Georgia: Preparing the Railway Sector Reform Program

Sovereign Project | 55192-002

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

  • Project Officer
    Sluijter, Jurgen
    Central and West Asia Department
    Request for information
  • Country/Economy
    Georgia
  • Sector
    • Transport
Project Name Preparing the Railway Sector Reform Program
Project Number 55192-002
Country / Economy Georgia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6912-GEO: Preparing the Railway Sector Reform Program
Technical Assistance Special Fund US$ 250,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming 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.

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.

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
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 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 Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Ministry of Finance
16 Gorgasali St., 0114
Tbilisi
Georgia
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 - - 31 Dec 2023 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
250,000.00 0.00 0.00 0.00 0.00 0.00 250,000.00 06 Apr 2022 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.

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Safeguard Documents See also: Safeguards
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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

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