Georgia: Municipal Services Development Project

Sovereign Project | 41198-013 Status: Closed

ADB is helping municipal governments in Georgia improve the delivery of basic urban services. The project will help rebuild infrastructure, including water supply, sanitation, waste management, and road transport services, through loans and grants to municipalities and local utility companies. It will also strengthen institutional capacity and project management.

Project Results



    households with new or improved water supply



    households with new or improved sanitation



    kilometers of water supply pipes installed or upgraded



    kilometers of road that have been built or upgraded



    average daily vehicle-kilometers using roads built or upgraded in the first full year of operation

The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.

Project Details

Project Officer
Goalou, Bertrand Central and West Asia Department Request for information
  • Georgia
  • Loan
  • Water and other urban infrastructure and services
Project Name Municipal Services Development Project
Project Number 41198-013
Country Georgia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2441-GEO: Municipal Services Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 40.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

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

Gender Equity and Mainstreaming Some gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome As of date, 105,000 households benefit from improved municipal services.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues) Project Completion Review Mission fielded on 4-9 September 2012. Draft Project Completion Report to be circulated in October 2012.
Geographical Location All municipal governments within Georgia

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The main stakeholders will be MDF, participating municipal governments, communities, and civil society organizations. MDF and participating municipal governments (MG) will ensure that for all subprojects the results of social assessments and stakeholder consultations will be adequately taken into account in identifying investment priorities. Consultation will be carried out through public hearings, surveys, workshops, and other meetings during project implementation and monitoring.
During Project Implementation i) Municipal Government to prepare and submit a project proposal to MDF; ii) Municipal Government to provide necessary information, statistics, and project data during various studies including feasibility of the subproject; iii) MDF to carry-out preparation of investment projects; iv) MDF responsible for the coordination and overall management of its activities; v) MDF to carry-out all financial management activities in accordance with Georgian law and regulations, and donors' requirements; vi) MDF to overseas day-to-day operations of project management office and manage project implementation; vii) MDF to provide technical and logistical support required for efficient operation; viii) Municipal Government to provide necessary inputs such as logistics during project implementation; ix) Municipal Government to join commissioning of the project facilities after completion of the project facilities; x) Municipal Government to operate and maintain the project facilities in accordance with the operations manual of the project facilities prepared; xi) MDF to carry-out procurement for investment projects.

Business Opportunities

Consulting Services

The selection and engagement of consulting services to be financed under the Project will be in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) and the procurement plan. The following methods of selection will be applied: (i) quality-and cost-based selection; (ii) quality based selection; (iii) consultants' qualifications selection for small consultant assignments that cost less than $200,000 per contract; (iv) least cost selection for very small consultant assignment that cost less than $100,000; (v) fixed budget selection; (vi) single source selection and ADB's procedures for individual consultant selection for individual international or domestic consultants for following types of assignments: environmental, social, tariff, and O&M studies.

Advance Contracting and Retroactive Financing -

To be able to start construction in June 2008, preparation work must begin in April 2008. The Government has requested, and ADB approved advance contracting and retroactive financing for recruitment of consultants for feasibility studies, detailed engineering designs, and preparation of bidding documents for subprojects, and associated civil works.

Advance contracting allows the Government and MDF to undertake procurement procedures, at its own risk, prior to the loan becoming effective. The Government and MDF were informed that, for expenses incurred under advance contracting to be eligible for ADB's rectroactive financing, such procedures (including advertising) must comply with ADB's Procurement Guidelines and ADB's Guidelines on the Use of Consultants. Once the loan becomes effective, up to 20% of the amount may be used to finance eligible expenditures incurred, pursuant to advance contracting, during the period not exceeding 12 months prior to signing the Loan Agreement. Alternatively, the Government and MDF may opt for advance contracting without retroactive financing, in which case the procurement procedures completed under advance contracting do not conclude with the award of contract until after the loan becomes effective. The Government and MDF acknowledged that such advance contracting will be undertaken at their own risk, and that any concurrence by ADB with the procedures, documentation, or proposal for award of contract does not commit ADB to finance any such expenditures or the Project. The ADB project team will orient Government and MDF staff regarding ADB's Procurement Guidelines and ADB's Guidelines on the Use of Consultants.

Procurement All procurement financed under the Project will be carried out in accordance with the ADB's Procurement Guidelines (2007, as amended from time to time). Contracts for civil works that are estimated to cost more than $1 million equivalent and contracts for goods that are estimated to cost more than $500,000 equivalent will be procured using international competitive bidding procedures. Civil works contracts estimated to cost $1 million equivalent or less, and contracts for procurement of goods estimated to cost between $100,000 and $500,000 equivalent will be carried out through national competitive bidding (NCB). Prior to commencement of any procurement activity under NCB, ADB and the Government will review the public procurement law to ensure that it is consistent with ADB's Procurement Guidelines. Any necessary modifications and clarifications to the public procurement law will be agreed between ADB and the Government and included in the procurement plan. Goods contracts estimated to cost less than $100,000 equivalent will be carried out through shopping procedures. Goods valued below $10,000 and civil works valued up to $10,000 may be purchased directly from the supplier and contractor.

Responsible Staff

Responsible ADB Officer Goalou, Bertrand
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Municipal Development Fund of Georgia
Mr. Konstantine Mgeladze
[email protected]
150 D. Agmashenebeli Ave., 0112, Tbilisi, Georgia


Concept Clearance -
Fact Finding -
Approval -
Last Review Mission -
PDS Creation Date 04 Mar 2008
Last PDS Update 27 Mar 2013

Loan 2441-GEO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Sep 2008 11 Nov 2008 12 Dec 2008 30 Jun 2013 - 27 Feb 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 63.25 Cumulative Contract Awards
ADB 40.00 12 Sep 2008 38.22 0.00 100%
Counterpart 23.25 Cumulative Disbursements
Cofinancing 0.00 12 Sep 2008 38.22 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - 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 Public Communications Policy (PCP) 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.

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Georgia: Municipal Services Development Project Validations of Project Completion Reports Nov 2014

Related Publications

None currently available.

The Public Communications Policy (PCP) 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.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Municipal Services Development Project Procurement Plans Aug 2008