Georgia is strategically located at the crossroads of Europe and Asia, rich in natural resources and cultural heritage. Despite these comparative advantages, substantial infrastructure urban services, and capacity gaps remain to unlock its economic growth potential especially for secondary cities and towns in the regions. Tbilisi, the capital city of Georgia, contributes 70% of the national gross domestic product (GDP), with about half of the country's urban population concentration. Between 2007 and 2017, the city's urban population steadily increased from 47% to 51% of the country's total, while cities in Kakheti and Samegrelo-Zemo Svaneti (SZS) regions experienced decline in their urban population during the same period. SZS registered the largest decline with -28% change in urban and a -15% change in rural population.
| Project Name | Livable Cities Investment Project for Balanced Development | ||||
| Project Number | 53118-001 | ||||
| Country | Georgia |
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| Project Status | Proposed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector |
Agriculture, natural resources and rural development / Rural market infrastructure Transport / Urban public transport - Urban roads and traffic management Water and other urban infrastructure and services / Other urban services - Renovation and protection of cultural heritage - Urban policy, institutional and capacity development |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||
| Description | Georgia is strategically located at the crossroads of Europe and Asia, rich in natural resources and cultural heritage. Despite these comparative advantages, substantial infrastructure urban services, and capacity gaps remain to unlock its economic growth potential especially for secondary cities and towns in the regions. Tbilisi, the capital city of Georgia, contributes 70% of the national gross domestic product (GDP), with about half of the country's urban population concentration. Between 2007 and 2017, the city's urban population steadily increased from 47% to 51% of the country's total, while cities in Kakheti and Samegrelo-Zemo Svaneti (SZS) regions experienced decline in their urban population during the same period. SZS registered the largest decline with -28% change in urban and a -15% change in rural population. This reverse trend in regional city centers highlights issues such as out-migration, unbalanced economic growth, limited employment opportunities and poor livability in these regions, while resulting in additional stress on Tbilisi. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The Asian Development Bank (ADB) undertook a National Urban Assessment in 2015 which provided recommendations for balanced regional development to unlock the potential for inclusive economic growth through urban development by adopting multiple strategies, new initiatives, and innovative funding mechanisms at the national and regional level through integrated urban investment planning. Economic growth has been unevenly distributed between the capital city and other cities. Increased goods and services exports including wine, mineral water and beverages have been important drivers of recent increases in economic growth, and tourism receipts. The growth in the tourism sector has also benefited growth in transportation, communications and hospitality sectors. However, integrated multi-sector investments are required to unlock the economic opportunities that have been created by the expansion of the transport network across the country. | ||||
| Impact | Sustainable economic growth, improved livability and balanced regional development promoted in the urban regions in Georgia (Georgia 2020). | ||||
| Outcome | Livability and inclusive economic growth in the urban regional clusters in Georgia improved. | ||||
| Outputs | Inclusive and climate-resilient urban infrastructure and services rehabilitated and constructed. | ||||
| Geographical Location | Nation-wide, Kakheti | ||||
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | All consultants will be engaged in accordance with the ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulation for ADB Borrowers (2017, as amended from time to time). |
| Procurement | Detailed designs for 25 kindergartens, 4 sports complexes and 4 upgrading subprojects in the three urban clusters are ready with bidding documents under preparation. The procurement will be undertaken in accordance with the ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulation for ADB Borrowers (2017, as amended from time to time). |
| Responsible ADB Officer | Naik Singru, Ramola |
| 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 12 Khazbegi Str. 0160 Tbilisi Georgia Tbilisi City Municipality 7 Shartava str. 0160 Tbilisi |
| Timetable | |
|---|---|
| Concept Clearance | 27 Jul 2020 |
| Fact Finding | 05 Apr 2021 to 14 Apr 2021 |
| MRM | 21 Jun 2021 |
| Approval | - |
| Last Review Mission | - |
| Last PDS Update | 28 Jul 2020 |
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.
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| Title | Document Type | Document Date |
|---|---|---|
| Livable Cities Investment Project for Balanced Regional Development: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jul 2020 |
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
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Related Publications
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Tenders
Contracts Awarded
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Procurement Plan
None currently available.