Projects
Georgia Compact Projects
Compact projects are developed by the country through a rigorous, consultative process in coordination with national development strategies, and designed to reduce poverty and stimulate economic growth.
Regional Infrastructure Rehabilitation Project
This project aims to rehabilitate key regional infrastructure by improving transportation for regional trade, increasing reliability of energy supply, and improving municipal services in the regions. This project consists of the following activities:
• Samtskhe-Javakheti Road Rehabilitation Activity, to rehabilitate and construct over 220 kilometers of main road traversing the Samtskhe-Javakheti region in southwest Georgia, which will improve access to markets to support economic growth. The Compact amendment has allowed for the full rehabilitiation and construction of the road as originally planned in the Compact, which will fully connect this region to Armenia, Turkey, and central Georgia.
• Energy Rehabilitation Activity, to— repair the north-south gas pipeline, which is the sole transmission line transporting gas to Georgia. In Georgia, natural gas fuels electric power generation and supplies power directly to households and businesses. As a result of the Compact amendment, the Government of Georgia will undertake studies required to prepare for the construction of an underground gas storage facility to provide further energy security for Georgia. These studies consist of a full economic, geological and environmental study, technical design and public/private financing plan for the proposed gas storage facility and associated infrastructure.
• Regional Infrastructure Development Activity, to— fund the rehabilitation of municipal infrastructure for water supply and waste-water in five cities in Georgia. As a result of the Compact amendment, projects in Borjomi, Kutaisi and Kobuleti have received additional funding to expand water services.
Enterprise Development Project
This project aims to increase profitable investments in small and medium enterprises (SMEs) and improve the economic performance of agribusinesses. This project consists of the following activities:
• Investment Fund Activity, created a professionally and independently managed investment fund, the Georgia Regional Development Fund, to provide long-term risk capital and technical assistance to agribusiness and tourism SMEs, primarily in the regions outside of Tbilisi, and
• Agribusiness Development Activity, provides technical assistance and grants to farmers and agribusinesses in critical value chains that supply agricultural products to the domestic market or have export capacity.
Monitoring and Evaluation
This project consists of collecting quantitative and qualitative data to monitor progress of Compact results and evaluate the impact of Compact projects. This includes development of M&E Plans, data collection through surveys and from administrative sources, quarterly reporting of progress against indicators and targets, and process and impact evaluations.
Program Administration and Oversight
This project includes costs for program administration, the procurement agent, the fiscal agent, and external audits.
NOTE:
In November 2008, MCC and the Government of Georgia signed a Compact amendment making up to $100 million of additional funds available to complete works in the Roads, Regional Infrastructure Development, and Energy Rehabilitation Activities contemplated by the original Compact.