Second Highway Project

Highway 2






Total Reported Cost


Start Date

May 16 2006

Start of Construction

Planned Completion Date

June 30 2015




Source(s) Amount
200,000,000 USD
64,870,000 USD


This project aimed to reduce road transport costs and improve access within Azerbaijan's East-West and North-South corridors.

It originally planned to upgrade 136 kilometers of the Alat-Masalli segment of the Baku-Iran highway (M3), rehabilitate 124 kilometers of the Baku-Shamakhi road (M4), and improve 120 kilometers of access roads. The project was restructured in December 2006 to include the rehabilitation of the 41-kilometer Ujar-Kurdamir segment of the Baku-Alat-Gazakh-Georgia border highway (M2). This additional work required $35 million, of which the IBRD provided $28 million. To accommodate the change in project plans, the IBRD reduced the amount of funds toward the renovation of the M3, decreasing the upgrade length to 31 kilometers. The restructuring, thus, did not dedicate any new project funds.

This original project was followed by two additional financings (first, second). Including the original loan and subsequent AFs, the World Bank contributed $668.85 million to the improvement of Azerbaijan's transit potential, and Azerbaijan contributed $348.96 million. All told, 349 kilometers of highway project roads were improved or rehabilitated, costing a total of $988,825,000.