Road Network Development Program (Project 2)

The project experienced start-up delays, because the contractor mobilized slowly and was unable to tie up with suitable local subcontractors. The contractor was also unfamiliar with conditions in the country at the start, which caused implementation delays. The subcontractors contributed significantly, and without them it would have been difficult for the contractor to successfully complete the project. For future projects, the criteria for qualifying the contractor - and the disclosure of information on subcontractors and the contractual provisions related to contractor performance, such as mobilization, staffing, and the deployment of equipment and funds - need to be strengthened to minimize the risk of poor contractor performance. Moreover, the previous performance of the contractor in the project country should be taken into account when evaluating bids. The Ministry of Transport and Azer Road Service need to provide bidders with adequate local information at pre-bidding meetings, and to publish on its website information on the cost of locally available inputs such as materials, equipment, and labor, to enable bidders to submit sensible bids and implement the project successfully.