Georgia : Urban Services Improvement Investment Program - Tranche 1
The Investment Program will improve water supply and sanitation (WSS) services in selected secondary towns of Georgia. The Investment Program includes (i) infrastructure improvement to rehabilitate, improve, and expand WSS services; (ii) institutional effectiveness to improve the service utility's technical and management capabilities of the key WSS service provider, United Water Supply Company of Georgia LLC (UWSCG) to provide efficient WSS services, and develop the capacity of sector regulators to regulate tariffs, services standards, environmental protection, and drinking water quality in the long-term; and (iii) Investment Program implementation support.
Project Details
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Project Officer
Katsitadze, Murman
Central and West Asia Department
Request for information -
Country/Economy
Georgia -
Sector
- Water and other urban infrastructure and services
Related Projects
Project Name | Urban Services Improvement Investment Program - Tranche 1 | ||||
Project Number | 43405-023 | ||||
Country / Economy | Georgia |
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Project Status | Closed | ||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
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Sector / Subsector | Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply |
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Gender | Effective gender mainstreaming | ||||
Description | The Investment Program will improve water supply and sanitation (WSS) services in selected secondary towns of Georgia. The Investment Program includes (i) infrastructure improvement to rehabilitate, improve, and expand WSS services; (ii) institutional effectiveness to improve the service utility's technical and management capabilities of the key WSS service provider, United Water Supply Company of Georgia LLC (UWSCG) to provide efficient WSS services, and develop the capacity of sector regulators to regulate tariffs, services standards, environmental protection, and drinking water quality in the long-term; and (iii) Investment Program implementation support. | ||||
Project Rationale and Linkage to Country/Regional Strategy | Georgia has a population of 4.43 million and serves as an important nodal point for inter-regional trade flows connecting the South Caucasus and landlocked Central Asia with the Black Sea and Mediterranean basins. The country's gross domestic product (GDP) is $10.5 billion with an annual growth of 5.9% (2004-09). With the global recovery taking hold, Georgia's GDP grew by at least 6.6% in the first half of 2010 on account of high growth in manufacturing, trade, and transportation. Foreign direct investment (FDI) in Georgia has been the principal driver of economic growth over the last five years and is a major balancing factor for a sizeable trade deficit. Decline in FDI due to the recession was counterbalanced by growing remittances and current account surpluses in 2010. The service sector accounted consistently for a predominant share of total FDI (averaging nearly 60%) and continues to create employment opportunities in urban centers and secondary towns. Based on Q3-2010 figures, the government expects the FDI to reach 2009 levels and improve over time. By creating employment opportunities in secondary towns the government will reduce poverty and complement its targeted social assistance program to improve living standards of the poor. New employment opportunities will condition further rural-to-urban migration, and weigh down city/secondary town infrastructure and municipal service provision, such as water supply and sanitation (WSS) with growing impacts on the habitats and concomitant public health implications. Improved municipal services, and specifically WSS, are therefore a key government priority. This is highlighted in the context of major urban centers, such as Tbilisi, Rustavi, Kutaisi, Poti, and Zugdidi where larger populations are associated with increased demand for municipal services and greater pressures on service delivery. Urban centers in traditional tourist destinations such as Kobuleti, Batumi and most recently Mestia serve as important magnets for tourist attraction and are expected to witness similar pressures on municipal service delivery in the medium term. Improved urban WSS service is a key priority for the government, essential to improving quality of life, attracting investments, and increasing productivity and competitiveness. Recognizing the need to overcome the current problems and constraints the government's urban WSS sector development plan (SDP) for 2011-20, approved on 31 January 2011, aims to ensure continuous and reliable water supply and safe sanitation services to all of Georgia's urban population by 2020. The SDP's objectives include technical sustainability of WSS services, environmental protection of natural resources, institutional effectiveness of service utilities and sector regulators, financial sustainability of service utilities, and provision of an enabling legislative and regulatory framework for WSS services. The SDP objectives are fully consistent with the approach agreed between Georgia and ADB for the purposes of the ADB assistance program in the country and in line with principal elements of ADB's water policy. The SDP fits with ADB's approach to the WSS sector development in Georgia and supports the use of the proposed multitranche financing facility (MFF) as a funding modality for this ADB intervention. |
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Impact | Improved water supply in Secondary towns in Georgia. |
Project Outcome | |
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Description of Outcome | Improved operations of the UWSCG. |
Progress Toward Outcome | - |
Implementation Progress | |
Description of Project Outputs | Component 1: Infrastructure Improvement Water intake, treatment and transmission pipeline constructed Component 2: Institutional Effectiveness Business Plans developed and implemented Component 2: Institutional Effectiveness Financial management improved, MIS and Accounting systems developed Component 2: Institutional Effectiveness Geospatial WSS utility management systems operationalized Component 2: Institutional Effectiveness Management capacity of UWSCG enhanced Component 2: Institutional Effectiveness Sector regulatory capacity of GNEWSRC, MEPNR, and MA developed Component 3: Project Implementation Support Public awareness program effectively implemented, materials on hygiene and sanitation disseminated, and women developed as hygiene and sanitation advocates |
