Georgia : Fiscal Resilience and Social Protection Support Program (Subprogram 1)
The proposed Program is part of a comprehensive and integrated package of support from the Asian Development Bank (ADB) to the Government of Georgia to help address adverse health, social and economic impacts of the coronavirus disease (COVID-19) pandemic. The Program supports Georgia's return to inclusive economic growth by addressing longstanding institutional fragilities that were further exposed as a result of the COVID-19 crisis. The Program is aligned with ADB's Strategy 2030, including operational priorities on addressing remaining poverty and reducing inequalities, accelerating progress in gender equality, strengthening governance and institutional capacity. The Program is also aligned with the ADB Country Partnership Strategy, 20182022 for Georgia.
Project Details
-
Project Officer
de Almeida Vieira de Sa, Rogerio
Central and West Asia Department
Request for information -
Country/Economy
Georgia -
Sector
- Public sector management
- Project Name
- Fiscal Resilience and Social Protection Support Program (Subprogram 1)
- Project Number
- 54271-001
- Country / Economy
- Georgia
- Project Status
- Closed
- Project Type / Modality of Assistance
- Loan
- Source of Funding / Amount
Loan 3993-GEO: Fiscal Management and Social Protection Support Program (Subprogram 1) Source Amount Ordinary capital resources US$ 200.00 million - Operational Priorities
- OP1: Addressing remaining poverty and reducing inequalities
- OP2: Accelerating progress in gender equality
- OP6: Strengthening governance and institutional capacity
- Sector / Subsector
Finance / Money and capital markets
Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises - Social protection initiatives
- Gender
- Effective gender mainstreaming
- Description
- The proposed Program is part of a comprehensive and integrated package of support from the Asian Development Bank (ADB) to the Government of Georgia to help address adverse health, social and economic impacts of the coronavirus disease (COVID-19) pandemic. The Program supports Georgia's return to inclusive economic growth by addressing longstanding institutional fragilities that were further exposed as a result of the COVID-19 crisis. The Program is aligned with ADB's Strategy 2030, including operational priorities on addressing remaining poverty and reducing inequalities, accelerating progress in gender equality, strengthening governance and institutional capacity. The Program is also aligned with the ADB Country Partnership Strategy, 20182022 for Georgia.
- Project Rationale and Linkage to Country/Regional Strategy
- Economic performance forecasts for FY2020 have been revised downwards. The COVID-19 pandemic had a significant negative impact on Georgian economy. While the drop in remittances and exports was less severe than initially envisioned, it did not offset the impact felt on the tourism sector and FDI, leading to an overall downward revision in forecasts for GDP frowth in 2020. As a result of COVID-19, Georgian economy is now expected to contract by 5% in 2020, down from the previous estimate of -4% estimate. These revised forecasts are based on recent available data which indicate a contraction of 12.6% in growth y-o-y for the second quarter of 2020 and an overall 5.8% contraction for the first half of 2020. In the second quarter of 2020, tourism revenues reduced by $ 849mn y-o-y which were partly, but not entirely, compensated by significantly reduced trade balance (-$ 497mn y-o-y) as imports fell sharper than exports (down 31.8% y-o-y and 24.7% y-o-y, respectively). There was a significant drop in remittances in April due to economic lockdown globally, however it quickly rebounded in June 2020 increasing by 17.8% y-o-y for that month. After the GEL hit a record low level in March 2020, it appreciated by 6.9% q-o-q against the USD, reflecting adequate monetary policy response by the NBG, as well as external funding support and remittances. Annual inflation in June 2020 was 6.1%, above the 3% target, due to disruption to supply chains and strengthened influence of FX pass-through.
- Impact
Inclusive economic recovery from the COVID-19 crisis
Project Outcome
- Description of Outcome
More effective management of risk exposure by the public sector and enhanced and fiscally responsible social protection of vulnerable people.
- Progress Toward Outcome
Implementation Progress
- Description of Project Outputs
Management of public exposure to fiscal risks is strengthened.
Domestic debt market for government securities is deepened.
Adequacy and fiscal sustainability of social protection programs strengthened
- Status of Implementation Progress (Outputs, Activities, and Issues)
- Geographical Location
- Nation-wide
Safeguard Categories
- Environment
- C
- Involuntary Resettlement
- C
- 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
Contact
- Responsible ADB Officer
- de Almeida Vieira de Sa, Rogerio
- 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
- -
- Fact Finding
- 07 Aug 2020 to 21 Aug 2020
- MRM
- 18 Sep 2020
- Approval
- 29 Oct 2020
- Last Review Mission
- -
- Last PDS Update
- 29 Oct 2020
Funding
Loan 3993-GEO
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 29 Oct 2020 | 29 Oct 2020 | 31 Dec 2020 | 31 May 2021 | - | 31 May 2021 |
| Total (Amount in US$ million) | |
|---|---|
| Project Cost | 200.00 |
| ADB | 200.00 |
| Counterpart | 0.00 |
| Cofinancing | 0.00 |
| Date | ADB | Others | Net Percentage | |
|---|---|---|---|---|
| Cumulative Contract Awards | 29 Jan 2024 | 209.22 | 0.00 | 100% |
| Cumulative Disbursements | 29 Jan 2024 | 209.22 | 0.00 | 100% |
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 |
|---|---|---|
| Fiscal Resilience and Social Protection Support Program (Subprograms 1 and 2): Completion Report | Project/Program Completion Reports | Jan 2024 |
| Fiscal Resilience and Social Protection Support Program (Subprogram 1): Report and Recommendation of the President | Reports and Recommendations of the President | Oct 2020 |
| Loan Agreement (Ordinary Operations) for Loan 3993-GEO: Fiscal Resilience and Social Protection Support Program | Loan Agreement (Ordinary Resources) | Oct 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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