The Asian Development Bank is working with Georgia to stem coastal erosion around the popular Black Sea tourist destination of Batumi. The project is providing coastal protection works along the 5 kilometer Batumi coastline where erosion threatens beachfront, roadways, bicycle lanes and buildings.
|Project Name||Sustainable Urban Transport Investment Program - Facility Concept|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
|Sector / Subsector||
Transport / Urban transport
|Gender Equity and Mainstreaming||Gender equity|
An MFF is the preferred funding modality on account of its flexibility, sequencing of investments and the existence of a sound policy framework, strategy, and roadmap. The size of the MFF is $300 million. The MFF is structured into five tranches. The first tranche amounts to $85 million equivalent and included four subprojects and already completed the civil works of the Tbilisi Metro. Tranche 2 is $64.8 million equivalent and included one subproject for the improvement of two sections of the Tbilisi - Rustavi road. The civil works under Tranche 2 is completed. Tranche 3 is $73 million and included one subproject for the improvement of one section of the Tbilisi - Rustavi road and is under implementation. Tranche 4 is $20 million for the improvement of the Batumi coastal area and is under implementation. The Tranche 5 was approved in 2017 for $12.27 equivalent for the safety improvements of the Tbilisi Metro. The main outputs of the investment program could be summarized as follows:
(i) Extension, rehabilitation, and improvement of urban transport infrastructure in Anaklia, Batumi, Kutaisi, Poti, Rustavi, and Tbilisi.
(ii) Increased institutional effectiveness, including the reorganization and reforms at the Tbilisi municipality, other municipalities and urban transport service providers.
(iii) Establishment of program management team with a capability and funds to handle project preparation, technical design, contract bidding, evaluation and award, contract supervision, progress monitoring and reporting.
|Project Rationale and Linkage to Country/Regional Strategy||
Georgia has a population of only 4.62 million but is one of the most urbanized countries in the Caucasus. Urban areas are the pillars of economic growth and account for 53% of the total population, nearly 2.5 million people. Urban areas can be divided into three groups: (i) the conurbation of Tbilisi and the adjacent city of Rustavi; (ii) the main secondary cities of Batumi, Gori, Kutaisi, and Poti; and (iii) cities with high tourism potential such as Anaklia, Borjomi, Gudauri, and Mestia. Although they differ in size, they all have common transport problems: rising traffic congestion, pollution, poor and inappropriate road infrastructure and highly inefficient urban transport systems. Tbilisi, the capital and largest city, is home to 30% of the national population and generates 50% of Georgia's gross domestic product. It is also the main employment center.
The central government wants the cities to be the engine of economic growth and job creation. The government emphasizes city cluster development and the delivery of quality infrastructure and urban services. These are considered essential to increase quality of life, attract investment and increase productivity and competitiveness. The strategic vision is shared by all municipalities. In this regard, the Government has been working out an urban renewal strategy and supporting business plan. The work is complete, although some refinements to both will be needed overtime. Urban transport and various related services lie at the core of this strategy and business plan. A policy framework is in place for this purpose. It outlines key guiding principles and criteria for investment and follow-up operations, including competition, private sector involvement, efficiency, fairness, transparency, environmental sustainability, value for money with regard to capital investment, maintenance and sound service provision.
The long term investment program underpinning the urban strategy amounts to $1.1 billion. This is an estimate for the period 2010-2020. A medium term slice of this program (for 2010-2016) is estimated at $700 million. This is over and above the $400 million already spent between 2005 and 2010. With regard to urban transport, the target is to improve its reach, quality and continuity. It also pursues greater efficiency and tighter environmental safeguards. One policy directive is to favor nonmotorized transport use to reduce pollution, noise, and traffic accidents, and improve living conditions. The strategic objectives for urban renewal and transport are fully consistent with the strategy agreed by Georgia and ADB for the purposes of the ADB assistance program in the country and in line with ADB's sustainable transport objectives. The roadmap comprises sequenced investments, including private, public and public/private initiatives. It also includes municipal reforms and capacity building (policy, planning and oversight). The government, the Municipal Development Fund of Georgia (MDF), and the Tbilisi and other municipalities have asked ADB to help them tackle the urban transport problem within the framework of the urban renewal strategy. The existence of a policy framework, strategy and roadmap also happens to be preconditions for the use by ADB of the multitranche financing facility (MFF) as a funding modality.
|Impact||Improved urban environment, expanded local economy, and better living conditions within urban areas|
|Description of Outcome||Efficient, reliable, and affordable urban transport services provided in relevant cities|
|Progress Toward Outcome||The investment program will improve the efficiency, reliability, and affordability of urban transport infrastructure and services|
|Description of Project Outputs||
Urban transport infrastructure extended, rehabilitated and improved by MDF and relevant municipalities
Institutional and management capacity of MDF and relevant municipalities strengthened
Establishment of skilled and experienced units to oversee the management and the implementation of the program in MDF and the relevant municipalities
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1. Extension, rehabilitation, and improvement of urban transport infrastructure in Anaklia, Batumi, Kutaisi, Poti, Rustavi, and Tbilisi.
2. Increased institutional effectiveness, including the reorganization and reforms at the Tbilisi municipality, other municipalities and urban transport service providers.
3. Establishment of program management team with a capability and funds to handle project preparation, technical design, contract bidding, evaluation and award, contract supervision, progress monitoring and reporting.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations were carried out with all the stakeholders during investment program preparation, with local residents and civil society. Stakeholders were informed about the subprojects, and information will continue to be provided during implementation of the project. Consultations were also held at various levels of government, including the Municipal Development Fund (including its resettlement division), Ministry of Region Development and Infrastructure, local governments at the rayon (district municipality) level and gamgebeli (governor) level, as well as with the donor community (the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank and the Millennium Development Corporation).|
|During Project Implementation|
|Consulting Services||To be determined|
|Procurement||To be determined|
|Responsible ADB Officer||Cesar Emilio Llorens Alvarez|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Urban Development and Water Division, CWRD|
|Concept Clearance||08 Mar 2010|
|Fact Finding||14 Mar 2010 to 23 Mar 2010|
|MRM||14 May 2010|
|Approval||19 Jul 2010|
|Last Review Mission||-|
|PDS Creation Date||06 Jan 2010|
|Last PDS Update||23 Mar 2017|
MFF Facility Concept 0043-GEO
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||398.26||Cumulative Contract Awards|
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