The World Bank Report No: ISR14646

Implementation Status & Results EAST-WEST HIGHWAY IMPROVEMENT 3 (P112523)

Operation Name: EAST-WEST HIGHWAY IMPROVEMENT 3 (P112523) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 28-Jun-2014 Country: Georgia Approval FY: 2010

Public Disclosure Authorized Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Roads Department of the Ministry of Regional Development and Infrastructure (RDMRDI) Key Dates Board Approval Date 10-Sep-2009 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date 15-Mar-2011 Last Archived ISR Date 23-Dec-2013 Public Disclosure Copy Effectiveness Date 03-Nov-2009 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date 19-Sep-2011

Project Development Objectives Project Development Objective (from Project Appraisal Document) (i) to contribute to the gradual reduction of road transport costs and improve access, ease of transit, and road safety along the central part of the Borrowers East-West corridor; and (ii) strengthen the capacity of the Roads Department and relevant government entities to plan and manage the road network and to improve road safety. Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost A. Sveneti-Ruisi Road Link 180.80 B. Institutional Strengthening 2.70 C. Project Implementation 0.20 D. Construction of the Ruisi Agara Section (funded by Additional Financing) 35.00

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory

Public Disclosure Authorized Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Moderate Moderate

Implementation Status Overview The civil works, from Sveneti to Ruisi, for the three lots under the initial financing of the project (2009-2013) are almost complete and satisfactorily carried out. The upgrading of the Public Disclosure Copy Sveneti-Ruisi section successfully contributed to a reduction of 33% in travel time (from 12 min to 8 min), and a reduction in vehicle operating costs, which have been reduced for cars from US$0.20 per veh per km to US$0.17 and for trucks from US$0.76 to US$0.71. Besides, the small-scale construction works carried out along the Igeoti-Sveneti section (km55-km80) of E-60 Highway under the additional financing, including (i) the installation of New Jersey Type Median Barriers, (ii) small-scale road safety improvements and (iii)

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outstanding repairing pavement works, are almost completed. The second phase of the small-scale road safety works is the only remaining activity. Implementation of these road safety improvement works contributes to reduction in road crashes, as the road fatality rate per 10,000 vehicles on E60 corridor from to has been reduced by 43% so far, exceeding the final target of 30%. This has contributed to meeting most of the project development objectives.

To complete entirely the works under the initial project financing, the Defect Liability Period is extended till July 31st 2014, allowing the Contractor to address few issues including the pavement remediation of the Liakhvi river bridge, the potential protection of the river bridge piers and the testing of the Rikoti tunnel electromechanical and fire protection equipment. The Roads Department is also expected to take remedial actions for compensatory tree planting under East West Highway Projects.

As for the Ruisi to Agara bypass financed under the additional financing (2012-2015), the overall completion of works is around 50%. The civil works are progressing but slowly due to difficulties encountered by the Contractor and the Roads Department to reach an agreement on the length of the extension required to complete the works. Besides, the works aren't carried out in compliance with the environmental mitigation plan. A high level meeting with the Contractor’s Management took place in April 2014. However no agreement is reached as yet. As an immediate step, a Bank mission is planned from June 22nd to June 28th. The objectives of the mission are to (i) support RD to take a clear decision on the contractual dispute, Public Disclosure Copy based on the Engineer report on the time and cost implications of either termination and re-tendering or continuing with the same contractor and (ii) ensure that a remedial action plan to address the environmental compliance issues is prepared by the Engineer.

Locations Country First Administrative Division Location Planned Actual Georgia Not Entered Vaziani

Georgia Not Entered Tiniskhidi

Georgia Not Entered T'edotsminda

Georgia Shida Kartli Svenet'i

Georgia Not Entered Shindisi

Georgia Not Entered Sakasheti

Georgia Shida Kartli Ruisi

Georgia Not Entered Pkhvenisi

Georgia Not Entered Otarsheni

Georgia Not Entered Kvemo-Okona

Georgia Not Entered Kvemo-Khviti

Georgia Shida Kartli Kareli

Georgia Not Entered Karalet'i

Georgia Shida Kartli Gori Public Disclosure Copy

Georgia Not Entered Berbuki

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Country First Administrative Division Location Planned Actual Georgia Not Entered Avnevi

