Georgia : Urban Services Improvement Investment Program - Tranche 1

Sovereign Project | 43405-023

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.

Flickr photos from the 43405-023: Urban Services Improvement Investment Program in Georgia album.

Project Name Urban Services Improvement Investment Program - Tranche 1
Project Number 43405-023
Country / Economy Georgia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2749-GEO: MFF - Urban Services Improvement Investment Program - Tranche 1
Asian Development Fund US$ 80.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply

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.

Impact

Improved water supply in Secondary towns in Georgia.

Project Outcome
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
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
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
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
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
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
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
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Satisfactory Satisfactory Satisfactory - Partly 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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Urban Services Improvement Investment Program - Tranche 1: Completion Report Project/Program Completion Reports Nov 2022
Amendment to the Loan Agreement (Special Operations) for Loan 2749-GEO: MFF - Urban Services Improvement Investment Program - Tranche 1 Loan Agreement (Special Operations) Jun 2021
Urban Services Improvement Investment Program - Project 1: Procurement Plan Procurement Plans Jan 2020
Amendment to the Loan Agreement for Loan 2749-GEO: Urban Services Improvement Investment Program – Project 1 Loan Agreement (Special Operations) Mar 2019
Amendment to the Loan Agreement (Special Operations) for Loan 2749-GEO: Urban Services Improvement Investment Program – Project 1 Loan Agreement (Special Operations) Feb 2018
Amendment to the Loan Agreement (Special Operations) for Loan 2749-GEO: Urban Services Improvement Investment Program - Project 1 Loan Agreement (Special Operations) Apr 2017
Amendment to the Loan Agreement (Special Operations) for Loan 2749-GEO: Urban Services Improvement Investment Program - Project 1 Loan Agreement (Special Operations) Dec 2016
Amendment to the Loan Agreement for Urban Services Improvement Investment Program - Project 1 Loan Agreement (Special Operations) May 2014
Urban Services Improvement Investment Program - Project 1 Project/Program Administration Manual Jul 2013
Amendment to the Project Agreement for Urban Services Improvement Investment Program - Project 1 Project/Program Agreements Jan 2013
Amendment to the Project Agreement for Loan 2749-GEO: Urban Services Improvement Investment Program - Project 1 Project/Program Agreements Jan 2013
Amendment to Loan Agreement for Urban Services Improvement Investment Program - Project 1 Loan Agreement (Special Operations) Nov 2012
Amendment to the Framework Financing Agreement for the Urban Services Improvement Investment Program - Tranche 1 Framework Financing Agreement Nov 2012
Project Agreement for Urban Services Improvement Investment Program - Project 1 between ADB and United Water Supply Company of Georgia Limited Liability Company dated 27 May 2011 Project/Program Agreements May 2011
Loan Agreement for Urban Services Improvement Investment Program - Project 1 between Georgia and Asian Development Bank dated 10 May 2011 Loan Agreement (Special Operations) May 2011

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
Urban Services Improvement Investment Program - Tranche 1: Social Monitoring Report (January-June 2022) Social Monitoring Reports Jul 2022
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Jan 2022
Urban Services Improvement Investment Program - Tranche 1: Social Monitoring Report (July-December 2021) Social Monitoring Reports Jan 2022
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Aug 2021
Urban Services Improvement Investment Program - Tranche 1: Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Mar 2021
Urban Services Improvement Investment Program - Tranche 1: Social Monitoring Report (July-December 2020) Social Monitoring Reports Jan 2021
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jul 2020
Urban Services Improvement Investment Program - Tranche 1: Social Monitoring Report (January-June 2020) Social Monitoring Reports Jul 2020
Urban Services Improvement Investment Program - Tranche 1: Social Monitoring Report (July-December 2019) Social Monitoring Reports Mar 2020
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Feb 2020
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jul 2019
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jun 2019
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Dec 2017
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jul 2017
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Mar 2017
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jul 2016
Urban Services Improvement Investment Program - Tranche 1: Poti and Abasha Water Supply Subprojects Initial Environmental Examination Initial Environmental Examination Jul 2016
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Feb 2016
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Urban Services Improvement Investment Program – Tranche 1: Mestia Water Supply Headwork's Final Compliance Report Social Monitoring Reports May 2015
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Urban Services Improvement Investment Program (Tranche 1) - Mestia Water Supply Headworks Construction: Addendum to Land Acquisition and Resettlement Plan Resettlement Plans Oct 2014
Urban Services Improvement Investment Program - Tranche 1: Construction of a New Head Office of United Water Supply Company of Georgia Initial Environmental Examination Aug 2014
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Mar 2014
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Oct 2013
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Apr 2013
Urban Services Improvement Investment Program - Project 1: Resettlement Due Diligence Report - Anaklia Safeguards Due Diligence Reports Jul 2012
Urban Services Improvement Investment Program - Project 1: Improvement of Poti Water Supply Subproject Initial Environmental Examination Jul 2012
Urban Services Improvement Investment Program - Project 1: Resettlement Due Diligence Report - Kutaisi Safeguards Due Diligence Reports Jul 2012
Urban Services Improvement Investment Program - Project 1: Improvement of Kutaisi Water Supply Subproject Initial Environmental Examination Jul 2012
Urban Services Improvement Investment Program - Project 1: Resettlement Due Diligence Report - Poti Safeguards Due Diligence Reports Jul 2012
Urban Services Improvement Investment Program - Project 1: Improvement of Anaklia Water Supply Subproject Initial Environmental Examination Jul 2012
Urban Services Improvement Investment Program - Tranche 1: Bi Annual Environmental Monitoring Report (01 January 2012 – 30 June 2012) Environmental Monitoring Reports Jul 2012
Urban Services Improvement Investment Program: Mestia Water Supply Headwork's Project Resettlement Plans Sep 2011
Urban Services Improvement Investment Program: Land Acquisition and Resettlement Plan for Mestia Water Supply Headworks Project Resettlement Plans Jul 2011

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Georgia: Urban Services Improvement Investment Program – Tranche 1 Validations of Project Completion Reports Nov 2023

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Urban Services Improvement Investment Program - Project 1: Procurement Plan Procurement Plans Jan 2020