Georgia: Sustainable Urban Transport Investment Program - Facility Concept

Sovereign Project | 42414-013

Summary

The overall investment program is $1.1 billion (2010-2020). The medium term slice falls just under $700 million (2010-2016). An MFF is the preferred funding modality on account of its flexibility, sequencing of investments and the existence of a sound policy framework, strategy, and roadmap. The size of the MFF is $300 million. This will be structured into three tranches. The first tranche amounts to $85 million. Four subprojects have been assessed and are ready for implementation. Tranche 2 will amount to $100 million. It has high profile investments some of which are already under preparation. Tranche 3 is estimated at $115 million and the investments have been already pre-identified. The finance under Tranche 2 and 3 may vary, depending on project readiness and final design features. the main outputs of the investment program could be summarized as follows:

(i) Extension, rehabilitation, and improvement of urban transport infrastructure in Anaklia, Batumi, Kutaisi, Poti, Rustavi, and Tbilisi.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

No documents of this type are currently available for this project.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Sustainable Urban Transport Investment Program - Facility Concept
Project Number 42414-013
Country Georgia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0043-GEO: MFF- Sustainable Urban Transport Investment Program (Facility Concept)
Asian Development Fund US$ 101.00 million
Ordinary capital resources US$ 199.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Urban transport
Gender Equity and Mainstreaming Gender equity
Description

The overall investment program is $1.1 billion (2010-2020). The medium term slice falls just under $700 million (2010-2016). An MFF is the preferred funding modality on account of its flexibility, sequencing of investments and the existence of a sound policy framework, strategy, and roadmap. The size of the MFF is $300 million. This will be structured into three tranches. The first tranche amounts to $85 million. Four subprojects have been assessed and are ready for implementation. Tranche 2 will amount to $100 million. It has high profile investments some of which are already under preparation. Tranche 3 is estimated at $115 million and the investments have been already pre-identified. The finance under Tranche 2 and 3 may vary, depending on project readiness and final design features. the main outputs of the investment program could be summarized as follows:

(i) Extension, rehabilitation, and improvement of urban transport infrastructure in Anaklia, Batumi, Kutaisi, Poti, Rustavi, and Tbilisi.

(ii) Increased institutional effectiveness, including the reorganization and reforms at the Tbilisi municipality, other municipalities and urban transport service providers.

(iii) Establishment of program management team with a capability and funds to handle project preparation, technical design, contract bidding, evaluation and award, contract supervision, progress monitoring and reporting.

Project Rationale and Linkage to Country/Regional Strategy

Georgia has a population of only 4.62 million but is one of the most urbanized countries in the Caucasus. Urban areas are the pillars of economic growth and account for 53% of the total population, nearly 2.5 million people. Urban areas can be divided into three groups: (i) the conurbation of Tbilisi and the adjacent city of Rustavi; (ii) the main secondary cities of Batumi, Gori, Kutaisi, and Poti; and (iii) cities with high tourism potential such as Anaklia, Borjomi, Gudauri, and Mestia. Although they differ in size, they all have common transport problems: rising traffic congestion, pollution, poor and inappropriate road infrastructure and highly inefficient urban transport systems. Tbilisi, the capital and largest city, is home to 30% of the national population and generates 50% of Georgia's gross domestic product. It is also the main employment center.

The central government wants the cities to be the engine of economic growth and job creation. The government emphasizes city cluster development and the delivery of quality infrastructure and urban services. These are considered essential to increase quality of life, attract investment and increase productivity and competitiveness. The strategic vision is shared by all municipalities. In this regard, the Government has been working out an urban renewal strategy and supporting business plan. The work is complete, although some refinements to both will be needed overtime. Urban transport and various related services lie at the core of this strategy and business plan. A policy framework is in place for this purpose. It outlines key guiding principles and criteria for investment and follow-up operations, including competition, private sector involvement, efficiency, fairness, transparency, environmental sustainability, value for money with regard to capital investment, maintenance and sound service provision.

