e.g., cash,
accrual)?
Bank transfer
4.21 What accounting standards are followed?
International
Standards
4.22 Does the project have an adequate policies and
procedures manual to guide activities and ensure staff
accountability?
4.23 Is the accounting policy and procedure manual
updated for the project activities?
4.24 Do procedures exist to ensure that only authorized
persons can alter or establish a new accounting principle,
policy or procedure to be used by the entity?
4.25 Are there written policies and procedures covering
all routine financial management and related
administrative activities?
4.26 Do policies and procedures clearly define conflict of
interest and related party transactions (real and
apparent) and provide safeguards to protect the
organization from them?
4.27 Are manuals distributed to appropriate personnel?
Cash and Bank
Engconsult Ltd.
Remarks
is not used the
stamp "payed"
40
Topic
4.28 Indicate names and positions of authorized
signatories in the bank accounts.
Response
Remarks
4.29 Does the organization maintain an adequate, up-todate cashbook, recording receipts and payments?
Yes
Cash payment
operations are
provided very
rarely
4.30 Do controls exist for the collection, timely deposit
and recording of receipts at each collection location?
Yes
4.31 Are bank and cash reconciled on a monthly basis?
Yes
4.32 Are all unusual items on the bank reconciliation
reviewed and approved by a responsible official?
Yes
4.33 Are all receipts deposited on a timely basis?
Yes
Safeguard over Assets
4.34 Is there a system of adequate safeguards to protect
assets from fraud, waste and abuse?
Yes
4.35 Are subsidiary records of fixed assets and stocks
kept up to date and reconciled with control accounts?
Yes
4.36 Are there periodic physical inventories of fixed
assets and stocks?
Yes
4.37 Are assets sufficiently covered by insurance
policies?
Yes
Other Offices and Implementing Entities
4.38 Are there any other regional offices or executing
entities participating in implementation?
4.39 Has the project established controls and
procedures for flow of funds, financial information,
accountability, and audits in relation to the other offices
or entities?
4.40 Does information among the different
offices/implementing agencies flow in an accurate and
timely fashion?
4.41 Are periodic reconciliations performed among the
different offices/implementing agencies?
Other
Engconsult Ltd.
41
Topic
4.42 Has the project advised employees, beneficiaries
and other recipients to whom to report if they suspect
fraud, waste or misuse of project resources or property?
Response
Remarks
5. Internal Audit
5.1 Is there an internal audit department in the entity?
5.2 What are the qualifications and experience of audit
department staff?
5.3 To whom does the internal auditor report?
5.4 Will the internal audit department include the project
in its work program?
5.5 Are actions taken on the internal audit findings?
6. External Audit
6.1 Is the entity financial statement audited regularly by
an independent auditor? Who is the auditor?
Yes
6.2 Are there any delays in audit of the entity? When are
the audit reports issued?
6.3 Is the audit of the entity conducted according to the
International Standards on Auditing?
6.4 Were there any major accountability issues brought
out in the audit report of the past three years?
6.5 Will the entity auditor audit the project accounts or
will another auditor be appointed to audit the project
financial statements?
6.6 Are there any recommendations made by the
auditors in prior audit reports or management letters that
have not yet been implemented?
No
6.7 Is the project subject to any kind of audit from an
independent governmental entity (e.g., the supreme audit
institution) in addition to the external audit?
6.8 Has the project prepared acceptable terms of
reference for an annual project audit?
7. Reporting and Monitoring
7.1 Are financial statements prepared for the entity? In
accordance with which accounting standards?
7.2 Are financial statements prepared for the
implementing unit?
Engconsult Ltd.
International
Standards
N/A
42
Topic
7.3 What is the frequency of preparation of financial
statements? Are the reports prepared in a timely fashion
so as to useful to management for decision making?
7.4 Does the reporting system need to be adapted to
report on the project components?
7.5 Does the reporting system have the capacity to link
the financial information with the project's physical
progress? If separate systems are used to gather and
compile physical data, what controls are in place to
reduce the risk that the physical data may not
synchronize with the financial data?
7.6 Does the project have established financial
management reporting responsibilities that specify what
reports are to be prepared, what they are to contain, and
how they are to be used?
7.7 Are financial management reports used by
management?
7.8 Do the financial reports compare actual expenditures
with budgeted and programmed allocations?
7.9 Are financial reports prepared directly by the
automated accounting system or are they prepared by
spreadsheets or some other means?
Engconsult Ltd.
Response
quarterly;
timely
Remarks
FINAL REPORT
Roads Department
Asian Development Bank
Supplementary Appendix 8
Land Acquisition and
Resettlement Framework
TA No. 7059-GEO
Preparing the Ajara Bypass Roads
Development Project
August 2009
ENGCONSULT LTD.
21 Queen Street E., Suite 302
Brampton, Ontario, L6W 3P1 Canada
ECL CONSULTANTS LTD.
Road No 2, House No. 18, (2nd Floor)
Mirpur 11, Dhaka 1221, Bangladesh.
www.eng‐consult.com BT LTD.
11 Brothers Kakabadze St.,
0108 Tbilisi, Georgia
Land Acquisition and Resettlement Framework
(LARF)
Sub Regional Road Corridors Development
Program
July 2009
Roads Department (RDMRDI)
Ministry of Regional Development and Infrastructure
of Georgia
ii
TABLE OF CONTENTS
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
ABBREVIATIONS
DEFINITIONS OF LAR TERMS
INTRODUCTION
LAR-RELATED PROGRAM PROCESSING REQUIREMENTS
INDIGENOUS PEOPLES AND VULNERABLE GROUPS
LARP PREPARATION AND IMPLEMENTATION
LEGAL AND POLICY BACKGROUND
E.1
Georgia Law and Regulation on Land Acquisition and Resettlement
E.2
ADB’s Involuntary Resettlement Policy
E.3
Comparison of Georgia Law on LAR and ADB Resettlement Policy
E.4
LARF Principles and Entitlements adopted for this MFF
COMPENSATION ELIGIBILITY AND ENTITLEMENT FOR THE PROJECT
F.1
Eligibility
F.2
Compensation Entitlements
F.3
Assessment of Compensation Unit Values
F.4
Conditions for Expropriation
GENDER IMPACTS AND MITIGATION MEASURES
PUBLIC PARTICIPATION AND DOCUMENTS DISCLOSURE
INSTITUTIONAL ARRANGEMENTS
I.1
RDMRDI
I.2
Consultants
I.3
Local Governments
I.4
Other Agencies and Institutions
COMPLAINTS AND GRIEVANCES
MONITORING AND EVALUATION
CAPACITY BUILDING AND TRAINING IN LAR IMPLEMENTATION
RESETTLEMENT BUDGET AND FINANCING
LARP IMPLEMENTATION PROCESS
Tables:
Table 1: Comparison of Georgian Laws on LAR and ADB Resettlement Policy
Table 2: Compensation Matrix
Table 3: Grievance Resolution Process
Figures:
Figure 1: LAR Organogram
Boxes
Box 1 : LAR Task Process
Annexes:
Annex A: Synopsis of Selected Georgia Laws and Regulations on LAR
Annex B: Summary of ADB’s Policy on Involuntary Resettlement
Annex C: Outline of a Standard LARP
iii
iv
1
1
2
2
3
3
4
4
5
6
7
7
8
9
9
9
10
10
11
11
11
13
13
14
15
15
5
6
13
12
15
17
21
23
iii
ABBREVIATIONS
ADB
AF
AH
AP
Asian Development Bank
Affected Family
Affected Household
Affected Person
DMS
DRD
Detailed Measurement Survey
Development and Resettlement Division
IA
IPSA
LAR
LARF
LARP
LRAG
MFF
NAPR
NGO
PPTA
PSA
RDMRDI
Implementing Agency
Initial Poverty and Social Assessment
Land Acquisition and Resettlement
Land Acquisition and Resettlement Framework
Land Acquisition and Resettlement Plan
Land Registration Agency of Georgia
Multi Tranche Financial Facility
National Agency of Public Registry
Non-Governmental Organization
Project Preparatory Technical Assistance
Poverty and Social Assessment
Road Department of the Ministry of Regional Development and
Infrastructure of Georgia
iv
DEFINITIONS OF LAR TERMS
Beneficiary Community - All persons and households situated within the governmentowned or acquired property who voluntarily seeks to avail and be part of the Project and
represented by a community association that is duly recognized by the community residents,
accredited by the local government, and legally registered with the appropriate institutions.
Compensation - Payment in cash or in kind of the replacement cost of the acquired assets.
Entitlement - Range of measures comprising compensation, income restoration, transfer
assistance, income substitution, and relocation which are due to affected people, depending
on the nature of their losses, to restore their economic and social base.
Host population - Community residing near the area where the Project beneficiaries
propose to voluntarily resettle as part of the Project.
Improvements - Structures constructed (dwelling unit, fence, waiting sheds, animal pens,
utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the
person, household, institution, or organization.
