Document of The World Bank

FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 48 164-AZ

PROJECT PAPER

ON A

PROPOSED SECOND ADDITIONAL FINANCING CREDIT

IN THE AMOUNT OF SDR 41.70 MILLION Public Disclosure Authorized (US$62 MILLION EQUIVALENT)

AND

PROPOSED SECOND ADDITIONAL FINANCING LOAN

IN THE AMOUNT OF US113 MILLION

TO THE

REPUBLIC OF

Public Disclosure Authorized FOR THE

SECOND HIGHWAY PROJECT

May 29,2009

Sustainable Development Department South Caucasus Country Unit Europe and Central Asia Region

This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective May 25,2009) CurrencyUnit = AZN 0.81 AZN = US$l 1 AZN = US$1.24 1 SDR = US$1.49

FISCAL YEAR January 1 - December 31

ABBREVIATIONS AND ACRONYMS

AADT Annual Average Daily Traffic AF Additional Financing AH2P Azerbaijan Highway 2 Project AH2PAF- 1 Azerbaijan Highway 2 Project First Additional Financing AH2PAF-2 Azerbaijan Highway 2 Project Second Additional Financing ARS Azer Road Service Joint Stock Company CPS Country Partnership Strategy CY Calendar Year EA Environmental Assessment EIRR Economic Internal Rate of Return EMF Environmental Management Framework EMP Environmental Management Plan FM Financial Management FY Fiscal Year IBRD International Bank for Reconstruction and Development IDA International Development Association ISR Implementation Status Report LIBOR London Interbank Offered Rate MTR Mid-Term Review NPV Net Present Value PAD Project Appraisal Document PDO Project Development Objective PICBP Public Investment Capacity Building Project PIU Project Implementation Unit MOT Ministry of Transport VAT Value Added Tax VPd Vehicles per day

Vice President: Shigeo Katsu, ECAVP Country Director: Asad Alam, ECCU3 Country Manager Gregory T. Jedrzejczak, ECCAZ Sector Director Peter D. Thomson, ECSSD Sector Manager: Henry Kerali, ECSSD Task Team Leader: Jacques Bure, ECSSD FOR OFFICIAL USE ONLY

AZERBAIJAN HIGHWAY 2 PROJECT - ADDITIONAL FINANCING

CONTENTS

Page

I. Introduction ...... 1

11. Background and Rationale for Additional Financing...... 1

111. Proposed changes ...... 2

IV. Consistency with CPS ...... 4

V. Appraisal of scaled-up project activities ...... 4

VI. Expected outcomes ...... 7

VII. Benefits and risks ...... 8

VIII. Financial terms and conditions for the additional financing...... 9

Annex: Revised Arrangements for results monitoring ...... 10

Map No. IBRD 36949 ...... 12

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Project Paper Data Sheet

Source Local I Foreign I Total Borrower 82.99 0.00 82.99 IBRD 56.50 56.50 113.00 IDA 3 1.OO 3 1.00 62.00 Others 0.00 0.00 0.00 Total 170.49 87.50 257.99

Combined disbursement schedule based on actual and expected disbursement under AH2P, AH2PAF-1 and AH2PAF-2. ’ AH2PAF-2 only. I. Introduction

1. This Project Paper seeks the approval of the Executive Directors to provide a second additional financing in an amount of US$175 million to the Republic of Azerbaijan for the Highway 2 Project (AH2P) (Loans IBRD 7356-AZ and IBRD 7516-AZ). The proposed second additional financing (AH2PAF-2) would be financed using both an IDA Credit and IBRD Loan - the IDA Credit in the amount of $62 million equivalent and the IBRD Loan in the amount of $1 13 million. The AH2PAF-2 would finance the costs associated with scaling up the project’s impact of developing regional economies and alleviating rural poverty. It would help reduce transport costs along the M6, one of Azerbaijan’s transport corridors, by rehabilitating the road networks and removing transport bottlenecks to the socioeconomic development of the region. Major activities would include the rehabilitation of 1 16km of the highway between Hajigabul and Bahramtapa and the rehabilitation of approximately 200km of local roads connecting villages with the M6. There would be no co-financing from other donors for this project.

