The Asian Development Bank is supporting major water supply and sanitation upgrades in urban centers in Georgia. The fourth tranche of the program will fund a water supply system in the town of Zugdidi and a sewage collection and treatment system in the town of Poti. About 34,000 households in both towns will benefit from the improvements.
|Project Name||Urban Services Improvement Investment Program-Tranche 4|
|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
Governance and capacity development
|Sector / Subsector||
Water and other urban infrastructure and services / Urban sanitation - Urban water supply
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||Project 4 will finance the water supply and sanitation (WSS) services in Zugdidi and Poti, and water supply services in Gudauri and Jvari. The first component of the project will support infrastructure investments to rehabilitate, improve, and expand WSS facilities in Zugdidi and Poti, respectively; and benefit approximately 20,600 households in Zugdidi and 13,250 households in Poti by the end of the project period. The second component will include project implementation support and management.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Investment Program will improve WSS services in urban centers of secondary towns. The Investment Program includes, (i) infrastructure improvement to rehabilitate and expand WSS services; (ii) enterprise resource planning and management to improve the service utility's efficiency and sustain investments in the long-term; and (iii) Investment Program management and implementation support.
Georgia has an estimated population of 4.93 million (2013) with over 53% classified as urban, 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 $15.98 billion (2012). Georgia's overall economic outlook remains positive with expected GDP growth forecast of 5.5% in 2014 and 6.0% in 2015. Structural reforms targeting higher quality public investment are expected to boost productivity, catalyzing growth in manufacturing and other trading goods. The agricultural sector is expected to expand, reflecting increased government support to the sector. Services are also projected to grow, fueled by projected expansions in the transport, communication and financial intermediation sectors.
To address imminent pressures on physical infrastructure, the Ministry of Regional Development and Infrastructure (MRDI) has undertaken various initiatives, and in particular, interventions to improve water supply and sanitation (WSS) across the country. MRDI has developed an urban WSS sector development plan (SDP) with a vision to ensure continuous and reliable water supply and safe sanitation services to all of Georgia's urban residents by 2020. The SDP's objectives include (i) technical sustainability and environmental protection; (ii) institutional and financial sustainability; and (iii) enabling legislative and regulatory framework. To achieve the vision and objectives laid out in the SDP, the government's investment plan for urban WSS includes physical and non-physical investments.
WSS services are now provided by three service utilities: (i) Georgia Water and Power Company (GWPC) that serves Tbilisi and Rustavi (31.8% of country's population); (ii) Batumi Water Company and Adjara local self-governments that serves the Adjara Autonomous Region (8.6% of country's population); and (iii) United Water Supply Company of Georgia LLC (UWSCG) that serves the rest of the country (58.5% of country's population). Georgia National Energy and Water Regulatory Commission is responsible for economic regulation.
Most economic growth centers proposed for development by the government are in the region served by UWSCG. In this region, only 69.7% urban population has piped water supply and 15.5% urban population has access to sewerage system. Sewage from the reticulated network is discharged directly into streams or water channels without any treatment. The Investment Program socioeconomic surveys (which included an assessment of WSS coping strategies and willingness to pay) indicate that WSS services are irregular and severely affect the poor and internally displaced persons.
The proposed Investment Program fits within the overall growth context and the efforts underway to match infrastructure with the emerging needs. It will focus on improving WSS services in priority towns of Anaklia, Kutaisi, Marneuli, Mestia, Poti, Zugdidi, and Ureki, and benefit approximately 335,000 persons (38% of urban population in UWSCG region). It will also comprehensively improve WSS services in the selected economic centers rather than spreading thin the investments and diluting the impact. The Investment Program is consistent with the government's agenda to improve WSS service delivery through effective implementation of legal, economic, and financial frameworks for local self-governance.
|Impact||Improved health of residents in the urban centers of Georgia.|
|Description of Outcome||Water supply and sanitation services improved.|
|Progress Toward Outcome||-|
|Description of Project Outputs||
Infrastructure Improvement: Water supply system efficiency improved through rehabilitation and replacement, and extended coverage.
Infrastructure Improvement: Sewerage and sanitation system efficiency improved through rehabilitation and reconstruction, and extended coverage.
Project Implementation Support: Public awareness program effectively implemented, information on hygiene and sanitation disseminated.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Civil works of water supply systems in Zugdidi and Jvari are in progress and expected to be completed in 2018 and 2019.
Civil works contract for the water supply system in Gudauri to be awarded in 2018.