Land Acquisition - The process whereby a person is compelled by a government agency to
alienate all or part of the land a person owns or possesses to the ownership and possession
of the government agency for public purpose in return for a consideration.
Affected Person/People - Any person affected by Project-related changes in use of land,
water, natural resources, or income losses.
Affected Family - All members of a household residing under one roof and operating as a
single economic unit, who are adversely affected by the Project, or any of its components. It
may consist of a single nuclear family or an extended family group.
Rehabilitation - Compensatory measures provided under the Policy Framework on
involuntary resettlement other than payment of the replacement cost of acquired assets.
Relocation - the physical relocation of a AP/AF from her/his pre-Project place of residence.
Replacement Cost - The value determined to be fair compensation for land based on its
productive potential, the replacement cost of houses and structures (current fair market price
of building materials and labor without depreciation or deductions for salvaged building
material), and the market value of residential land, crops, trees, and other commodities.
Resettlement - All measures taken to mitigate any and all adverse impacts of the Project on
AP’s property and/or livelihood, including compensation, relocation (where relevant), and
rehabilitation of the damaged/removed infrastructure and installations.
Sacrebolu: This is the village administration
Gamgebeli: This is the administrative unit of each Rayon
Rayon: It is the local government
1
LAND ACQUISITION AND RESETTLEMENT FRAMEWORK (LARF)
A.
INTRODUCTION
1.
This Land Acquisition and Resettlement Framework (LARF) for the Southern
Corridor Roads Development Program (the Program) has been prepared by The Road
Department of the Ministry of Regional Development and Infrastructure of Georgia
(RDMRDI) and is fully endorsed by the RDMRDI. The Project, to be financed by ADB
under the Multi Tranche Financial Facility (MFF) will be implemented over a period of 5
years and will cover three tranches with various projects in each tranche. The Program will
be implemented by RDMRDI and will finance the civil works for construction of various
roads.
2.
The objective of this document is to provide guidance in the
preparation/implementation of Land Acquisition and Resettlement (LAR) tasks for the
projects under each tranche and to establish the necessary covenants to ensure that this
is done in compliance to ADB’s Policy on Involuntary Resettlement and procedures for the
MFF. This LARF sets out the procedures for the preparation of Land Acquisition and
Resettlement (LAR) tasks for projects under the Program and sets the objectives,
principles, compensation eligibility/entitlement criteria, legal/institutional frameworks,
participation/consultation procedures and grievance redress mechanisms to be employed
to compensate, resettle and rehabilitate the living standards of Affected Families (AF) and
People (APs.) This LARF also sets out the steps for preparing LAR Plans (LARP) in case
they are needed.
3.
Before Program appraisal this LARF will be translated into Georgian and distributed
to all interested stakeholders. The English version will be posted on the ADB website.
B.
LAR-RELATED PROGRAM PROCESSING REQUIREMENTS
4.
Based on ADB policy/practice appraisal of the MFF and each tranche and approval
of the implementation of tranche subprojects will require the preparation of the following:
(i) A LARF for the whole financial facility and applicable to all subprojects. The LARF
will be reviewed, if necessary updated, and submitted for ADB approval at least
annually and always at the start of the preparation of each tranche.
(ii) An Initial Poverty and Social Assessment (IPSA) indicating, for each tranche,
whether LAR impacts are likely to occur, type of impacts, likely magnitude, and
whether there may be Indigenous Peoples (IP) affected, and;
(iii) If LAR occurs, a LAR Plan (LARP) for each project under a tranche based on
detailed design and commensurate to the severity of impacts1. The LARP will
include detailed compensation and administration budgets and implementation
schedules linking LAR tasks to the initiation of civil works.
1 Based on ADB Operation Manual (OM) F2/OP and BO (2006) a project is classified as
Category “A” and a full LARP is needed if > 200 people suffer significant impacts (relocation or
loss of >10% of productive assets). A project will instead be classified as Category “B” when less
than 200 people suffer significant impacts. Category “C” projects have no LAR impacts. No
subproject will affect indigenous Peoples. The WB does not have a similar resettlement
classification system but its policy also envisages that for minor impacts a shorter document,
called “Abbreviated Resettlement Plan”, is prepared.
2
5.
Based on ADB policy/practice, the appraisal of the MFF and each specific tranche
and the approval of project implementation will be based on the following LAR-related
conditions:
(i)
(ii)
(iii)
(iv)
C.
Appraisal of MFF and Project 1: Conditional to preparation/disclosure of a
LARF for the whole MFF acceptable to ADB and preparation of the LARPs
for the tranche projects requiring LAR.
Appraisal
of
subsequent
projects:
Conditional
to
review/update/disclosure of the LARF, and preparation of needed LARPs
consistent with the revised LARF and acceptable to ADB for projects with
LAR.
Contract award for each project: Conditional to the update/disclosure of the
relevant LARPs based on the final design and accepted by ADB. The
updated LARPs will reflect final impacts, final AP lists and final compensation
rates and be readily implementable.
Provision of notice to proceed to contractors: Conditional to the full
implementation of the relevant LARP (full delivery of compensation and
rehabilitation) for the relevant project. Such a condition will be clearly spelled out
in the text of the civil works contract.
INDIGENOUS PEOPLES AND VULNERABLE GROUPS
6.
No impacts on Indigenous Peoples are expected for the Program. Special attention
will also be given to identifying and addressing the needs of disadvantaged groups such as
the landless, the poor, female-headed households, the elderly and the disabled, through
measures included in the LARP to try and improve (over and above cash compensations
and restoration of) their livelihoods.
D.
LARP PREPARATION AND IMPLEMENTATION
7.
LARP preparation activities will be initiated as part of the preparation of each
tranche project starting with LAR screening tasks and ending with a readily implementable
a LARP based on detailed design. Following the finalization of road alignment and
identification of the land parcels, cross-sections design and land acquisition requirements
a, Detailed Measurement Survey (DMS), a census of all AF and AP and a valuation of all
affected asset will be carried out to assess the AF/P losses and relative compensation
budgets. In addition, a sample socio-economic survey will be conducted based on the 20%
of the AFs. The Socio-economic Survey will cover their major socio-economic features of
the affected population (ethnicity, education level, modes of livelihood, and sources of
income, poverty/income levels, and house type/value and land tenure types. The DMS and
census survey include the following:
•
•
•
•
•
•
8.
Inventory of the 100% loss of land parcel and property
Categorization and measurements of loss;
Measurements of the affected assets/structures, including their replacement valuation;
AF characteristics, including social, economic and demographic profile;
The AP/AF Census will identify all AF and their members by number, gender and
age; all AF by land occupancy status; all severely AF (losing >10% of their land and
income; and all vulnerable AFs (women headed family or family under poverty line).
Identification of non titleholders
LARP preparation/implementation Process. LARP preparation for the first
3
tranche of the Program will be carried out by the PPTA consultants; the same tasks for the
following tranches will be carried out by the detailed design consultants. LARP
implementation will be overseen by the supervision consultants. LARP
preparation/implementation will be carried out according to the following process:
a. LARP preparation. This phase will be carried out in parallel with the preparation of
the projects feasibility study (See Annex C for a standard outline of a LARP).
b. LARP update/finalization. This phase will be carried out during the preparation of
detailed design and will include eventual updates of the impacts/AP data, possible
revisions of compensation rates and the administrative work done to legalize
legalizable APs. After the final LARP is approved by ADB, the civil works contracts
will be signed.
c. LARP implementation. This phase will be carried out after the final LARP is
approved. In principle civil works will start only after all compensation and
rehabilitation is provided to the APs, However, if in a road there are sections
without impacts and sufficiently long to economically justify construction, the civil
works can initiate immediately after the signing of contract awards. Following the
preparation of a due diligence report fully documenting the absence of impacts,
E.
LEGAL AND POLICY BACKGROUND
E.1
Georgia’s Laws and Regulations on Land Acquisition and Resettlement
9.
In Georgia, the legislative acts given below regulate the issues of obtaining State
ownership rights to privately owned land parcels based on the necessary public needs
caused due to road constructions activities:
•
•
•
•
•
•
•
The Constitution of Georgia, August 24, 1995
The Civil Code of Georgia, June 26, 1997
The Law of Georgia on Protection of Cultural Heritage
The Law of Georgia on Notary Actions
The Law of Georgia on Privatization of State-owned Agricultural Land, July 8, 2005
The Law of Georgia on Ownership Rights to Agricultural Land, March 22, 1996
The Law of Georgia on Registration Ownership Rights to Immovable Property,
December 28, 2005
• The Law of Georgia on the Rules for Expropriation of Ownership for Necessary
Public Need, July 23, 1999
• The Civil Procedural Code of Georgia, November 14, 1997
10.
