GEORGIA UPGRADE OF MUNICIPAL INFRASTRUCTURE

A framework loan to support the investments targeting the upgrade of infrastructure in various municipalities across Georgia.

The proposed project is a framework loan to finance Local Self-Governments (LSG) investment needs in line with the Government's decentralization agenda. The project is a repeat-operation of the 2015 0172 Georgia urban reconstruction and development FL, approved in July 2015. The new operation will however not include an emergency component. The project´s development objective is to improve the efficiency and reliability of targeted municipal services and infrastructure. This will be achieved by investing in high-priority local infrastructure improvements, and by supporting LSGs in enhancing their capacity and systems for service delivery. The final beneficiaries of the schemes are the countrywide residents of towns and villages, who currently experience sub-standard quality of municipal services and other public sector services. The targeted sectors will primarily be municipal roads, public buildings, water, solid waste and possibly tourism infrastructure. The schemes are expected to be located over the entire country.

The project comprises mainly small and medium sized municipal infrastructure schemes in built up areas. Therefore, the potential negative environmental impacts are likely to be minor. However, if situated in the EU, some of the schemes could potentially fall under Annex I or Annex II of EIA Directive 2011/92/EU. Appropriate screening procedures, also in relation to natural habitats and protected species, as well as land acquisition/resettlement will be put in place. It is generally considered that the social impacts will mainly be positive, with improved access to municipal services (municipal roads, public buildings, water, solid waste and possibly tourism infrastructure) as well as the generation of additional employment. The project's compliance with applicable national environmental legislation as well as EU environmental and social principles, standards and practices will be verified during appraisal.

The Bank will require the Promoter to ensure that any procurement procedures are carried out in accordance with the Bank's Guide to Procurement.

This operation is covered by the EU Guarantee for EIB loans outside the EU.