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Project Completion Report: Armenia, Rural Road Sector Project

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Com pletion Report Project Number: 40610 Loan Number: 2351-ARM (SF) and 2467-ARM (SF) (Supplementary Loan) December 2011 Armenia: Rural Road Sector Project CURRENCY EQUIVALENTS Currency Unit – Armenian dram (AMD) At Appraisal At Project Completion 13 July 2007 30 September 2011 L2351-ARM: AMD1.00 = $0.003 $0.0027 $1.00 = AMD337.75 AMD367.80 L2467-ARM: AMD1.00 = $0.003 $0.0027 $1.00 = AMD304.51 AMD367.80 ABBREVIATIONS ADB – Asian Development Bank ARD – Armenian Roads Directorate HDM – Highway Development and Management Model IRI – International Roughness Index MCC – Millennium Challenge Corporation MOTC – Ministry of Transport and Communications NPV – net present value OAI – Office of Anticorruption and Integrity PGC – project governing council PMU – project management unit PPMS – Project Performance Management System PPRR – Project Procurement-Related Review Report SDR – special drawing rights TA – technical assistance WEIGHTS AND MEASURES km – kilometer m – meter NOTES (i) The fiscal year (FY) of Armenia ends on 31 December. (ii) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director H. Wang, Transport and Communications Division, CWRD Team leader A. Ahonen, Transport Specialist, CWRD Team members C. Africa, Project Analyst, CWRD G. Mousealyan, Senior Project Officer, CWRD M. Pampolina, Project Analyst, CWRD A. Silverio, Operations Assistant, CWRD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i MAP I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants and Contractors 8 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outcome and Outputs 10 D. Preliminary Assessment of Sustainability 10 E. Impact 11 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons 12 C. Recommendations 13 APPENDIXES 1. List of Subprojects 14 2. Project Framework and Accomplishments 17 3. Contract Awards and Disbursements Funded by the Asian Development Bank 20 4. Chronology of Major Events 24 5. Project Implementation Schedule 26 6. Status of Compliance with Loan Covenants 27 7. Status of Utilization of Consultancy Inputs 34 8. Economic Analysis 35 BASIC DATA A. Loan Identification 1. Country Armenia 2. Loan numbers 2351-ARM (SF)/ 2467-ARM (SF) 3. Project Title Rural Road Sector Project 4. Borrower Armenia 5. Executing Agency Ministry of Transport and Communications 6. Amount of Loan Loan 2351-ARM (SF): SDR20.075 million ($30.60 million equivalent) Loan 2467-ARM (SF): SDR11.201 million ($17.32 million equivalent) 7. Project Completion Report Number PCR:ARM 1295 B. Loan Data Loan 2351-ARM (SF) 1. Appraisal – Date Started 9 July 2007 – Date Completed 13 July 2007 2. Loan Negotiations – Date Started 22 August 2007 – Date Completed 24 August 2007 3. Date of Board Approval 28 September 2007 4. Date of Loan Agreement 15 November 2007 5. Date of Loan Effectiveness – In Loan Agreement 16 January 2008 – Actual 7 March 2008 – Number of Extensions 1 6. Closing Date – In Loan Agreement 30 June 2011 – Actual 30 September 2011 – Number of Extensions 1 7. Terms of Loan – Interest Rate 1% during grace period, 1.5% after grace period – Maturity (Number of Years) 32 years – Grace period (Number of Years) 8 years 8. Terms of Relending (if any) None – Interest Rate – Maturity (Number of Years) – Grace period (Number of Years) – Second-Step Borrower ii Loan 2467-ARM (SF) 1. Appraisal – Date Started N/A – Date Completed N/A 2. Loan Negotiations – Date Started 6 October 2008 – Date Completed 6 October 2008 3. Date of Board Approval 7 November 2008 4. Date of Loan Agreement 18 November 2008 5. Date of Loan Effectiveness – In Loan Agreement 18 December 2008 – Actual 6 January 2009 – Number of Extensions 1 6. Closing date – In Loan Agreement 30 June 2011 – Actual 30 September 2011 – Number of Extensions 1 7. Terms of Loan – Interest Rate 1% during grace period, 1.5% after grace period – Maturity (Number of Years) 31 years – Grace period (Number of Years) 7 years 8. Terms of Relending (if any) – Interest Rate None – Maturity (Number of Years) – Grace period (Number of Years) – Second-Step Borrower iii 9. Disbursementsa a. Dates Component Initial Disbursement Final Disbursement Time Interval (months) Loan 2351 26 September 2008 19 September 2011 37 $3,060,000 $463,624 22 May 2009 30 September 2011 Loan 2467 $1,732,000 $590,000 29 Effective Date Original Closing Date Time Interval Loan 2351 7 March 2008 30 June 2011 40 months Loan 2467 6 January 2009 30 June 2011 30 months b. Amount (SDR million) Loan 2351-ARM(SF) Last Net Original Revised Amount Amount Amount Undisbursed Category Allocation Allocation Reallocated Available Disburseda Balancea 01 Works 16,533,000 18,753,950 2,220,950 18,753,950 18,563,986 189,964 02 Consulting 984,000 1,075,600 91,600 1,075,600 1,057,849 17,751 Services 03 Interest 327,000 227,000 (100,000) 227,000 227,000 0 Charge 04 Unallocated 2,231,000 18,450 (2,212,550) 18,450 0 18,450 99 Imprest 0 0 0 0 -39 39 Account Total 20,075,000 20,075,000 0 20,075,000 19,848,796 226,204b a Figures as of 14 December 2011. b Canceled as of 12 December 2011. Loan 2467-ARM(SF) Last Net Original Revised Amount Amount Amount Undisbursed Category Allocation Allocation Reallocated Available Disburseda Balancea 01 Works 9,771,400 10,551,290 779,890 10,551,290 10,539,854 11,436 02 Interest 187,600 187,600 0 187,600 138,042 49,558 Charge 03 Unallocated 1,242,000 335,810 (906,190) 335,810 0 335,810 04 Consulting 0 126,300 126,300 126,300 70,126 56,174 Services 99 Imprest 0 0 0 0 33 (33) Account Total 11,201,000 11,201,000 0 11,201,000 10,748,055 452,945b a Figures as of 14 December 2011. b Canceled as of 12 December 2011. 10. Local Costs (Financed) - Amount ($) Local cost financing is not applicable to Loans 2351/2467-ARM - Percent of local costs - Percent of total cost iv C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actuala ADB Government Total ADB GOA Total Foreign Exchange Cost, L2351(SF)- 30.60 10.80 41.40 31.02 12.90 43.92 ARM L2467(SF)- 17.32 6.12 23.44 16.79 6.23 23.02 ARM Local Currency Cost, Not Applicable 0.00 0.00 0.00 0.00 0.00 0.00 Total 47.92 16.92 64.84 47.81 19.13 66.94 ADB = Asian Development Bank, ARM = Armenia, GOA = Government of Afghanistan, SF = Special Funds. a Figure as of 14 December 2011. 2. Financing Plan ($ million) Cost Appraisal Estimate Actuala ADB Government Total ADB GOA Total Implementation Costs Borrower L2351(SF)- 10.80 10.80 13.13 13.13 Financed ARM L2467(SF)- 6.12 6.12 6.47 6.47 ARM ADB Financed L2351(SF)- 30.10 30.10 30.67 30.67 ARM L2467(SF)- 17.03 17.03 16.57 16.57 ARM Other External Financing 0.00 0.00 Total 47.13 16.92 64.05 47.24 19.666.84 IDC Costs Borrower 0.00 0.00 0.00 Financed ADB Financed L2351(SF)- 0.50 0.50 0.35 0.35 ARM L2467(SF)- 0.29 0.29 0.22 0.22 ARM Other External Financing 0.00 0.00 Total 47.92 16.92 64.84 47.81 19.6 67.41 ADB = Asian Development Bank, ARM = Armenia, GOA = Government of Afghanistan, IDC = interest during construction, SF = Special Funds. a Figure as of 14 December 2011. 3. Cost Breakdown by Project Component ($ million) Loan 2351(SF)-ARM Component Appraisal Estimate Actuala ADB Government Total ADB GOA Total A. Investment Cost 1. Civil Works 25.20 4.00 29.20 29.03 4.71 33,74 2. Taxes and Duties 0.00 5.80 5.80 6.89 6.89 Subtotal (A) 25.20 9.80 35.00 29.03 11.60 40.63 v Component Appraisal Estimate Actuala ADB Government Total ADB GOA Total B. Project Management and Administration 1. Project Management Unit 0.00 1.00 1.00 0.00 0.77 0.77 2. Consulting Services 1.50 0.00 1.50 1.63 1.63 3. Consultant's Taxes 0.00 0.00 0.00 0.00 0.53 0.53 Subtotal (B) 1.50 1.00 2.50 1.63 1.30 2.93 C. Contingencies 3.40 0.00 3.40 0.00 0.00 D. Interest During Construction 0.50 0.00 0.50 0.35 0.35 Imprest Account 0.00 0.85 Total 30.60 10.80 41.40 31.01 12.90 43.91 ADB = Asian Development Bank, ARM = Armenia, GOA = Government of Afghanistan, SF = Special Funds. a Figure as of 14 December 2011. Loan 2467(SF)-ARM Component Appraisal Estimate Actuala ADB Government Total ADB GOA Total A.
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