Georgia : Fiscal Resilience and Social Protection Support Program (Subprogram 2)

Sovereign Project | 54271-002

The program aims to strengthen Georgia's fiscal resilience to external shocks, addressing institutional fragilities in fiscal management and social protection. Subprogram 2 deepens and completes reforms initiated in subprogram 1, supporting Georgia's economic recovery from the coronavirus disease (COVID-19) crisis, amid a context of heightened regional and global economic uncertainty. Prior actions included in subprogram 2 (i) improve institutional capacity for management of fiscal risks stemming from climate change and natural disasters and state-owned enterprises (SOEs); (ii) deepen domestic debt markets for government securities and capital market development to mitigate exposure to currency and refinancing risks; and (iii) strengthen adequacy and fiscal sustainability of social protection programs to protect the livelihoods of Georgia's aging population.

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 2)
Project Number
54271-002
Country / Economy
  • Georgia
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4246-GEO: Fiscal Resilience and Social Protection Support Program (Subprogram 2)
Source Amount
Ordinary capital resources US$ 100.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Finance / Finance sector development - Money and capital markets

  • Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises

Gender
Some gender elements
Description
The program aims to strengthen Georgia's fiscal resilience to external shocks, addressing institutional fragilities in fiscal management and social protection. Subprogram 2 deepens and completes reforms initiated in subprogram 1, supporting Georgia's economic recovery from the coronavirus disease (COVID-19) crisis, amid a context of heightened regional and global economic uncertainty. Prior actions included in subprogram 2 (i) improve institutional capacity for management of fiscal risks stemming from climate change and natural disasters and state-owned enterprises (SOEs); (ii) deepen domestic debt markets for government securities and capital market development to mitigate exposure to currency and refinancing risks; and (iii) strengthen adequacy and fiscal sustainability of social protection programs to protect the livelihoods of Georgia's aging population.
Project Rationale and Linkage to Country/Regional Strategy
Georgia's sound policy response to the COVID-19 crisis generated a robust economic recovery in 2021. Growth in gross domestic product (GDP) rebounded sharply from -6.8% in 2020 to 10.4% in 2021. Similarly, an increase in the share of people living below the national poverty rate from 19.5% in 2019 to 21.3% in 2020, was quickly reversed to a historical low of 17.5% in 2021. Initial concerns about potential spillovers from Russian invasion of Ukraine have not materialized and did not alter the economic outlook for 2022. Instead, economic performance is expected to remain robust on account of an increased influx of migrants from the Russian Federation and strong growth in remittances and exports. Improved external inflows are expected to narrow the current account deficit to 8.2% of GDP in 2022, compared with 9.8% in 2021. Economic output is estimated to grow by 6% in 2022, signaling economic resilience, and prudent macroeconomic management.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
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
12 Jan 2024
Fact Finding
21 May 2022 to 28 May 2022
MRM
26 Aug 2022
Approval
10 Nov 2022
Last Review Mission
-
Last PDS Update
10 Nov 2022

Funding

Loan 4246-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2022 21 Nov 2022 19 Dec 2022 31 Dec 2022 - 31 Dec 2022
Financing Plan
  Total (Amount in US$ million)
Project Cost 100.00
ADB 100.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Feb 2023 106.27 0.00 100%
Cumulative Disbursements 06 Feb 2023 106.27 0.00 100%

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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

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.