SGS helps with Azerbaijan highway reconstruction
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SGS SA - Industrial Services product story
Edited by the Engineeringtalk editorial team
Jul 15, 2009
An independent SGS project-finance engineering team has been hired for the reconstruction of an Azerbaijan highway.
In 2006, the government of the Republic of Azerbaijan set out to reconstruct the country's road infrastructure.
An independent SGS project finance engineering team was hired for the reconstruction of the Azerbaijan highway.
One of the largest reconstruction projects involved the highway from Baku to the Russian border, between 6 and 191km.
The objective was to restore the highway to Category 1 road standards, enabling safe, high-speed traffic that in turn would lead to an increase in the flow of goods.
The USD177m (GBP109.4m) necessary to complete the project was secured by the project owner, the Ministry of Transport, through an export facility loan from the Czech Export Bank.
Czech company OHL ZS was selected as the main contractor and SGS was hired to provide a range of independent engineer and project-finance services.
SGS was awarded three project-monitoring contracts, each covering a section of the highway.
Managing project risk and performing construction supervision simultaneously on all three highway sections was an important part of this role.
During the consulting and supervision activities, the SGS team maintained permanent control over quality of construction work, schedule and deadlines, in accordance with the conditions in the FIDIC contract.
The SGS experts reviewed the design and construction documents in detail and gave detailed technical advice on how to adjust the design to gain approval from regulatory bodies.
To manage health and social risks, health, safety and environmental standards were enforced for the duration of the project and verification of these areas was an additional task for SGS.
SGS was also responsible for the management of environmental and social issues and any claims submitted.
A commissioning survey was conducted after completion of each kilometre of highway.
The current section was thoroughly inspected and after passing the approval process it was handed over to the project owners, with reports on the progress and detailed analyses of the project schedule.
Considering the high value of the project and the fact that the funding was secured through a bank loan, the implementation of an efficient cost-control system was a high priority for SGS project finance managers.
Through this system, SGS was able to offer project owners a clear overview of how stage payments were made and when interim payments certificates would be issued.
By successfully implementing a multi-phased project-supervision plan, SGS managed to keep the Azeri highway reconstruction on schedule and within the desired quality standards.
The entire length of the highway will become fully operational in the summer of 2009.
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