Georgia: Municipal Services Development Project and Municipal Services Development Project Phase 2
Georgia became a member of ADB in 2007. The Municipal Services Development Project, approved in September 2008, was the first Asian Development Bank operation in the country. A year after project approval, at the government’s request, ADB approved the Phase 2 in 2009, to provide additional financing to rehabilitate poorly maintained infrastructure due to lack of investment and maintenance post-independence from the Soviet Union. Both projects rehabilitated many small-scale infrastructure projects across Georgia.
IED found the projects to be responsive to Georgia’s need for urban infrastructure upgrading. However, design shortcomings limited the projects’ achievements and development impacts, and institutional capacity building of the executing agency and municipal governments. While the subprojects were executed in a timely manner, the limited progress in reforming the water tariffs raises concern on the project’s sustainability.