Georgia Data Collection Survey on Infrastructure Development in Central Asia and the Caucasus Final Report Georgia MAY 2019 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) NOMURA RESEARCH INSTITUTE, LTD. 3R JR 19-008 Georgia Data Collection Survey on Infrastructure Development in Central Asia and the Caucasus Final Report Georgia MAY 2019 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) NOMURA RESEARCH INSTITUTE, LTD. Table and Figures ............................................................................................................................................................. iv List of Tables ............................................................................................................................................................... iv List of Figures ............................................................................................................................................................. vi Abbreviations ................................................................................................................................................................... ix 1. Introduction ......................................................................................................................................................... 1 1.1. Background ............................................................................................................................................... 1 1.2. Purpose ....................................................................................................................................................... 1 2. Methodology ....................................................................................................................................................... 3 2.1. Research framework ................................................................................................................................. 3 2.1.1. Target sectors .................................................................................................................................... 3 2.1.2. Research items ................................................................................................................................. 4 2.1.3. Assumed support tools .................................................................................................................... 4 2.1.4. Desktop/Literature survey .............................................................................................................. 4 2.1.5. Interviews ......................................................................................................................................... 5 2.1.6. Data ................................................................................................................................................... 5 3. Analysis of Current State and Existing Issues with Development Policy, Laws and Ordinances, and Improvements to Infrastructure ....................................................................................................................................... 6 3.1. Priority Areas for Development ............................................................................................................... 6 3.2. PPP-Related Systems ............................................................................................................................... 7 3.2.1. PPP Policy ........................................................................................................................................ 7 3.2.2. Examples of PPP ........................................................................................................................... 10 3.3. Potential for Capital Procurement by Financial Sector ....................................................................... 15 3.3.1. Potential for Private-Sector Capital Procurement ....................................................................... 15 3.3.2. Opportunities for Long-Term Capital Procurement ................................................................... 17 3.3.3. Restrictions on International Commercial Borrowing ............................................................... 18 3.4. State of Donor Activities ........................................................................................................................ 23 3.4.1. European Bank of Reconstruction and Development: EBRD ................................................. 23 3.4.2. World Bank (WB) ......................................................................................................................... 25 3.4.3. International Finance Corporation (IFC) ..................................................................................... 27 3.4.4. Asian Development Bank (ADB) ............................................................................................... 28 i 3.4.5. European Union (EU) ................................................................................................................... 29 4. Current State of Target Sectors and Future Plans/Sector Issues ................................................................... 30 4.1. Urban Development/Transportation/Logistics ..................................................................................... 30 4.1.1. Current state of Infrastructure Improvements ............................................................................. 30 4.1.2. Infrastructure Improvement Agencies and Staff Organizations ................................................ 34 4.1.3. Cross-Regional Issues ................................................................................................................... 40 4.1.4. Issues in Progressing Infrastructure Improvement ..................................................................... 41 4.1.5. Infrastructure Improvement Projects ........................................................................................... 44 4.1.6. Activities by Donors ...................................................................................................................... 52 4.2. Energy ...................................................................................................................................................... 53 4.2.1. Current State of Infrastructure Improvement .............................................................................. 53 4.2.2. Infrastructure Improvement Agencies and Staff Organization ................................................. 60 4.2.3. Cross-Regional Issues ................................................................................................................... 62 4.2.4. Issues in Progressing Infrastructure Improvement ..................................................................... 62 4.2.5. Infrastructure Improvement Projects ........................................................................................... 63 4.2.6. Donor Activities ............................................................................................................................. 67 4.3. Environment ............................................................................................................................................ 70 4.3.1. Current State of Infrastructure Improvement .............................................................................. 70 4.3.2. Agencies Engaged in Infrastructure Improvement and Staff Organizations ........................... 77 4.3.3. Cross-Regional Issues ................................................................................................................... 82 4.3.4. Issues Relating to Infrastructure Improvement ........................................................................... 82 4.3.5. Infrastructure Improvement Projects ........................................................................................... 84 4.3.6. State of Donor Activity ................................................................................................................. 86 4.4. Healthcare ................................................................................................................................................ 89 4.4.1. Current State of Infrastructure Improvement .............................................................................. 89 4.4.2. Infrastructure Improvement Agencies and Staff Organizations ................................................ 95 4.4.3. Cross-Regional Issues ................................................................................................................... 96 4.4.4. Issues with Progressing Infrastructure Improvement ................................................................. 96 4.4.5. Infrastructure Improvement Projects ........................................................................................... 98 4.4.6. Activities by Donors ...................................................................................................................... 99 5. Activities of Japanese Companies in the Relevant Regions ...................................................................... 100 5.1. Urban Planning, Logistics and Transportation ................................................................................... 100 5.1.1. State of Activities by Japanese Companies ............................................................................... 100 5.1.2. SWOT Analysis of Japanese Companies and Services,