Georgia : Urban Services Improvement Investment Program -Tranche 6

Sovereign Project | 43405-028

Project 6 will finance the water supply and sanitation systems in Marneuli, Bolnisi, and Chiatura. The first component includes construction of: (i) water supply and sewerage systems, including a new wastewater treatment plant (WWTP) in Marneuli; (ii) the sewerage system in Bolnisi which will be connected to the Marneuli WWTP; and (iii) the water supply system and a new WWTP in Chiatura. Project 6 will benefit approximately a population of 37,380 in Marneuli, 9,000 in Bolnisi, and 15,400 in Chiatura. The second component includes project implementation support.

Project Name Urban Services Improvement Investment Program -Tranche 6
Project Number 43405-028
Country / Economy Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3441-GEO: Urban Services Improvement Investment Program - Tranche 6
Ordinary capital resources US$ 99.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Water and other urban infrastructure and services / Urban sanitation - Urban water supply

Gender Effective gender mainstreaming
Description Project 6 will finance the water supply and sanitation systems in Marneuli, Bolnisi, and Chiatura. The first component includes construction of: (i) water supply and sewerage systems, including a new wastewater treatment plant (WWTP) in Marneuli; (ii) the sewerage system in Bolnisi which will be connected to the Marneuli WWTP; and (iii) the water supply system and a new WWTP in Chiatura. Project 6 will benefit approximately a population of 37,380 in Marneuli, 9,000 in Bolnisi, and 15,400 in Chiatura. The second component includes project implementation support.
Project Rationale and Linkage to Country/Regional Strategy

The Investment Program includes, (i) infrastructure improvement to rehabilitate and expand WSS services; (ii) more effective institutions; 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 provided by three service utilities: (i) Georgia Water and Power Company (GWP) that serves Tbilisi and Rustavi; (ii) Batumi Water Company that serves the Adjara Autonomous Region; and (iii) United Water Supply Company of Georgia LLC (UWSCG) that serves the rest of the country. Georgian National Energy and Water Supply 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 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 cities of Georgia.

Project Outcome
Description of Outcome

Improved water supply and sanitation services.

Progress Toward Outcome Achievement of project outcome will likely be delayed, given the slow progress of construction of water supply and sanitation in Marneuli.
Implementation Progress
Description of Project Outputs

Water supply and sewerage system efficiency improved through rehabilitation and reconstruction, and extended coverage.

Project implementation support and public awareness program effectively implemented, information on hygiene and sanitation disseminated.

Status of Implementation Progress (Outputs, Activities, and Issues)

Works for Marneuli WSS are ongoing. Contractor needs to substantially increase the number of teams at site to recover delays in the construction schedule. The government's order to stop construction works in Marneuli due to COVID has impacted the works progress. Completion of works is by 2022.

The contract for Marneuli wastewater treatment plant was awarded in October 2019 and commencement was in Dec 2019. Design works are currently being undertaken and site clearing have started.

Public awareness campaign on hygiene and sanitation conducted in 2017.

Geographical Location Bolnisi, Chiatura, Marneuli
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 6 is category B as it will not have significant irreversible environmental impacts during or after construction.
Involuntary Resettlement The government adopted on 17 December 2010 a resettlement framework upon which social safeguards compliance for all projects are based. An involuntary resettlement due diligence was conducted to determine the impacts and consequently project 6 was classified C. However, during the implementation of Chiatura water supply, changes to design were necessary which had an impact on involuntary resettlement safeguards and consequently the project was re-categorized as "B".
Indigenous Peoples The investment program area does not include communities that may be defined as indigenous peoples under ADB's Safeguard Policy Statement (2009). Consequently, the indigenous peoples' impact classification for all projects is C.
Stakeholder Communication, Participation, and Consultation
During Project Design At the time of Initial Environment Evaluation preparation, consultations were undertaken with the stakeholders who were informed of the benefits of improved water supply and sanitation system.
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 QCBS Construction supervision consultancy contract (331 person-months) estimated at $4.72 million

One LCS Auditor consultancy contract (12 person-months) estimated at $0.59 million

Procurement

One ICB civil works contract for Marneuli sewerage system including sewerage system in Bolnisi ($68.44 million)

One ICB design, build and operate contract for wastewater treatment plant in Marneuli, Bolnisi and Chiatura($24.19 million)

One ICB civil works contract for Chiatura water supply system ($11.80 million)

