- Key Facts
- Board of Governors
- Board of Directors
- Departments and Offices
- Policies and Strategies
- Annual Meetings
- Independent Evaluation
- Public Sector (Sovereign) Financing
- Private Sector (Nonsovereign) Financing
- Funds and Resources
- Asian Development Fund
- ASEAN Infrastructure Fund
- Investor Information[日本語]
- Business Opportunities
- Consulting Services
- ADB-Japan Scholarship Program
- News & Events
- Data & Research
- Industry and Trade
- Information and Communication Technology
- Public Sector Management
- Social Protection
- Capacity Development
- Climate Change
- Environmental Sustainability
- Gender and Development
- Poverty Reduction
- Private Sector Development
- Regional Cooperation and Integration
- Social Development
- Urban Development
- Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA)
- Central Asia Regional Economic Cooperation (CAREC)
- Greater Mekong Subregion (GMS)
- Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)
- South Asia Subregional Economic Cooperation (SASEC)
- European Representative Office
- Japanese Representative Office [日本語]
- North American Representative Office
- Pacific Liaison and Coordination Office
- Pacific Subregional Office
Countries with Operations
- China, People's Republic of [中文]
- Cook Islands
- Indonesia [Bahasa Indonesia]
- Kyrgyz Republic
- Lao PDR
- Marshall Islands
- Micronesia, Federated States of
- Papua New Guinea
ADB to Help Georgia Improve Urban Transport
MANILA, PHILIPPINES - The Asian Development Bank (ADB) is providing a $30 million loan to finance infrastructure repairs and upgrades in selected urban municipalities in Georgia which have been hard hit by the global economic crisis and conflict with the Russian Federation.
ADB's Board of Directors has approved the Municipal Sector Development Project (MSDP) 2 loan, adding to $40 million in financial assistance, approved in December 2008, for MSDP 1.
"Georgia needs the new loan facility since several urgent urban transport projects could not be accommodated in MSDP 1," said Arnaud Dauphin, urban development specialist of ADB's Central and West Asia Department. "The MSDP 2 will improve peoples’ health and living conditions, and promote economic growth in urban areas."
Projects funded by the new loan will help alleviate heavy traffic congestion, air and noise pollution, weak traffic management, inadequate roads, and deteriorating public transport services. Work will include improvements to the main transit road artery in the capital Tbilisi; the rehabilitation of major road crossings and traffic light systems in the city, and road upgrades in the municipalities of Oni, Kada, and Shuakhevi in west and southwest Georgia. MSDP 1 is supporting upgrades of ageing urban water supply services and some municipal roads in remote cities.
Georgia’s economy was badly affected by the conflict with the Russian Federation which damaged infrastructure and investor confidence, and caused bank liquidity to contract. The global economic crisis has worsened the situation.
Challenges in the urban transport sector in Georgia are formidable. In Tbilisi, which accounts for nearly half the country's gross domestic product, about 80% of air pollution is generated by motor transport. Road accidents have increased, with a 62% increase in the number of people injured, and public transport services have deteriorated because of poor road conditions, management deficiencies among road operators, and insufficient investment in fleet renewals.
"This loan is the first to directly target urban transport in Central and West Asia. This new focus ensures sustainable urban development in ADB operations," said Mr. Dauphin.
The loan for MSDP 2 will be sourced from the Asian Development Fund and will carry a 32-year repayment term including a grace period of eight years, and an annual interest rate of 1.6%.