11. Background and Rationale for Additional Financing

2. Original project: The original AH2P (US$200 million) was developed based on the request of the Government to finance the upgrading of the North-South corridor (M3) between Alat and Masalli (143 km), and the rehabilitation of the East-West corridor (M4) between and (124 km). The project development objective of the AH2P is “to reduce road transport costs and improve access, transit and road safety by upgrading and rehabilitating selected sections of the existing East-West (M4) and North-South (M3) corridors”. The AH2P has two components: (i)civil works, and (ii)provision of technical assistance, training and goods to build ca acity within the Ministry of Transport and Azer Road Service Joint Stock Company (ARS)P . In December 2006 the AH2P was restructured to include the rehabilitation of the Ujar-Kurdemir section (41 km) of the East-West highway (M2). The first additional financing for the project in the amount of US$300 million (AH2PAF-1) was approved by the Board on May 29,2008 to complete the construction of the M3 Highway, and also to finance the rehabilitation of the Tagiyev - Sahil section ofthe Baku bypass, which connects the M3 to the M1 Highway. The legal documents were signed on December 16, 2008. The Loan Agreement for the AH2PAF-1 became effective on April 14, 2009.

3. Rationale for the additional financing: Azerbaijan’s economy will likely maintain positive rates of growth despite the global economic slowdown. However, its growth is expected to decline from about 25 percent per annum before the crisis down to 3 percent in 2009, and this will significantly impact employment and the livelihood of the poor. It is estimated that at least 6,000 jobs had been lost in January and February of 2009 alone, and job losses are expected to increase in the next several months.

4. The rapid rehabilitation of the road network in the Hajigabul-Bahramtapa region is very relevant in this context, since it is ready for construction. The rehabilitation of the M6

ARS is under the Ministry of Transport (MOT) and was established in February 2007 to succeed to the Road Transport Service Department LLC (RTSD) within MOT.

1 Highway could help foster the development of local businesses and create local employment. In addition, there is strong evidence that the rehabilitation of roads would significantly improve the mobility of goods and services between rural areas and urban centers (including across regions), boosting existing businesses through a reduction in transport costs, increasing incomes, and reducing prices for the rural and urban poor4. The investment could also become a demonstration model for future regional development projects - an important issue on the Government agenda6. The proposed investment is also a priority of the Government’s “State Program for Rehabilitation and Development of Azerbaijan ’s Republic Highways (2006-2015)” which aims to rehabilitate more than half the major road network that is in need of repair.

5. While the country’s highway network is rapidly growing, the majority of roads connecting rural areas with main transport corridors (“connecting roads”) are still in poor condition. Decisions to finance the improvement or rehabilitation of the road network have often been made with little consideration of the geographical synergies and the role of connecting roads or with how to best trigger regional socioeconomic development. The ongoing AH2P takes these factors into consideration and finances both the upgrading of main corridors as well as their connecting roads. By strategically linking the connecting road network with the main transport corridor (here the M6), the Project would be able to better facilitate the movement of goods between points of production and consumption and thus increase the project’s impact.

6. Progress under the AH2P has been satisfactory. Over the last two years, the AH2P has helped to address critical transport challenges in Azerbaijan. The mid-term review (MTR), conducted in early October 2008, confirmed that the project would likely meet all of its objectives. As of March 2009, contracts in the amount of US$271 million (46 percent of the AH2P plus the first additional financing) have been committed. All other activities are being tendered and would be committed by the end of 2009. Disbursement is expected to reach US$250 million (50 percent of the total) by June 2010 and US$335 million (67 percent of the total) by June 201 1.

111. Proposed changes

7. Table 1 below summarizes the proposed changedadditions to the financing of the Project by the Bank. The proposed AH2PAF-2 would provide Bank financing (80 percent of total cost without VAT) in the amount of US$149 million for the rehabilitation of the Hajigabul - Bahramtapa road and US$16 million for the rehabilitation of 200km of the

4An impact assessment of rural roads improvement conducted under the Azerbaijan Rural Investment Project showed that farmers after road improvement received 40% more income (adjusted by inflation) from sales of cotton, 25%, more from the sales of potato, 26% more from milk and 7-13% more from livestock. The corresponding numbers for those whose roads to regional centers are still poor are: 2% for cotton, -3% for potato, -12% for milk and between -3% and -8% for livestock. Another recent survey showed that price differences between rural areas and regional centers are as wide as 30 - 60%, due in most part to transport costs that raise prices in regional centers. For example, on April 14, 2009, the Government adopted a decree on the state program for the social and economic development of Azerbaijan’s regions for 2009-20 13 in which the regional development approach is emphasized as a way to socioeconomic development and poverty reductions in Azerbaijan.