Responsible ADB Officer Tskhvitava, Avtandil
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Georgia Resident Mission (GRM)
Executing Agencies
Ministry of Regional Development and Infrastructure of Georgia
Timetable
Concept Clearance -
Fact Finding -
MRM 02 Aug 2016
Approval 04 Oct 2016
Last Review Mission -
Last PDS Update 15 Sep 2020

Loan 3441-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Oct 2016 15 Dec 2016 02 Mar 2017 30 Sep 2019 29 Mar 2024 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 117.00 Cumulative Contract Awards
ADB 99.00 27 Dec 2023 89.86 0.00 96%
Counterpart 18.00 Cumulative Disbursements
Cofinancing 0.00 27 Dec 2023 72.62 0.00 77%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - 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 - Tranche 6: Procurement Plan Procurement Plans Dec 2023
Urban Services Improvement Investment Program - Tranche 6: Audited Project Financial Statements (January-December 2022) Audited Project Financial Statements Jun 2023
Urban Services Improvement Investment Program - Tranche 6: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jun 2022
Urban Services Improvement Investment Program - Tranche 6: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jun 2021
Amendment to the Loan Agreement (Ordinary Operations) for Loan 3441-GEO: Urban Services Improvement Investment Program - Tranche 6 Loan Agreement (Ordinary Resources) Jun 2021
Urban Services Improvement Investment Program - Tranche 6: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2020
Urban Services Improvement Investment Program - Tranches 3, 4 and 6: Follow-up Review Report Proactive Integrity Reviews (PIR) Jul 2019
Urban Services Improvement Investment Program - Tranche 6: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jun 2019
Amendment to the Loan Agreement for Loan 3441-GEO: Urban Services Improvement Investment Program - Tranche 6 Loan Agreement (Ordinary Resources) Mar 2019
საქართველო: ურბანული მომსახურების გაუმჯობესების საინვესტიციო პროგრამა - ტრანში 6 - პროექტის მონაცემთა აღწერის Translated PDS Mar 2017
Project Agreement for Loan 3441-GEO: Urban Services Improvement Investment Program - Tranche 6 Project/Program Agreements Dec 2016
Loan Agreement (Ordinary Operations) for Loan 3441-GEO: Urban Services Improvement Investment Program, Tranche 6 Loan Agreement (Ordinary Resources) Dec 2016
Urban Services Improvement Investment Program - Tranche 6: Periodic Financing Request Report Periodic Financing Request Reports Oct 2016

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 6: Environmental Monitoring Report (July-December 2023) Environmental Monitoring Reports Jan 2024
Urban Services Improvement Investment Program - Tranche 6: Social Monitoring Report (January-June 2023) Social Monitoring Reports Jul 2023
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (January-June 2023) Environmental Monitoring Reports Jul 2023
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (July-December 2022) Environmental Monitoring Reports Jan 2023
Urban Services Improvement Investment Program - Tranche 6: Social Monitoring Report (July-December 2022) Social Monitoring Reports Jan 2023
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Sep 2022
Urban Services Improvement Investment Program - Tranche 6: Social Monitoring Report (January-June 2022) Social Monitoring Reports Jul 2022
Urban Services Improvement Investment Program -Tranche 6: Marneuli Water Supply and Wastewater Systems Construction and Bolnisi Wastewater System and Collector Construction Supplementary Initial Environmental Examination Initial Environmental Examination Apr 2022
Urban Services Improvement Investment Program -Tranche 6: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Jan 2022
Urban Services Improvement Investment Program - Tranche 6: Social Monitoring Report (July-December 2021) Social Monitoring Reports Jan 2022
Urban Services Improvement Investment Program -Tranche 6: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Aug 2021
Urban Services Improvement Investment Program - Tranche 6: Social Monitoring Report (January-June 2021) Social Monitoring Reports Aug 2021
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Feb 2021
Urban Services Improvement Investment Program -Tranche 6: Social Monitoring Report (July-December 2020) Social Monitoring Reports Jan 2021
Urban Services Improvement Investment Program - Tranche 6: Construction of Water Supply System in Chiatura (CHI-01) Social Due Diligence Report Safeguards Due Diligence Reports Sep 2020
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jul 2020
Urban Services Improvement Investment Program - Tranche 6: Social Monitoring Report (January-June 2020) Social Monitoring Reports Jul 2020
Urban Services Improvement Investment Program - Tranche 6: Social Monitoring Report (July-December 2019) Social Monitoring Reports Apr 2020
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Feb 2020
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jul 2019
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jun 2019
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Urban Services Improvement Investment Program - Tranche 6: Chiatura Water Supply System Construction Project (CHI-01) Social Monitoring Report (January-June 2018) Social Monitoring Reports Jun 2018
Urban Services Improvement Investment Program - Tranche 6: Chiatura Water Supply System Resettlement Plan Resettlement Plans Dec 2017
Urban Services Improvement Investment Program - Tranche 6: Environmental Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Dec 2017
Urban Services Improvement Investment Program - Tranche 6: Bolnisi Wastewater System Initial Environmental Examination Initial Environmental Examination Aug 2016
Urban Services Improvement Investment Program - Tranche 6: Chiatura Wastewater System Initial Environmental Examination Initial Environmental Examination Aug 2016
Urban Services Improvement Investment Program - Tranche 6: Marneuli Water Supply System Initial Environmental Examination Initial Environmental Examination Aug 2016
Urban Services Improvement Investment Program - Tranche 6: Chiatura Water Supply System Initial Environmental Examination Initial Environmental Examination Aug 2016
Urban Services Improvement Investment Program - Tranche 6: Marneuli Wastewater System Initial Environmental Examination Initial Environmental Examination Aug 2016