Georgia Not Entered Akhalsheni

Georgia Not Entered Akhaldaba

Georgia Not Entered

Results

Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Transit time from Sveneti to Ruisi (minutes) Minutes Value 12.00 8.10 9.00 Date 09-Aug-2009 05-Apr-2014 30-Jun-2013 Comments Target achieved Vehicle operating cost from Sveneti to Ruisi Text Value 0.20 0.17 0.18 (cars in US$/km) Date 09-Aug-2009 05-Apr-2014 30-Jun-2013 Comments Target achieved Vehicle operating cost from Sveneti to Ruisi Text Value 0.76 0.71 0.72 (trucks in US$/km) Date 09-Aug-2009 05-Apr-2014 30-Jun-2013 Comments Target achieved Percentage reduction in road fatality rate per Percentage Value 0.00 43.00 30.00 10,000 vehicles on E60 corridor from Senaki to Date 09-Aug-2009 05-Apr-2014 30-Jun-2015 Tbilisi. Comments AADT was 6219 and road fatality was 112. Target achieved. Road safety audits recommendations are implemented, while road safety awareness campaign along the corridor is yet to be implemented. Improvement in road capacity from Ruisi to Number Value 2800.00 2800.00 8000.00 Agara Bypass in passenger car space Date 03-May-2012 05-Apr-2014 30-Jun-2015 equivalent per hour Comments Roads in good and fair condition as a share of Percentage Value 85.00 82.00 85.00 Public Disclosure Copy total classified roads Date 03-May-2012 05-Apr-2014 30-Jun-2015

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Comments International road condition measurement is carried out annually, without periodic maintenance some portion of the road section maygo from fair to poor condition. This number will be positively affected by opening next construction section. Size of the total classified network Kilometers Value 1644.00 1644.00 1644.00 Sub Type Supplemental Public Disclosure Copy Transit time from Sveneti to the Agara Bypass Minutes Value 27.00 23.20 20.00 Date 03-May-2012 05-Apr-2014 30-Jun-2015 Comments Vehicle operating cost from Sveneti to Agara Amount(USD) Value 0.20 0.19 0.18 Bypass (cars, USD/km) Date 03-May-2012 05-Apr-2014 30-Jun-2015 Comments Vehicle operating cost from Sveneti to Agara Amount(USD) Value 0.76 0.74 0.72 Bypass (trucks, US$/km) Date 03-May-2012 05-Apr-2014 30-Jun-2015 Comments Direct project beneficiaries Number Value 17240.00 17240.00 17240.00 Date 03-May-2012 18-Sep-2013 30-Jun-2015 Comments # of people living in the area of influence of the Sveneti to Agara Bypass road Female beneficiaries Percentage Value 51.00 51.00 51.00 Sub Type Supplemental

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of kilometers of road upgraded Kilometers Value 0.00 15.00 15.00 Sveneti-Ruisi Date 09-Aug-2009 05-Apr-2014 30-Jun-2013 Comments Target achieved Public Disclosure Copy

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Endorsement by RD of Georgian road safety Text Value No Yes Yes audit manuals for new and existing roads Date 09-Aug-2009 05-Apr-2014 30-Jun-2015 Comments No Audit is ongoing Percentage of E60 corridor Senaki to Tbilisi Percentage Value 0.00 90.00 100.00 subject to road safety audits Date 09-Aug-2009 05-Apr-2014 30-Jun-2015 Comments This result depends on the completion of the manuals All new IBRD financed road sections subject to Yes/No Value No Yes Yes formal road safety audit using Georgian Date 09-Aug-2009 05-Apr-2014 30-Jun-2015 manuals Comments Target achieved Public Disclosure Copy Number of km upgraded Sveneti-Agara Bypass Kilometers Value 0.00 18.20 34.00 Date 03-May-2012 05-Apr-2014 30-Jun-2015 Comments Percentage of E60 Corridor Senaki to Tbilisi Percentage Value 0.00 90.00 100.00 with road safety engineering improvements Date 03-May-2009 05-Apr-2014 30-Jun-2015 completed Comments Annual road safety actions undertaken as Yes/No Value No Yes Yes specified by the Georgian National Traffic Date 03-May-2009 05-Apr-2014 30-Jun-2015 Safety Strategy Comments Completion of framework for E60 performance Yes/No Value No Yes Yes based road maintenance Date 03-May-2012 05-Apr-2014 30-Jun-2015 Comments Purchase/Development of the Road Crash Yes/No Value No No Yes Database Date 18-Sep-2013 05-Apr-2014 30-Jun-2015 Comments Ongoing

Data on Financial Performance (as of 05-May-2014)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112523 IBRD-77410 Effective 10-Sep-2009 18-Sep-2009 03-Nov-2009 30-Jun-2013 30-Jun-2015 P112523 IDA-51080 Effective 26-Jun-2012 28-Jun-2012 27-Jul-2012 30-Jun-2015 30-Jun-2015

Disbursements (in Millions)

Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112523 IBRD-77410 Effective USD 147.00 147.00 0.00 147.00 0.00 100.00

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P112523 IDA-51080 Effective USD 43.00 43.00 0.00 21.13 21.54 49.00

Disbursement Graph Public Disclosure Copy

Key Decisions Regarding Implementation None

Restructuring History There has been no restructuring to date.

Related Projects P128863-Third East West Highway Improvement Additional Financing Public Disclosure Copy

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