2 connecting roads (including 10 percent physical contingencies and 10 percent price contingencies). In addition US$lO million would be provided for supervision costs, design of other similar roads and incremental operating costs.

8. The additional financing seeks to scale up the Project by rehabilitating both the M6 Highway and the connecting roads that link rural villages with M6 Highway. The Project Development Objective is the same as the original Project with the additional investment. Hence, the updated Project Development Objective is “to reduce road transport costs and improve access, transit and road safety by upgrading and rehabilitating selected sections of the existing East-West (M4) and North-South (M3) corridors and the Hajigabul Bahramtapa Highway (M6).”. The results framework and the monitoring indicators (see section VI), have been updated to monitor the additional investment. The components of the additional financing are as follows:

9. Component I: Rehabilitation of 116km section of M6 road between Hajigabul and Bahramtapa and of 200km of local roads connecting rural areas to the M6 road (US$ 214.90 million). This component comprises the civil works for the above roads, consultancy services for the engineering design ofconnecting roads and the supervision ofthe works. This operation does not require any land acquisition. The Client has already prepared feasibility studies and detailed designs for the rehabilitation ofthe M6.

10. Component 2: Provision of technical assistance for project implementation as well as technical assistance for the design of future investments (US$3.5 million). This component would finance PIU salaries and the operating costs, staff training, monitoring and evaluation, financial audits and design of future investments.

’ This project cost includes activities introduced when the original project was restructured.

3 Table 2 Cost Summary by Expenditure Categories Bank I Government I Totalcost I financing financing US$ million US$ million US$ million Civil works, design and supervision including 20% contingencies 171.92 42.98 214.90 Goods and technical assistance 2.80 0.70 3.50 Total activities 174.72 43.68 2 18.40 Front end fee (IBRD portion only, 0.25%) 0.28‘ 0.28 Value Added Tax (VAT) 39.3 1 39.3 1 Tntal fnr 811 Cnmnnnenta 175.00 82.99 257.99

11. Activities under the AH2PAF-2 will be implemented by the same Project Implementation Unit (PIU) within the ARS that has been implementing the AHP2 and which has developed acceptable capacity. The PIU will continue using existing Financial Management (FM) systems, as well as the same procurement and reporting mechanisms that are currently used under the AH2P. The completion of the new activities is expected within one year from the revised closing date and three years from the original closing date. The new closing date is February 28, 2014.

IV. Consistency with CPS

12. The Country Partnership Strategy (CPS) FY07-10 (November 15, 2006; Report No. 378 12-AZ), emphasizes that, “Significant investment in infrastructure and transit

corridors.. .would be needed to develop Azerbaijan’s non-oil growth potential. ” It recommends developing not only the essential corridors, but also the access roads, in order to enhance accessibility from villages and small towns, “. . .supporting sustainable and balanced growth of the non-oil economy”* AH2P, AH2PAF-1, as well as the AH2PAF-2 are fully consistent with this strategy.

V. Appraisal of scaled-up project activities

13. Economic and financial analysis of M6: Consultants conducted an economic cost- benefit analysis in 2008 by updating a 2007 study for the rehabilitation of six fairly homogenous road sections of the M6 Highway between Hajigabul and Bahramtapa. As the Table below shows, the economic analysis found that the Project is economically justified. The total net present value of the project is US$356 million, and the weighted average EIRR using the cost of each section is 28.6 percent. Sensitivity analysis shows that the Project would still be economically justified at an even lower traffic growth rate; if traffic grows at 20 percent less than estimated, all sections yield EIRR higher than 20 percent. The EIRR is fairly conservative, since the current costs of construction materials, notably the price of bitumen, are much lower than the prices prevalent at the time of the economic analysis’.

