Georgia: Strengthening Domestic Resource Mobilization

Sovereign Project | 48044-003

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 Name Strengthening Domestic Resource Mobilization
Project Number 48044-003
Country Georgia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8716-GEO: Strengthening Domestic Resource Mobilization
Technical Assistance Special Fund US$ 500,000.00
TA 8716-GEO: Strengthening Domestic Resource Mobilization (Supplementary)
Technical Assistance Special Fund US$ 480,000.00
TA 8716-GEO: Strengthening Domestic Resource Mobilization (Supplementary)
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 Equity and Mainstreaming 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
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
16 Gorgasali St., 0114
Tbilisi
Georgia
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

TA 8716-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Sep 2014 06 Oct 2014 06 Oct 2014 30 Sep 2016 31 Aug 2019 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,280,000.00 0.00 0.00 0.00 0.00 0.00 1,280,000.00 18 Nov 2021 1,232,739.35

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
National Accounting Specialist Individual - Consulting Closed 21 Feb 2019 27 Feb 2019
National IT Design Specialist Individual - Consulting Closed 05 Feb 2019 11 Feb 2019

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.