Georgia: Urban Services Improvement Investment Program - Tranche 1

Sovereign Project | 43405-023 Status: Active

Summary

ADB is helping Georgia improve water and sanitation services in six secondary towns. The project will rehabilitate, improve, and expand water supply and sanitation infrastructure. It will also strengthen the capabilities of key water and sanitation provider, United Water Supply Company of Georgia LLC, and develop the capacity of oversight agencies to regulate the sector more effectively.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


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Project Name Urban Services Improvement Investment Program - Tranche 1
Project Number 43405-023
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2749-GEO: MFF - Urban Services Improvement Investment Program - Tranche 1
Asian Development Fund US$ 80.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Investment Program will improve water supply and sanitation (WSS) services in 6 secondary towns of Georgia. The Investment Program includes (i) infrastructure improvement to rehabilitate, improve, and expand WSS services; (ii) institutional effectiveness to improve the service utility's technical and management capabilities of the key WSS service provider, United Water Supply Company of Georgia LLC (UWSCG) 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.

Foreign direct investment (FDI) in Georgia has been the principal driver of economic growth over the last five years and is a major balancing factor for a sizeable trade deficit. Decline in FDI due to the recession was counterbalanced by growing remittances and current account surpluses in 2010. The service sector accounted consistently for a predominant share of total FDI (averaging nearly 60%) and continues to create employment opportunities in urban centers and secondary towns. Based on Q3-2010 figures, the government expects the FDI to reach 2009 levels and improve over time. 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 water supply and sanitation (WSS) with growing impacts on the habitats and concomitant public health implications. Improved municipal services, and specifically WSS, are therefore a key government priority. This 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.

Improved urban WSS service is a key priority for the government, essential to improving quality of life, attracting investments, and increasing productivity and competitiveness. Recognizing the need to overcome the current problems and constraints the government's urban WSS sector development plan (SDP) for 2011-20, approved on 31 January 2011, aims to ensure continuous and reliable water supply and safe sanitation services to all of Georgia's urban population by 2020. The SDP's objectives include technical sustainability of WSS services, environmental protection of natural resources, institutional effectiveness of service utilities and sector regulators, financial sustainability of service utilities, and provision of an enabling legislative and regulatory framework for WSS services.

The SDP objectives are fully consistent with the approach 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. The SDP fits with ADB's approach to the WSS sector development in Georgia and supports the use of the proposed multitranche financing facility (MFF) as a funding modality for this ADB intervention.

Impact Improved water supply in Kutaisi, Mestia, Poti, Anaklia and Ureki

Project Outcome

Description of Outcome Improved operations of the UWSCG
Progress Toward Outcome

The bid for the water treatment plant is combined with a bid for a wastewater treatment plant in Anaklia financed under tranche 1 of the MFF. The contract was awarded in September 2014.

The bid for a water intake system in Ureki was awarded in October 2014.

The bid for the Construction of New Office Building for UWSCG was awarded in December 2015.

Implementation Progress
Description of Project Outputs

Component 1: Infrastructure Improvement

Water intake, treatment and transmission pipeline constructed

Component 2: Institutional Effectiveness

Business Plans developed and implemented

Component 2: Institutional Effectiveness

Financial management improved, MIS and Accounting systems 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 GNEWSRC, MEPNR, and MA 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)

Works are ongoing in Anaklia, Kutaisi, Mestia, Poti and Ureki.

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Under improvement

For 6 cities

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Geographical Location Zugdidi,Anaklia,Marneuli,Kutaisi,Poti,Mestia

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The three sub-projects include development of water intake structures and transmission pipelines. 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 Temporary and permanent impact during construction is anticipated along a water transmission pipeline in Mestia. A Resettlement Plan was implemented by UWSCG and verified by an indiependent body. Construction contracts were awarded subsequently and is ongoing.
Indigenous Peoples 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

Gender Consultant in coordination with UWSCG have been engaged to accomplish the following:

(i) Conduct focus group and reveal knowledge gaps of households (especially of women as household water main users and managers) regarding water, hygiene, sanitation and customer rights; (ii) Present gender analysis to the stakeholders; (iii) Develop information campaign that will cover detailed plan of PR campaign activities; (iv) Publish and disseminate flyers containing information on projects as well as efficient water use, basic hygiene and sanitation issues and consumer rights; (v) Conduct trainings for majority female members of the communities on hygiene, sanitation practices, customer rights and efficient water use. The GAD report is being finalized and is expected in 2016.

Business Opportunities

Consulting Services The government will follow ADB's policies, including its Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement The government will follow ADB's policies, including its Procurement Guidelines (2010, as amended from time to time).

Responsible Staff

Responsible ADB Officer Massimo Petrone
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Ministry of Regional Development and Infrastructure of Georgia
Davit Shavliashvili
7, Ingorokva Str. 0134, Tbilisi Georgia

Timetable

Concept Clearance 17 Nov 2010
Fact Finding 11 Nov 2010 to 07 Dec 2010
MRM 11 Feb 2011
Approval 12 Apr 2011
Last Review Mission -
Last PDS Update 31 Mar 2016

Loan 2749-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Apr 2011 10 May 2011 15 Jun 2011 30 Sep 2016 30 Jun 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 105.00 Cumulative Contract Awards
ADB 80.00 12 Apr 2011 68.22 0.00 92%
Counterpart 25.00 Cumulative Disbursements
Cofinancing 0.00 12 Apr 2011 49.86 0.00 67%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

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.

Title Document Type Document Date
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jul 2016
Urban Services Improvement Investment Program - Tranche 1: Poti and Abasha Water Supply Subprojects Initial Environmental Examination Initial Environmental Examination Jul 2016
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Feb 2016
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Urban Services Improvement Investment Program – Tranche 1: Mestia Water Supply Headwork's Final Compliance Report Social Monitoring Reports May 2015
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Urban Services Improvement Investment Program (Tranche 1) - Mestia Water Supply Headworks Construction: Addendum to Land Acquisition and Resettlement Plan Resettlement Plans Oct 2014
Urban Services Improvement Investment Program - Tranche 1: Construction of a New Head Office of United Water Supply Company of Georgia Initial Environmental Examination Aug 2014
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Mar 2014
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Oct 2013
Urban Services Improvement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Apr 2013
Urban Services Improvement Investment Program - Project 1: Improvement of Kutaisi Water Supply Subproject Initial Environmental Examination Jul 2012
Urban Services Improvement Investment Program - Project 1: Resettlement Due Diligence Report - Anaklia Safeguards Due Diligence Reports Jul 2012
Urban Services Improvement Investment Program - Project 1: Improvement of Poti Water Supply Subproject Initial Environmental Examination Jul 2012
Urban Services Improvement Investment Program - Project 1: Resettlement Due Diligence Report - Kutaisi Safeguards Due Diligence Reports Jul 2012
Urban Services Improvement Investment Program - Project 1: Resettlement Due Diligence Report - Poti Safeguards Due Diligence Reports Jul 2012
Urban Services Improvement Investment Program - Tranche 1: Bi Annual Environmental Monitoring Report (01 January 2012 – 30 June 2012) Environmental Monitoring Reports Jul 2012
Urban Services Improvement Investment Program - Project 1: Improvement of Anaklia Water Supply Subproject Initial Environmental Examination Jul 2012
Urban Services Improvement Investment Program: Mestia Water Supply Headwork's Project Resettlement Plans Sep 2011
Urban Services Improvement Investment Program: Land Acquisition and Resettlement Plan for Mestia Water Supply Headworks Project Resettlement Plans Jul 2011

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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