East-West Highway Improvement Project

Azerbaijan experienced sharp increases in the prices of fuel, utilities, and major road construction materials between project appraisal and detailed design. These led to significant changes in the project scope and financing plan. In future road projects, greater due-diligence needs to be undertaken during project design and formulation, which includes carrying out adequate cost estimations, setting aside enough resources to cover contingencies, and shortening the interval between appraisal and implementation.