Number of Active Projects
The Country Partnership Framework (CPF) for FY19–22, developed in collaboration with the Government of Georgia and endorsed by the Board on May 22, 2018, aims to support sustainable and inclusive growth and improvements in living standards across three focus areas: enhancing inclusive growth and competitiveness, investing in human capital and building resilience. In response, the CPF portfolio balances interventions to strengthen infrastructure and connectivity while aiming to grow the engagement in human capital. World Bank Group support includes financing, Advisory Services and Analytics, and convening services.
The current active lending portfolio includes 13 investment projects with a total commitment of $951.40 million, out of which $478 million is disbursed. Twenty-one percent of the commitments is in sustainable development, 47 percent in infrastructure, 19 percent in human development, and 13 percent in equitable growth, finances, and institutions. In addition, the portfolio includes two recipient-executed trust fund operations of about $6.23 million.
In FY21, the Log-In Georgia Project ($40 million, International Bank for Reconstruction and Development [IBRD]) was approved by the Board. Three more IBRD lending operations (Georgia Relief and Recovery for MSMEs and Jobs; the Kakheti Integrated Mobility Project; and the Integrated Regional and Local Development Project), with total commitments estimated at $300 million, are envisaged for FY21 and FY22 delivery.
The knowledge program includes 10 activities totaling $5.99 million in governance, macroeconomics, finance, innovation, energy and extractives, urban areas, the environment, and education.
The World Bank was one of the first international development institutions to extend support to Georgia in its fight against the COVID-19 pandemic. The Bank quickly mobilized teams to prepare three new operations totaling $230 million IBRD. Approved on April 29, 2020, the Georgia Emergency COVID-19 Response Project of $80 million, processed under the Bank’s Fast-Track COVID-19 Facility, aims at mitigating the health and social impacts of the pandemic.
Through the project, the Ministry of Health was able to procure and distribute vital medical equipment to hospitals across the country, including over 4 million polymerase chain reaction (PCR) and rapid test kits, 50 critical care and emergency ventilators, 1,000 oxygen concentrators, 400 medical beds, and many other types of supplies and equipment that are essential to the treatment of COVID-19 patients and protection of health workers. In addition, the project provides temporary monthly benefits to approximately 81,033 families, top-up benefits to about 25,379 families with more than three children, one-off benefits to 370,036 self-employed individuals, and temporary unemployment benefits to 162,425 individuals.
The Bank is planning to provide additional financing to the COVID-19 Response Project (P173911) at an amount of $34.5 million to enable affordable and equitable access to COVID-19 vaccines, to help ensure effective vaccine deployment in Georgia through vaccination system strengthening, and to further strengthen preparedness and response activities under the parent project.
In addition, a Supplemental Financing for the Economic Management and Competitiveness Development Policy Operation (DPO) ($50 million IBRD) provided budget support to the government amid a sharp decline in tax revenues and an unanticipated increase in expenditures to cover the anti-crisis measures.
Finally, the proposed Relief and Recovery for Medium, Small and Micro Enterprises Project ($100 million IBRD) will support the jobs agenda, as well as MSMEs that have been negatively impacted by the pandemic, namely in hard-hit sectors, such as tourism and agriculture.
The COVID-19 pandemic has underlined the critical importance of digital technologies and connectivity, which is why the World Bank has rolled out the Log-In Georgia Project in support of Georgia’s National Broadband Development Strategy for 2020–25. The US$40 million project, approved by the World Bank’s Board of Executive Directors on August 28, 2020, will connect nearly 500,000 people residing in up to 1,000 villages in the mountainous and remote regions to high-speed affordable broadband internet. The project will also promote digital financial services, e-commerce, e-government services, remote learning, and telemedicine, all of which have proven to be invaluable in the wake of the COVID-19 pandemic.
Other projects under implementation are also contributing to the COVID response. The Georgia National Innovation Ecosystem (GENIE) Project (IBRD $23.5 million) is helping develop innovative start-ups, including in the digital area, while technical assistance provided under various activities is helping deepen financial and capital markets, improve corporate governance, and strengthen investment promotion. The Georgia Innovation, Inclusion and Quality (I2Q) Project (IBRD US$102.7 million) is also financing COVID-19-related distance learning activities.
The Bank’s support goes beyond financing through the project proceeds and includes two additional ongoing technical assistance activities: a vaccine readiness assessment (using the VIRAT/VRAF 2.0 readiness assessment tool) and preparation of GIS digital maps that visualize the COVID-19 vaccination program’s resources, population distribution, priority groups, indicators, and other data.
The World Bank is also playing a key role in maximizing finance for development by leveraging partnerships. The International Monetary Fund Extended Fund Facility of $285 million, initially approved in April 2017, was augmented by $380 million, out of which approximately $200 million went to budget support and the remaining amount to balance of payment support to the National Bank of Georgia.
The Asian Infrastructure Investment Bank is co-financing the Emergency COVID-19 Response Project ($100 million) and extended a parallel project aligned with the Supplemental DPO ($50 million). KfW (the German Development Bank) also extended a policy-based loan (€180 million) largely based on the DPO policy matrix.
Last Updated: Apr 05, 2021