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Georgia-Irrigation-And-Land-Market Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD3478 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT PAPER ON A PROPOSED ADDITIONAL LOAN IN THE AMOUNT OF EUR 18.2 MILLION (US$20.43 MILLION EQUIVALENT) Public Disclosure Authorized TO GEORGIA FOR THE IRRIGATION AND LAND MARKET DEVELOPMENT PROJECT January 24, 2020 Public Disclosure Authorized Water Global Practice Europe And Central Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective Dec 31, 2019) Currency Unit = Euros (EUR) US$1 = 0.89063057 EUR FISCAL YEAR January 1 ‐ December 31 Regional Vice President: Cyril E. Muller Country Director: Sebastian‐A Molineus Regional Director: Steven N. Schonberger Practice Manager: David Michaud Task Team Leader(s): Wilfried Hundertmark, Rufiz Vakhid Chirag‐Zade ABBREVIATIONS AND ACRONYMS AF Additional Financing BP Bank Procedures CPF Country Partnership Framework DSP Dam Safety Panel EA Environmental Assessment ENPV Economic Net Present Value ESMF Environmental and Social Management Framework FAO Food and Agriculture Organization FIRR Financial Internal Rate of Return FM Financial Management FNPV Financial Net Present Value GA LLC Georgian Amelioration Limited Liability Company GDP Gross Domestic Product GEL Georgian Lari GNERC Georgian National Energy and Water Supply Regulatory Commission GoG Government of Georgia ha hectare IBRD International Bank for Reconstruction and Development IDA International Development Association IFR Interim Un‐audited Financial Reports ILMDP Irrigation and Land Markets Development Project IPRS Immovable Property Registration System IRR Internal Rate of Return IT Information Technology km Kilometer LADM Land Administration Domain Model Land Agency National Agency for Sustainable Land Management and Land Use Monitoring LEPL Legal Entity of Public Law M&E Monitoring and Evaluation MEPA Ministry of Environmental Protection and Agriculture MOJ Ministry of Justice NAPR National Agency of Public Registry NGO Non‐Governmental Organization NPV Net Present Value NSDI National Spatial Data Infrastructure OP Operational Policy OPCS Operations Policy and Country Services PAD Project Appraisal Document PDO Project Development Objective PP Project Paper PPMD Project Planning and Monitoring Division PPSD Project Procurement Strategy for Development RF Results Framework RPF Resettlement Policy Framework iii SCD Systematic Country Diagnostic SDR Special Drawing Rights UASCG United Amelioration Service Company for Georgia WB World Bank WUO Water User Organization iv Georgia Additional Financing for Irrigation and Land Market Development Project TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 6 A. Introduction ........................................................................................................................ 6 B. Country Context .................................................................................................................. 6 C. Sector context ..................................................................................................................... 9 D. Project Progress Summary and Results to Date ............................................................... 10 E. The Rationale for Additional Financing and Restructuring ............................................... 12 II. DESCRIPTION OF ADDITIONAL FINANCING ..................................................................... 15 III. KEY RISKS ....................................................................................................................... 19 IV. APPRAISAL SUMMARY ................................................................................................... 20 A. Technical ........................................................................................................................... 20 B. Economic and Financial Analysis (EFA) ............................................................................. 21 C. Financial Management ..................................................................................................... 23 D. Procurement ..................................................................................................................... 23 E. Social (including Safeguards) ............................................................................................ 24 F. Environment (including Safeguards) ................................................................................. 25 G. Other Safeguard Policies ................................................................................................... 25 V. WORLD BANK GRIEVANCE REDRESS ............................................................................... 26 VI SUMMARY TABLE OF CHANGES ...................................................................................... 27 VII DETAILED CHANGE(S) ..................................................................................................... 27 VIII. RESULTS FRAMEWORK AND MONITORING .................................................................... 37 Annex 1: Financial and Economic Analysis ............................................................................ 51 v The World Bank Additional Financing for Irrigation and Land Markets Development Project in Georgia (P171796) BASIC INFORMATION – PARENT (Irrigation and Land Market Development Project ‐ P133828) Country Product Line Team Leader(s) Georgia IBRD/IDA Wilfried Hundertmark Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P133828 Investment Project SCAWA (9392) ECCSC (7000) Water Financing Implementing Agency: Ministry of Environment Protection and Agriculture, Ministry of Justice ADD FIN TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Original Environmental Approval Date Closing Date Guarantee Current EA Category Assessment Category Expiration Date 23‐May‐2014 31‐Jul‐2021 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement‐Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non‐fragile Country [ ] Project‐Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man‐made disaster [ ] Alternate Procurement Arrangements (APA) Page 1 of 53 The World Bank Additional Financing for Irrigation and Land Markets Development Project in Georgia (P171796) Development Objective(s) The Project Development Objective is to (i) improve delivery of irrigation and drainage services in selected areas and (ii) developimproved policies and procedures as a basis for a national program of land registration. Ratings (from Parent ISR) RATINGNO_DRAFT_ Implementation Latest ISR 10‐Apr‐2017 29‐Nov‐2017 25‐Jun‐2018 01‐Jan‐2019 28‐Jun‐2019 27‐Dec‐2019 Progress towards achievement of MS MU MS MS MS MS PDO Overall Implementation MS MS MS MS MS MS Progress (IP) Overall Safeguards S MS MU MS MS MS Rating Overall Risk M M M M M M BASIC INFORMATION – ADDITIONAL FINANCING (Additional Financing for Irrigation and Land Market Development Project ‐ P171796) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P171796 Additional Financing for Cost Overrun, Restructuring, No Irrigation and Land Market Scale Up Development Project Financing instrument Product line Approval Date Investment Project IBRD/IDA 20‐Feb‐2020 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 30‐Sep‐2022 No Page 2 of 53 The World Bank Additional Financing for Irrigation and Land Markets Development Project in Georgia (P171796) Is this a regionally tagged project? No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement‐Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non‐fragile Country [ ] Project‐Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man‐made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 50.00 24.22 20.79 54 % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Additional Financing for Irrigation and Land Market Development Project ‐ P171796) PROJECT FINANCING DATA (US$, Millions) SUMMARY‐NewFin1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 50.00 20.43 70.43 Total Financing 50.00 20.43 70.43 of which IBRD/IDA 50.00 20.43 70.43 Page 3 of 53 The World Bank Additional Financing for Irrigation and Land Markets Development Project in Georgia (P171796) Financing Gap 0.00 0.00 0.00 DETAILSNewFinEnh1‐ Additional Financing World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 20.43 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL
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