42414-023: Sustainable Urban Transport Investment Program - Tranche 1 | Asian Development Bank

Georgia: Sustainable Urban Transport Investment Program - Tranche 1

Sovereign (Public) Project | 42414-023 Status: Active

ADB is helping Georgia overhaul its urban transport system to unclog traffic-congested cities. The first project under the program will extend a metro rail in the capital Tbilisi at Vazha Pshavela Avenue. It also includes coastal improvement in Anaklia and road upgrades in Mestia. The project will ease chronic traffic congestion, improve the environment, and boost growth and jobs in these cities.

Project Name Sustainable Urban Transport Investment Program - Tranche 1
Project Number 42414-023
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2655-GEO: MFF - Sustainable Urban Transport Investment Program - Tranche 1
concessional ordinary capital resources lending / Asian Development Fund US$ 85.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Transport / Transport policies and institutional development - Urban public transport - Urban roads and traffic management

Gender Equity and Mainstreaming Effective gender mainstreaming

The program targets investments in urban transport and related urban transport services across main cities in Georgia. This will improve connectivity, reduce traffic congestion and

promote sustainable, safe, reliable and efficient transport.

Tranche 1 subprojects are as follows:

(i) Tbilisi metro extension (Vazha Pshavela avenue);

(ii) Anaklia Costal Improvement; and

(iii) Road improvements in Mestia.

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.

Impact Improved urban environment, 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 --
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)

Project cancelled at Government request in 2012.

Partially achieved.

FS performed in 2011.

Detailed design is financed under L2879/2880-GEO: SUTIP, Tranche 2.

Works completed in 2012.

Achieved in 2014 for all subprojects prepared under SUTIP1.




Completed with another donor

Under implementation with another donor

Under implementation with another donor


Including study tour, and visit to Tbilisi by transport experts.

Ongoing (not yet due).

Achieved in 2014. Financed by local government

Not yet due.

Not yet due.

Achieved as part of Tbilisi Urban Transport Forum (2014)

Geographical Location Anaklia, Jvari, Mestia, Mestia, Rustavi, Tbilisi, Tsalenjikha, Zugdidi, Zugdidi
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An environmental assessment and review framework was approved by the government on 16 April 2010. The initial environmental examinations for the captioned subprojects have been carried out. The environment classification for tranche 1 is B as its subprojects will not have significant irreversible or permanent negative environmental impacts during or after construction. MDF will require/required the contractors to refine and implement the environmental management plan (EMP) prepared in the initial environmental examination, included in the environmental assessment and review framework. EMP is/will be an integral part of construction contracts.
Involuntary Resettlement A land acquisition and resettlement framework was approved by the government on 6 February 2010. It specifies compensation eligibility and entitlements; land acquisition and resettlement-related conditions for subproject implementation; and mechanisms for the preparation of land acquisition and resettlement plans for subprojects entailing land acquisition and resettlement. The resettlement classification for tranche 1 is C as no land acquisition and involuntarily resettlement is envisaged for the subprojects.
Indigenous Peoples The investment program area does not include communities that may be defined as indigenous peoples under ADB's Safeguards Policy Statement (2009). The indigenous peoples' impact classification for the MFF and all tranche subprojects is C.
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 Project stakeholder is Municipal Development Fund of Georgia (MDF). Its responsibilities include:
(i) Overseeing the implementation of the investment program; (ii) Checking and guiding safeguards compliance; (iii) Monitoring and evaluating the implementation progress and impact; (iv) Directing construction supervision; (v) Coordinating among government agencies; (vi) Overseeing the implementation of the institutional strengthening and capacity development; (vii) Consolidating and preparing periodic reports for the investment program; (viii) Making requests for disbursements; (ix) Recruitment of additional staff and consultants, as necessary, to prepare and manage the program; (x) Preparation of annual budget estimates for activities under the investment program for their eventual approval; (xi) Procurement of consulting services, works and goods; (xii) Ensuring subprojects compliance with safeguards and acquisition of land; (xiii) Supervising detailed designs and feasibility studies; (xiv) Preparation of the periodic financing requests (PFRs) for their submission to ADB.

