Georgia: Support to Rail Passenger Services Contracting
The small-scale knowledge and support technical assistance will support Georgian Railway and the government in the formulation of a long-term business development strategy for rail passenger services and assist in the finalization of a fair and transparent public service contract.
Project Details
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Project Officer
Sluijter, Jurgen
Central and West Asia Department
Request for information -
Country/Economy
Georgia -
Sector
- Transport
Project Name | Support to Rail Passenger Services Contracting | ||||
Project Number | 54458-001 | ||||
Country / Economy | Georgia |
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Project Status | Closed | ||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Private sector development |
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Sector / Subsector | Transport / Rail transport (non-urban) |
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Gender Equity and Mainstreaming | Some gender elements | ||||
Description | The small-scale knowledge and support technical assistance will support Georgian Railway and the government in the formulation of a long-term business development strategy for rail passenger services and assist in the finalization of a fair and transparent public service contract. To establish a public service contract with the government in-depth analyses are required of (i) rail passenger demand assessment, including competition from other modes of transportation (buses, private cars); (ii) cost pricing of passenger services; (iii) timetabling and interconnectivity with other public transport modes; (iv) staffing; (v) infrastructure charging; (vi) fare schemes and integrated ticketing; (vii) rolling stock investment; (viii) marketing; and (ix) the required compensation (subsidy) for a longer-term contract with the government for the provision of a determined package of passenger services. Although Georgian Railway has already spent significant time and resources in preparing such a contract, further refinement of contracting details is required, for which experts' assistance is needed. |
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Project Rationale and Linkage to Country/Regional Strategy | Georgian Railway is a state-owned joint stock company (JSC) responsible for the management and maintenance of railway infrastructure and the operation of railway passenger and freight services. It has about 13,000 staff, making it Georgia's largest employer. It has three strategic business units (SBUs): (i) the Freight Transportation SBU; (ii) the Passenger Transportation SBU; and (iii) the Infrastructure SBU. These function as separate profit centers and produce separate financial statements. In 2019, Georgian Railway transported 10.6 million tons, with a turnover of 2,640 million ton-kilometers, and 2.8 million passengers of which 96.4% were domestic passengers. The Georgian railway network is almost entirely broad gauge (1,520 millimeters). The total network length is 1,443 kilometers, almost fully electrified, and connects 51 passenger and 100 goods stations. In 2019, Georgian Railway transported 10.6 million tons, with a turnover of 2,640 million ton-kilometers, and 2.8 million passengers of which 96.4% were domestic passengers. In 2019, the total revenues were GEL491 million (an increase of 16% compared to 2018) with a result of operating activities of GEL108 million and a net loss of GEL5 million. In the first 9 months of 2020, revenues were equal to the same period in 2019, with an increase of 4% in the operational result The sole shareholder of Georgian Railway is the government's JSC Partnership Fund which is overseen by the Enterprise Management Agency of the Ministry of Economy and Sustainable Development. The government expects Georgian Railway to operate on a self-financing basis, without capital or operating subsidies. Revenues from freight are Georgian Railway's main source of income, providing 57% of revenues, and more than 90% when associated services are considered (e.g., handling, forwarding, freight car rentals). Passenger services are loss-making, where losses are covered by profits from freight transportation. Under recently adopted regulation, this cross-subsidization will no longer be allowed. Georgian Railway will have to close a contract with the government by the end of 2021 to agree on the provision of a package of loss-making, yet socio-economically desired passenger rail services against a well-determined contribution (subsidy). |
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Impact | Efficient, modern, demand-driven and affordable railway passenger transport developed |
Project Outcome | |
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Description of Outcome | Long-term (minimum x year) provision of a determined package of rail passenger services for a specified amount of subsidy |
Progress Toward Outcome | |
Implementation Progress | |
Description of Project Outputs | Rail passenger service business development strategy and implementation plan developed Draft public service obligation contract finalized |
Status of Implementation Progress (Outputs, Activities, and Issues) | |
Geographical Location | Nation-wide |
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 | |
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Consulting Services | Individual consultants will be recruited to provide specialized support to Georgian Railway in the areas of passenger demand assessment, economics, marketing, timetabling and PSO contracting. ADB will engage the consultants and procure goods following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. |
Responsible ADB Officer | Sluijter, Jurgen |
Responsible ADB Department | Central and West Asia Department |
Responsible ADB Division | Transport and Communications Division, CWRD |
Executing Agencies |
Asian Development Bank GEORGIA Ministry of Economy and Sustainable Development of Georgia |
Timetable | |
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Concept Clearance | - |
Fact Finding | 26 Nov 2020 to 26 Nov 2020 |
MRM | - |
Approval | 14 Dec 2020 |
Last Review Mission | - |
Last PDS Update | 18 Dec 2020 |
TA 6684-GEO
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
14 Dec 2020 | - | 14 Dec 2020 | 30 Jun 2022 | - | 31 Aug 2022 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
225,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 225,000.00 | 09 Jan 2023 | 193,991.03 |
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 |
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Support to Rail Passenger Services Contracting: Technical Assistance Completion Report | TA Completion Reports | Nov 2022 |
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
None currently available.
Related Publications
None currently available.
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Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Railway Economist and Reform Expert/Team Leader | Individual - Consulting | Closed | 22 Jan 2021 | 04 Feb 2021 |
National Coordinator | Individual - Consulting | Closed | 22 Jan 2021 | 04 Feb 2021 |
Railway Forecasting and Modeling Specialist | Individual - Consulting | Closed | 22 Jan 2021 | 04 Feb 2021 |
Railway Timetable Expert | Individual - Consulting | Closed | 22 Jan 2021 | 04 Feb 2021 |
Railway Organizational and Human Resource Expert | Individual - Consulting | Closed | 22 Jan 2021 | 04 Feb 2021 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.