The existing Laws provide that compensation for lost assets, including land,
structures, trees and standing crops, should be based on the current market price without
depreciation. Overall the above laws/regulations provide that the principle of replacement
cost compensating at market value is reasonable and legally acceptable. The laws also
identify the types of damages eligible to compensation and indicate that compensation is
to be given both for loss of physical assets and for the loss of incomes. Finally, these laws
place strong emphasis on consultation and notification to ensure that the APs participate in
the process. Income loss due to loss of harvest and business closure will be compensated
to cover net loss. The above-listed laws and regulations give the possibility of applying the
following mechanisms for legal application of the property rights:
4
•
Obtaining the right on way without expropriation through the payment of due
compensation (on the basis of negotiations or a court decision) prior to
commencement of the activities.
•
Expropriation which gives the possibility of obtaining permanent right to land and/or
other real estate property on the basis of Eminent Domain Law or a court decision
through the payment of due compensation;
11.
Attempts should first be made to acquire private land on the basis of negotiation
with individual affected entities. Should the negotiation fail, the power of eminent domain
will be sought, and expropriation process will start. Under the existing Law in Georgia, the
president will issue an order for expropriation based on the request from relevant state
agencies. Relevant regional court will assess the presidential order and determine the case of
public needs, and grant the expropriation entity rights to obtain land. The court will also appoint
a third party to assess the market value of lost assets and determine the compensation
payable to relevant land owners accordingly to the value of assets thus found.
E.2.
ADB’s Involuntary Resettlement Policy
12.
The ADB Policy on Involuntary Resettlement is based on the following principles:
• Involuntary resettlement is to be avoided or at least minimized.
• Compensation/Rehabilitation provisions will ensure the maintenance of the
APs’ pre-project standards of living.
• APs should be fully informed and consulted on LAR compensation options.
• APs’ socio-cultural institutions should be supported/used as much as possible.
• Compensation will be carried out with equal consideration of women and men.
• Lack of legal title should not be a bar to compensation and/or rehabilitation.
• Particular attention should be paid to households headed by women and other
vulnerable groups, such as Indigenous Peoples, and appropriate assistance
should be provided to help them improve their status.
• LAR should be conceived and executed as a part of the project, and the full
costs of compensation should be included in project costs and benefits.
• Compensation and resettlement subsidies will be fully provided prior to
clearance of right of way/ ground leveling and demolition.
E.3
Comparison of Georgia Law/Regulation on LAR and ADB Resettlement Policy
13.
Overall, the legislation of Georgia adequately reflects the major provisions of the
ADB Resettlement Policy but a few differences are to be noted (for a short summary of
these Georgian laws see Annex A). The most significant of these differences is that under
Georgian legislation/regulation, emphasis is put on the definition of formal property rights
and on how the acquisition of properties for public purposes is to be implemented and
compensated while in the case of ADB policy emphasis is put both on the compensation of
rightfully owned affected assets and on the general rehabilitation of the livelihood of
Affected People (AP) and Households (AH). Because of this, ADB policy complements the
Georgian legislation/regulation with additional requirements related to (i) the economic
rehabilitation of all AP/AF (including those who do not have legal/formal rights on assets
acquired by a project); (ii) the provision of indemnities for loss of business and income, (iii)
and the provision of special allowances covering AP/AH expenses during the resettlement
process or covering the special needs of severely affected or vulnerable AP/Ahs (See
Annex B for a synopsis on ADB’s Policy on Invloumatry Resettlement). Also, in addition,
the legislation of Georgia does not require any specific measure regarding the need to
5
prepare LARPs based on extensive public consultations. The differences between Georgia
law/regulation and ADB policy are outlined in Table1 below
Table 1: Comparison of Georgian Laws on LAR and ADB Resettlement Policy
Georgia Laws and Regulations
ADB Involuntary Resettlement Policy
Land compensation only for titled landowners In Lack of title should not be a bar to compensation and/or
practice legaliizable land owners are also rehabilitation. Non-titled landowners receive rehabilitation.
compensated after they are issued with the
necessary papers
Only registered houses/buildings are compensated All affected houses/buildings are compensated for
for damages/demolition caused by a project
buildings damages/demolition caused by a project
Crop losses compensation provided only to Crop losses compensation provided to landowners and
registered landowners.
sharecrop/lease tenants whether registered or not
Land Acquisition Committee is the only pre-litigation Complaints & grievances are resolved informally through
final authority to decide disputes and address community participation in the Grievance Redress
complaints regarding quantification and assessment of Committees (GRC), Local governments, and NGO and/or
compensation for the affected assets.
local-level community based organizations (CBOs).
Decisions regarding LAR are discussed only Information on quantification, affected items value
between the landowners and the Land Acquisition assets, entitlements, and
compensation/financial
Authorities.
assistance amounts are to be disclosed to the APs prior
to appraisal.
No provision for income/livelihood rehabilitation, ADB policy requires rehabilitation for income/livelihood,
allowances for severely affected or vulnerable APs, severe losses, and for expenses incurred by the APs
or resettlement expenses.
during the relocation process.
No specific plan for public consultation is provided Public consultation and participation is the integral part
under the Georgian laws
of ADB’s policy which is a continuous process at
conception, preparation, implementation and finally at
post implementation period
14.
To reconcile the gaps between Georgia laws/regulations and ADB Policy, RDMRDI
has drafted this LARF for the Project, ensuring compensation at replacement cost of all
items, the rehabilitation of informal settlers, and the provision of subsidies or allowances
for AFs that may be relocated, suffer business losses, or may be severely affected.
E.4
LARF Principles and Entitlements adopted for this MFF
15.
Based on the Georgian laws on land acquisition and ADB’s Policy on Involuntary
Resettlement, 1995, core involuntary resettlement principles are developed for this MFF
which are as follows:
•
•
•
•
•
•
•
•
Land acquisition, and other involuntary resettlement impacts will be avoided or
minimized exploring all viable alternative project designs;
where unavoidable, a time-bound LARP will be prepared and APs will be assisted in
improving or at least regaining their pre-program standard of living;
consultation with APs on compensation, disclosure of resettlement information to APs,
and participation of APs in planning and implementing sub-projects will be ensured;
vulnerable and severely affected APs will be provided special assistance;
Non-titled APs (e.g., informal dwellers or squatters, APs without registration details) will
receive a livelihood allowance in lieu of land compensation and will be fully
compensated for losses other than land.;
Legalizable APs will be legalized and fully compensated for land losses.
Provision of income restoration and rehabilitation;
The LARP will be disclosed to the APs in the local language
6
•
•
F.
Payment of compensation, resettlement assistance and rehabilitation measures will
be fully provided prior to the contractor taking physical acquisition of the land and
prior to the commencement of any construction activities on a particular package
and .
Establishment of appropriate grievance redresses mechanisms to solve APs
grievance if occurs.
COMPENSATION ELIGIBILITY AND ENTITLEMENTS FOR THE PROJECT
16.
LAR tasks under the Project will be implemented according to a compensation
eligibility and entitlements framework in line with both Georgia laws and regulation and
ADB Policy. A summary entitlements matrix is included in Table 2 below.
Table 2: Compensation Matrix
Type of Loss
Land
Permanent loss of
agricultural land
Application
Definition of APs
Compensation Entitlements
AF losing agricultural land
Owner with full registration
regardless of impact severity
Non-Agricultural Land AF losing their commercial/
residential land
Cash compensation at replacement cost or
through
replacement
land
equal
in
value/productivity to the plot lost and at location
acceptable to APs where feasible
Legalizable Owner
These AP will be legalized and provided with
cash compensation at replacement cost.
Informal Settlers/ APs with no
One time self-relocation allowance in cash
registration/valid documentation equal to 1 year at minimum salary
Owner with full registration
Cash compensation at replacement cost or
through replacement land equal in value to the
plot lost and at location acceptable to APs
where feasible
Legalizable Owner
APs will be legalized and provided with cash
compensation at replacement cost..
Renter/Leaseholder
Rental allowances in cash for 3 months
Informal Settlers/ APs with no
One time self-relocation allowance in cash
registration/valid documentation equal to 1 year at minimum salary
Buildings and Structures
Residential and non
residential
structures/assets
All AFs regardless of their legal
ownership/ registration status
(including legalizable and
Informal Settlers)
Loss Of Community Infrastructure/Common Property Resources
Loss of common
Community/Public Assets Community/Government
property resources
Loss of Income and Livelihood
Crops
Standing crops affected
All AFs regardless of legal
status (including legalizable and
Informal Settlers)
Trees
Trees affected
All AFs regardless of legal
status (including legalizable and
Informal Settlers)
Business/Employment Business/employment loss
All AFs regardless of legal
status (including legalizable and
Informal Settlers)
Allowances
Severe Impacts
>10% income loss
All severely affected AFs
including informal settlers
Relocation/Shifting
Transport/transition costs
All AFs to be relocated
Full impact: Cash compensation for loss of
building/ structures at full replacement costs free of
depreciation and transaction costs
Partial impact: compensation for repairs
Reconstruction of the lost structure in consultation
with community and restoration of their functions
Crop compensation in cash at market rate by
default at to gross crop value of expected harvest.
Cash compensation at market rate on the basis
of type, age and productive value of the trees.
