Georgia : Preparing the Railway Sector Reform Program
The proposed Railway Sector Reform Program aims to establish the economic and financial sustainability of the railway sector in Georgia, with profitability and debt service coverage ratios reestablished at effective levels. The program will provide a policy-based loan to assist in the reform of the Georgian railway system to strengthen financial stability and investment planning capacity through the provision of more efficient, demand-driven railway transport services for both freight markets and passenger public service obligations.
The Asian Development Bank (ADB) will provide a transaction technical assistance (TA) grant to the Government of Georgia and Georgian Railway to support capacity building and the design and implementation of railway reforms. This includes assistance in implementing the policy loan by supporting the Georgian Railway departments that oversee the reforms identified in the program's policy matrix.
Project Details
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Project Officer
Sluijter, Jurgen
Sectors Group
Request for information -
Country/Economy
Georgia -
Sector
- Transport
Related Projects
| Project Name | Preparing the Railway Sector Reform Program | ||||||||
| Project Number | 55192-002 | ||||||||
| Country / Economy | Georgia |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP5: Promoting rural development and food security OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Transport / Rail transport (non-urban) |
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| Gender | Some gender elements | ||||||||
| Description | The proposed Railway Sector Reform Program aims to establish the economic and financial sustainability of the railway sector in Georgia, with profitability and debt service coverage ratios reestablished at effective levels. The program will provide a policy-based loan to assist in the reform of the Georgian railway system to strengthen financial stability and investment planning capacity through the provision of more efficient, demand-driven railway transport services for both freight markets and passenger public service obligations. The Asian Development Bank (ADB) will provide a transaction technical assistance (TA) grant to the Government of Georgia and Georgian Railway to support capacity building and the design and implementation of railway reforms. This includes assistance in implementing the policy loan by supporting the Georgian Railway departments that oversee the reforms identified in the program's policy matrix. |
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| Project Rationale and Linkage to Country/Regional Strategy | The transaction TA will help the government prepare and implement a sector reform program to improve Georgian Railway's operational and financial performance and to develop a sustainable railway sector in Georgia. The program will address the following root causes of the challenges identified: (i) the absence of sector overarching strategic or legal and regulatory frameworks; (ii) legacy indebtedness, and zero fiscal support for loss-making passenger services or the operation and maintenance cost of strategic assets; (iii) operational inefficiencies and a legacy surplus workforce; and (iv) lack of transport policies that provide equal treatment of rail and road freight. The program will be aligned with the following overarching country development objective: strengthen public finance management and increase economic growth. The outcome will be provision by Georgian Railway of financially sustainable and efficient railway transport services for both freight markets and passenger public service obligations. |
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| Description of Project Outputs | |
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| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
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| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
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| Business Opportunities | |
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| Consulting Services | ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. The consulting services will comprise (i) five international consultants with railway expertise in business development, sector reforms, corporate finance railway planning and operations, and labor rationalization; and (ii) one national consultant to coordinate program implementation. These consultants will be selected through the individual consultant selection method, and output-based and/or lump-sum contracts are expected for all consultants, wherever appropriate. |
| Procurement | Procurement of goods will be in accordance with 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 | Sectors Group |
| Responsible ADB Division | Transport Sector Office (SG-TRA) |
| Executing Agencies |
Ministry of Finance |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | - |
| Approval | 05 Apr 2022 |
| Last Review Mission | - |
| Last PDS Update | 06 Apr 2022 |
TA 6912-GEO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 05 Apr 2022 | 29 Apr 2022 | 29 Apr 2022 | 31 Dec 2023 | 30 Jun 2025 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 350,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 350,000.00 | 20 Oct 2023 | 122,312.25 |
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 |
|---|---|---|
| Preparing the Railway Sector Reform Program: Technical Assistance Report | Technical Assistance Reports | Apr 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
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Railway Sector Specialist | Individual - Consulting | Closed | ||
| Financial Management Specialist | Individual - Consulting | Closed | ||
| Labor Rationalization Specialist | Individual - Consulting | Closed | ||
| National Coordination Specialist | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.