The front-end fee represents 25 basis points of the Loan amount and equals 282,500 USD. 7 See page 24 of the CPS Report. 8 See page 19 of the CPS report. Prices of bids submitted in recent months for the Georgia Secondary and Local Roads Project Additional Financing have been found to be substantially lower than those submitted under the original projects in the previous few years for comparable works.

4 Table 3 EIRR

Source: Draft Economic Evaluation Report for M6 Highway (January 2009) *Weighted average using the cost of each section

14. Expected economic impact of rehabilitation of approximately 200km of local roads: In order to enhance the impact in developing regional economies and alleviating rural poverty, the Project would select connecting roads for rehabilitation based on the combination of cost effectiveness and consumer surplus approaches. It is expected that, by using such an integrated approach, the project would be able to remove transport bottlenecks for more farmers and improve regional connectivity and access at a lower cost. The population in the “zone of influence”, defined as all municipalities directly connected by each road, would be compared against the investment and maintenance costs required to obtain the cost effectiveness ratio for each road section. Those connecting roads with high cost effectiveness ratios would then be screened against their economic rates of return measured on the basis of the conventional cost-benefit analysis. Following the principles laid out in the original AH2P, connecting roads would be screened against the following cut-off levels scaled according to traffic volume: (a) for roads with traffic above 250 vehicles per day (vpd), the EIRR should be at least 12 percent; (b) if the traffic is between 150 and 250 vpd, the EIRR should be at least 10 percent; and (c) if below 150 vpd, the EIRR should be at least 8 percent.

15. Technical: The length of the section between Hajigabul and Bahramtapa is 116km and is mainly a two lane paved road that is barely serviceable despite the high traffic volumes (between 3,400 and 6,700 vehicles per day depending on the sections). The road corridor is generally flat up to Bahramtapa and presents no major technical challenges. The additional financing would follow the existing road alignment, and only minimum excavation for road widening or realignment in difficult local sections would be conducted. Except for the reconstruction of the bridge over the river Kur, the rehabilitation of M6 highway and its connecting roads is not expected to pose any technical difficulty. The detailed design of the Kur bridge would determine whether the existing structure could be repaired or should be partially replaced.

16. Procurement: Procurement under the AHP2AF-2 would be carried out under the “Guidelines: Procurement under IBRD Loans and IDA Credits” dated May 2004 and revised in October 2006, and the selection ofconsultants would be carried out under the “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated in May 2004 and revised in October 2006. The World Bank Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants dated

5 October 15, 2006 would apply. The latest version of the Bank’s standard bidding documents and requests for proposals, containing the latest formulation on fraud and corruption clauses, would be used. The existing PIU would be in charge of carrying out procurement activities. In the most recent Implementation Status Report (ISR) for AHP2 procurement is rated Satisfactory. A World Bank Procurement Specialist is based in Baku, which would allow for closer monitoring oftendering activities.

17. Financial Management (FM). The existing FM systems and procedures as well as disbursement procedures used for the AH2P would be followed. The PIU is in the process of recruiting an additional financial management specialist to manage the expected increased workload. Accounting records of the project would be maintained using the existing 1C-based automated accounting system. Quarterly financial reports of the project would be generated by the system and the project annual financial statements would be subject to financial audit under terms of reference acceptable to the Bank. The residual financial management risk is modest. The financial management arrangements are regularly assessed by the task team financial management specialist who is also based in Baku. The project financial management system was rated moderately satisfactory during the MTR, because the audit report for 2007 was not submitted on time and because budgeting processes and the monitoring of budget execution was found to be inadequate. Since that time, all outstanding audit reports have been submitted with unqualified audit opinions. These reports have been found acceptable to the Bank. The PIU is in the process of undertaking measures to improve their performance, after which it is expected that the FM rating would be upgraded to Satisfactory. Nevertheless, the weak budgeting processes and fragmented monitoring of budget execution, as well as the current low capacity of the PIU, are considered to be a risk to this additional financing.

18. Disbursement: Based on concerns about the fiscal impact of the recent economic slowdown, the Government has requested that the IBRD loan and IDA credit would finance 80 percent of project costs excluding VAT for all categories, rather than 70 percent, as was the case under the first additional financing. The expected disbursement period is five years (CY2009 - CY 2013).

