PROJECT PREPARATORY TECHNICAL ASSISTANCE

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1 A. Justification PROJECT PREPARATORY TECHNICAL ASSISTANCE 1. The Government of Azerbaijan, the Ministry of Transport and Baku Metro Company requested ADB to help improving its urban transport system and provide technical support and advisory to upgrade the urban infrastructure in Baku and strengthen the urban transport sector. The project preparatory technical assistance (PPTA) will have two main activities: Formulation of a sector roadmap, an investment plan and a policy and reform framework. The roadmap will be prepared using the results and recommendations of the World Bank study submitted in 2010, and Preparation of engineering documents for the project components selected, covering the following areas: missing road links, traffic management, parking and metro. 1. Activity 1: Urban transport sector roadmap and institutional strengthening 2. This will prepare the sector roadmap, the investment plan and the institutional reform framework. a. Baku urban transport roadmap 3. The consultant will prepare an integrated sustainable urban transport roadmap based on the existing studies and the data collected as part of this assignment particularly the transport household survey. The sector roadmap will be able to fulfill the needs and to provide integrated, cost-efficient, affordable and environmental-friendly solutions for Baku. This will include: Road, traffic management and safety improvements; Metro and public transport improvements; Parking policy and related investment. 4. To prepare the urban transport strategic roadmap, the following tasks will be undertaken: An overview of current urban transport situation and assessment of transport conditions in Baku: urban infrastructure, constraints, trends, transport demand and supply, and urban developments and projects impacting mobility. An assessment of the current traffic conditions, traffic management policy and road safety. It will analyze congestion issues (capacity, bottlenecks, backlogs), will list identified projects and will propose strategy and infrastructure projects. The multimodal traffic forecasting model on Transcad will be updated, calibrated and tested to understand current situation and analyze projects impacts. An assessment of the Public Transport system with the 2020 Metro development plan. This will assess the performance of the current network in regard to the demand. It will identify specific issues and backlogs and propose a public transport strategy with relevant improvements, extensions and/or new projects. An analysis of the parking situation in Baku. The analysis will review the existing parking policy, parking supply and enforcement. It will assess current and future needs, identify location and capacity of new car parks and define parking strategy for on-road parking and off-road parking so it can be integrated in the overall urban transport system.

2 2 (vi) An assessment of the intermodal and integration arrangements. This will review all actions and specific arrangements (physical and soft) taken to insure optimal and efficient transfers from one mode to another (car, metro, train, bus, taxi, two wheelers, pedestrians, etc). This review will assess the existing coordination between all modes, analyze issues and inadequate situation, and propose specific policy and improvements to build a multimodal transport network and guarantee full efficiency of the urban transport system in Baku. 5. To elaborate the multimodal traffic forecasting model, the consultant will conduct specific transport survey collection to guarantee sufficient, reliable and homogenous information which will facilitate the monitoring of the investment plan. It would also provide details on the most appropriate locations for parking, information on willingness to pay and possible tariff policy, and metro demand and transfers. 6. A dissemination program will be defined to raise public awareness and to share this vision particularly to inhabitants, travelers, possible investors and developers. A leaflet, renderings and a video with cartographic support will be prepared in adequate format to disclose them on internet and other website. Exhibition boards presenting main outputs and proposals will be prepared for public outreach and awareness campaign. b. Investment plan 7. Once the sector roadmap is approved, projects will be listed and prioritized by subsector. Cost investments of the different projects will be assessed and indicative implementation schedule will be enclosed. The investment plan is likely to include: traffic and road network improvements: construction or rehabilitation of road sections, tunnels, bypasses, bridges; construction of improvement of ring road and others missing links; road safety, traffic signaling, traffic management center, road marking, signage, pedestrian areas, footpath, footbridge and underground passages; public transport improvements: confirm upgrading, extension and identification of new route for metro transit solutions, opening of new station entrances and accessibility improvements; on-road and off-road parking development policy; parking integration with public transport including park and ride and integrated tariff; restricted access to historical district or inner center, tolls and real-time information network; intermodal interchanges plan; improvements for all existing intermodal facilities at terminals, stations and interchange; integrated policy with implementation of a common fares and ticketing system; implementation of a branded multimodal communication and information available on all supports and in all transport facilities; studies and engineering of selected projects (pre-feasibility study, feasibility, detailed design or training, technical assistance, ) to address specific public transport needs, projects and issues; c. Institutional and Financial Framework 14. This part will describe the current institutional and regulatory framework under which public transport and road infrastructure and services is planned, provided, operated and

