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LESSONS:

Rural Road Sector Project

sector: Transport | country: Armenia

At appraisal, ADB overestimated Armenian Roads Directorate (ARD’s) capability to procure consultant services for subproject preparation and construction supervision. For future projects, a more detailed capacity assessment of the executing and implementing agencies is needed during project processing.

Sufficient contingency is needed to cover cost increases. For future projects, design-build contracting can ensure better engineering and mitigate the risk of price escalation.

An ADB review identified shortcomings on some road construction works and poor quality in engineer’s cost estimates. These were caused mainly by inadequate designs or poor contractual works and materials. ADB needs to ensure strict compliance with contractors’ contractual specifications. Contractors should be held accountable for poor contract performance or substandard materials before the defect liability period following the contract agreements.

The roles and responsibilities of road network development and management are unclear. Stronger government commitment is needed to develop the road sector.

During the surveys and preparation of road works design, more attention should be paid to the current and expected needs of pedestrians in road sections passing through villages.

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