Table 4 Expenditure Categories

Amount in US$ Financing Expenditure Category Percentage IBRD IDA (Net of VAT) Works, goods, consultancy services, 112,717,500 62,000,000 80% training and incremental operating costs Total Project Costs 112,717,500 62,000,000 Front-end Fee (IBRD) 282,500 0 Premiums for Interest Rate Caps and 0 0 Interest Rate Collars Total 113,000,000 62,000,000

6 19. There would be two Designated Accounts for the second additional financing, one for the IDA Credit and another for the IBRD Loan. The ceiling for the IBRD Loan would be US$lO million and for the IDA Credit US$6.0 million. The Borrower would open a Project Account within one month of the first withdrawal. The Operational Manual would be amended to incorporate all the changes introduced under the second additional financing as a condition of project effectiveness. Details of minimum application size and documentation to be submitted for disbursement purposes are provided in the Disbursement Letters. Disbursement procedures used for the ongoing project will continue to be used for the Additional Financing.

20. Social: The Project is expected to have a positive impact on the livelihood of local populations as it seeks to improve rural connectivity by rehabilitating 200km of connecting roads. The impact on job creation is also expected to be significant - about 20 percent ofthe contract value is usually spent to hire unskilled workers who are procured locally and receive about AZN 20010, or US$250, of wages per month. About 160,000 person-months of unskilled labor would be created, and about $50 million worth of income would be transferred to local populations in project areas. No land acquisition or any other impact that would trigger the Bank Operational Policy 4.12 would occur under this additional financing.

21. Environment: The Project has been assigned an environmental category B. An Environmental Assessment (EA) Report was prepared for the entire Hajigabul-Horadiz road which includes the 116km section between Hajigabul-Bahramtapa to be rehabilitated under the Project. The EA Report identified potential environmental impacts and proposed mitigation measures summarized in the environmental management plan (EMP). The EA Report was discussed at the public consultation meeting held on April 11, 2008, in the Shirvan City, and disclosed in English and Azeri on the web-site ofthe Ministry of Transport and the World Bank local site. As for the rehabilitation of connecting roads, the procedures laid out in the Environmental Management Framework (EMF) for the original AH2P would be used for the environmental screening, management, consultation and disclosure. Site- specific environmental assessment and/or management plans (EMP) for connecting roads have yet to be prepared since the list of project roads has not been identified; however, procedures laid out in the Environmental Management Framework (EMF) prepared under the original AH2P would be used for the environmental screening ofcandidate connecting roads, preparation and implementation ofEMP, consultation and disclosure.

VI. Expected outcomes

22. The proposed additional financing would scale up the original Project by adding new road sections to be rehabilitated. These would be measured with the additional indicators shown below.

loSource: Short term impact of implementingthe Rail and Highway projects in 2009-10.

7 Revised Results Framework (Only new additions introduc d under the Additional Final :ing are presented here) Use of Project Outcome Information Reduce road transport costs and - Reduction in transit timehehicle The information would be used improve access, transit and road safety operating cost from Hajigabul - by MOTand ARS to monitor the by upgrading and rehabilitating Bahramtapa; condition of the road network selected sections of the existing East- - Increased frequencies for and to feed ARS road West (M4) and North-South (M3) villagers to visit markets in the management policy. corridors and the Hajigabul Hajigabul-Bahramtapa region; Beneficiary survey will help the Bahramtapa Highway (M6). - Increased farmgate prices of key government measuring the commodities in the Hajigabul- impact ofthe investment in rural Bahramtapa region. areas.

Component One Component One Component One Rehabilitation of the M6 highway - Number ofkm rehabilitated for The information would be used between Hajigabul-Bahramtapa Hajigabul-Bahramtapa; by MOTand ARS to monitor Rehabilitation of connecting roads to implementation progress and M6 highway. - Number of km rehabilitated for prepare an action plan to address connecting roads to Hajigabul- possible delays. Bahramtapa road.

- Reduction of vehicle operating costs. Component Two Component Two Component Two

No new item under the Additional No new item under the Additional Financing. Financing.