3 3 maintained. The assessment of the institutional and financial framework will rely mostly on the available data and on interviews with key stakeholders. This will bring a clear picture of urban transport system organization and functioning. 15. It will also identify the necessary measures or reforms - if applicable - to strengthen implementation process, regulatory systems and improve cost-efficiency, quality of service and economic rate of return. This should also develop an associated supportive institutional and financial framework for the sector and to implement the investment plan. 16. This program would also identify key roles for the public and private sector in the establishment of viable institutional arrangements and recommend specific institutional changes to maximize coordination, efficiency and enforcement. 17. The detailed action plan including capacity building and training will be discussed and agreed with appropriate state and municipal government officials and estimated. 2. Activity 2: Preparation selected projects 18. The second part of the PPTA includes the due diligence reports for selected priority projects. The list of projects to be prepared in the activity 2 will be reconfirmed at the end of the activity 1. Pre-existing feasibility studies and design when existing will be reviewed by the consultant. 19. Tentatively, four types of projects are included in this second part: 1 Baku road, traffic and demand management. The PPTA will finance a study to optimize traffic and road network. A transport household survey will be carried out to assess current traffic and forecast the demand given the rising motorization. This will help define road bottlenecks, identify missing links in the road network and refine traffic improvements and parking needs. This will also help prepare economic and financial analysis and even forecast operating revenues. The results will also help updating public transport demand and assess transfers between metro, buses, taxis and parking and help designing adequate multimodal interchange. The household survey will also provide information on people s mobility, motorization, parking habits, willingness to pay, acceptable constraints to limit private car in the city center, and incentive to use public transport. The origin-destination matrix will update the Transcad model financed by World Bank already operational at the MOT. Baku Metro improvement. In coordination with BMC, the PPTA will prepare due diligence and safeguards documents for metro station improvements which include: construction of new entrances for safety and capacity reasons, and upgrading of electro mechanical equipments, fire alarm system and other information and communication technology devices. Detailed design of the above station refurbishment projects have been already prepared and will be updated as needed. Bidding documents will be prepared under the PPTA. Baku Metro extension. The PPTA will also prepare preliminary design for the new extensions to be implemented in the Phase 2 in line with the 2020 Baku Metro Development Plan particularly the extensions of the Green and Red lines. 1 As part of these activities, a gender analysis will be conducted to assess public transport needs of men and women.

