Number of Active Projects
The Country Partnership Framework supports the Government of Georgia’s vision of developing a market-based economy, while ensuring nationwide prosperity and strengthening its regional position. The CPF supports sustainable and inclusive growth across three focus areas: (i) enhancing inclusive growth and competitiveness; (ii) investing in human capital; and (iii) building resilience. Completed in May 2022, the Performance Learning Review adjusted the program to reflect COVID-related developments as well as an increased focus on green, resilient, and inclusive development. The CPF was extended by one fiscal year and will be completed at the end of FY23. An update of the Systematic Country Diagnostic as well as a new CPF for FY24-28 are under preparation.
As of April 3, 2023, the active lending portfolio amounts to $1.47 billion across 14 investment projects. Disbursement stands at $467 million (32.98 percent). Under the CPF, the portfolio has been rebalanced to include more financing in human development. Thirty-five percent of the total commitment addresses challenges in education, health, and social protection, and 30 percent focuses on infrastructure and digital development. Other areas of engagement include irrigation, entrepreneurship and innovation, support to micro-, small-, and medium enterprises, as well as regional development.
Two projects were approved on March 24, 2023: the first in a programmatic Development Policy Operation (DPO) series focused on Green, Resilient, and Inclusive Development (US$ 50 million); and the Georgia Resilient Agriculture, Irrigation, and Land Project (US$ 75 million). The two projects indicate a more pronounced focus on support for Georgia’s efforts to address the country’s climate-related development challenges.
The FY24 pipeline includes two operations: Second Green, Resilient, and Inclusive DPO ($50 million) and the Enhancing Energy Security through Power Interconnection and Renewable Energy (ESPIRE) ($500 million).
Each year, the World Bank delivers a robust knowledge program that includes advisory services and analytics that address a broad range of development challenges - from financial and private sector development, financial inclusion, and protection to water and irrigation and strengthening social protection systems.
The World Bank continues to support Georgia’s aspiration of becoming a regional transit hub through the East-West Highway Corridor Improvement Project co-financing and the relatively new Kakheti Connectivity Improvement Project ($109 million), as well as to play a leadership role in the policy dialogue on the development of the regional power and digital connectivity corridor. The Government is interested in strengthening its collaboration with the World Bank on energy security and cyber resilience. The proposed Enhancing Energy Security through Power Interconnection and Renewable Energy (ESPIRE) Project would support the Government in developing one of the world’s longest and deepest undersea power and digital cables across the Black Sea, which would enhance power trade and international data traffic flows between Europe and Asia via the South Caucasus (with landing points in Georgia and Romania). The proposed Project - a Multiphase Programmatic Approach (MPA) Program - would support the preparation, structuring, financing, and implementation of the Interconnection Project.
Georgia’s digital transition has been additionally supported through another critical World Bank initiative – the Log-In Georgia Project, which will connect up to 500,000 people residing in over 1,000 villages in the mountainous and remote regions of the country to high-speed affordable broadband internet, granting access to digital financial services, e-commerce, e-government services, remote learning, and telemedicine, proven to be invaluable in the wake of the pandemic.
Last year the World Bank and Georgia commemorated the 30th anniversary of their partnership, which officially commenced on August 7, 1992. Over three decades of close cooperation, the World Bank has played a significant role in the development, growth, and modernization of Georgia’s economy.
Another major milestone of the partnership is Georgia’s decision to Join the International Development Association (IDA) as a donor, after being an IDA beneficiary for over two decades, which was formalized on September 13, 2022.
The anniversary year of 2022 also marks the launch of one of the World Bank’s most critical and transformational projects in Georgia - the Human Capital Program for Results. Approved in March 2022, the $400 million Human Capital Program is the largest cross-sectoral investment ever extended to Georgia by the World Bank over the 30 years of partnership. The World Bank supports human capital development in Georgia through one other ongoing program - the Innovation, Inclusion, and Quality Project (I2Q), which aims to help Georgia narrow the skills gap between learning outcomes and labor market expectations.
Last Updated: Apr 06, 2023