TBILISI, October 3, 2008 – World Bank Country Manager for Georgia, Mr. Roy Southworth, and Minister of Finance, Mr. Nikoloz Gilauri, signed today a Financing Agreement for the Regional and Municipal Infrastructure Development Project in the amount of US$ 40 million. The Project, that was approved by the World Bank’s Board of Executive Directors on 2 October, 2008, aims to improve the efficiency and reliability of selected municipal infrastructure service; and assist in restoring infrastructure and services and in improving housing conditions for conflict-affected people in Georgia.
Building on the success of two previous IDA-financed projects in Georgia, Municipal Development & Decentralization Project I & II, the Project will support infrastructure investments by providing on-lending credits to creditworthy municipalities through the Municipal Development Fund (MDF), and grants to municipalities that are not yet ready for borrowing. Grants will also be provided to rehabilitate municipal infrastructure damaged in the August 2008 conflict and contribute to the construction of durable housing for displaced people. The Project includes technical support to municipalities and MDF to ensure sustainable services. The total Project cost is $65.4 million, with contribution provided by the Government of Georgia, MDF and participating municipalities.
"The Project was originally prepared as a standard investment operation until the conflict necessitated, and the Government of Georgia requested, increasing IDA allocation for the Project from US$30 million to US$40 million and adding a new component, Emergency Rehabilitation and Construction, to accommodate emergency repair of damaged municipal infrastructure and provision of shelter to displaced people", said Roy Southworth. "The whole Project was then processed expeditiously as an emergency operation under the World Bank's operational policies guiding rapid response. The Bank team worked closely with MDF in the past few weeks to enable MDF to prepare bid documents and start the construction works of 1375 houses for IDPs in eleven sites throughout Shida Kartli region", he added.
Since the inception of the Bank’s program in Georgia in 1995, 53 IDA (International Development Association) credits and grants have been approved for 46 projects with total commitments up to $1042.5 million. Current portfolio consists of 12 investment and 1 Policy Lending projects financed by 21 IDA credits and Grants with total commitments of $308 million.
Attached please find the Georgian version of Press Release:
MunicipalInfrastructure.doc
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