Business Opportunities
Consulting Services

The following consulting services packages have been recruited by MDF, mainly using QCBS 90:10 method:

(i) Mestia Road Improvement Construction. The contract has been extended to cover the 12 months defect notification period which ended on 31 December 2012.

(ii) Tbilisi Metro extension EPCM (contracted).

(iii) Tbilisi Gorgasali Road EPCM (terminated).

(iv) Anaklia Coastal Improvement EPCM, phases 1 and 2 (contracted, subproject financed under Tranche 1 (phase 1) and Tranche 3 (phase 2)).

(v) Tbilisi-Rustavi Urban Road Link EPCM (contracted, subproject financed under Tranche 2 (sections 2 and 3) and Tranche 3 (section 2)).

(vi) Tbilisi Mtkvari Bridge EPCM (terminated)

(vii) Batumi Coastal Improvement feasibility study (completed, subproject envisaged for Tranche 4).

(viii) Financial auditor for FY 2010-2013 (contracted).

(ix) Financial auditor for FY 2014-2018 (contracted).

Individual consultants were already recruited, and several others still needs to be recruited at very short term to increase MDF capacity on safeguards implementation and monitoring, and conduct review of the detailed design, bidding documents, and BOQ. Once the construction is in full speed, these experts will be also requested to conduct regular random checks and ensure that design, technology, technical specifications, and cost estimates proposed and being supervised by EPCM consultants are appropriate and correct.


The following are the status of the subprojects included in tranche 1:

(i) Mestia Road ($19.3 million, inclusive of taxes) improvement project has been completed in 2011 and the defect liability period ended on 31 December 2012.

(ii) Anaklia Coastal Improvement Phase 1 ($9.4 million, inclusive of taxes). The revised bid evaluation report was approved by ADB on 9 May 2013, and contract awarded on 12 June 2013.

(iii) Tbilisi Metro extension ($37.39 million, inclusive of taxes). The civil works contract was awarded in March 2015.

Responsible ADB Officer Thiruchelvam, Mookiah
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Municipal Development Fund of Georgia
Konstantin Mgeladze
[email protected]
150 David Agmashenebeli Avenue 0112, Tbilisi, Georgia
Concept Clearance 01 Mar 2010
Fact Finding 14 Mar 2010 to 23 Mar 2010
MRM 14 May 2010
Approval 21 Jul 2010
Last Review Mission -
PDS Creation Date 26 Jul 2010
Last PDS Update 26 Sep 2017

Loan 2655-GEO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Jul 2010 05 Aug 2010 29 Sep 2010 31 Dec 2016 30 Sep 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 85.00 21 Jul 2010 69.80 0.00 83%
Counterpart 15.00 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2010 68.23 0.00 81%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

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.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Sustainable Urban Transport Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Aug 2016
Sustainable Urban Transport Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Jan 2016
Sustainable Urban Transport Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Sustainable Urban Transport Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2014
Sustainable Urban Transport Investment Program (Tranche 1) - Extension of the Tbilisi Metro Line 2 and Creation of University Station Project: Initial Environmental Examination Initial Environmental Examination Dec 2014
Sustainable Urban Transport Investment Program - Tranche 1 Initial Environmental Examination Jun 2014
Sustainable Urban Transport Investment Program - Tranche 1: Environmental Monitoring Report (June 2013 - January 2014) Environmental Monitoring Reports Jan 2014
Sustainable Urban Transport Investment Program - Tranche 1 Environment Compliance Audit Reports Sep 2013
Sustainable Urban Transport Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jun 2013
Sustainable Urban Transport Investment Program — Tranche 1: Rehabilitation and Reconstruction of Secondary Road Zugdidi-Jvari-Mestia-Lasdili (January 2013) Environmental Monitoring Reports Jan 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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.


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Contracts Awarded

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