Georgia : Urban Services Improvement Investment Program -Tranche 6

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

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.

Improved health of residents in the cities of Georgia.

Improved water supply and sanitation services.

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.

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.

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

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)