Georgia: Livable Cities Investment Project for Balanced Development
Georgia is located at the crossroads of Europe and Asia, rich in natural resources and cultural heritage. Despite these comparative advantages, the country needs to overcome substantial infrastructure, urban services, and capacity gaps to unlock its economic growth potential. Although Georgia is an upper middle-income country, 20.1% of the population still lives below the poverty line. Economic growth has been unevenly distributed between Tbilisi and the regions. Georgia has a population of 3.7 million people (of which 1.9 million are women), with about 59% living in urban areas. More than 30% of the population lives in Tbilisi, which accounted for 52% of the country's gross domestic product (GDP) in 2019. The total population of Georgia has been declining steadily from 4.12 million in 2000 to 3.72 million in 2020.
Project Details
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Project Officer
Naik Singru, Ramola
Central and West Asia Department
Request for information -
Approval Date
10 November 2021 -
Country
Georgia -
Sector
- Water and other urban infrastructure and services
Related Projects
| Project Name | Livable Cities Investment Project for Balanced Development | ||||
| Project Number | 53118-001 | ||||
| Country | Georgia |
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| Project Status | Approved | ||||
| 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 located at the crossroads of Europe and Asia, rich in natural resources and cultural heritage. Despite these comparative advantages, the country needs to overcome substantial infrastructure, urban services, and capacity gaps to unlock its economic growth potential. Although Georgia is an upper middle-income country, 20.1% of the population still lives below the poverty line. Economic growth has been unevenly distributed between Tbilisi and the regions. Georgia has a population of 3.7 million people (of which 1.9 million are women), with about 59% living in urban areas. More than 30% of the population lives in Tbilisi, which accounted for 52% of the country's gross domestic product (GDP) in 2019. The total population of Georgia has been declining steadily from 4.12 million in 2000 to 3.72 million in 2020. The population in Tbilisi increased from 1,100,000 to 1,184,800 from 2010 to 2020, while the populations declined during the same period in the regions - from 369,800 to 310,000 in Kakheti, and from 413,200 to 311,100 in Samegrelo-Zemo Svaneti. The reverse demographic highlights issues such as out-migration, limited job opportunities, and poor quality of life in the regions. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Tourism is a fast-growing industry and a key driver of Georgia's economic growth, accounting for 26.3% of GDP in 2019. Tourism accounted for 27.7% of total employment in 2019 in Georgia, the highest in the Central and West Asia region. International visitors increased by 345% from 2010 to 2019, to 7.7 million, with international tourism receipts directing contributing $3.2 billion in 2019. Most trips (76.3%, or 5.5 million) were from neighboring countries, while only 23.7% (1.7 million) were from other parts of the world. Despite a high number of visitors prior to the COVID-19 pandemic, associated tourism revenues have lagged. Low visitor spending is a result of a shortage of high-quality tourism experiences and skills deficiencies to manage and market tourism assets. The Georgia National Tourism Strategy, 2015-2025 aims to create unique, high-quality visitor experiences based on the country's inherent natural and cultural assets. Despite promising prospects for tourism, basic urban services and associated tourism infrastructure remain outdated. Climate change impacts such as increased frequency of heat waves and floods put additional pressure on urban services and livability. Older persons and persons with disabilities (PWDs) also require accessible tourist sites and facilities. Integrated investments in urban services and tourism infrastructure will help improve livability for citizens and create jobs. The project will meet increasing demand for quality tourism in Central Asia Regional Economic Cooperation (CAREC) countries as the project cities are strategically located along CAREC corridors 2a, 2b, and 2c and the CAREC designated rail corridors, and will help unlock Georgia's economic potential through corridor development. | ||||
| Impact | Sustainable economic growth, improved livability and balanced development promoted in Georgia (Georgia 2020). | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Livability and inclusive economic activity in Georgia improved. |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Inclusive and climate-resilient urban infrastructure rehabilitated and constructed and services improved. Accessibility, connectivity, and mobility in tourism clusters across Georgia improved. Institutional capacity for sustainable urban and regional development enhanced. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide, Kakheti |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| 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 | 31 Aug 2021 |
| Approval | 10 Nov 2021 |
| Last Review Mission | - |
| Last PDS Update | 10 Nov 2021 |
Loan 4134-GEO
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 180.50 | Cumulative Contract Awards | |||
| ADB | 119.90 | - | 0.00 | 0.00 | % |
| Counterpart | 60.60 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | - | 0.00 | 0.00 | % |
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.
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| Title | Document Type | Document Date |
|---|---|---|
| Livable Cities Investment Project for Balanced Development: Gender Action Plan | Gender Action Plans | Oct 2021 |
| Livable Cities Investment Project for Balanced Development: Report and Recommendation of the President | Reports and Recommendations of the President | Oct 2021 |
| Livable Cities Investment Project for Balanced Development: Project Administration Manual | Project/Program Administration Manual | Oct 2021 |
| Livable Cities Investment Project for Balanced Development: Procurement Plan | Procurement Plans | Sep 2021 |
| 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.
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.
Tenders
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Livable Cities Investment Project for Balanced Development: Procurement Plan | Procurement Plans | Sep 2021 |