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Georgia: Urban Services Improvement Investment Program -Tranche 6

Sovereign (Public) Project | 43405-028 Status: Active

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 sewage treatment plant (STP) in Marneuli; (ii) the sewerage system in Bolnisi which will be connected to the Marneuli STP; and (iii) the water supply system and a new STP 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 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 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 sewage treatment plant (STP) in Marneuli; (ii) the sewerage system in Bolnisi which will be connected to the Marneuli STP; and (iii) the water supply system and a new STP 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 will improve WSS services in urban centers of secondary towns of Georgia. 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 (including Bolnisi), Mestia, Poti, Zugdidi, Ureki, and Chiatura, and benefit approximately 364,200 persons (including Bolnisi & Chiatura) (xx% 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 secondary towns of Georgia (program defined).
Project Outcome
Description of Outcome Improved water supply and sanitation services in the secondary towns of Georgia.
Progress Toward Outcome To be assessed at Tranche closure in 2019.
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)

Civil works for the water supply system in Chiatura are ongoing.

Remaining contracts yet to be awarded.

Construction supervision consultant has been recruited in 2017

Public awareness campaign yet to be conducted.

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 sewage 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 Laxmi Sharma
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
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 02 Aug 2016
Approval 04 Oct 2016
Last Review Mission -
Last PDS Update 27 Sep 2018

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 2021 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 117.00 Cumulative Contract Awards
ADB 99.00 04 Oct 2016 73.45 0.00 78%
Counterpart 18.00 Cumulative Disbursements
Cofinancing 0.00 04 Oct 2016 22.54 0.00 24%
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.

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 (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: Marneuli 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
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: Chiatura Water Supply System Initial Environmental Examination Initial Environmental Examination Aug 2016
Urban Services Improvement Investment Program -Tranche 6: Bolnisi 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.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
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 CONSTRUCTION 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 CONSTRUCTION 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 VARIOUS VARIOUS NEPAL Dept of Local Infra Devt & Agri Roads CONSTRUCTION 15,336,610.00 12,997,777.00

Procurement Plan