The World Bank Report No: ISR8151

Implementation Status & Results Regional and Municipal Infrastructure Development Project (P110126)

Operation Name: Regional and Municipal Infrastructure Development Project Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 29-Dec-2012 (P110126)

Public Disclosure Authorized Country: Georgia Approval FY: 2009 Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Georgia Municipal Development Fund Key Dates Public Disclosure Copy Board Approval Date 02-Oct-2008 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date 15-Mar-2010 Last Archived ISR Date 10-Jan-2012 Effectiveness Date 12-Dec-2008 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date 15-Mar-2010

Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to: (a) improve the efficiency and reliability of selected municipal infrastructure and service; and (b) assist in restoring infrastructure and services and improving the housing conditions of conflict-affected people in Georgia. Has the Project Development Objective been changed since Board Approval of the Project?

Public Disclosure Authorized Yes No

Component(s)

Component Name Component Cost Infrastructure Investment 72.00 Emergency Construction 10.00 Institutional Development 3.00

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Public Disclosure Authorized Overall Risk Rating Moderate

Implementation Status Overview 1. The overall implementation of the Regional and Municipal Infrastructure Development Project (RMIDP) and its Additional Financing (RMIDP-AF) is satisfactory. The project

Public Disclosure Copy has made a good progress during the past year. Major performance indicators reveal continued progress onto meeting the project development objectives.

2. Under the original RMIDP, the Georgia Municipal Development Fund (MDF) successfully implemented 53 water, wastewater and road subprojects throughout Georgia. The

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MDF has also successfully completed Phase II improvements to housing and infrastructure conditions in 9 settlements where internally displaced people (IDP) live, with co-financing provided by the European Union (EU) and the grant was closed in June 30, 2012 after being fully disbursed.

3. Under the RMIDP-AF, MDF has implemented 69 water, wastewater and road subprojects throughout Georgia (13 subprojects are under component 1.1 and 56 subprojects under component 1.2). The grant agreement for the Sida cofinance of the wastewater treatment plant (WWTP) was signed on September 11, 2012, and the subproject is currently under bid evaluation. It is expected that an extension of the Project by one year, until June 30, 2014, will be needed to allow full implementation of the Sida grant. The subproject will triggers OP/BP 7.50 on international waterways. Both amendments will required a first order restructuring of the project.

4. Disbursement: As by the end of November, 2012, disbursement rate under the original RMIDP was 100% (XDR 25.50 million out of the XDR 25.50 million credit) and 99% under the RMIDP-AF ($33.39 million out of the $33.50 million loan and XDR 7.69 million out of the XDR 7.70 million credit). The RMIDP-AF is fully committed and actual disbursed amount exceeded planned.

5. Performance indicators: The RMIDP and RMIDP-AF achieved most of their intermediary results, some of which exceeded the planned target values: Public Disclosure Copy • Number of implemented subproject investments: 139 subprojects (End target: 113) • Average liters of water produced per capita per day: 100 l/p/d (End target: 120 l/p/d) • Average cubic meter of collected sewerage: 28,724 m3 (End target: 30,000m3) • Length of roads rehabilitated: 227 km (End target:192 km) • No. of people in urban areas provided with access to improved water sources: 181,700 persons (End target: 45,000) • No. of people in urban areas provided with access to improved water sources: 181,835 persons (End target: 45,000) • Piped household water connections that are benefiting from rehabilitation works: 117,799 connections (End target: 30,000) • No. of durable houses constructed for IDPs: 738 houses (End target: 738)

Locations Country First Administrative Division Location Planned Actual Georgia Not Entered

Georgia Samegrelo and Zemo

Georgia

Georgia Imereti

Georgia Kvemo

Georgia Not Entered Tqibuli

Georgia Not Entered Tibaani

Georgia Mtskheta-Mtianeti T'ianet'i

Georgia Imereti T'erjola

Georgia T'elavi

Public Disclosure Copy Georgia Samegrelo and Zemo Svaneti Skurdi

Georgia Skra

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Country First Administrative Division Location Planned Actual Georgia Not Entered Shavshvebi