Owner: (i). (permanent impact) cash indemnity of 1
year net income; (ii) (temporary impact) cash indemnity
of net income for months of business stoppage.
Assessment to be based on tax declaration or, in its
absence, minimum salary..
Permanent worker/employees: indemnity for lost
wages equal to 3 months of minimum salary.
Agricultural income: 1 additional crop compensation
covering 1 year yield from affected land.
Other income: 1additional compensation for 3
months of minimum salary.
Provision of sufficient allowance to cover
7
Type of Loss
Application
Vulnerable People
Allowances
Temporary Loss
Temporary impact
during construction
Unforeseen
resettlement impacts,
if any
Definition of APs
Compensation Entitlements
transport expenses and livelihood expenses for
the transitional period (up to 1 month).
AFs below poverty line, headed Allowance equivalent to 3 months of minimum salary
by Women, disabled or elderly and employment priority in project-related jobs
All AFs
Due compensation will be assessed and paid
based on this LARF during construction.
Road Department and the construction contractor
will address and mitigate/compensate unforeseen
resettlement impact during project
F.1
Eligibility
17.
APs entitled for compensation or at least rehabilitation provisions under the Project are:
•
•
•
•
All APs losing land either covered by legal title/traditional land rights,
Legalizable, or without legal status;
Tenants and sharecroppers whether registered or not;
Owners of buildings, crops, plants, or other objects attached to the land; and
APs losing business, income, and salaries.
18.
Compensation eligibility will be limited by a cut-off date to be set for each
subproject on the day of the beginning of the AP Census and DMS. APs who settle in the
affected areas after the cut-off date will not be eligible for compensation. They, however
will be given sufficient advance notice, requested to vacate premises and dismantle
affected structures prior to project implementation. Their dismantled structures materials
will not be confiscated and they will not pay any fine or suffer any sanction.
F.2
Compensation Entitlements
19.
Entitlement provisions for APs losing land, houses, and income and rehabilitation
subsidies will include provisions for permanent or temporary land losses, buildings losses,
crops and trees losses, a relocation subsidy, and a business losses allowance based on
tax declarations and/or lump sums. These entitlements are detailed below:
•
Agricultural land impacts will be compensated at replacement value in: (i) cash at
current market rates or based on an assessment of the reproduction cost of the affected
land, or (ii) through replacement land equal in value/productivity to the plot lost and at
location acceptable to APs if alternate land is feasible and available. When >10% of an
AP agricultural land is affected, AP (owners, leaseholders and sharecroppers) will get an
additional allowance for severe impacts equal to the market value of a year’s gross yield
of the land lost. In case of severe impact on other income, the APs will be paid additional
compensation for 3 months income. Transaction taxes and fees will be paid by the EA or
waived. Legalizable APs will be legalized and paid as titled owners. Non-legalizable APs
will be compensated with one time self-relocation allowances in cash equal to 1 year of
minimum salary. If the remaining part of a particular plot becomes inaccessible or
unviable for cultivation or for any use after the acquisition, then the same can be
compensated if the owner offers.
•
Non agricultural land (Residential/commercial land). Legal settlers will be
compensated at replacement rate either (i) in form cash at current market rates free of
transaction costs and depreciation or (ii) through replacement land equal in value to the
8
plot lost and at location acceptable to APs if alternate land is feasible and available.
Renters/leaseholders will receive a 3 months rent allowance. Non-titled and nonlegalizable land users will be compensated with one time self relocation allowances in
cash equal to 1 year of minimum salary.
•
Houses, buildings, and structures will be compensated in cash at replacement cost
free of deductions for depreciation, and transaction costs irrespective of the registration
status of the affected item. In case of partial impacts (<15%) and unwillingness of the
owner to relocate, compensation will cover only the affected portion of a building and its
full rehabilitation to previous use. Full compensation will be paid if partial impacts imperil
the viability of the whole building.
•
Crops: Cash compensation at current market rates for the gross value of 1 year’s
harvest by default. Crop compensation will be paid both to landowners and tenants
based on their specific sharecropping agreements.
•
Trees: Cash compensation at market rate based on type, age and productivity of trees.
•
Businesses: If business is lost permanently it will be compensated in cash equal to a 1year income based on tax declaration or, if unavailable, based on the official minimum
salary; temporary business losses will be compensated in cash for the business
interruption period based on tax declaration or, if unavailable, official minimum salary.
•
Permanent business workers and employees: Indemnity for lost wages for the period
of business interruption up to a maximum of 3 months.
•
Relocation subsidy: APs forced to relocate will receive a relocation subsidy sufficient to
cover transport costs and living expenses for 1 month.
•
Community Structures and Public Utilities: Will be fully replaced or rehabilitated so as
to satisfy their pre-project functions.
•
Vulnerable people Livelihood: Vulnerable people (APs below poverty line and widow
or elder headed households) will be given priority in employment in project-related jobs.
F.3
Assessment of Compensation Unit Values
20.
The methodology for assessing unit compensation values of different items is as follows:
(i)
Agricultural Land will be valued at replacement rates according to two different
methodologies depending on whether in affected areas active land markets exist or not.
a. Where active land markets exist land will be compensated at replacement
rate based on a survey of land sales in the year before the impact survey.
b. Where active land markets do not exist land will be compensated based on
the reproduction cost of a plot with equal features, access and productivity
to the plot lost. A clear valuation methodology for these cases will be
detailed in the LARPs.
(ii)
(iii)
Houses/buildings will be valued at replacement value based on construction type,
cost of materials, type of construction, labor, transport and other construction costs.
No deduction for depreciation and transaction costs will be applied. For the partial
impact (if the loss is less than 15% then compensation is paid for the repair of the
affected structure)
Annual crops will be valued at net market rates at the farm gate for the first year
9
crop. In the eventuality that more than one-year compensation is due to the APs
the crops after the first will be compensated at gross market value.
(iv)
Trees will be valued according to different methodologies depending whether the
tree lost is a wood tree or a productive tree.
a. Wood trees will be valued based on age category (a. seedling; b. medium
growth and c. full growth) and wood value and volume.
b. Fruit/productive trees will be valued based on age (a. seedling; b. adult-not fruit
bearing; and c. fruit bearing). Stage (a) and (b) trees will be compensated based on
the value of the investment made; stage (c) trees will be compensated at net market
value of 1 year income x number of years needed to grow a new fully productive tree.
21.
The unit compensation rates will be assessed by Project consultants or by the
authorized independent evaluator based on clear and transparent methodologies
acceptable to ADB. The assessed compensation rates will then be verified and certified by
the resettlement division in RDMRDI.
F.4
Conditions for Expropriation
22.
Acquisition of land through expropriation proceedings entails lengthy procedures
often may be resisted. Such an approach will thus be pursued under the Program only in
extreme cases when negotiations between APs and RDMRDI fail and no alternative land is
available to implement a subproject. In these cases, however, RDMRDI will not occupy the
needed plots until: (i) the proper judicial process as defined by the law is initiated; (ii) a
court injunction has been obtained and properly communicated to the APs; and (iii) the
compensation/rehabilitation amounts are deposited in an escrow account.
G.
GENDER IMPACT AND MITIGATION MEASURES
23.
Women have important economic roles in project areas and engage in a very wide
range of income making activities in the agricultural and marketing sector. The project will
pay particular attention to ensure that women are the recipients of the compensation
pertaining to their activities and to ensure that women who are de-facto household heads
are clearly listed as beneficiaries of compensation and rehabilitation proceedings under the
loan. In order to ensure the above the following actions will be considered:
•
•
•
•
H.
Include women in the impact enumerators.
Impact assessment of AFs/APs indicating the total number of families and people
must be gender-disaggregated to pinpoint how many women are likely to be
affected by the Project and establish their pre-Project conditions.
Women will be major participants in the consultation processes to determine and
negotiate for compensation entitlements and implement the RP.
Special attention will be given to the impact of resettlement on women and other
vulnerable groups during monitoring and evaluation of the RP.
PUBLIC CONSULTATION, PARTICIPATION AND DOCUMENTS DISCLOSURE
24.
Concerned officials of centre, district/rayon, municipalities and villages/sacrebolu
will be informed about the Project, and their assistance will be solicited in the conduct of
the inventory of affected assets and the Census of APs and the DMS. Also, prior to the
finalization of the LARP and its submission to Project authorities, the APs will be
thoroughly informed on the results of the Census and DMS, and their preferences on
compensation or other resettlement assistance will be given due consideration. The
10
processes and mechanisms ensuring the active involvement of APs and other
stakeholders will be detailed in the LARPs which will also include an appendix with date,
list of participants, and minutes of consultation meetings.
25.
This LARF in Georgian will be disclosed on the RDMRDI website and at RDMRDI
offices before Project appraisal. The LARF in Georgian will also be disclosed to the APs at
the relevant Rayon office (Gamgebeli) and at village administration (Sacrebolu) once
subprojects are identified. Its English version will be disclosed on the ADB website prior to
Project appraisal and after the LARF is endorsed by the Implementing Agency (IA) which
will be RDMRDI in this case. Once a LARP for a subproject has been prepared and
approved by RDMRDI and ADB it will be disclosed at relevant Rayon office (Gamgebeli)
and at village administration (Sacrebolu). A pamphlet in Georgian, summarizing
compensation eligibility and entitlement provisions, will be sent to all AP/AFs before the
initiation of the compensation/rehabilitation process and before signing contract awards.