4 4 Baku parking masterplan and reorganization. The PPTA will prepare parking masterplan, parking reform, parking investment plan, and help propose implementation arrangements and financing modalities. This will also include the identification of the location for new car parks and a component to assist MOT set up the Baku parking agency or set up a Special Purpose Vehicle (SPV) to operate and maintain car parks. The Parking Agency will be in charge of all policy development, planning and tariff setting, and will also enforce parking restrictions and penalties. It will also explore feasibility of introducing PPP schemes for construction, operation and maintenance of the facilities. a. Preliminary Design and due diligence for the construction of missing links and traffic improvements of Baku road network 20. Based on the sector roadmap, the consultant will prepare the preliminary design and due diligence for road projects. The consultant will: (vi) (vii) review existing design if any and identify required updates; prepare preliminary design; assess cost estimate and prepare the construction schedule; estimate revenue and cost savings; and conduct economic and financial analysis; define implementation arrangements, investigate possible PPP, financing and financial structuring; and define procurement strategy specifying contract packages and value; prepare an implementation schedule; and carry out safeguard analysis (social, health, gender and resettlement); and prepare, if applicable, a Land acquisition and resettlement plan (LARP), an Initial Environmental Examination (IEE) or an Environmental impact assessment as applicable. b. Review of the preliminary Design and preparation of due diligence of the construction of the new entrance for Baku station and other safety and passenger improvements 21. The consultant will: (vi) (vii) review existing studies and identify required updates; prepare preliminary design for civil work, equipment and electromechanical systems with a universal design; assess cost estimates and prepare the construction schedule; estimate revenues and cost savings and conduct economic and financial analysis; define implementation arrangements, financing and financial structuring, and investigate possible PPP (Design Build, Build Operate Transfer); and define procurement strategy specifying contract packages and value; prepare an implementation schedule; and carry out safeguard analysis (social, health, gender and resettlement); and prepare, if applicable, a Land Acquisition and Resettlement Plan (LARP), an Initial Environmental Examination (IEE) or an Environmental impact assessment as applicable.

5 5 22. To undertake properly these assignments, the consultant will conduct the appropriate data collection to guarantee relevant and safe recommendations. This data collection may include: asset conditions surveys; hydro-geological, geotechnical surveys and drillings; and topographic surveys. c. Preliminary design and due diligence for metro extension in Baku 23. The consultant will: (vi) (vii) review and update the existing studies for the metro extensions selected by Baku Metro company as part of the 2020 Baku Metro development plan; prepare preliminary design for civil works and electromechanical systems for the extensions; assess cost estimate and prepare the construction schedule; evaluate potential carbon finance (e.g. CDM, alternative market mechanisms) benefits; assess cost estimate, and conduct economic and financial analysis; define implementation arrangements, investigate possible PPP and prepare an implementation schedule; and carry out safeguard analysis (social, health, gender and resettlement); and prepare, if applicable, a Land acquisition and resettlement plan (LARP), an Initial Environmental Examination (IEE) or an Environmental impact assessment as applicable. 3. Baku parking master plan 24. The PPTA will design parking masterplan and make recommendations for concession contract. The consultant will: prepare the parking masterplan including off and on-parking including enforcement modality, technology ticketing, tariff policy and build operation business plan; locate relevant locations for car-parks and prepare initial design for car parks and documents for a parking concession; assess cost estimate, and conduct economic and financial analysis; and define implementation arrangements with a concession and prepare an implementation schedule. 25. To prepare safeguards due diligences, the consultant will conduct initial assessment of the impact of the projects in terms of resettlement, social and environmental issues and undertake the necessary data collection and surveys to prepare the safeguards documents. They will be financed from contingencies. These surveys could include: land acquisition and resettlement surveys (resettlement impact surveys, socioeconomic census surveys, land evaluation, ) environmental surveys (base line data for pollution, accidents, ); and social surveys (gender impact, health impact data collection, ).

6 6 26. During this assignment, all proposed project and recommendations should comply with the national legislation and specific norms and decrees. If legislation does not exist for the sector, the international legislation and the international norms will apply. In any case, the consultant will conduct his work in the present state of art and in compliance with ADB guidelines. B. Major Outputs and Activities 27. The major outputs and activities are summarized in Table A4.1. Major Activities 1. Urban transport roadmap and institutional strengthening 2. Preparation of preliminary design and due diligence for selected projects Table A4.1: Summary of Major Outputs and Activities Expected Expected Completion Date Major Outputs Completion Date June 2013 Sector roadmap March 2013 Investment plan April 2013 Policy and reform framework June 2013 September 2013 Preliminary Design (road) June 2013 Preliminary Design (metro) September 2013 Baku parking masterplan September 2013 Initial Design (car park) September 2013 Financial and economic assessment May 2013 Environmental assessment June 2013 Social and Resettlement June 2013 Gender analysis June 2013 DMF = Design Monitoring Framework, EARF = Environment Assessment and Review Framework; FAM=Financial Management Assessment, GEP = Gender Action Plan, LARF = Land Acquisition and Resettlement framework, PCA = Procurement Capacity Assessment Source: ADB. C. Cost Estimate and Proposed Financing Arrangement 28. The TA is estimated to cost $1,050,000 equivalent, of which $925,000 equivalent will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-other resources). The Government will finance the remaining $125,000 equivalent. The detailed cost estimate is presented in Table A4.2. Table A4.2: Cost Estimates and Financing Plan ($'000) Item Total Cost A. ADB Financing a 1. Consultants a. Remuneration and per diem i. International consultants (30 person-months) ii. National consultants (38 person-months) b. International and local travel 22.0 c. Reports and communications b Workshops, training, seminars, study tour and conferences Miscellaneous administration and support costs c Contingencies 60.5 Subtotal (A) B. Government Financing 1. Office accommodation and transport 47.0