VII. Benefits and risks

23. No significant risks have been identified". Given the global economic slowdown, the risk ofcost increases is low as inflation has subsided to single digits and is expected to stay at a low level during the life of the project. Risks related to the quality of works would be addressed with the technical assistance provided to strengthen the capacity of the ARS in supervision. The risks related to the FM would be addressed through the following measures: (i)as a condition of effectiveness the PIU would develop budgeting arrangements satisfactory to the Bank and hire one additional accountant, and (ii)the strengthening of the budgeting process and the monitoring process of budget execution would be further developed during the implementation ofthe Project.

24. Risks related to safeguard policies are minor, as only a Category B subproject without land acquisition would be financed under the additional financing. The MTR found the ARS should strengthen the monitoring ofcontractors with regard to the implementation of EMPs in such areas as the installation of proper sanitary and hygiene facilities, fuel and bitumen storage, and the management of storage sites. The capacity of the ARS on environmental

I' The risk regarding FM is being addressed and is not considered significant.

8 issues would be strengthened through the Public Investment Capacity Building Project (PICBP) under preparation as well as by consultants involved in the preparation of connecting roads. The ARS would also benefit from PICBP as it would develop the capacity of the ARS in various aspects of project implementation, such as fiduciary, procurement, engineering supervision, and compliance with social and environmental safeguards. With these mitigation measures, the residual risk is moderate.

25. Project benefits would include reduced transport costs for road users along the M6 Highway and its connecting roads, reduced transport bottlenecks to regional socioeconomic development, and improved road safety. About 160,000 person-months of employment would also be created.

VIII. Financial terms and conditions for the additional financing

26. The additional loan would be an IBRD Flexible Loan at 6 months LIBOR for US Dollar, plus variable spread, annuity, with repayments linked to commitment with a final maturity of 20 years including a grace period of 4 years. The additional IDA credit terms are 20 years to maturity including 10 years grace period.

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MAP SECTION

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Agstafa M5 M1 NATIONAL CAPITAL 41°N Gazakh Shamkur Oghuz Reservoir AUTONOMOUS REPUBLIC CAPITAL 41°N Tovuz M Gabala RAYON CAPITALS Ku in ge ra ch ev MAIN TOWNS ir R ese rvo Altiagach Yarimia Shemkir ir INTERNATIONAL BOUNDARIES Nabiagaly Mingechevir Ismailli To Dilizhan Gizmeydankend RAYON BOUNDARIES Ganja Chukhuryurd Agdash Shamakhy Yevlach M4 Sumgayit Geranboy Gedabay Badalli Khanlar Akhsu Badalli Anvar Maraza Khyrdalan Chalburun Dashkesan Mammadxanli R. Aliyev Mollahasanli Udjar M4 Chiyni Poladli BAKU Barda Kyurdamir BAKU – SHAMAKHI Lake – UJAR (2 LANES REHABILITATION) Sevan BAKU BYPASS / TAGIYEV-SAHIL (2 LANES REHABILITATION) (2 LANES REHABILITATION) M2 Kura Kelbadzhar (Gazi-Mammad) 40°N Agdzhebedi 40°N ARMENIA Caspian Ali Bayramli Alat To Yerevan Saatly Khodzhaly

Khodzhaveno Sea Beilagan Bahramtapa HAJIQABUL – BAHRAMTAPA ALAT – MASSALLI Sadarak (2 LANES REHABILITATION) (4 LANES CONSTRUCTION) M6 Fizuli Salyan Araz 010403020 50 M7 Araz Bilasuvar Kura KILOMETERS Shakhbuz Shorsulu Neftchala Givrakh Gubadly Dzebrail K a r a M3 s u Jalilabad KAZAKHSTAN UKRAINE Araz Reservoir Masally 39°N 39°N RUSSIAN FEDERATION Dzhulfa M8 Yardymly Black Sea Caspian

Lerik This map was produced by the Map Design GEORGIA Sea Lenkoran

Unit of The World Bank. The boundaries, TURKMENISTAN colors, denominations and any other ARMENIA AZERBAIJAN To Jolfa information shown on this map do not imply, BAKU on the part of The World Bank Group, any judgment on the legal status of any ISLAMIC REPUBLIC OF IRAN territory, or any endorsement or acceptance Astara of such boundaries. 45°E 46°E 47°E 48°E To Rasht 50°E SYRIAN ARAB REP. IRAQ ISLAMIC REP. OF IRAN JUNE 2009