The consultation process will be continued throughout the project cycle.
I.
INSTITUTIONAL ARRANGEMENTS
26.
Asian Development Bank (ADB) will be the funding agency of the MFF. The
compensation/rehabilitation program described in this LARF involves distinct processes
and dynamics and different actors. The Road Department of the Ministry of Regional
Development and Infrastructure of Georgia (RDMRDI) will be the Implementing Agency
(IA) having the lead responsibility for road construction, as well as the implementation of
this LARF and subsequently the LARP. RDMRDI with the assistance of the consultants will
develop and implement the LARP for each project based on the policy and procedures set
out in the LARF. In addition to the RDMRDI, a number of other government departments
and private agents will play an instrumental role in the design, construction and operation
of the project. Pursuant to the active legislation, the Ministry of Natural Resources and
Environmental Protection is responsible for environmental issues. The Ministry of Justice is
responsible for legal matters regarding land ownership, and National Agency of Public
Registry (NAPR) within the Ministry of Justice is in charge of the registration of land
ownership and its transfer through purchase agreement from landowners to the Road
Department. The local government at Rayon and village level will also be involved. The
role of each of these actors is detailed below.
I.1.
RDMRDI
27.
RDMRDI has overall responsibility for the MFF. This includes preparation,
implementation and financing of all LAR tasks and cross-agency coordination. RDMRDI
will exercise its functions through its existing resettlement division (DRD) which will be
responsible for the general management of the planning and implementation of all LAR
tasks.
28.
DRD. The DRD staffed with a sufficient number of LAR specialists, will be tasked
with all LAR coordination tasks at central and local government level and will be
responsible for: (i) screening the projects and ensuring that the LARPs are properly
prepared and sent to ADB for review, (ii) supervising the consultants that prepare the
LARPs and assist in their implementation; (iii) establishing needed LAR capacity at each
regional level office where LAR is relevant; (iv) ensuring proper internal monitoring; and (v)
hire, following ADB recommendation the external monitoring agency. DRD will also provide
all needed documentation to ensure the prompt allocation of LAR budgets to the APs and
will maintain the coordination of all LAR related activities.
11
29.
Local RDMRDI Offices The Regional RDMRDI offices will assist the activities of
the DRD with one dedicated officer who will facilitate the communication between the DRD,
the local governments and the APs and assist in implementing LAR tasks related to the
local administration.
I.2
Consultants.
30.
Different types of consultants will be involved in LAR tasks:
a.
PPTA consultants: These will include international and local LAR capacity
and needed survey teams and will carry out all field-surveys and prepare the
needed LARPs for the first tranche.
b. Design consultants: These will include international and local LAR capacity
and needed survey teams carry out the same activities for updating/finalizing
the LARPs of first tranche based on the detailed engineering design and will
also prepare LARPs for the following tranches.
c. Supervision consultants: These will include international and local LAR
capacity and needed survey teams and will assist in the overall supervision of
the projects. The supervision consultants will also oversee LARP
Implementation and carry out external monitoring and evaluation of the
implementation of LARP for following tranches of the Program.
e. Independent Asset valuators. These will be accredited private firms to be
hired by the PPTA or Design consultants to carry out the evaluation of affected
assets.
I.3
Local Governments
31.
Local government especially at Rayon level has direct jurisdiction for land
administration, valuation, verification and acquisition. To confirm the surveys and the asset
valuations carried out by the LAR consultants RDMRDI through its consultants will
establish in Rayon where LARPs are to be implemented a Rayon Level LAR team which
will have designated officials from the Rayon administration. The LAR team at Rayon level
will have close coordination with the village administration for the LAR activities. Effective
inter-agency coordination at Rayon and village level will be assigned to the regional level
RDMRDI.
I.4
Other Agencies and Institutions
32.
Several other institutions will participate to the preparation and implementation of
LAR tasks. These are:
(i)
Ministry of Finance. The budgets for the implementation of the LARPs will
be provided to RDMRDI by the Ministry of Finance following the official
approval of the final LARPs.
(ii)
Ministry of Justice. The Ministry of Justice is responsible for legal matters
regarding land ownership, and National Agency of Public Registry within the
Ministry of Justice is in charge of the registration of land ownership and its
transfer through purchase agreement from landowners to the Road
Department.
12
33.
(iii)
Local Courts. In case of expropriation issues RDMRDI will have to rely on
the Rayon court which based on due legal process will have to review the
expropriation cases, carry out a hearing and decide whether the land can
be expropriated and at what price. In order to expedite the expropriation
process RDMRI will negotiate with the courts a fast-tracked action plan.
(iv)
ADB. Beside supervising periodically the Project ADB will review all LARPs
and provide clearance to contract awards signing and initiation of civil works
to all subprojects with LAR.
The LAR organogram is provided below in Figure 1:
Figure 1: LAR Organogram and Action
RDMDRI
DRD
Regional Level
RDMDRI
ADB
Monitoring Agency/RDMRDI
Supervision Consultant
PPTA /Design Consultant Team
Government of
Georgia
Rayon Level LAR Team
Local Government
(Village/Sacrebolu)
Affected People
13
J.
COMPLAINTS AND GRIEVANCES
34.
A grievance mechanism will be available to allow an AP appealing any
disagreeable decision, practice or activity arising from land or other assets compensation.
APs will be fully informed of their rights and of the procedures for addressing complaints
whether verbally or in writing during consultation, survey, and time of compensation. Care
will always be taken to prevent grievances rather than going through a redress process.
This can be obtained through careful LAR design and implementation, by ensuring full
participation and consultation with the APs, and by establishing extensive communication
and coordination between the affected communities, the EA, and local governments in
general. Complaint & Grievances will be addressed through the process described below
in Table 3.
Table 3: Grievance Resolution Process
Land/ Crops Compensation Issues
1. First, complaints resolution will be attempted at village level with the involvement of village authorities and
Rayon level LAR team at the sacrebolu level.
2. If the grievance is not solved at the sacrebolu level, then the AP will lodge the written complaint at the
regional level RDMRDI. If after the regional level RDMRDI intervention no solution has been reached a
grievance can be directly lodged to DRD/RDMRDI. The AP must lodge the complaint within 2 weeks after
receiving response on the original complaint from the regional level RDMRDI and must produce documents
supporting his/her claim.
3. The DRD/RDMRDI at central level will provide a response within 2 weeks of registering the complaint. The
DRD/RDMRDI decision must be in compliance with this LARF provisions.
4. Should the grievance redress system fail to satisfy the AP, they can pursue further action by submitting their
case to the appropriate court of law (Rayon Court).
K.
MONITORING AND EVALUATION
Land acquisition and resettlement tasks under the Program will be subjected to monitoring.
Monitoring will be the responsibility of RDMRDI. Internal monitoring will be carried out
routinely by DRD/RDMRDI. The results will be communicated to ADB through the quarterly
project implementation reports. Indicators for the internal monitoring will be those related to
process and immediate outputs and results. This information will be collected directly from
regional RDMRDI level and reported monthly to DRD/RDMRDI to assess the progress and
results of LARP implementation, and to adjust the work program, if necessary. The monthly
reports will be quarterly consolidated in the standard supervision reports to ADB. Specific
monitoring benchmarks will be: (i) Information campaign and consultation with APs; (ii)
Status of land acquisition and payments on land compensation; (iii) Compensation for
affected structures and other assets; (iv) Relocation of APs; (v) Payments for loss of
income; (vi) Selection and distribution of replacement land areas; and (vii) Income
restoration activities
35.
The above information will be collected by DRD/RDMRDI which is responsible for
monitoring the day-to-day resettlement activities of the project through the following
instruments:
a)
b)
c)
d)
e)
f)
Review of census information for all APs;
Consultation and informal interviews with APs;
In-depth case studies;
Sample survey of APs;
Key informant interviews; and
Community public meetings.
14
36.
External monitoring will be carried out twice a year, and its results communicated to
DRD/RDMRDI and ADB through semi-annual reports. Subprojects whose implementation
time frame will be under six months will be monitored only once. RDMRDI will need
external help for the monitoring of first tranche project LAR activities. However, the external
monitoring for the following tranches will be carried out by the supervision consultant. The
external monitoring will also assess the status of project affected vulnerable groups such
as female-headed households, disabled/elderly and families below the poverty line.
Indicators for External Monitoring tasks will include:
(i) Review and verify internal monitoring reports prepared by DRD/RDMRDI;
(ii) Review of the socio-economic baseline census information of pre-displaced
persons;
(iii) Identification and selection of impact indicators;
(iv) Impact assessment through formal and informal surveys with the affected persons;
(v) Consultation with APs, officials, community leaders for preparing review report; and
(vi) Assess the resettlement efficiency, effectiveness, impact and sustainability,
drawing lessons for future resettlement policy formulation and planning.
