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| Loan Name | Municipal Services Development Project - Phase 2 | |||
| Country | Georgia, Republic of | |||
| Loan Number | 2534 | |||
| Project Number | 43171- 01 | |||
| Fund Source/Amount[Approved] |
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| Thematic Classification |
Economic growth
Social Development Capacity Development |
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| Project Rationale | Since 2009, Georgia is experiencing the double impacts of the August 2008 conflict with Russia and the global economic crisis. These events have undermined growth and stability in Georgia and economic growth has plunged from 10% the last five years to 2.1% in 2008. The Georgian authorities responded with a GEL2.2 billion stimulus but this has curtailed spending on new municipal infrastructure and services improvement.
As the two main urban centers represents more than 30% of Georgia's population but generates nearly 60% of the country's GDP, challenges in the urban sector are palpable and are key priorities in the economic recovery policy. Urban transport is playing a major role in improving access to businesses and communities, attracting investments, and enabling citizens to tap economic and social opportunities. Therefore, the Government requested ADB to urgently support a program of investments in Tbilisi and Kutaisi's municipal transport systems, including roads, traffic management, and public transport. These investments will help resolve heavy traffic congestion, air and noise pollution, caused by increased private car ownership, inadequate roads, weak traffic management, and deteriorating public transport services. |
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| Impact | The new facility will improve the urban environment, local economy, productivity and public health in Georgia. | |||
| Geographical Location | Urban areas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Environmental and Social Issues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Social Aspects |
The Project will directly benefit the municipal population for health and living conditions resulting from (i) an efficient, safer and more reliable urban transport system; (ii) reduced congestion and better mobility between housing clusters and economic activities; (iii) improved living conditions with a cleaner environment and reduced noise; and (iv) improved road conditions and reduced road accidents. The economies of these municipalities will also benefit indirectly from enhanced productivity by attracting investors, improving health and increasing efficiency through improved roads and public transport.
The Project is also expected to (i) strengthen public trust in participating municipal governments by rehabilitating municipal infrastructure; (ii) improve access to urban transport services by local populations, including the most vulnerable groups (women, children, and poor households); (iii) increase employment opportunities and incomes after the rehabilitation of local infrastructure; and (iv) increase participation and ownership by Municipal Governments and communities. |
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| Environmental Aspects | The Project is designed to maximize environmental and public health benefits. Net environmental benefits are positive, include better public health, reduced exposure to suspended particles, reduced exposure to noise pollution, preservation of cultural heritage, improved access to employment opportunities, and reduced flooding through drainage improvements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stakeholder Participation and Consultation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| During Project Design | The main stakeholders will be MDF, participating MGs, communities, and civil society organizations. MDF and participating MGs will ensure that for all subprojects the results of social assessments and stakeholder consultations will be adequately taken into account in identifying investment priorities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| During Project Implementation | Consultation will be carried out through public hearings, surveys, workshops, and other meetings during project implementation and monitoring. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Procurement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consulting Services | The selection and engagement of consulting services will follow ADB's Guidelines on the Use of Consultants. The following methods of selection will be applied: (i) quality-and cost-based selection; (ii) quality-based selection; (iii) consultants' qualifications selection for small consultancy assignments that cost less than $200,000 per contract; (iv) least0cost selection for very small consultancy assignments that cost less than $00,000; (v) fixed budget selection; and (vi) single source selection and ADB individual consultant selection procedures for individual national or international consultants for the following types of assignments: environmental, social, tariff, and O&M studies. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Civil Works/Goods | All procurement will be carried out in accordance with ADB's Procurement Guidelines. Contracts for civil works that cost more than $1 million equivalent, and contracts for goods that cost more than $500,000 equivalent, will be procured using international competitive bidding. Civil works contracts that cost $1 million equivalent or less, and contracts for goods that cost between $100,000 and $500,000 equivalent, will be carried out through national competitive bidding. Prior to commencement of any procurement activity under national competitive bidding, ADB and the Government will review again the public procurement law to ensure that it is consistent with ADB's Procurement Guidelines. Modifications and clarifications to this law will be agreed and included in the procurement plan. Goods contracts that cost less than $100,000 equivalent will be carried out through shopping procedures. Goods valued below $10,000 and civil works valued up to $10,000 may be purchased directly from the supplier and contractor. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Responsible ADB Officer |
Arnaud Dauphin |
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| Responsible ADB Department |
Central and West Asia Department |
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| Responsible ADB Division |
Urban Services Division, CWRD |
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| Executing Agencies |
Municipal Development Fund of Georgia Konstantin Mgeladze Executive Director 150 David Agmashenebeli Avenue 0112, Tbilisi, Georgia kmgeladze@mdf.org.ge |
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| Timetable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concept Clearance | 04 Mar 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fact-finding | 02 Mar 2009 to 08 Mar 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board Approval | 28 Jul 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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