Georgia: Urban Services Improvement Investment Program -Tranche 6
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.
Central and West Asia Department
Request for information
- Water and other urban infrastructure and services
|Project Name||Urban Services Improvement Investment Program -Tranche 6|
|Country / Economy||Georgia
|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 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.|
|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.|
|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|
|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.|
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 ($11.80 million)
|Responsible ADB Officer||Katsitadze, Murman|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Georgia Resident Mission|
Ministry of Regional Development and Infrastructure of Georgia
Zurab Alavidze / Irakli Matkava
12 Khazbegi Str. 0160 Tbilisi
|MRM||02 Aug 2016|
|Approval||04 Oct 2016|
|Last Review Mission||-|
|Last PDS Update||15 Sep 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|04 Oct 2016||15 Dec 2016||02 Mar 2017||30 Sep 2019||29 Mar 2024||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||117.00||Cumulative Contract Awards|
|ADB||99.00||01 Feb 2022||79.02||0.00||84%|
|Cofinancing||0.00||01 Feb 2022||40.43||0.00||43%|
|Status of Covenants|
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Evaluation Documents See also: Independent Evaluation
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ADB, Georgia Sign Loans for Water and Sanitation Improvement ProjectsADB and the Government of Georgia have signed a $99 million ADB loan to upgrade water supply, sewerage, and sanitation systems for nearly 62,000 people in the secondary towns of Marneuli, Bolnisi, and Chiatura.
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|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|
|Title||Document Type||Document Date|
|Urban Services Improvement Investment Program - Tranche 6: Procurement Plan||Procurement Plans||Apr 2022|