37.
The RDMRDI will carry out a post-implementation evaluation of each LARP about
a year after completion of its implementation. The compelling reason for this study is to
find out if the objectives of the LARP have been attained or not. The benchmark data of
socioeconomic survey of severely affected APs conducted during the preparation of the
LARP and Poverty Social Assessment (PSA) will be used to compare the pre and post
project conditions. The post- implementation evaluation will recommend appropriate
supplemental assistance for the APs should the outcome of the study show that the
objectives of the LARP have not been attained. The following will be considered as the
basis for indicators in post implementation evaluation of the project:
(i)
(ii)
Socio-economic conditions of the APs in the post-resettlement period;
Communications and reactions from APs on entitlements, compensation, options,
alternative developments and relocation timetables etc.;
(iii) Changes in housing and income levels;
(iv) Rehabilitation of informal settlers;
(v) Valuation of property;
(vi) Grievance procedures;
(vii) Disbursement of compensation; and
(viii) Level of satisfaction of APs in the post resettlement period.
L.
CAPACITY BUILDING AND TRAINING IN LARP IMPLEMENTATION
38.
To allow an effective execution of all LAR related tasks some expansion of the
capacity on LAR currently available at DRD/RDMRDI may be needed. As soon as the
project will become effective RDMRDI will carry out a capacity need assessment and will
define the capacity building activities and if needed the additional experts required.
Financing for these capacity building initiatives will be included under the capacity building
component of the Project.
39.
Capacity building exercise will be needed at the Rayon level. The designated team
at the Rayon level for the LAR activities will be provided with the capacity enhancement
related to the LAR planning and implementation and will be made familiar with ADB’s
policy on Involuntary Resettlement. This will be done through on the job training and by
15
participation with the LAR activities. The consultants responsible for the LAR activities in
various stages, i.e., feasibility study, detailed design and supervision will work closely with
the Rayon level LAR team. A continuous consultation process and informal training
through discussion with the Rayon level LAR team and its due involvement in the planning
and implementation of LAR activities will be facilitated by the consultant’s team.
40.
All concerned staff both at DRD, Rayon and field level involved in LAR activities will
undergo a week-long orientation and training in ADB resettlement policy and management.
At the very beginning of Project implementation the training will be provided by a
consultant hired by RDMRDI, later it will be provided by DRD. Training will cover the
following topics:
i).
ii).
iii).
iv).
v).
M.
Principles and procedures of land acquisition;
Public consultation and participation;
Entitlements and compensation & assistance disbursement mechanisms;
Grievance redress; and
Monitoring of resettlement operations.
RESETTLEMENT BUDGET AND FINANCING
41.
All RP preparation and implementation costs, including cost of compensation and
LAR administration, will be considered an integral part of Project cost and will be
contributed as a counterpart fund by the Georgia Government, in particular RDMRDI. Each
LARP will include a budget section indicating (i) unit compensation rates for all affected
items and allowances, (ii) methodology followed for the computation of unit compensation
rates, and (iii) a cost table for all compensation expenses including administrative costs
and contingencies. Costs for external monitoring tasks and for the preparation of surveys
and LARPs can be allocated under the loan.
42.
Being the project owner, RDMRDI is responsible for the timely allocation of the
funds needed to implement the RPs. Allocations will be reviewed twice a year based on the
budget requirements indicated by the LARPs. As per the LAR finances flow the budget for
compensation and rehabilitation will be directly disbursed by RDMRDI to the AP.
N.
LARP IMPLEMENTATION PROCESS
43.
Based on experience in Georgia the Preparation and implementation of a LARP
may take up to a few months. The basic LAR-related steps for the preparation and
implementation of a LARP are summarized on Box 1 below.
BOX 1: LAR TASKS PROCESS
Step
Action
A) LARP PREPARATION
1
Assessment of Project’s Poverty and Social Impacts
Finalization of Detailed design
2
3
4
5
7
Prepare surveys forms for Census and DMS, train local Census and DMS teams, and establish
coordination with relevant local government agencies.
Collection of cadastral and land parcel maps of the project area
Verify land records in affected areas, update cadastral maps and carry out impacts and valuation surveys
– Detailed Measurement Survey (DMS)
Conduct public consultations
Responsibility
RDMRDI
Design consultants
Consultant
Consultants/DRD/NAPR
Consultant/DRD/Rayon level
LAR Team/
Consultant/DRD/Rayon Level
LAR Team
16
8
Negotiations with APs
9
Integrate data from Census into the RP.
Consultant/DRD/Regional
RDMRDI
Consultant
10
Submission of LARP to RDMRDI, local governments and ADB for approval.
Consultant/DRD/ADB
11
Disclosure
Consultant/DRD
B) LARP Finalization (Detailed Design)
1
Detailed final alignment fixed
2
Review of impacts and AP lists based on detailed design
3
Review of prices based on the updated rate
4
Legalization of legalizable
5
Preparation of the final LARP
6
8
ADB Approval
ADB
RP disclosure: Distribution of RP and information pamphlets in Georgia in the affected communities; DRD/Consultant/Rayon Level
posting of RP in English on the ADB website
LAR team/ADB
Signing of civil contract award
ADB/RDMRDI
C)
RP IMPLEMENTATION
1
Approval of Contract awards Signing
ADB
2
Detailed Schedule for compensation action plan
3
Distribution of Relocation Notices to APs
4
Award of Cheques for Land Compensation
5
Award of Cheques for other Compensation & Assistance/ Rehabilitation
6
Demolishing/ Relocation of Affected Structures/Assets
DRD/RDMRDI
RDMRDI/ DRD/Regional
RDMRDI/Rayon Level LAR
team
RDMRDI/DRD/Regional Level
RDMRDI
RDMRDI/DRD/ Regional Level
RDMRDI
RDMRDI
7
Review of RP Implementation through a compliance report
RDMRDI/DRD/IMA/ADB
8
If RP Implementation found satisfactory, Notice to proceed for Civil works is issued
ADB/RDMRDI
D)
POST-IMPLEMENTATION TASKS
1
Independent evaluation of LARP
E)
CYCLICAL/CONTINUOUS TASKS
1
Internal monitoring. Quarterly reporting to ADB
2
External Monitoring. Semi-annual reporting to ADB
3
Grievances Redress/Law Suites
4
Inter-agency coordination and Communication with AP
7
Design Consultant
Consultant/ Regional RDMRDI/
DRD/Rayon Level LAR Team
Consultant/ Regional RDMRDI/
DRD/Rayon Level LAR Team
Consultant/ Regional RDMRDI/
DRD/Rayon Level LAR Team
Consultant/DRD
RDMRDI (through External
Help)
DRD
RDMRDI/Supervision
Consultant
DRD/Regional level
RDMRDI/Court
RDMRDI/DRD/Regional Level
RDMRDI
17
ANNEX A
SYNOPSIS OF SELECTED GEORGIA LAWS AND REGULATIONS ON LAR
A.
The Constitution of Georgia
The Constitution determines the essence of private ownership and defines presumption of
inviolability however also regulates the issues related to compensation and expropriation of land
and immovable property for necessary public need. The Constitution of Georgia ensures the
publicity of information. Pursuant to the Article 21 of the Constitution of Georgia “the right of
ownership and inheritance is declared and secured”. No body is eligible cancel the universal right of
ownership and legacy. Throughout of the necessary public need or if the urgent necessity has
emerged, the Article 21.3 of the Constitution allows the expropriation of the private ownership
however, only according to the Court Decision or under the rules identified in the organic law2 on
basis of the appropriate and fair reimbursement.
Other articles of the Constitution of Georgia also create legislative basis in respect with Land
Acquisition and resettlement issues. These considers the State actions for expropriation of land for
urgent public need, i.e. exercising the right of expropriation (power of eminent domain), also
information disclosure and public consultations, protection of cultural heritage and grievance
redress related to land acquisition and resettlement of population.
The Constitution ensures the right of a citizen to live in safe and healthy environment and use
natural and cultural environment. The State undertakes environment protection measures to secure
safe environment for people. People have the right to obtain "full, true and timely information" in
regard with their work place and residential environment.
The Article 42 of the Constitution makes the citizens eligible to claim, in particular protects them and
encourages appealing to the court for protection of their rights and freedom.
B.
Civil Code of Georgia
The Civil Code of Georgia regulates private civil relationships and evolves property rights,
obligations, family law and the law on inheritance. Those regulations of the Civil Code that
describes ownership right to property and considers right to build, servitude and other rights directly
apply to the given project.
Ownership Rights The ownership right entitles its beneficiary to freely possess and use property. It
may be limited under the legislation or contractual basis. Ownership on the land parcel gives implicit
right to land owner to implement construction activities if it is not restricted by any agreement or law.