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
Loan No. 3441-GEO: Urban Services Improvement Investment Program – Tranche 6 [UWSCG-ICB-Machinery-T6-2022.02] Invitation for Bids Closed
3441-GEO - Urban Services Improvement Investment Program - Tranche 6 [UWSCG-NCB-Computers and Printers-2022 – 2 Lots] Invitation for Bids Closed
Loan No. 3441-GEO: Urban Services Improvement Investment Program – Tranche 6 [USIIP/T6/CW/2022/MAR-01 (6 lots)] Invitation for Bids Closed
Loan No. 3441-GEO: Urban Services Improvement Investment Program – Tranche 6 [UWSCG-ICB-Machinery-2021.02 (4 Lots)] Invitation for Bids Closed
Loan No. 3441-GEO: Urban Services Improvement Investment Program – Tranche 6 [UWSCG-ICB-G-02-B. Loaders-2019] Invitation for Bids Closed
Feasibility Studies, Preliminary Design, Detailed Design and Preparation of Bidding Documents for Bakuriani, Didi Mitarbi and Chiatura Firm - Consulting Closed
Loan No. 3441-GEO: Urban Services Improvement Investment Program - Tranche 6 [UWSCG-ICB-MAR-02-2019] Invitation for Bids Closed
3441-GEO: Urban Services Improvement Investment Program - Tranche 6[CHI-01:  Construction and Completion of Water Supply System in Chiatura] Invitation for Bids Closed
3441-GEO: Urban Services Improvement Investment Program - Tranche 6[MAR-01: Improvement of Water Supply and Sewage System Marneuli] Invitation for Bids Closed
43405-GEO: Urban Services Improvement Investment Program – Tranche 6 Advance Notice Archived