Georgia Samegrelo and Zemo Svaneti Senakis Raioni

Georgia Kakheti

Georgia Samegrelo and Zemo Svaneti Pirveli Balda

Georgia Not Entered Patara-Khurvaleti

Georgia Mtskheta-Mtianeti P'asanauri

Public Disclosure Copy Georgia Not Entered Omalo

Georgia Samtskhe-

Georgia Not Entered Mokhisi

Georgia Shida Kartli

Georgia Imereti Mat'khoji

Georgia

Georgia Kvemo Kartli

Georgia - and Kvemo Svaneti

Georgia Imereti K'ut'aisi

Georgia Imereti

Georgia Not Entered Karalet'i

Georgia Kakheti

Georgia Kakheti

Georgia Not Entered Gergeti

Georgia Kvemo Kartli

Georgia Kakheti Eniseli

Georgia Mtskheta-Mtianeti Dushet'i

Public Disclosure Copy Georgia Kvemo Kartli Didi Gomaret'i

Georgia Kakheti Dedop'listsqaro

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Georgia Samegrelo and Zemo Svaneti Ch'khorotsqu

Georgia Not Entered Ch'ikhareshi

Georgia Imereti Chiat'ura

Georgia Shida Kartli Bret'i

Georgia Not Entered Bodbiskhevi

Georgia Not Entered Berbuki

Georgia Ajaria Bat'umi Public Disclosure Copy Georgia Imereti Bagdat'i

Georgia Racha-Lechkhumi and Kvemo Svaneti

Georgia Kakheti

Georgia Not Entered Akhalsop'eli

Georgia Mtskheta-Mtianeti

Georgia Shida Kartli Aghaiani

Georgia Samtskhe-Javakheti

Georgia Samegrelo and Zemo Svaneti

Georgia Not Entered

Georgia Not Entered T'eliani

Not Entered Not Entered Not Entered

Georgia Kvemo Kartli K'alak'i Rust'avi

Not Entered Not Entered Not Entered

Georgia Samegrelo and Zemo Svaneti Samegrelo-Zemo Svanetis

Not Entered Not Entered Not Entered

Georgia Imereti Khoni

Georgia Imereti Public Disclosure Copy Georgia Not Entered

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Georgia Samegrelo and Zemo Svaneti

Georgia Kvemo Kartli Gardabani

Georgia Kvemo Kartli Marneuli

Georgia Kakheti

Georgia Samegrelo and Zemo Svaneti

Georgia Samtskhe-Javakheti Adigeni

Georgia Racha-Lechkhumi and Kvemo Svaneti Oni Public Disclosure Copy Georgia Mtskheta-Mtianeti Akhalgori

Georgia Kakheti Akhmeta

Georgia Kakheti Sagarejo

Georgia Kakheti Sighnaghi

Georgia Kakheti Dedoplis Tskaro

Georgia Kvemo Kartli Tsalka

Georgia Imereti

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of people benefiting from completed Number Value 0.00 14504.00 3600.00 emergency rehabilitation Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Average improved quality of water bodies due Percentage Value 0.00 28.70 60.00 to reduction in wastewater pollution Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Average reduction in vehicle operating cost Percentage Value 100.00 85.00 75.00 due to improved urban roads Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Public Disclosure Copy

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Average increased number of hours per day of Hours Value 7.00 15.00 12.00 piped water service Date 03-Oct-2008 06-Dec-2011 30-Jun-2013 Comments Average reduction in KWh consumed per m3 Number Value 0.70 0.50 0.40 due to introduction of energy efficient Date 03-Oct-2008 06-Dec-2011 30-Jun-2013 production methods. Comments

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of Cities completed their Strategic Number Value 0.00 0.00 3.00 Public Disclosure Copy Development Plans Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments This TA activity was replaced by other TA activities. Number of completed feasibility studies and Number Value 0.00 135.00 113.00 engineering designs Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Improved performance benchmarks of MDF Text Value 0 1 1 Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments MDF has taken actions to hire new consultants and construction supervision specialists to improve quality of construction. MDF hasalso taken actions to improve its contract management and financial management performance Number of local budgets complied with Number Value 0.00 64.00 64.00 improved budgeting and reporting system Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Number of IDP houses with the improved Number Value 0.00 1263.00 1263.00 physical conditions Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Number of IDP settlements served with solid Number Value 0.00 12.00 12.00 waste collection system Date 03-Oct-2008 30-Nov-2012 30-Jun-2013

