Georgia: MFF - Urban Services Improvement Investment Program - Facility Concept

Sovereign Project | 43405-013

Project Name MFF - Urban Services Improvement Investment Program - Facility Concept
Project Number 43405-013
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0055-GEO: MFF - Urban Services Improvement Investment Program - Facility Concept
Asian Development Fund US$ 250.00 million
Ordinary capital resources US$ 250.00 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 / Water supply and sanitation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed Investment Program will improve water supply and sanitation (WSS) services in selected cities of Georgia. The Investment Program will include (i) infrastructure improvement to rehabilitate, improve, and expand WSS services; (ii) institutional effectiveness to improve the service utility's technical and management capabilities 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.

According to official statistics and comprehensive poverty studies in 2010, around 21% of the country's population lived in poverty and 8.8% in extreme poverty. A 2009 UNICEF survey on Social Welfare Monitoring also found that poverty was concentrated in secondary towns. 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 WSS with growing impacts on the habitats and concomitant public health implications. Improved municipal services, and specifically WSS, is therefore a key government priority, which 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.

The SDP objectives are fully consistent with the strategy 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 and Water Operators Framework 2020. The SDP (which sets forth the road map and policy framework for the WSS sector) fits with ADB's approach to the WSS sector development in Georgia and supports the use of the proposed MFF as a funding modality for this ADB intervention.

Impact Improved health of residents in the cities of Georgia (program defined)
Project Outcome
Description of Outcome Improved water supply and sanitation services in Georgia
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Component 1: Infrastructure Improvement

Water supply system efficiency improved through rehabilitation and replacement, and coverage expanded

Component 1: Infrastructure Improvement

Sewerage and sanitation system efficiency improved through rehabilitation and reconstruction, and coverage expanded

Component 2: Institutional Effectiveness

Business plans developed and implemented

Component 2: Institutional Effectiveness

Financial management improved; management information system and accounting system 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 GNERC and MOEPA 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)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects

Category B

The three sub-projects involve the refurbishment of existing water supply systems. The majority of the works will be within the existing boundaries of facilities, however there will be a number of new pipelines laid. All environmental impacts associated with the works are minor and can be managed through effective implementation of an environmental management plan.

Involuntary Resettlement

Category B

Some permanent and temporary impact during construction is anticipated along a water transmission pipeline in Mestia.

Indigenous Peoples

Category C

The Indigenous Peoples Safeguards will not be triggered by this Investment Program. Based on the ADB definition of Indigenous People, in Georgia there are no identified communities.

Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations were undertaken with stakeholders including beneficiary communities (men and women separately), nongovernment 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
Responsible ADB Officer Hong, Heeyoung
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Concept Clearance 17 Nov 2010
Fact Finding 21 Nov 2010 to 06 Dec 2010
MRM 15 Dec 2010
Approval 30 Mar 2011
Last Review Mission -
Last PDS Update 02 Sep 2011

MFF Facility Concept 0055-GEO

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 625.00 Cumulative Contract Awards
ADB 500.00 - 0.00 0.00 %
Counterpart 125.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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.

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

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.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.