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Georgia: Urban Services Improvement Investment Program-Tranche 4

Sovereign (Public) Project | 43405-026 Status: Active

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 Number 43405-026
Country Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3238-GEO: Urban Services Improvement Investment Program-Tranche 4
Ordinary capital resources US$ 108.00 million
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.
Project Outcome
Description of Outcome Water supply and sanitation services improved.
Progress Toward Outcome -
Implementation Progress
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)

Complied with.

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.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
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.
Business Opportunities
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
Executing Agencies
Ministry of Regional Development and Infrastructure of Georgia
Zurab Alavidze / Irakli Matkava
12 Khazbegi Str. 0160 Tbilisi
Georgia
Timetable
Concept Clearance -
Fact Finding -
MRM 03 Oct 2014
Approval 11 Dec 2014
Last Review Mission -
Last PDS Update 27 Sep 2018

Loan 3238-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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 98.92 0.00 92%
Counterpart 20.00 Cumulative Disbursements
Cofinancing 0.00 11 Dec 2014 60.68 0.00 56%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - 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 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.

Title Document Type Document Date
Urban Services Improvement Investment Program - Tranches 3, 4 and 6: Follow-up Review Report Proactive Integrity Reviews (PIR, formerly known as PPRR) Jul 2019
Urban Services Improvement Investment Program-Tranche 4: Audited Project Financial Statements (For the year ended 31 December 2018) Audited Project Financial Statements May 2019
Urban Services Improvement Investment Program - Tranche 4: Procurement Plan Procurement Plans Jun 2018
Urban Services Improvement Investment Program-Tranche 4: Audited Project Financial Statements (For the year ended 31 December 2017) Audited Project Financial Statements Mar 2018
Urban Services Improvement and Investment Program - Tranches 3 and 4: Project Procurement-Related Review Report Proactive Integrity Reviews (PIR, formerly known as PPRR) Oct 2017
Amendment to the Loan Agreement for Loan 3238-GEO: Urban Services Improvement Investment Program - Project 4 Loan Agreement (Ordinary Resources) May 2017
Urban Services Improvement Investment Program - Tranche 4: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Apr 2017
Amendment to the Loan Agreement (Ordinary Operations) for Loan 3238-GEO: Urban Services Improvement Investment Program - Project 4 Loan Agreement (Ordinary Resources) Dec 2016
Urban Services Improvement Investment Program - Tranche 4: Audited Project Financial Statements (January-December 2015) Audited Project Financial Statements Nov 2016
Project Agreement for Urban Services Improvement Investment Program - Tranche 4 Project/Program Agreements Feb 2015
Loan Agreement for Urban Services Improvement Investment Program - Project 4 Loan Agreement (Ordinary Resources) Feb 2015

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 4: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Feb 2020
Urban Services Improvement Investment Program – Tranche 4: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jul 2019
Urban Services Improvement Investment Program-Tranche 4: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jun 2019
Urban Services Improvement Investment Program-Tranche 4: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Urban Services Improvement Investment Program - Tranche 4: Environmental Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Dec 2017
Urban Services Improvement Investment Program - Tranche 4: Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jul 2017
Urban Services Improvement Investment Program - Tranche 4: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Mar 2017
Urban Services Improvement Investment Program - Tranche 4: Social Monitoring Report Social Monitoring Reports Feb 2017
Urban Services Improvement Investment Program - Tranche 4: Zugdidi Subproject Resettlement Plan Resettlement Plans Oct 2016
Urban Services Improvement Investment Program - Tranche 4: Gudauri Water Supply System Initial Environmental Examination Initial Environmental Examination Jul 2016
Urban Services Improvement Investment Program - Tranche 4: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jul 2016
Urban Services Improvement Investment Program - Tranche 4: Zugdidi and Jvari Water Supply Systems Initial Environmental Examination Initial Environmental Examination Jul 2016
Urban Services Improvement Investment Program - Tranche 4: Improvement of Poti Wastewater System Sub-project Initial Environmental Examination Aug 2014
Urban Services Improvement Investment Program - Tranche 4: Improvement of Zugdidi Water Supply System Sub-project Initial Environmental Examination Aug 2014
Urban Services Improvement Investment Program - Tranche 4: Improvement of Poti Wastewater System Sub-project Initial Environmental Examination Initial Environmental Examination Aug 2014
Urban Services Improvement Investment Program - Tranche 4: Improvement of Zugdidi Water Supply System Sub-project Initial Environmental Examination Initial Environmental Examination Aug 2014

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.

Tenders

Tender Title Type Status Posting Date Deadline
Independent Projects Engineer Individual - Consulting Closed 17 Apr 2019 23 Apr 2019
Resettlement Specialist Individual - Consulting Closed 16 Apr 2019 29 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

Contracts Awarded

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

Procurement Plan