1. TRACECA PROJECT EVALUATION

2. PROJECT Rehabilitation and Reconstruction of the Key Transit Highways Connecting the Centre of the Republic of Armenia to Georgia

3. The main goal and description of the Project The main goal of the project is to rehabilitate and reconstruct the key transit highways connecting the centre of the Republic of Armenia to Georgia. The implementation of the project will result in the safe traffic, reduction of road costs, increased efficiency of international cargo transportations in the road network of common use in the Republic of Armenia which will contribute to the development of the state economy.

4. The Project involves the following key transit highways 1.M3 Margara-Vanadzor-Tashir-Georgian border km 40+000 - km 128+200 section and km 176+900 - km 183+700 section. The total length of the road sections included in the project is 95.0 km. 2.M4 Yerevan-Sevan-Ijevan-Azeri border km 10+400 - km 143+500 section. The total length of the road section included in the project is 133.1 km. 3. M6 Vanadzor-Alaverdi-Georgian border km 0+000 - km 91+000 section. The total length of the road section included in the project is 91 km. 4. M8 Vanadzor-Dilijan km 10+500 - km 42+000 section. The total length of the road section included in the project is 31.5 km. 5. M16 /M4/-Noyemberyan-/M6/ km 0+000 - km 59+000 section. The total length of the road section included in the project is 59.0 km.

5. I. R M3 Margara-Vanadzor- Tashir-Georgian border, km 40+000 – km 128+200 (length of the section – 88.2 km) II. R M3 Margara-Vanadzor- Tashir-Georgian border, km 176+900 – km 183+700 (length of the section – 6.8 km) III. R M4 Yerevan-Sevan- Ijevan-Azeri border, km 10+400 – km 143+500 (length of the section – 133.1 km) IV. R M6 Vanadzor-Alaverdi- Georgian border, km 0+000 – km 91+000 (length of the section – 91.0 km) V. R M8 Vanadzor-Dilijan, km 10+500 – km 42+000 (length of the section – 31.5 km) VI. R M16 /M4/-Noyemberyan- /M6/, km 0+000 – km 59+000 (length of the section – 59.0 km) Gogavan (Republic of Armenia – border Georgia) Bagratashen (Republic of Armenia – border of Georgia) The preliminary study of the roads was conducted during the year of 2010 by the specialists of the “Armenian Roads Directorate” SNCO at the Ministry of Transport and Communication of Armenia.

6. NoRoadBeginning (km) Ending (km) Total length (km) Average width of the traffic line, m Average value of international indicator for non-flatness (mm/m) Fractures in respect with the entire surface of the traffic line (%) Weariness of the coverage in respect with the entire surface of the traffic line (%) 1.M3 Margara- Vanadzor-Tashir- Georgian border 40128.288.212.555.4112.8219.11 2.M3 Margara- Vanadzor-Tashir- Georgian border 176.9183.76.88.314.8290100 3.M4 Yerevan- Sevan-Ijevan- Azeri border 10.4143.5195.7*9.84.3137.1155.31 4.M6 Vanadzor- Alaverdi-Georgian border 091 7.585.38.1129.39 5.M8 Vanadzor- Dilijan 10.54231.58.95.834.1820.44 6.M16 /M4/- Noyemberyan- /M6/ 059 8.525.792.754.85 TOTAL472.2 * - Including the 1st technical category

7. The traffic intensivity was measured during 2010 by the specialists of the „Armenian Roads Directorate“ SNCO at the Ministry of Transport and Communication of Armenia. Below are the calculations for the traffic intensivity for each road section. NoRoad 1. M-3 Margara - Vanadzor – Tashir – Georgian border, km 40+000 – km 128+200 2. M-3 Margara - Vanadzor – Tashir – Georgian border, km 176+900 – km 183+700 3. M-4 Yerevan– Sevan– Ijevan– Azeri border, km 10+400 – km 143+500 4. M-6 Vanadzor- Alaverdi – Georgian border, km 0+000 – km 91+000 5. M-8 Vanadzor – Dilijan, km 10+500 – km 42+000 6. M-16 /M-4/ - Noyemberyan - /M-6/, km 0+000 – 59+000 Average daily intensivity for 2010 (AADT) Passenger and low-weight cargo transport Truck and busTotal daily 357711374714 18926332525 8904251211416 20973562453 18501692019 21831402323

8. Below are the results of the prefeasibility analysis Allocation of roads reconstruction and rehabilitation works per annum Road 201220132014Total Length (km) Approximate costs for civil works (excluding VAT) (million USD) Length (km) Approximate costs for civil works (excluding VAT) (million USD) Length (km) Approximate costs for civil works (excluding VAT) (million USD) Length (km) Approximate costs for civil works (excluding VAT) (million USD) M3 Margara- Vanadzor-Tashir- Georgian border 28.8011.2120.207.3046.0015.0795.033.58 M4 Yerevan-Sevan- Ijevan-Azeri border 38.804.93156.9029.47195.7*34.40 M6 Vanadzor- Alaverdi-Georgian border 81.0030.7881.0023.0991.0024.4191.078.28 M8 Vanadzor- Dilijan 12.003.6719.505.9631.59.63 M16 /M4/- Noyemberyan- /M6/ 59.0017.0059.017.00 Total148.646.9329.180.5156.545.4472.2172.89 * - Including the I technical category

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