The long term investment program underpinning the urban strategy amounts to $1.1 billion. This is an estimate for the period 2010-2020. A medium term slice of this program (for 2010-2016) is estimated at $700 million. This is over and above the $400 million already spent between 2005 and 2010. With regard to urban transport, the target is to improve its reach, quality and continuity. It also pursues greater efficiency and tighter environmental safeguards. One policy directive is to favor nonmotorized transport use to reduce pollution, noise, and traffic accidents, and improve living conditions. The strategic objectives for urban renewal and transport are fully consistent with the strategy agreed by Georgia and ADB for the purposes of the ADB assistance program in the country and in line with ADB's sustainable transport objectives. The roadmap comprises sequenced investments, including private, public and public/private initiatives. It also includes municipal reforms and capacity building (policy, planning and oversight). The government, the Municipal Development Fund of Georgia (MDF), and the Tbilisi and other municipalities have asked ADB to help them tackle the urban transport problem within the framework of the urban renewal strategy. The existence of a policy framework, strategy and roadmap also happens to be preconditions for the use by ADB of the multitranche financing facility (MFF) as a funding modality.

Impact Improved urban environment, expanded local economy, and better living conditions within urban areas
Project Outcome
Description of Outcome Efficient, reliable, and affordable urban transport services provided in relevant cities
Progress Toward Outcome The investment program will improve the efficiency, reliability, and affordability of urban transport infrastructure and services
Implementation Progress
Description of Project Outputs

Urban transport infrastructure extended, rehabilitated and improved by MDF and relevant municipalities

Institutional and management capacity of MDF and relevant municipalities strengthened

Establishment of skilled and experienced units to oversee the management and the implementation of the program in MDF and the relevant municipalities

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Extension, rehabilitation, and improvement of urban transport infrastructure in Anaklia, Batumi, Kutaisi, Poti, Rustavi, and Tbilisi.

2. Increased institutional effectiveness, including the reorganization and reforms at the Tbilisi municipality, other municipalities and urban transport service providers.

3. Establishment of program management team with a capability and funds to handle project preparation, technical design, contract bidding, evaluation and award, contract supervision, progress monitoring and reporting.

Geographical Location Urban areas
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out with all the stakeholders during investment program preparation, with local residents and civil society. Stakeholders were informed about the subprojects, and information will continue to be provided during implementation of the project. Consultations were also held at various levels of government, including the Municipal Development Fund (including its resettlement division), Ministry of Region Development and Infrastructure, local governments at the rayon (district municipality) level and gamgebeli (governor) level, as well as with the donor community (the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank and the Millennium Development Corporation).
During Project Implementation
Business Opportunities
Consulting Services To be determined
Procurement To be determined
Responsible ADB Officer Bertrand Goalou
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Timetable
Concept Clearance 08 Mar 2010
Fact Finding 14 Mar 2010 to 23 Mar 2010
MRM 14 May 2010
Approval 19 Jul 2010
Last Review Mission -
PDS Creation Date 06 Jan 2010
Last PDS Update 16 Mar 2011

MFF Facility Concept 0043-GEO

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 398.26 Cumulative Contract Awards
ADB 300.00 - 0.00 0.00 %
Counterpart 98.26 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Sustainable Urban Transport Investment Program: Environmental Assessment and Review Framework (Updated) Environmental Assessment and Review Framework Apr 2015
Proposed Multitranche Financing Facility Georgia: Sustainable Urban Transport Investment Program Initial Environmental Examination Sep 2010
Sustainable Urban Transport Investment Program: Tbilisi Urban Environment and Gorgasali Road Rehabilitation Initial Environmental Examination Jul 2010
Sustainable Urban Transport Investment Program: Involuntary Resettlement Assessment and Measures Resettlement Plans Jul 2010
Sustainable Urban Transport Investment Program: Environmental Assessment and Measures Environmental Assessment and Measures Jul 2010
Sustainable Urban Transport Investment Program: Tbilisi University Metro Extension Initial Environmental Examination May 2010
Sustainable Urban Transport Investment Program Environmental Assessment and Review Framework May 2010
Sustainable Urban Transport Investment Program: Rehabilitation and Reconstruction of Secondary Road Zugdidi-Jvari-Mestia-Lasdili Road Initial Environmental Examination May 2010
Georgia Sustainable Urban Transport Investment Program Initial Environmental Examination May 2010
Sustainable Urban Transport Investment Program: Tbilisi Urban Environment and Gorgasali Road Rehabilitation Initial Environmental Examination May 2010
Georgia Sustainable Urban Transport Investment Program Resettlement Frameworks Apr 2010
Sustainable Urban Transport Investment Program: Environmental Review and Categorization - Kutaisi Alternative Urban Transport Development Environmental Impact Assessments Mar 2010
Sustainable Urban Transport Investment Program: Environmental Review and Categorisation of Kutaisi Alternative Urban Transport Development Initial Environmental Examination Mar 2010

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.