7 7 Item Total Cost 2. Remuneration and per diem of counterpart staff Data, analyses, and investigations Others Total 1,050.0 a Financed by the Development Bank's Technical Assistance Special Fund (TASF-other resources). b Including knowledge product. c Includes transport household survey, secretarial and technical support, interpreting services. Source: ADB estimates. D. Consulting Services 1. Requirements 29. The project preparatory TA will use mainly an international firm in association with a local firm recruited under Quality Cost Based Selection (QCBS 90:10); and possibly individual consultants particularly for the safeguards due diligence. A total of 69.0 personmonths with 31 of international and 38 person-months of national consultants services will be required, distributed as shown in Table A4.3. Table A4.3: Summary of Consulting Services Requirement International Name of Positions Personmonths National Name of Positions Personmonths Transport Planning, Institutional and policy Metro Civil Engineer specialist/team Leader Urban transport Planner Specialist 4.5 Tunnel systems engineer 3.0 Traffic-Model engineer 2.5 Road and parking Civil engineer 5.0 Road and traffic management Specialist 4.0 Economist/Financial/PPP Specialist 1.5 Parking Specialist 2.0 Urban transport Survey Coordinator 5.0 Procurement specialist 1.0 Traffic- Parking-Model engineer 2.0 Tunnel civil engineer 2.5 Safeguards Specialist 2.5 Metro systems engineer 2.0 Environment Specialist 2.5 Transport Economist 1.0 GIS specialist 2.5 Financial Specialist 1.0 Translator 5.0 GIS Specialist 1.0 Draughtsman/CAD operator 3.0 Environment specialist 2.0 Gender specialist 1.0 Safeguards Specialist 1.5 Total 31.0 Total 38.0 Source: ADB estimate. E. Implementation Arrangements 30. The executing agency will be the Ministry of Finance and the implementing agencies will be the Ministry of Transport (MOT) for the subprojects related to road, traffic management, parking and capacity development; and Baku Metro Company (BMC) for all subprojects related to the metro network. The consulting services will be procured through a quality-andcost based selection process at 90:10. The consultant assignment will be in MOT, Baku Metro Company offices, or in a state or municipal agencies, or otherwise agreed. Counterpart will provide: Project offices made available for consultant; Some specialized staff assigned to the Consultant by the client; and Technical support for consultant data collection, specific analyses and investigations; and administrative support. All data available to undertake the

8 8 study properly including maps and aerial photos, existing studies, Transcad model, access to Baku GIS, and others will be made available. F. Implementation Schedule 31. The table presents the TA implementation and processing schedule. Table A4.4: Proposed Technical Assistance Processing and Implementation Schedule Expected Major Milestones Completion Date Recruitment of consultants January 2013 Sector roadmap, investment plan and policy reform framework June 2013 Loan Fact finding June 2013 Tranche 1 subprojects, due diligence and preliminary design September 2013 Preparation of bidding documents for consulting services, equipment and civil works if appropriate December 2013 Assistance for bid analysis and contract negotiations June 2014 Source: ADB estimates.

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