Construction of sewerage system and sewage treatment plant in Poti is in progress.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project areas cover existing roads for laying pipelines, public agriculture lands for well field water, reservoirs and WWTP are within the existing facilities. None of the areas are environmentally sensitive. The impacts are related to both construction and operation phases. These impacts will be minimized and mitigation actions will be taken. The project is classified as B for environment.|
|Involuntary Resettlement||The sewerage system sub-project in Poti and the water distribution system sub-project in Zugdidi under tranche 4 of the Program will not require land acquisition as construction will occur in unoccupied areas already owned by the government or under public roads. The project is categorized as B for involuntary resettlement.|
|Indigenous Peoples||The Project will not cause negative physical or non-physical impacts to the local population since in Georgia there are no groups identified as in the IP classification of ADB, and therefore the project is categorized as C.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||At the time of IEE preparation, consultations were undertaken with the stakeholders who were informed of the benefits of improved WSS.|
|During Project Implementation||Stakeholders will be informed of likely environmental impacts during construction and mitigation measures planned and actually conducted. The public consultation will be continued to encourage the people to get connected to the WSS system and to disseminate hygiene/sanitation practices.|
|Consulting Services||One consulting contract for Project Management Consultants (awarded). One consulting contract for Auditors to audit Project Financial Statements.|
|Procurement||Two civil works contracts for water supply and sewerage system in Zugdidi and Poti respectively (awarded). One Design Build Operate contract for a sewage treatment plant in Poti (awarded).|
|Responsible ADB Officer||Katsitadze, Murman|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Georgia Resident Mission|
Ministry of Regional Development and Infrastructure of Georgia
Zurab Alavidze / Irakli Matkava
12 Khazbegi Str. 0160 Tbilisi
|MRM||03 Oct 2014|
|Approval||11 Dec 2014|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|11 Dec 2014||05 Feb 2015||30 Mar 2015||30 Jun 2018||29 Mar 2021||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||128.00||Cumulative Contract Awards|
|ADB||108.00||11 Dec 2014||99.93||0.00||93%|
|Cofinancing||0.00||11 Dec 2014||66.86||0.00||62%|
|Status of Covenants|
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ADB Water and Sanitation Loan Marks Start of New Partnership with GeorgiaADB and Government of Georgia today signed a $108 million loan agreement for a project to improve water and sanitation services in Poti and Zugdidi, signaling the start of a new country partnership strategy (CPS) for 2014-2018.
ADB Provides $108 Million to Improve Water, Sanitation Services in Zugdidi, PotiADB has approved a $108 million loan to support further upgrades to water and sanitation services in secondary towns under an ongoing Urban Services Improvement Investment Program (USIIP).
|Tender Title||Type||Status||Posting Date||Deadline|
|Social Safeguards and Resettlement||Individual - Consulting||Closed||03 Jul 2020||16 Jul 2020|
|Independent Projects Engineer||Individual - Consulting||Closed||17 Apr 2019||23 Apr 2019|
|FIDIC Engineer||Individual - Consulting||Closed||17 Nov 2018||23 Nov 2018|
|Topographer-Geodesist||Individual - Consulting||Closed||02 Nov 2018||08 Nov 2018|
|Procurement Specialist||Individual - Consulting||Closed||31 Oct 2018||06 Nov 2018|
|Procurement Specialist||Individual - Consulting||Closed||28 Sep 2018||04 Oct 2018|
|HR Manager||Individual - Consulting||Closed||31 Jul 2018||06 Aug 2018|
|Independent National Design Engineer||Individual - Consulting||Closed||26 Jul 2018||28 Jul 2018|
|Loan Nos. 3078/3238-GEO: Urban Services Improvement Investment Program - Tranche 3 and 4 [UWSCG-ICB-GUD-02-2018]||Invitation for Bids||Closed||15 Jun 2018||27 Jul 2018|
|Gender Consultant for USIIP Projects||Individual - Consulting||Closed||12 Dec 2017||18 Dec 2017|
|Urban Services Improvement Investment Program-Tranche 4||Individual - Consulting||Closed||07 Aug 2017||13 Aug 2017|
|Loan No. 3238-GEO: Urban Services Improvement Investment Program - Tranche 4 [P43405-ICB-POT-02]||Invitation for Bids||Closed||06 Apr 2017||19 May 2017|
|Loan No. 3238-GEO: Urban Services Improvement Investment Program-Tranche 4 [P43405-ICB-POT-01] REBIDDING||Invitation for Bids||Closed||30 Mar 2017||11 May 2017|
|GEO: Urban Services Improvement Investment Program – Project 4||Advance Notice||Archived||09 Oct 2014|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|GUD-02 SECTION 2 WATER SUPPLY NETWORK||Loan 3238||28 Jan 2019||CHINA NUCLEAR INDUSTRY 23 CONSTRUCTION CO.LTD||X CHINA,PEOPLE'SREP.OF||Min. of Regional Dev't.& Infrastructure of Georgia||CONSTRUCTION||9,777,699.64||3,536,698.84|
|CIVIL, MECHANICAL AND ELECTRICAL WORKS FOR POTI STP||Loan 3238||22 Dec 2017||JV PFEIFFER-EMIT COMPRISED OF LUDWIG PFEIFFER||ERCOLE MARELLI IMPIANTI TECNOLOGICI SRL TBILISI (LOCAL ADDRESS) GERMANY||Min. of Regional Dev't.& Infrastructure of Georgia||CONSTRUCTION||17,667,765.00||15,072,945.00|
|CONSTRUCTION OF SEWAGE SYSTEMS IN POTI||Loan 3238||22 Dec 2017||TAHAL GROUP BV||DE CUSERSTRAAT 85B, 1081 CN AMSTERDAM NETHERLANDS||Min. of Regional Dev't.& Infrastructure of Georgia||CONSTRUCTION||35,309,263.00||29,924,772.00|
|Supply, Delivery and Commissioning of Laboratory Equipment, Glassware, Accessories, Chemicals and Laboratory Furniture (Lot 3)||Loan 3238||06 Feb 2017||As Insaat-N LLC||Ak. Sh. Mehdieyev Str. Baku Az 1141 93 Azerbaijan||Ministry of Regional Development and Infrastructure of Georgia||Construction||7,095,427.07||6,013,374.44|
|Title||Document Type||Document Date|
|Urban Services Improvement Investment Program - Tranche 4: Procurement Plan||Procurement Plans||Aug 2020|