Alienation of real property is not limited under the Civil Code of Georgia. Pursuant to the article 183
of the Civil Code of Georgia “in order to purchase real property the agreement shall be made in a
written format and the ownership right shall be registered on the name of the buyer at the Public
Register”. The agreement - based on which one person purchases and the other sells the real
property may be notarized. The agreement also may be proved by the person identified under the
law (Article 69 of the Civil Code of Georgia). Presently the agreement of sales transaction of real
property may be proved by the representative of the Public Register. The presumption of veracity
and completeness of entries operate with respect to the Public Register, pursuant to the paragraph
1, Article 312 “an entry in the Public Register shall be deemed to be accurate until its inaccuracy is
proven
Right to Build. The owner is allowed to transfer a land plot to another person in temporary usage
(not to exceed 59 yeMDFG) for charge or free of charge. The transferee obtains the right to build a
building/construction on or under the land plot, as well as to assign and transfer this right under
inheritance or tenancy, borrowing or renting. The construction right may cover such part of a land
plot that is not necessary for the actual construction but allows a better use of the facility
constructed on the basis of the construction permit. Termination of the construction right requires
2 In the hierarchy of the laws the Organic Law stands between the Constitution and other laws, what
highlights the significant importance of the latest.
18
consent from the landowner. Based on the Article 180 of this Code, if a land parcel lacks the access
to public roads that are necessary for its adequate use, the other owner may claim from a neighbour
to tolerate the use of his land parcel by the owner for the purpose of providing the necessary
access. The mentioned article may be used for road construction, though the determination of
necessary right of way is rather complicated procedure and in case of road construction evolves the
obligations to prove the existence of the elements of such rights. In case of necessary right of way,
the implementer of road project shall have the right to undertake road construction notwithstanding
the owner’s will.
Right of Servitude. This right shall also be noted that according to the Civil Code of Georgia
means the restriction imposed onto a land parcel or real property in favor of the owner (beneficiary)
of another land parcel or real property. The Beneficiary is granted the right to use land parcel under
restriction with some conditions and /or restricts undertaking specific activities or prohibits land
owner to exercise some rights against this land parcel. However, in regard with this project, terms
and conditions for transfer of any right (among them ownership, construction, necessary right of way
or servitude) shall be defined against each land parcel in accordance to the identified rule and on the
basis of the agreement entered between the land owner and the party holding appropriate right to act
so. This agreement shall be registered at the Public Register.
C.
Law of Georgia on the Protection of Cultural Heritage
In addition to the Constitution of Georgia affirming the State's obligation to protect cultural heritage
and requiring each citizen to care for, protect and preserve cultural heritage the Law of Georgia on
Protection of Cultural Heritage defines the legislative principals for protection of existing cultural
heritages in Georgia.
According to the Law, State protection of cultural heritage is undertaken by the Ministry of Culture,
Monuments Protection and Sport, Ministry of Justice of Georgia, local self-government bodies, as
well as other State Institutions, Public and Legal Persons of Private Law; On the territories of
Abkhazia and Adjara autonomous republics the corresponding bodies of Abkhazia and Adjara
autonomous republics within the scope of authority defined under the legislation of Georgia. It is
worth to be mentioned that the State and local self-government bodies exercise their authorities in
the sphere of protection of cultural heritage in accordance to the Constitutional Agreement between
the State and the Orthodox Church of Georgia. The Ministry of Culture, Monuments Protection and
Sports of Georgia provides general coordination and manages the activities undertaken in this
sphere.
In respect with the ownership rights, the Law identifies some differentiations. Namely, the alienation
of the State-owned land parcel - located within the zone of State-owned monument, considered as
cultural valuables, or located within archeologically protected area - with the right to possess and
use the Law considers the agreement with the Ministry of Culture, Monuments Protection and
Sports with the terms and conditions of protecting and care being identified ahead. On the other
hand, the Law directly restricts alienation of the monuments under private ownership that can only
be alienated under the right to possess, and use and with the terms and conditions to care-and
protect.
D.
The Law of Georgia on Notary Actions
The stated law defines the types of notary actions and rule of their implementation. Also the law
defines which insittutions and authorized persons except the Notaries have right to conduct Notary
actions within the territory of Georgia and beyond it. On the basis of the Article 42 of the Law the
local self-governments have right to implement Notary actions related to inheritance, accuracy of
the copy to the original document, proving the fact that a citizen is alive, proving the fact of a
citizen’s ceratin location. Rural population often apply to local self-governments to condact certain
notary actions. Especially, when it is required to identify a person and a document, or the notary
actions are required to replace the deceased head of the household with a new member. This rule
is often utilized in regsitration of the land parcels when as the owner of the land parcel the other
member of the household is registered in place of the deceased member. The representatives of
the Consulates of Georgia (consuls) also other key persons at the Consulates are eligible to
19
conduct notary actions on behalf of the State of Georgia beyond the territory of the country. (Article
43). Citizens being abroad may apply to the Consulate of Georgia in the county of their location.
E.
The Law of Georgia on Privatization of State-owned Agricultural Land
The Law regulates the privatization of State-owned agricultural land. On the basis of this law the
leased or non leased State-owned agricultural land subject to privatization. However, the categories
of agricultural lands listed below do not subject to privatization:
-
-
grazing lands except the grazing lands which before law enactment were leased; grazing
lands attached to existing structures being under ownership of legal and/or physical
persons or state ownership in accordance to the rule refined by the Law;
Cattle-driving routs;
water fund land, except fish breeding artificial ponds and the lands of common water use
category utilized as agricultural lands in accordance to the Law of Georgia on Water.
Forest fund land used under agricultural designation;
Recreation lands;
Lands allocated to Historical monuments, nature and religious monuments;
Land of protected areas;
Agricultural lands assigned as reform land in Adjara Autonomous republic;
Agricultural lands being used by Budgetary Institutions and legal entities of public law in the
form of usufruct.
Privatization of the two categories (forest fund and recreation land) of agricultural land is still
allowed, although only for development of resort-recreation infrastructure in accordance to the
decision of the Government of Georgia.
F.
The Law of Georgia on Ownership to Agricultural Land
The current law is completely different from the initial version adopted in 1996. The changes made
in this law in different times (among them the amendments on the basis of the Law # 389 as of July
14, 2000) have significantly changed its initial format and simplified to maximum extend the
procedures regulated by this Law.
Article 3.1. Defines that "a land parcel with or without household structure that is registered at the
public register and used for cattle-breeding and plant cultivation produces is considered as an
agricultural land parcel" with existing household and additional structures or without them. Also the
share of a member of household community within the shared hay fields, grazing lands or forestry
areas and the part of the agricultural land that may be the object "of separate ownership right" (Article
3.2).
The same Law determines that the ownership right to agricultural land is granted to the State,
citizen of Georgia, household (komli) and legal person registered in accordance to the legislation of
Georgia, which carries out his activities in agricultural sphere. Besides, the Law declares the State,
private and community ownership right to grazing lands in the high mountain regions (Article 43).
Also, according to the limitations determined under this law, a foreigner and legal person registered
abroad held ownership right only to the bequeathed agricultural land parcels and foreigners also in
case when as citizens of Georgia they reasonably possessed agricultural land parcels. Besides, it is
worth to be considered that foreigners and legal persons registered abroad are obliged to alienate
privately owned agricultural land parcels to the citizen of Georgia, Komli and/or legal person
registered in Georgia according to the legislation of Georgia within six months period since they
obtained private ownership to the given land parcel. Besides, in case this legal requirement is
neglected, private ownership to the agricultural land parcels privately owned by foreigners and legal
persons registered abroad shall be taken away under the Court Decision and in return of due
compensation. (The standards identified by the Law of Georgia on the Rules for Expropriation of
Ownership for Necessary Public Need shall also be exercised in given case).
According to Articles 6 and 8, acquisition of agricultural land is allowed on the basis of ordinary rules
and general restrictions. Ordinary rule considers land alienation without any permits and other
limitations, and general restrictions consider land alienation only on the basis of the consent of coowner of shared property. In case of agricultural land acquisition the lessee has the priority right to
20
purchase the land. (Article10). Alienation is restricted if the area after this action will be less then 5
hectare (Article 9).
The Law defines Tax sanctions if land has not been cultivated for 2 yeMDFG and for non-payment
of land tax and non transmission to the other person in lease condition. In such cases the law does
not directly state any type of penalty and only refers that in described cases shall be exercised the
sanctions under the Tax legislation (Article 20).
G.
Law of Georgia on Registration of Rights to Immovable Property
The Law defines the rules, terms and conditions for registration of rights to immovable property (things),
rights and obligations of the subjects participating in registration procedures. The goal of this Law is to
declare and verify ownership rights for immovable property (things) within the territory of Georgia (so as
some other rights out of subjective, guarantee and liability relationships) through registration of these
rights into the Public Register. The Law describes the rules set for organization and functioning of Public
Register. Pursuant to the Law ownership right to real property, mortgage, right to build, usufruct,
servitude, lease, sub-lease, rent, sub-rent, lending subject to registration (Article 13.2).
