Georgia: Sustainable Urban Transport Investment Program - Tranche 3

Sovereign Project | 42414-043 Status: Approved


ADB is helping Georgia improve the transport system and infrastructure in urban areas. The third project under the program will construct a 6.8-kilometer section of the Tbilisi-Rustavi Urban Road Link and undertake the second phase of the Anaklia Coastal Improvement. This project will improve the urban environment and strengthen economic and tourism development and regional integration.

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Project Name Sustainable Urban Transport Investment Program - Tranche 3
Project Number 42414-043
Country Georgia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3063-GEO: MFF- Sustainable Urban Transport Investment Program Tranche 3
Ordinary capital resources US$ 73.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Transport - Transport policies and institutional development - Urban roads and traffic management

Gender Equity and Mainstreaming Some gender elements
Description Project 3 will improve the urban transport system and infrastructure in urban areas and comprises two subprojects: (i) section 2 (km 4.0-10.8) of the international standard Tbilisi-Rustavi Urban Road Link; and (ii) phase 2 of Anaklia Coastal Improvement; both of which are in line with components of the Investment Program. These investments will improve the urban environment, strengthen economic and tourism development, and regional integration.
Project Rationale and Linkage to Country/Regional Strategy

The government envisions the cities as 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 and regional renewal strategy and has been supporting the business plan to attract private investments.

In line with the sector roadmap prepared for the MFF, these operational plans are now detailed in all regions and cities with the support of the international community. Urban transport, with the other urban services, constitutes the core of this strategy. The policy reform framework outlined in 2010 is still valid and is being implemented and rolled out. It promotes competition, private sector involvement, efficiency, fairness, transparency, environmental sustainability, value for money with regard to capital investment, maintenance, and sound service provision.

With regard to urban infrastructure, the sector roadmap priorities approved on 25 June 2010 are to: (i) complete and upgrade the road network; (ii) develop public transport and non-motorized transport to reduce pollution, noise, and traffic crashes; and (iii) improve living conditions. These strategic objectives are fully consistent with the Interim Operational Strategy of Georgia, in line with the country partnership strategy currently under preparation (scheduled to be approved in 2014), and with ADBs sustainable transport objectives. The policy reform framework has been actively implemented in Tbilisi under Tranche 1.

The long-term urban transport investment plan (2010 2020) prepared in 2010 draws from the government priorities and is estimated at approximately $1.4 billion, comprising physical and nonphysical investments to address medium-term (2010 2015) and long-term (2016 2020) needs.

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



Geographical Location Tbilisi,Anaklia,Rustavi
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects These Tranche 3 subprojects finance construction of one 6.8 km section (Section 2) of the urban road link Tbilisi-Rustavi, and Anaklia costal protection from beach and shoreline erosion. The road would be a new alignment in a fallow land partly along the riverbank of Mktvari river near Tbilisi. The Anaklia coastal project would be for 1.4-km structure of underwater breakwaters and beach nourishment in an area for future tourism development. The subprojects would have environmental impacts mainly during the construction phase involving large amount of earthwork, land filling and embankment protection. These impacts can be minimized and mitigatedAn IEE report for the Anaklia coastal subproject has been approved. An IEE report for the road subproject has been approved and might require revision in case some further design optimizations is performed. Tranche 3 is category B for Environment.
Involuntary Resettlement

Subproject 1: Tbilisi-Rustavi Urban Road Link (section 2)

Three alternatives have been considered and analyzed against a number of aspects including potential LAR impacts. The preferred option is 6.8km long. Based on the design, the project might potentially impact 204 allotments and 225 buildings (including 81 residential buildings). A number of informal dwellings will also need to be relocated. The project will also affect land and structures associated with 3 condominiums buildings further increasing the number of stakeholders (although these people will not be relocated). The Engineering Management Consultant engaged under Tranche 1 of the MFF is finalizing the detailed design and further due diligence work to clarify the extent of impacts. It is expected that the dwellings for over 200 people will need to be relocated. The sub- project is therefore Category A.

Subproject 2: Anaklia Coastal Improvement Project (Phase 2)

The project is an extension of phase 1 works carried out under earlier tranches and includes (i) construction of underwater breakwaters (1.4 km); (ii) beach line Improvement with Artificial Nourishment of Sand; (iii) reinforcement of Enguri River banks, with armor stones. This subproject will create no resettlement impact.

Indigenous Peoples

Subproject 1: Tbilisi-Rustavi Urban Road Link (section 2)

This project is a 6.8km long road in urban Tbilisi, there will be no impact on Indigenous or Ethnic Minority People.

Subproject 2: Anaklia Coastal Improvement Project (Phase 2)

There will be no impact on Indigenous or Ethnic Minority People.

Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out with all the stakeholders during Tranche 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, Tbilisi Municipality, local governments at the rayon (district municipality) level.
During Project Implementation Stakeholder participation and consultation will be assessed in the course of implementation of the project.
Business Opportunities
Consulting Services Consulting services comprise of recruitment of Project financial statement and independent audit, and Independent Monitoring Agency. Total consulting services contracts is estimated at $1.1 million.

There are 2 civil works contracts (ICB method), totaling $73.35 million, as follows:

(1) Tbilisi-Rustavi Urban Road Link (section 2), contract award expected in Q1 2016

(2) Anaklia Coastal Improvement (phase 2), contract awarded on 26 September 2014

Responsible ADB Officer Bertrand Goalou
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Municipal Development Fund of Georgia
150, D. Agmashenebeli Ave., 0112 Tbilisi
Concept Clearance -
Fact Finding -
MRM 26 Sep 2013
Approval 25 Nov 2013
Last Review Mission -
Last PDS Update 16 Sep 2015

Loan 3063-GEO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2013 19 Dec 2013 14 Mar 2014 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 118.20 Cumulative Contract Awards
ADB 73.00 25 Nov 2013 4.80 0.00 7%
Counterpart 45.20 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 17.71 0.00 24%

Safeguard Documents

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Evaluation Documents

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