Georgia: Municipal Services Development Project
The dissolution of the Soviet Union weakened the Government of Georgia and its economy. Municipal services, capital investments in infrastructure, and the operation and maintenance (O&M) of these services were neglected nationwide. As a result, the quality of life deteriorated and private investment and economic growth were constrained. At the time of project preparation, the government recognized this problem and initiated remedial measures, including the establishment of a Municipal Development Fund (MDF). The MDF was intended to provide finance and technical advice to municipal governments. The success of MDF in a limited number of municipalities during the time of project preparation justified the expansion of its support to more municipalities.
Given this context, the project design focused on the core problems of deteriorating municipal infrastructure and inadequate coverage and poor levels of service. These were to be done by improving basic municipal services and through the rehabilitation, repair, and extension of dilapidated urban infrastructure. The project design also included the provision of technical assistance to assist participating municipalities in improving local revenues, financial management, and reporting systems. The project was a necessary intervention, which was appropriately channelled through the public sector.
This report validates the completion report’s assessment of the project, which aimed to improved municipal infrastructure and service delivery in Georgia. IED overall assessment: Successful.