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Procurement of 8 large Vacuum Trucks and 6 small Vacuum Trucks Loan 3441 08 Jun 2023 GT Group LLC | #216 D. Agmashenebeli Alley, Tbilisi, Georgia Min. of Regional Dev't.& Infrastructure of Georgia 1,518,257.25 1,518,257.25
Procurement of 23 Backhoe Loaders Loan 3441 08 Jun 2023 GT Group LLC | #216 D. Agmashenebeli Alley, Tbilisi, Georgia Min. of Regional Dev't.& Infrastructure of Georgia 1,891,290.27 1,891,290.27
Procurement of 6 Dump Trucks, 8 Water Trucks and 2 Solid Waste Skip Loader Loan 3441 08 Jun 2023 GT Group LLC | #216 D. Agmashenebeli Alley, Tbilisi, Georgia Min. of Regional Dev't.& Infrastructure of Georgia 2,224,921.41 2,224,921.41
Construction of Water Supply and Sewerage Systems in Marneuli and Sewerage System and Collector in Bolnisi (USIIP/T6/CW/2022/L1/MAR-01 Zone 1 - Lot 1) Loan 3441 14 Sep 2022 China Geo-Engineering Corporation (CGC) (People's Republic of China) | 100093, Building B, Plot 92, Xiangshan South Road, Haidian District, Beijing, China Min. of Regional Dev't. & Infrastructure of Georgia 1,706,254.79 1,446,050.93
Construction of Water Supply and Sewerage Systems in Marneuli and Sewerage System and Collector in Bolnisi USIIP/T6/CW/2022/L5/MAR-01 Interceptor - Lot 5 Loan 3441 14 Sep 2022 POLAT Yol Yapi Sanayi ve Ticaret Anonim Sirkei (Turkey) | Uzuncayir Yolu Ave. Hamza Polat Business Centre No: 6 34722, Hasanpasa, Istanbul Min. of Regional Dev't. & Infrastructure of Georgia 3,155,432.74 2,674,229.25
Construction of Water Supply and Sewerage Systems in Marneuli and Sewerage System and Collector in Bolnisi USIIP/T6/CW/2022/L4/MAR-01 Bolnisi City Network - Lot 4 Loan 3441 14 Sep 2022 POLAT Yol Yapi Sanayi ve Ticaret Anonim Sirkei (Turkey) | Uzuncayir Yolu Ave. Hamza Polat Business Centre No: 6 34722, Hasanpasa, Istanbul Min. of Regional Dev't. & Infrastructure of Georgia 4,669,179.63 3,957,129.74
Construction of Water Supply and Sewerage Systems in Marneuli and Sewerage System and Collector in Bolnisi USIIP/T6/CW/2022/L3/MAR-01 Zone 4 and 5 - Lot 3 Loan 3441 14 Sep 2022 China Geo-Engineering Corporation (CGC) (People's Republic of China) | 100093, Building B, Plot 92, Xiangshan South Road, Haidian District, Beijing, China Min. of Regional Dev't. & Infrastructure of Georgia 11,762,518.74 9,968,734.63
Construction of Water Supply and Sewerage Systems in Marneuli and Sewerage System and Collector in Bolnisi USIIP/T6/CW/2022/L6/MAR-01 Kolagiri Wellfield - Lot 6 Loan 3441 14 Sep 2022 China Geo-Engineering Corporation (CGC) (People's Republic of China) | 100093, Building B, Plot 92, Xiangshan South Road, Haidian District, Beijing, China Min. of Regional Dev't. & Infrastructure of Georgia 12,298,261.90 10,422,776.96
Construction of Water Supply and Sewerage Systems in Marneuli and Sewerage System and Collector in Bolnisi USIIP/T6/CW/2022/L2/MAR-01 Zone 2,3 and 6 - Lot 2 Loan 3441 14 Sep 2022 China Geo-Engineering Corporation (CGC) (People's Republic of China) | 100093, Building B, Plot 92, Xiangshan South Road, Haidian District, Beijing, China Min. of Regional Dev't. & Infrastructure of Georgia 13,411,604.13 11,366,334.50
FEASIBILITY STUDIES, PRELIMINARY DESIGN, DETAILED ENGINEERING AND PREPARATION OF BIDDING DOCUMENT FOR BAKURINI, DIDI MTARBIA AND CHIATURA Loan 3441 26 Nov 2020 REGIERUNGSBAUMEISTER SCHLEGEL GMBH & CO. KG | GERMANY GERMANY Min. of Regional Dev't.& Infrastructure of Georgia 4,162,211.47 3,570,323.82
CONSTRUCTION OF WASTEWATER TREATMENT PLANT IN MARNEULI Loan 3441 30 Oct 2019 JV OF TOSHIBA WATER SOLUTIONS PVT. LTD. | D-19, KALKAJI, NEW DELHI INDIA Min. of Regional Dev't.& Infrastructure of Georgia 10,476,799.92 8,841,847.74
CONSTRUCTION OF WATER SUPPLY AND SEWERAGE SYSTEMS IN MARNEULI AND SEWERAGE SYSTEM AND COLLECTOR IN BOLNISI Loan 3441 23 Nov 2018 AKELIK GROUP OJSC | HOUSE 26, AHMAD RAJABLI 2, NARIMANOV DISTRICT, BAKU CITY AZ1052 AZERBAIJAN, REP. OF Min. of Regional Dev't.& Infrastructure of Georgia 55,940,022.00 47,409,169.00
T6 CONSTTRUCTION SUPERVISION CONSULTANTS Loan 3441 20 Sep 2017 HILL INTERNATIONAL N.V.& TEMELSU INTL ENG. | NETHERLANDS NETHERLANDS Min. of Regional Dev't.& Infrastructure of Georgia 4,830,684.00 4,094,005.00
CONSTRUCTION OF WATER SUPPLY SYSTEM IN CHIATURA Loan 3441 25 Aug 2017 AKKORD INDUSTRY CONSTRUCTION INVESTMENT CORP. | BLOCK 1937 AGA NEMATULLA STREET, NARIMANOV DISTRICT, BAKU AZERBAIJAN, REP. OF Min. of Regional Dev't.& Infrastructure of Georgia 15,336,610.00 12,997,777.00

Procurement Plan

Title Document Type Document Date
Urban Services Improvement Investment Program - Tranche 6: Procurement Plan Procurement Plans Dec 2023