Completion Report

Project Number: 42145-023 Loan Number: 2561 January 2020

Armenia: North‒South Road Corridor Investment Program (Tranche 1)

This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS

Currency unit – Armenian dram (AMD)

At Appraisal At Project Completion (4 September 2009) (16 June 2016) AMD1.00 = $0.0027 $0.0021 $1.00 = AMD377.00 AMD478.83

ABBREVIATIONS

ADB – Asian Development Bank APFS – audited project financial statement DMF – design and monitoring framework EIRR – economic internal rate of return EMP – environmental management plan IPC – interim payment certificate FY – fiscal year km – kilometer LARP – land acquisition and resettlement plan MEDI – Ministry of Economic Development and Investments MFF – multitranche financing facility MOF – Ministry of Finance MTCIT – Ministry of Transport, Communication, and Information Technologies NPV – net present value PMU – project management unit RRP – report and recommendation of the President SNCO – state non-commercial organization TA – technical assistance TPIO – Transport Projects Implementation Organization

NOTES

(i) The fiscal year (FY) of the Government of ends on 31 December.

(ii) In this report, “$” refers to United States dollars.

Vice-President Shixin Chen, Operations 1 Director General Werner Liepach, Central and West Asia Department (CWRD) Director Dong-Soo Pyo, Transport and Communications Division (CWTC), CWRD Country Director Paolo Spantigati, Armenia Resident Mission, CWRD

Team leader Thomas Herz, Senior Transport Specialist, CWTC, CWRD Team members Ederlyn Norte, Associate Project Analyst, CWTC, CWRD Anna Liza Silverio, Senior Operations Assistant, CWTC, CWRD Mitzi Vina Tamayo, Senior Operations Assistant, CWTC, CWRD Krisanta Carissa Vila, Associate Project Analyst, CWTC, 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 viii I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 2 A. Project Design and Formulation 2 B. Project Outputs 3 C. Project Costs and Financing 5 D. Disbursements 6 E. Project Schedule 7 F. Implementation Arrangements 7 G. Consultant Recruitment and Procurement 8 H. Gender Equity 9 I. Safeguards 10 J. Monitoring and Reporting 10 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness 11 C. Efficiency 12 D. Sustainability 12 E. Development Impact 13 F. Performance of the Borrower and the Executing Agency 13 G. Performance of the Asian Development Bank 14 H. Overall Assessment 14 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 15 A. Issues and Lessons 15 B. Recommendations 15

APPENDIXES 1. Design and Monitoring Framework 16 2. Project Cost at Appraisal and Actual 18 3. Project Cost by Financier 19 4. Summary of Reallocation of Loan 21 5. Contract Awards of ADB Loan and Grant Proceeds 22 6. Disbursement of ADB Loan and Grant Proceeds 23 7. Chronology of Main Events 24 8. Summary of Contracts 29 9. Economic Re-evaluation 30 10. Status of Compliance with Loan Covenants 39

BASIC DATA

A. Loan Identification 1. Country Armenia 2. Loan number and financing source 2561-ARM, Special Funds Resources 3. Project title North‒South Road Corridor Investment Program (Tranche 1) 4. Borrower Government of Armenia 5. Executing agency Ministry of Transport, Communication and Information Technologies 6. Amount of loan SDR38,443,000.00 ($60,000,000.00) 7. Financing modality Multitranche Financing Facility

B. Loan Data 1. Appraisal Waiveda – Date started – Date completed 2. Loan negotiations – Date started 31 August 2009 – Date completed 1 September 2009 3