This law ensures successful process of expropriation and obtaining of necessary right of way since
in case of purchasing immovable property from an owner, it is required that land and real property is
registered into the public register to provide legal validity to the sales agreement. Pursuant to the
active legislation of Georgia, acquisition (purchase) of private property is legally valid and ownership
rights are declared only after its registration into the Public Registry.
G.
Need
The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public
The Law of Georgia of “Rules for Expropriation of Ownership for Necessary Public Need” (July, 23,
1999) specified the expropriation procedures, liabilities and implements the rules. The Rules for
Expropriation of the ownership which has a possible usage in Georgia in some occasions including
Road construction will be issued Regional (civil) Court verdict on the basis of the Presidential
Decree.
According to the Constitution of Georgia the expropriation of the property in the process of
construction of the magisterial motor road is permitted for necessary public need. The process of
Expropriation is to be undertaken only by the Court Decision of the President of Georgia and
corresponding instances. Expropriation is undertaking by means of compensation payment which is to
be corresponding to market value and honest. The State of Georgia has a constitutional right to carry
out acquisition property through Expropriation instead of payment of legislative compensation (Clause
21).
H.
Procedural Civil Code of Georgia
The general courts of Georgia consider the cases according to the rules identified under the
Procedural Civil Code of Georgia. The requirements of the procedural law are exercised during the
lawsuit, during implementation of separate procedural actions or execution of the court decision.
The Procedural Civil Code of Georgia also regulates those cases when determination of the
defendant is impossible. This may be important for the Project in the cases when the landowner is
not found and correspondingly ownership to his/her land parcel cannot be obtained in legally valid
manner, i.e. it is impossible to enter corresponding agreement with the landowner or him/her cannot
sign other type of document.
The above-listed laws and regulations give the possibility of applying the following three
mechanisms for legal application of the property rights:
Obtaining the road right of way without expropriation through the payment of due compensation (on
the basis of negotiations or a court decision) prior to commencement of the activities;
•
Expropriation which gives the possibility of obtaining permanent right to land and/or
necessary road on the basis of Eminent Domain Law or a court decision through the
payment of due compensation;
21
•
Expropriation of private properties for urgent public necessity, which gives the possibility
of obtaining permanent rights on land and/or necessary road for the purpose of national
security or accident prevention. Expropriation is to be made on the basis of the Presidential
Decree on Expropriation through the payment of due compensation to affected people.
If applied adequately the above listed mechanisms can ensure the appropriate consideration of
lawful interests of all parties and the due observation of the existing legislations.
ANNEX B
SYNOPSIS ON ADB POLICY ON INVOLUNTARY RESETTLEMENT
•
Involuntary resettlement should be avoided whenever feasible.
•
Where population displacement is unavoidable, it should be minimized by providing
viable livelihood options.
•
Replacing what is lost. If individuals or a community must lose all or part of their land,
means of livelihood, or social support systems, so that a project might proceed, they will be
compensated and assisted through replacement of land, housing, infrastructure, resources,
income sources, and services, in cash or kind, so that their economic and social
3
circumstances will be at least restored to the preproject level. All compensation is based
on the principle of replacement cost.
•
Each involuntary resettlement is conceived and executed as part of a development
project or program.4 ADB and executing agencies or project sponsors, during project
preparation, assess opportunities for affected people to share project benefits. The affected
people need to be provided with sufficient resources and opportunities to reestablish their
livelihoods and homes as soon as possible, with time-bound action in coordination with the
civil works.
•
The affected people are to be fully informed and closely consulted. Affected people
are to be consulted on compensation and/or resettlement options, including relocation sites,
and socioeconomic rehabilitation. Pertinent resettlement information is to be disclosed to
the affected people at key points, and specific opportunities provided for them to participate
in choosing, planning, and implementation options. Grievance redress mechanisms for
affected people are to be established. Where adversely affected people are particularly
vulnerable groups, resettlement planning decisions will be preceded by a social preparation
phase to enhance their participation in negotiation, planning, and implementation.
•
Social and cultural institutions. Institutions of the affected people, and, where relevant, of
their hosts, are to be protected and supported. Affected people are to be assisted to
integrate economically and socially into host communities so that adverse impacts on the
host communities are minimized and social harmony is promoted.
•
No formal title. Indigenous groups, ethnic minorities, pastoralists, people who claim for
such land without formal legal rights, and others, who may have usufruct or customary
rights to affected land or other resources, often have no formal legal title to their lands. The
absence of a formal legal title to land is not a bar to ADB policy entitlements.
3 If the residual of an asset taken is not economically viable, compensation and other assistance are provided
as for the entire asset. In this case, affected people have the option to retain their assets. Nonland based
options may be used where land is not the preferred option of the affected people; or where land of similar
quality and quantity is not available.
4 ADB may treat resettlement either as part of the main investment or as a free-standing resettlement project
that is prepared, financed, and implemented in association with the main investment.
22
•
Identification. Affected people are to be identified and recorded as early as possible in
order to establish their eligibility through a population record or census that serves as an
eligibility cutoff date, preferably at the project identification stage, to prevent a subsequent
influx of encroachers or others who wish to take advantage of such benefits.5
•
The Poorest. Particular attention must be paid to the needs of the poorest affected people,6
and vulnerable groups that may be at high risk of impoverishment. This may include those
without legal title to land or other assets, households headed by females, the elderly or
disabled and other vulnerable groups, particularly indigenous peoples.7 Appropriate
assistance must be provided to help them improve their socio-economic status.
•
The full resettlement costs are to be included in the presentation of project costs and
benefits. This includes costs of compensation, relocation and rehabilitation, social
preparation and livelihood programs as well as the incremental benefits over the withoutproject situation (which are included in the presentation of project costs and benefits). The
budget also includes costs for planning, management, supervision, monitoring and
evaluation, land taxes, land fees, and physical and price contingencies. Where loans
include subprojects, components or investments prepared only after project approval and
loans through financial intermediaries that are likely to cause involuntary resettlement,
sufficient contingency allowance must be allocated for resettlement prior to approval of the
loan. Similarly, resettlement plans should also reflect the timeframe for resettlement
planning and implementation.
•
8
Eligible costs of compensation. Relocation and rehabilitation may be considered for
inclusion in ADB loan financing for the project, if requested, to assure timely availability of
the required resources and to ensure compliance with involuntary resettlement procedures
during implementation.
5 An eligibility cutoff date should be established as soon as possible in the project cycle.
6 The resettlement planning documents will, in each case, define the poorest and vulnerable groups, using,
as appropriate, the poverty line as defined in the poverty partnership agreement with the DMC concerned,
or other accepted ADB documents. A range of other documents may also provide information on poverty in
the project area.
7 When significant indigenous peoples or ethnic minority issues are identified, special attention will be paid to
exploring viable alternative designs that will reduce or eliminate such impacts. An Indigenous Peoples
Development Plan may be required in addition to a resettlement plan. If the indigenous people issues are
judged to be less than significant, specified “indigenous people actions” within the resettlement plan may
suffice to meet the indigenous people policy objectives.
8 Involuntary resettlement costs eligible for loan financing may include, for example, income restoration,
relocation, site development, social preparation, monitoring, and evaluation.
23
ANNEX C
OUTLINE OF A STANDARD LARP
1.
LAR issues for the scheme
This chapter describes the scheme activities and items requiring LAR; alternative
options, if any, considered to minimize land acquisition and its effects; and why
remaining effects are unavoidable.
2.
Scope of land acquisition and resettlement
This chapter describes the preparation of the impacts (who carried it out and when
it was initiated) and provides a full assessment of each type of impact and a census
of affected peoples as described in the LARF. The chapter also includes a
description of the methodology followed to determine unit-compensation rates for
each affected item and subsidy/allowance.
3.
Objectives, policy framework, and entitlements
Based on the LARF, this chapter outlines the eligibility and compensation
framework for the scheme.
4.
Consultation and grievance redress participation
This chapter summarizes procedures for redress of grievances by people affected
described in LARF and describes the consultation/participation process and
grievance redress that occurred in the subproject at hand.
5.
Compensation, relocation, and income restoration
This chapter outlines the income restoration measures to be implemented.
6.
Institutional framework
This chapter outlines the institutional arrangements for the scheme based on this
LARF. It includes the following issues: responsibilities for main tasks and for
planning, negotiating, consulting, approving, coordinating, implementing, financing,
monitoring, and evaluating land acquisition and resettlement.
7.
Resettlement budget and financing
This chapter provides the unit compensation rate for each affected item and
assesses the LAR budget for the scheme. The LAR budget will include land
acquisition and eventual land acquisition costs, amounts due for crop
compensation and for the subsidies and allowances, monitoring and evaluation
costs, and administrative costs and will be adjusted for inflation and applicable
taxes.
8.
Implementation schedule
This chapter provides a time schedule showing the LAR process and linking LAR
tasks with civil works implementation.
9.
Monitoring and evaluation
This chapter specifies arrangements for routine and independent monitoring and
evaluation activities.