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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: 29316-GE IMPLEMENTATION COMPLETION REPORT (IDA-30400) ON A CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 3.4 MILLION (US$4.49 MILLION EQUIVALENT) TO GEORGIA FOR A CULTURAL HERITAGE PROJECT Public Disclosure Authorized June 15, 2004 Environmentally and Socially Sustainable Development Sector Unit South Caucasus Country Unit Europe and Central Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective June 3, 2004) Currency Unit = Lari (GEL) Lari (GEL) 1 = US$ 0.52 US$ 1.00 = Lari (GEL) 1.92 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy DCA Development Credit Agreement IDF Institutional Development Fund LIL Learning and Innovation Loan M&E Monitoring and Evaluation NGO Non-Governmental Organization PAD Project Appraisal Document PIU Project Implementation Unit Vice President: Shigeo Katsu Country Director Donna M. Dowsett-Coirolo Sector Manager Alexandre Marc Task Team Leader/Task Manager: Janis D. Bernstein GEORGIA CULTURAL HERITAGE PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 7 5. Major Factors Affecting Implementation and Outcome 12 6. Sustainability 13 7. Bank and Borrower Performance 14 8. Lessons Learned 18 9. Partner Comments 19 10. Additional Information 20 Annex 1. Key Performance Indicators/Log Frame Matrix 21 Annex 2. Project Costs and Financing 23 Annex 3. Economic Costs and Benefits 25 Annex 4. Bank Inputs 26 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 28 Annex 6. Ratings of Bank and Borrower Performance 29 Annex 7. List of Supporting Documents 30 Annex 8. Evaluation Report: Fund for Preservation of Cultural Heritage of Georgia 31 Annex 9. Partner Comments: Ministry of Finance of Georgia 50 Project ID: P055573 Project Name: CULTURAL HERITAGE Team Leader: Janis D. Bernstein TL Unit: ECSSD ICR Type: Core ICR Report Date: June 15, 2004 1. Project Data Name: CULTURAL HERITAGE L/C/TF Number: IDA-30400 Country/Department: GEORGIA Region: Europe and Central Asia Region Sector/subsector: Other social services (71%); Central government administration (29%) Theme: Participation and civic engagement (P); Other financial and private sector development (S) KEY DATES Original Revised/Actual PCD: 11/20/1997 Effective: 05/18/1998 05/18/1998 Appraisal: 11/20/1997 MTR: 11/15/1999 02/28/2000 Approval: 02/13/1998 Closing: 12/31/2001 12/31/2003 Borrower/Implementing Agency: Government of Georgia/Fund for Preservation of Cultural Heritage of Georgia Other Partners: STAFF Current At Appraisal Vice President: Shigeo Katsu Johannes F. Linn Country Director: D-M Dowsett-Coirolo Judy M. O'Connor Sector Manager: Alexandre Marc James Christopher Lovelace Team Leader at ICR: Janis D. Bernstein Thomas Blinkhorn ICR Primary Author: Wendy Schreiber Ayres 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: M Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: No 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The project’s objective was to improve the management and promotion of Georgia’s rich cultural heritage by: (a) testing approaches that could revive the once dynamic tourism industry, and (b) engendering social cohesion and national identity during the difficult economic transition. The project would achieve this objective by financing work to restore four sites of significant historic importance (including work to prevent further deterioration of private homes); activities proposed by community groups and others to restore or preserve historical and cultural assets (including music, dance, and handicrafts) in danger of being irrevocably lost; and technical assistance to strengthen capacity of the project implementation unit to manage the project, build awareness of the public of cultural heritage, and strengthen the capacity of people to develop and implement site management plans. The overall project objective was, and remains, appropriate. It reflected the importance of Georgia’s cultural heritage to both citizens of the nation and to people of the world. Georgia is home to some 12,000 culturally significant monuments, and religious buildings, forts and walled cities, some dating to the last centuries B.C. Tbilisi, its capital city, protected from the development pressures that have changed the character of most cities in the rest of Central and Eastern Europe, still contains large neighborhoods dominated by traditional houses and shops. Georgia also has a rich and unique history of music and literature that is a strong focus of national pride and identity. At the time the project was conceived and prepared, the country had been independent from the Soviet Union for just six years. Interest in the history and culture of Georgia was rising rapidly as citizens sought to recapture a national identity based on its diverse ethnic and cultural traditions. The project’s objective was also in line with the government’s strategy of reviving tourism, a potentially important source of growth for Georgia. According to government statistics, tourism and travel accounted 1 for about 10 percent of GDP in 2002. Tourism, along with the other economic activities, had collapsed with the breakup of the Soviet Union, and revitalizing the industry by restoring and protecting cultural sites and by reviving traditional music, dance, handicrafts, and other artistic activities was, and still is, viewed as important to stimulating the economy as a whole. Finally, the project was designed to help promote social cohesion in a country divided by conflict among various ethnic and political groups that threatened to tear the nation apart. The project’s objectives also supported the objectives the Bank’s country assistance strategy (CAS). These were to promote economic growth and diversification, to strengthen public finance, to protect the environment, and to reduce poverty. The project promoted economic growth by rehabilitating historic sites and revitalizing cultural traditions of interest to both Georgians and foreign visitors. It helped to strengthen public finance by insisting on transparency and accountability in procurement and financial management of project-related expenditures. It helped to improve environmental conditions in Tbilisi by encouraging the municipality to address the severe underground water problem, and in the other pilot sites, by supporting the development of environmental management plans. It also helped to reduce poverty by stimulating development in the areas where it operated. Finally, the project fit well within a broader program of Bank support to Georgia, which included a municipal infrastructure project and a social investment fund project, both of which aimed at revitalizing Georgia’s cities and towns. _____________________________________ 1 Statistics on tourism are very weak in Georgia and appear to capture not only tourists spending time in Georgia, but also lorries passing through Georgia transporting goods among neighboring countries. - 2 - The project was the first stand-alone cultural heritage project to be supported by the Bank. Because of its innovative nature, a Learning and Innovation Loan (LIL) was used to pilot a variety of approaches to revive and protect cultural heritage. The project was the first in the Europe and Central Asia Region to benefit from this Bank instrument, which was introduced in fiscal 1998. 3.2 Revised Objective: The objectives of the project were not formally revised during implementation. The Development Credit Agreement (DCA), however, was amended three times. The DCA was amended on July 22, 1998 to add operating costs to categories eligible for financing. The DCA was amended on May 5, 2000 to revise procurement procedures, as recommended in the midterm review. The DCA was amended on November 29, 2001 to reallocate proceeds of the Credit. 3.3 Original Components: The project comprised two broad components: (1) Investment (US$3.57 million). This included two subcomponents: l Emergency Rehabilitation Program (US$1.03 million). This subcomponent focused on preventing the permanent loss of both immoveable and moveable cultural heritage by financing activities such as stabilizing buildings in danger of collapse, microfilming and archiving old manuscripts, and recording 2 traditional songs and dances. The program was to provide as grants a maximum of US$75,000 to community groups, nongovernmental organizations (NGOs), institutes, and others whose proposals were selected by the 52-member Georgian Cultural Revival Board through a rigorously transparent selection process. The staff of the Fund for the Preservation of Culture Heritage of Georgia (hereafter referred to as the Fund), which was established under the IDF and became the project implementation unit (PIU), would provide technical assistance to the committee and to beneficiaries, screen proposals for presentation to the committee to ensure that they complied with the criteria, and monitor and evaluate their implementation. l Pilot Priority Cultural Heritage Sites (US$2.54 million).
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