Public Disclosure Copy Comments

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Construction of a bridge at the Mtkvari River in Number Value 0.00 1.00 1.00 Akhalsopeli IDP settlement Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Number pedestrian crossings constructed in Number Value 0.00 150.00 150.00 IDP settlements Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Number of provided grey water house Number Value 0.00 1220.00 1220.00 connections in IDP settlements Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Value

Public Disclosure Copy Number of improved public water standpipes in Number 0.00 228.00 60.00 IDP settlements Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Increased volume of water supply in IDP Cubic Meter(m3) Value 0.00 20.00 20.00 settlements Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Number of durable houses constructed Number Value 0.00 783.00 783.00 Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Piped household water connections that are Number Value 0.00 117799.00 30000.00 benefiting from rehabilitation works undertaken Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 by the project Comments Number of people in rural areas provided with Number Value 0.00 181835.00 45000.00 access to Improved Water Sources under the Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 project Comments Number of people in urban areas provided with Number Value 0.00 181700.00 45000.00 access to Improved Water Sources under the Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 project Comments Length of roads rehabilitated Kilometers Value 0.00 227.00 192.00 Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Average cubic meter of collected sewerage per Cubic Meter(m3) Value 0.00 28724.00 700.00 day Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Public Disclosure Copy

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Average liters of water produced per capita per Number Value 40.00 100.00 120.00 day Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments Number of implemented investments Number Value 0.00 135.00 113.00 Date 03-Oct-2008 30-Nov-2012 30-Jun-2013 Comments

Data on Financial Performance (as of 30-Nov-2012)

Financial Agreement(s) Key Dates

Public Disclosure Copy Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P110126 IBRD-79620 Effective 02-Nov-2010 08-Nov-2010 15-Dec-2010 30-Jun-2013 30-Jun-2013 P110126 IDA-45160 Effective 02-Oct-2008 03-Oct-2008 12-Dec-2008 30-Jun-2013 30-Jun-2013 P110126 IDA-48240 Effective 02-Nov-2010 08-Nov-2010 15-Dec-2010 30-Jun-2013 30-Jun-2013 P110126 TF-97715 Closed 06-Sep-2010 13-Sep-2010 13-Sep-2010 30-Jun-2011 30-Jun-2012

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P110126 IBRD-79620 Effective USD 33.50 33.50 0.00 33.39 0.11 100.00 P110126 IDA-45160 Effective USD 40.00 40.00 0.00 39.24 0.00 98.00 P110126 IDA-48240 Effective USD 11.50 11.50 0.00 11.91 0.01 104.00 P110126 TF-97715 Closed USD 3.71 3.58 0.09 3.61 0.00 101.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation The overall implementation of the Regional and Municipal Infrastructure Development Project (RMIDP) and its Additional Financing (RMIDP-AF) is satisfactory. The project has made a good progress during the past year.

Major performance indicators reveal continued progress onto meeting the project development objectives. Under the original RMIDP, the Georgia Municipal Development Fund (MDF) successfully implemented 53 water, wastewater and road subprojects throughout Georgia. The MDF has also successfully completed Phase II improvements to housing and infrastructure conditions in 9 settlements where internally displaced people (IDP) live, with co-financing provided by the European Union (EU) and the grant was closed in June 30, 2012 after being fully disbursed. Under the RMIDP-AF, MDF has implemented 69 water, wastewater and road subprojects throughout Georgia (13 subprojects are under component 1.1 and 56 subprojects under component 1.2).

A grant agreement from the Swedish International Development Agency (SIDA) to cofinance the Mtskheta wastewater treatment plant (WWTP) was signed between the World Bank and Ministry of on September 11, 2012, and the subproject is currently under bid evaluation. It is expected that an extension of the Project by one year, until June 30, 2014, will be needed to allow full implementation of the Sida grant. The subproject will triggers OP/BP 7.50 on international waterways. Both amendments will required a first order restructuring of the Project.

Restructuring History There has been no restructuring to date.

Related Projects P120887-ADDITIONAL FINANCING TO THE REGIONAL & MUN. INFRA. DEV. PROJECT, P122641-GEORGIA: EMERGENCY REHABILITATION AND CONSTRUCTION Public Disclosure Copy

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