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Realizing the Urban Potential in Georgia: National Urban Assessment

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Realizing the Urban Potential in Georgia: National Urban Assessment REALIZING THE URBAN POTENTIAL IN GEORGIA National Urban Assessment ASIAN DEVELOPMENT BANK REALIZING THE URBAN POTENTIAL IN GEORGIA NATIONAL URBAN ASSESSMENT ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2016 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved. Published in 2016. Printed in the Philippines. ISBN 978-92-9257-352-2 (Print), 978-92-9257-353-9 (e-ISBN) Publication Stock No. RPT168254 Cataloging-In-Publication Data Asian Development Bank. Realizing the urban potential in Georgia—National urban assessment. Mandaluyong City, Philippines: Asian Development Bank, 2016. 1. Urban development.2. Georgia.3. National urban assessment, strategy, and road maps. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. This publication was finalized in November 2015 and statistical data used was from the National Statistics Office of Georgia as available at the time on http://www.geostat.ge The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Attribution—In acknowledging ADB as the source, please be sure to include all of the following information: Author. Year of publication. Title of the material. © Asian Development Bank [and/or Publisher]. URL. Available under a CC BY 3.0 IGO license. Translations—Any translations you create should carry the following disclaimer: Originally published by the Asian Development Bank in English under the title [title] © [Year of publication] Asian Development Bank. All rights reserved. The quality of this translation and its coherence with the original text is the sole responsibility of the [translator]. The English original of this work is the only official version. Adaptations—Any adaptations you create should carry the following disclaimer: This is an adaptation of an original Work © Asian Development Bank [Year]. The views expressed here are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB does not endorse this work or guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Notes: Cover photos by Ramola Naik Singru. In this publication, “$” refers to US dollars. Corrigenda to ADB publications may be found at: http://www.adb.org/publications/corrigenda Contents Figures, Tables, Boxes, and Maps v Acknowledgments vii Abbreviations ix Weights and Measures x Country at a Glance xi Executive Summary xii Introduction 1 Country Profile 2 Location 2 Political History 6 Political System 6 Urbanization Profile 7 Governance and Urban Development Profile 20 Enabling Environment 31 Competitive Base: Economic Profile 34 Inclusive Base: Equity Profile 44 Green Base: Environmental Profile 53 ADB and Development Partner Support in Urban Development 56 Capacity Development Needs Assessment 59 Urban Needs Assessment 66 Housing 66 Water Resources 68 Water Supply 68 Sewage 71 Sanitation 72 Solid Waste Management 74 Natural Hazards Including Flood Management 75 Air Pollution 76 Energy and Heating 77 Urban Transport 78 Urban Vision and Strategic Prioritization 82 National Strategy 82 Urban Vision 82 Developing an Urban Vision 83 Strategic Urban Priorities 85 iii ivContents Policy and Programming 87 ADB–Georgia Country Partnership Strategy 87 Strategic Urban Infrastructure Investment Plan 88 The 3E Targeted Investment Program 91 Appendixes 1 Population 94 2 Urban Profiles for Tbilisi and Other Cities 97 3 National Urban Consultation Workshop 116 References 119 Figures, Tables, Boxes, and Maps Figures 1 National Urban Assessments Framework 1 2 Urban Population in Georgia 8 3 Population Change by Region, 2009–2011 9 4 Ranking of Municipalities by Population Size (with Tbilisi) 15 5 Size-Rank Distribution of Top 20 Cities in Georgia 15 6 Net Transnational Migration of the Population in Georgia, 1990–2011 16 7 Changes in Ethnic Composition of the Population in Georgia, 1926–2002 17 8 Land Structure 19 9 Institutional Structure for Urban Development 22 10 Urban Finance Matrix 26 11 Structure of the Municipal Development Fund, Georgia 29 12 Georgia’s Ranking on Doing Business Indices 31 13 Georgia’s Global Competitiveness Index Rating for All Pillars 32 14 Comparison of Georgia’s Global Competitiveness Report Rating with Other Countries 33 15 Problematic Factors of