Cities Development Initiative for Asia P R O J E C T O V E R V I E W Water Supply and Wastewater Systems in West Georgia Country: GEORGIA Status: COMPLETED June 2019 Key Sector(s): City: KUTAISI, POTI, ANAKLIA, ZIGDIDI, Application approved: November WATER SUPPLY AND WASTEWATER UREKI 2017 P R O P O N E N T S Geography and Population United Water Supply Company Ekaterine Galdava Total population: 0.3 million of Georgia (UWSCG) LLC, Tbilisi Director The five cities selected are Kutaisi (which is Georgia’s second city Georgia after the capital Tbilisi), Poti (which is a coastal city in the process United Water Supply Company of of developing as a major port), Anaklia and Ureki (which are Georgia (UWSCG) LLC, Tbilisi Georgia developing tourist coastal resorts) and Zugdidi, which lies further inland. K E Y C I T Y D E V E L O P M E N T I S S U E S In 2010 the government of Georgia established the United Water Supply Company of Georgia (UWSCG) as part of the water sector reforms to improve the operation and maintenance (O&M) of the water and wastewater facilities in Georgia. UWSCG, which is wholly owned by the State of Georgia, oversees the O&M of 56 cities and towns throughout the country. In 2011 Georgia and the Asian Development Bank (ADB) signed a framework financing agreement for the Urban Services Improvement Investment program for an amount up to $500 million. In the last decade major water system infrastructure improvements have been Intervention Areas Source of Maps: Wikipedia.org made, including new or renovated networks, using ADB and other multilateral agency loans and a huge improvement in water distribution is foreseen. In addition, major wastewater improvements are ongoing to provide wastewater collection and treatment where there had previously been only localized systems or direct discharge of untreated wastewater. Despite this significant investment, non-revenue water (NRW) remains very high at around 74%, energy costs are also very high and all five cities face a significant challenges relating to operations of the newly constructed water supply and wastewater systems. D E T A I L S O F C O O P E R A T I O N The study conducted an operational performance assessment for the water and Water Meter in Kutaisi wastewater services provided by five cities in west Georgia by the UWSCG and focusing on the following: Maximizing the long-term value of the assets financed by the ADB loan; Providing continuous water supply (24 hours per day, 7 days per week); Reducing NRW; (Picture of intervention areas) Reducing electricity costs; and Providing a plan for long-term, successful operations of the newly installed water and wastewater systems for UWSCG. Recommendations were made with particular reference to the introduction of a public private partnership to bring in the much-needed operational experience. E X P E C T E D D E V E L O P M E N T A L I M P A C T S The key impacts of the project include reduced NRW, increased energy efficiency, reduced environmental pollution and overall improvements in UWSCG Wastewater treatment facilities operations. E X P E C T E D I N V E S T M E N T F O L L O W UP PROJECT PERIOD November 2017 – June 2019 Est. infrastructure investment value US$ 50 million Potential sources of financing CDIA SUPPORT US$ 500,000 Asian Development Bank CITY CONTRIBUTION - - .