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Blog » 2011 – Azerbaijan, Road project, Road reconstruction and upgrading

2011 – Azerbaijan, Road project, Road reconstruction and upgrading

Created Aug 22 2017, 9:14 PM by Leszek Tymoteusz Zemke
  • Azerbaijan - projects

2011 – Azerbaijan, Road project, Road reconstruction and upgrading

Road Project – road upgrading. M2/E60 highway is part of the TRACECA corridor and a key international trade route for Azerbaijan.  This highway is part of the Government’s priority programme to upgrade the national road network to support the economic growth of the regions outside Baku and increase international trade, connectivity and integration into the global economy.


The key objective of the Project is to contribute to the upgrading of the key regional and international road connections to facilitate economic growth.  The Project will build on the reform progress achieved in the road sector to date and, alongside the World Bank and Asian Development Bank, will allow the Bank to strengthen its long-term co-operation with the authorities in Azerbaijan and encourage further reform in the road sector.

Technical description

The key business purpose of the project is to contribute to the reconstruction of the key regional - "magistral"- roads either feeding into the key corridors or directly leading to key border crossings with Georgia and Iran. The Project, when approved by the EBRD's Board of Directors, will be implemented using three loan tranches to reflect the status of readiness of the technical project documentation.


The EBRD loan tranches will be part of the overall road sector upgrade and expansion programme funded on on-going basis by the Government of Azerbaijan using budgetary funds as well as the road sector framework facilities from the World Bank (US$ 675 million) and Asian Development Bank (US$ 500 million) with whom the EBRD coordinates closely its activities in the road sector in Azerbaijan

Investment amount
Total project cost is 649.4 mln EUR. Net cumulative EBRD investment is 325 mln EUR.
Implementation schedule
The preliminary design report for the road sections to be included in tranche one of the proposed project has been prepared and includes a high-level assessment of environmental and social impacts and mitigation measures. Environmental management and monitoring plans for the overall road rehabilitation programme have also been developed.

The proposed project will continue to advance institutional strengthening of the sector by further advancing of the cost recovery principle in the project by supporting the strategies for potential tolling and involvement of private sector in operations and maintenance and strengthening the standards of procurement and implementation supervision for non-IFI funded investment programmes by assisting in revision of the procurement and implementation manuals for the AzerRoadService.


This project is expected to have benefits for road user in Azerbaijan, including reductions in journey times and improvements in road safety. Environmental and social risks will include the potential for disruption and displacement to residents and businesses in the vicinity of the construction works.

Expected impacts on transport, environment, social, other
The rehabilitation will have significant benefits for local communities and businesses. Much of the road is currently in a very poor condition and which reduces access and increases journey times. The rehabilitation will improve this situation and will introduce new road safety features such as warning signs, road markings, passing lanes and appropriate speed limits.
Source of fundig
EBRD Finance


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