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Blog » 2010 – Azerbaijan, Road, Highway III Project

2010 – Azerbaijan, Road, Highway III Project

Created Aug 23 2017, 3:44 PM by Leszek Tymoteusz Zemke
  • Azerbaijan - projects

2010 – Azerbaijan, Road, Highway III Project

Road Project – Azerbaijan's geographical position makes it an important link between the Black and Caspian Seas and between Russia and Iran.  The project finances the upgrading of the M4 Baku-Shamakhi road to a four-lane motorway as well as the upgrading of the Yenikend-Shorsulu section of the M3 highway.


Technical description

  Project has three components:

  • Component 1:Upgrading of about 77 km section (from km13.3 to km91) of M4 Baku-Shamakhi and 48 km section of M3 Yenikend-Shorsulu roads into a four-lane motorway.
  • Component 2: Institutional development activities on management, financing, operation, and maintenance of motorways in Azerbaijan (management and financing Azerbaijan Motorways; institutional development of the ARS)
  • Component 3: Project Management including technical assistance and financing additional costs for project implementation.

Asian Development Bank (ADB) and European Bank for Reconstruction and Development (EBRD) finance other sections of the Azerbaijan transport corridors.

Investment amount
Total project cost is 356.16 mln USD.
Implementation schedule


The project is currently on-going. About 80% of works have been completed at Section 1, 66% at Section 2, and 45% at Section 3 of the M4 Baku-Shamakhi road. Progress on the construction of Sections 1C and 2 of the Alat-Masalli road is 29% and 17%, respectively. Road safety audits have been conducted for designing the project roads, which enabled safer road designs.
Expected impacts on transport, environment, social, other

The impacts of the infrastructure component of the project include:

  • Reduction in road user costs
  • Reduction of road accidents along the concerned road sections

The project has made progress in supporting the motorway maintenance reforms of the Road Administration through the development of a reform strategy and the establishment of the Motorway Management Unit. The negotiated Additional Financing for the project will support implementation of the developed motorway maintenance reform program.

Source of fundig

The project is financed as follows:

  • IBRD : 171.6 mln USD
  • IDA: 70.0 mln USD

Azerbaijan Government: 114.55 mln USD



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