Doing Business: Global Competitiveness Report 34 16 Composition of Gross Domestic Product, 2014 36 17 Share in Gross Domestic Product by Region, 2010 (constant 2006 prices) 37 18 Regional Gross Domestic Product, 2009–2011 38 19 Gross Domestic Product Structure, 2013 39 20 Regional Industry Value-Added, 2009–2013 41 21 Construction Value-Added, 2009–2013 43 22 Poverty Rate, 2009–2010 47 23 Changes in Poverty Rates at Regional and Country Levels (left) and Poverty Indicator Related to the Country Level (right), 2009–2010 47 24 Donor Investments in Georgia Water Supply, 2010–2013 70 25 Distribution of Households by Type of the Main Source of Drinking Water, 2010 70 26 Proportion of Households with Bathroom Facilities by Region, 2003 and 2010 73 27 Households Connected to Piped Sewer System, 2010 73 28 Household Provision by Gas and Heating, 2010 78 v viFigures, Tables, Boxes, and Maps Tables 1 Population of Georgia 7 2 Distribution of Urban Settlements by Regions and Municipalities 13 3 Budgetary Revenues of Selected Cities in Georgia, 2013 28 4 Development Partners Supporting Municipal Development Fund Operations 30 5 Analysis of Municipal Development Fund-Funded Subprojects 30 6 Gross Domestic Product at Constant Prices by Sector, 2009 and 2013 35 7 Gross Domestic Product at Constant Prices by Region, 2009 and 2013 36 8 Industry Value Added per Region, 2009 and 2013 41 9 Construction Value Added by Region, 2009 and 2013 42 10 Poverty Indicators 45 11 Poverty Indicators, 2009–2010 46 12 Employment and Unemployment in Georgia, 2011–2014 49 13 Influence Area of the Education Amenities in Urbanized Areas— Data 2011 52 14 Significant Ongoing and Planned Investments by Sector and Donor 60 15 Suggested Areas for Interventions (in italics) along the 3E Approach Aligned with the Country Partnership Strategy Results Framework 90 16 Recommendations for 3E Investments 91 A1 Population by Municipality at the Beginning of the Year, 2004–2014 94 Boxes 1 Main Functions of the Spatial Planning and Construction Policy Department 23 2 Developing a Geospatial Urban Water Supply and Sanitation Utility Management System 57 3 Shuakhevi Hydropower Plant: IFC, ADB, EBRD, Tata Power, and Clean Energy Help Georgia Achieve Self-Sufficiency in Energy 63 Maps 1 Map of Georgia 3 2 3D Representation of the Relief: Five Cities—East–West Highway and North–South Road 4 3 Contour Lines and Road Maps 5 4 Administrative Divisions by Region and District 10 5 Population Change by Region, 2010–2015 12 6 Urbanization Rate per Region, 2014 14 7 Gross Domestic Product per Capita and Weight by Region, 2013 38 8 Headcount of Unemployment and Weight per Region, 2014 49 Acknowledgments he Georgia National Urban Assessment (NUA) was led by Bertrand Goalou, senior urban development specialist (Transport), and Ramola Naik Singru, urban Tdevelopment specialist, Central and West Asia Urban Development and Water Division, Central and West Asia Department (CWUW-CWRD), and prepared with a team consisting of Vaideeswaran Sankaran, senior environmental engineer and climate change specialist; Joseph Salukvadze, professor, Tbilisi State University; and Marc Popesco, urban planner, Group Huit. The first stage of the assessment was conducted between late 2012 and March 2013 by Marc Popesco through numerous consultations with the Government of Georgia. Giorgi Gigauri provided support for the cartography and graphs. The second stage conducted from October 2014 to February 2015 covered an urban visioning and stakeholder consultation workshop involving central ministries and local governments, stakeholders, donors, and civil society; consultations at the Sustainable Urban Integrated Transport Forum; and secondary data review and analysis based on further discussions with relevant agencies. The ADB team thanks the Ministry of Regional Development and Infrastructure (MRDI), the Ministry of Economy and Sustainable Development (MOESD), the Municipal Development Fund (MDF) of Georgia, the Ministry of Energy (MOE), Tbilisi City Hall, Tbilisi City Assembly, and the National Statistics Office of Georgia (Geostat). The team also thanks Nodar Javakhishvili, minister, MRDI; David Narmania, mayor of Tbilisi; Ilia Darchiashvili, first deputy minister, MRDI; Juansher Burchuladze, executive director of MDF; and Revaz Gigilashvili, project coordinator, MDF.
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