Status of Implementation Progress (Outputs, Activities, and Issues) | Under Component 1: Civil works are near to completion and 18,000 cubic meter reservoirs have been rehabilitated and constructed as of 31 of December 2017 and 91 km of water transmission mains constructed. Water Treatment Plant in Mestia is ongoing and planned to be commissioned in 2018 Under Component 2: GIS completed in 6 towns completed in 2011. The remaining towns managed by UWSCG to be included in Geospatial WSS management system. Currently, a consultant is supporting the water company to prepare an assets inventory and valuation, and GIS mapping that will be completed by the end of 2018. UWSCG, through a consultant support provided under the loan, is improving its financial management and accounting system and it is taking measures to improve O&M efficiency to ensure UWSCG's financial sustainability by the end of the program. UWSCG has engaged a water utility operator under a 3-year, performance-based management consultancy contract and a financial expert to improve asset and financial management, O&M, and commercial efficiency of WSS assets. UWSCG is also preparing business plan supported by consultant under the loan. A consulting firm has supported the Georgia National Energy and Water Supply Regulatory Commission (GNERC) to strengthen its function as a regulator, including financial management regulations, a tariff-setting methodology and framework, and the legislative and regulatory framework for environmental management. Under Component 3: UWSCG has engaged a construction supervision consultant for Tranche 1, 2, and 3 and public awareness campaign on hygiene and sanitation have been conducted and a grievance redress mechanism has been set up. |
Geographical Location | Anaklia, Kutaisi, Marneuli, Mestia, P'ot'i, Zugdidi |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | B |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | Three sub-projects include development of water supply infrastructure. One sub-project includes the construction of the water company (UWSCG) building. All environmental impacts associated with the works are minor and can be managed through effective implementation of an environmental management plan. |
Involuntary Resettlement | Temporary and permanent impacts during construction are anticipated along a water transmission pipeline in Mestia. A Resettlement Plan was implemented by UWSCG and verified by an independent body. All construction contracts were awarded and are ongoing. |
Indigenous Peoples | The Indigenous Peoples Safeguards will not be triggered by this Investment Program. |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | Extensive consultations were undertaken with stakeholders including beneficiary communities (men and women separately), non-government organizations (especially women NGOs working in the IP geographic areas) and community-based organizations, elected representatives (such as city councils), local self governments, and representatives of various central Government ministries. Consultation workshops, meetings, focus group discussions, and structured interviews were undertaken with stakeholders. |
During Project Implementation | Gender Consultant in coordination with UWSCG have been engaged to accomplish the following: (i) Conduct focus group and reveal knowledge gaps of households (especially of women as household water main users and managers) regarding water, hygiene, sanitation and customer rights; (ii) Present gender analysis to the stakeholders; (iii) Develop information campaign that will cover detailed plan of PR campaign activities; (iv) Publish and disseminate flyers containing information on projects as well as efficient water use, basic hygiene and sanitation issues and consumer rights; (v) Conduct trainings for majority female members of the communities on hygiene, sanitation practices, customer rights and efficient water use. The GAD report is being finalized. |
Business Opportunities | |
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Consulting Services | The government will follow ADB's policies, including its Guidelines on the Use of Consultants (2010, as amended from time to time). |
Procurement | The government will follow ADB's policies, including its Procurement Guidelines (2010, as amended from time to time). |
Responsible ADB Officer | Katsitadze, Murman |
Responsible ADB Department | Central and West Asia Department |
Responsible ADB Division | Georgia Resident Mission (GRM) |
Executing Agencies |
Ministry of Regional Development and Infrastructure of Georgia |
Timetable | |
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Concept Clearance | 17 Nov 2010 |
Fact Finding | 11 Nov 2010 to 07 Dec 2010 |
MRM | 11 Feb 2011 |
Approval | 12 Apr 2011 |
Last Review Mission | - |
Last PDS Update | 28 Sep 2018 |
Loan 2749-GEO
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
12 Apr 2011 | 10 May 2011 | 15 Jun 2011 | 30 Sep 2016 | 29 Mar 2021 | 21 Sep 2021 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 105.00 | Cumulative Contract Awards | |||
ADB | 80.00 | 14 Mar 2023 | 70.64 | 0.00 | 100% |
Counterpart | 25.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 14 Mar 2023 | 70.64 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Partly satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Partly satisfactory |
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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.
Evaluation Documents See also: Independent Evaluation
Title | Document Type | Document Date |
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Georgia: Urban Services Improvement Investment Program – Tranche 1 | Validations of Project Completion Reports | Nov 2023 |
Related Publications
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Tenders
Contracts Awarded
Procurement Plan
Title | Document Type | Document Date |
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Urban Services Improvement Investment Program - Project 1: Procurement Plan | Procurement Plans | Jan 2020 |