The objective is to improve road network connectivity in key economic corridors.
The Project is a sector loan facility that will provide road rehabilitation of selected subprojects. It will consist of two main components:
Component A: Financing of eligible transport subprojects that align with the country’s priority and AIIB Transport Sector Strategy. Application of AIIB’s Environmental and Social and Procurement policies to all subprojects will ensure high environmental, social, and procurement standards. The first subproject will be Section #26 of R-21 Kola Highway (“first subproject”).
Component B: Institutional capacity building. The sector loan will allow the capacity building of federal and local agencies during project implementation.
For more information about project financing, please review the project summary.
AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL) and Environmental and Social Standards (ESS), is applicable to this Project. The Project is classified as Category B as an extensive list of E&S eligibility criteria is used to pre-select subprojects *OFFICIAL USE ONLY likely to have limited number of potentially adverse environmental and social risks and impacts that should not be unprecedented and generally not irreversible or cumulative, but instead should be limited to the Project area, and be successfully managed using good practice in an operational setting.
As per the steps defined in the Project’s Environmental and Social Management Planning Framework (ESMPF), each proposed subproject is required to go through a due diligence process to confirm their classification as Category B prior to AIIB’s determination as to whether it may be considered for inclusion in the Project and financed under the loan upon meeting all ensuing E&S requirements. The environmental and social due diligence (ESDD) conducted on the first subproject under consideration – the Section #26 of the R-21 “Kola” Highway - has confirmed its categorization as B. The necessary supplementary E&S studies to be completed to align this subproject with AIIB’s requirements have been defined, and their completion and disclosure will be required prior to commitment by AIIB to finance this subproject.
Please review the project summary for additional information.
Principal Investment Officer, Capital Markets
Department for Analytical Support of Foreign Economic Activity
Ministry of Economic Development of the Russian Federation