Georgia : Strengthening Domestic Resource Mobilization

Project Name

Strengthening Domestic Resource Mobilization

Project Number

48044-003

Country / Economy

• Georgia

Project Status

Closed

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 8716-GEO: Strengthening Domestic Resource Mobilization

Source	Amount
Technical Assistance Special Fund	US$ 500,000.00

TA 8716-GEO: Strengthening Domestic Resource Mobilization (Supplementary)

Source	Amount
Technical Assistance Special Fund	US$ 480,000.00

TA 8716-GEO: Strengthening Domestic Resource Mobilization (Supplementary)

Source	Amount
Technical Assistance Special Fund	US$ 300,000.00

Strategic Agendas

• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Knowledge solutions
• Partnerships
• Private sector development

Sector / Subsector

• Finance / Finance sector development - Infrastructure finance and investment funds - Money and capital markets

• Public sector management / Public expenditure and fiscal management

Gender

Some gender elements

Description

The TA will support the government in managing the dual challenge of maintaining government debt sustainability while setting up legal, regulatory, and institutional frameworks facilitating availability of long-term capital for productive business and infrastructure investments. Key development issues to be addressed by the TA include enhancing generation of domestic savings, providing investment opportunities by developing money and debt markets, and managing public debt and fiscal risks better. A well-functioning legal and regulatory environment in these areas is an essential facilitator in spurring economic growth and creating fiscal space. The government is taking steps to ensure that the financial sector is supportive of development in the real sector and is focusing on macroeconomic stability, effective public administration, and private sector competitiveness to boost economic growth and share its benefits.

Project Rationale and Linkage to Country/Regional Strategy

The project addresses issues relating to domestic resource mobilization, leveraging private sector resources and better managing fiscal risks. Reforms in these areas leading to more stable legal, institutional and regulatory environment in the areas of capital markets, pension reforms, public private partnerships and debt managment will facilitate economic growth and maintain fiscal space.

Impact

Increased availability of domestic resources for effective public and private investment

Project Outcome

Description of Outcome

Strengthened institutional and regulatory framework for domestic resource mobilization

Progress Toward Outcome

Institutional and regulatory frameworks for pensions and capital markets are being developed that contribute to domestic resource mobilization.

Implementation Progress

Description of Project Outputs

Capital market master plan finalized

Pensions reform strategy developed

Legal and institutional framework for PPP strengthened

Public debt management improved

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

The consultant deliverables and their ongoing engagement with government counterparts have played an instrumental role in completing the policy actions under subprogram 2 and 3 of the Improving Domestic Resource Mobilization Program. TA support is continuing for 2 out of 4 outputs, capital market development and pension reform. Both reforms were initiated under the Improving Domestic Resource Mobilization Program and are still ongoing. Additional TA funding support amounting to US$300,000 was needed to continue services of international and national specialists. On June 2017, a supplementary approval was granted which increased the total TA amount by US$300,000 (from TASF-Others) to US$1,280,000, together with an extension until 31 December 2018. Technical assistance is being provided for ongoing capital market development and pension reforms. Continued support is needed for the implementation of the roadmap and the preparation of the by-laws for the ongoing pension reform program. The government is preparing for the Second Domestic Resource Mobilization Program which is scheduled for processing for Years 2019-2020.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

Key stakeholders that are being consulted during TA design include: MOESD, MOF, development partners including WB, IMF, EBRD and EU, business chambers and private sector players.

During Project Implementation

During implementation stakeholder consultation will be held with MOESD, MOF, development partners including WB, IMF, EBRD and EU, business chambers and private sector players.

Business Opportunities

Consulting Services

As per the latest approved minor change in scope dated June 2017, it is proposed that an additional 19 person-months of consulting services five international consultants for a total of 7 person months, and 4 national consultants for a total of 12 person months shall be further engaged to continue the TA support. It mainly concerns extensions of earlier recruited consultants. The consultants will be engaged as individuals in accordance with the Guidelines in the Use of Consultants (March 2013, as amended from time to time).

Procurement

N/A

Contact

Responsible ADB Officer

Shah, Syed Ali-Mumtaz H.

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Public Management, Financial Sector and Trade Division, CWRD

Executing Agencies

Ministry of Finance

Timetable

Concept Clearance

03 Jun 2014

Fact Finding

17 Jun 2014 to 25 Jun 2014

MRM

-

Approval

11 Sep 2014

Last Review Mission

-

Last PDS Update

27 Sep 2018

Funding

TA 8716-GEO