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Lesson
Lack of project readiness can seriously deter project implementation. The project completion review of tranche 1 indicates that the project was not ready for financing. During preparation of the project, the towns of Marneuli and Zugdidi were replaced by Kutaisi, Poti, and Ureki because of changing government priorities and the planned development of a seaside resort at Ureki. This necessitated a major change in scope that delayed project startup. Additional time was also needed for capacity building and to increase awareness of the project among the IA staff.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Inaccurate projections can reduce the financial viability of projects and lead to unoptimal use of resources. At project appraisal, populations in Anaklia and Mestia were forecast to grow significantly with Anaklia’s planned port construction and tourism development of Mestia as an international ski resort and historic heritage site. As it turned out, towns in Georgia, including the three towns, witnessed out-migration and reduction in population in the last decade.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
The financial health of key project agencies needs to be thoroughly assessed at project preparation to determine their viability and identify the proper risk mitigation measures. Although a financial management assessment was conducted for the implementing agency, the United Water Supply Company of Georgia Limited Liability Company (UWSCG) during project preparation, the assessment only pointed to a need for training in accounting and reporting, preparing business plans, determining tariffs and procurement.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
The facility’s flexibility allowed the use of savings from one tranche to fund investments from another tranche. The installation and supply of ventilators within tranche 5 was canceled in the metro project as the increase in costs surpassed the initially allocated loan funds. Savings from tranche 1 from the cancellation of other subprojects were used to fund the investment in ventilators from the metro project.

Project Number: 42414-013, 42414-045
Project Name: Sustainable Urban Transport Investment Program - Tranche 5 and MFF
Report Date:
Lesson
Government changes can disrupt institutional continuity. The national election in 2012 resulted in a change in the ruling party and the subsequent appointment of new directors and staff in the implementing agency. Additional time had to be devoted to building capacity and awareness of the project. Several components under the project were canceled because of changes in government priorities.

Project Number: 42414-013, 42414-045
Project Name: Sustainable Urban Transport Investment Program - Tranche 5 and MFF
Report Date:
Lesson
Targeted and medium- to long-term assistance in key sectors is particularly critical for Georgia to sustainably recover from COVID-19 impacts. There is opportunity in crisis that, if taken advantage of expeditiously, can lead to significant beneficial measures. In the case of Georgia, the depth of the crisis that led ADB and other development partners (DPs) to offer a large rescue package illustrates what can be achieved under crisis situations.

Project Number: 54191-001
Project Name: COVID-19 Active Response and Expenditure Support Program
Report Date:
Lesson
The CPRO was a highly effective pandemic response and reform program, which ADB can build upon to help accelerate the structural reform process it has been supporting in Georgia. The CPRO provided Georgia with a useful and effective tool in addressing the COVID-19 pandemic. It was prepared with unprecedented speed and supported the priorities identified by the government in its COVID-19 response program.

Project Number: 54191-001
Project Name: COVID-19 Active Response and Expenditure Support Program
Report Date:
Lesson
The collection of sex-disaggregated data remains to be a challenge in Georgia and this needs greater attention in ensuing programs in the country. The collection of sex-disaggregated data to support CPRO design and implementation was challenging, hindered in some cases by the emergency situation, and in other instances, by the limitations in government databases. This highlights the need for ensuing programs to carefully evaluate and identify the appropriate gender indicators in ensuing programs.

Project Number: 54191-001
Project Name: COVID-19 Active Response and Expenditure Support Program
Report Date:
Lesson
Diagnostics play an important role in the successful implementation of policy reforms.

Project Number: 48044-001, 48044-004, 48044-005
Project Name: Improving Domestic Resource Mobilization for Inclusive Growth Program
Report Date:
Lesson
Gradual and complex reforms require simultaneous activities and flexibility to manage bottlenecks.

Project Number: 48044-001, 48044-004, 48044-005
Project Name: Improving Domestic Resource Mobilization for Inclusive Growth Program
Report Date:
Lesson
Need for adequate resource allocation to preparatory works for new projects. The cost overrun of the civil works component was a primary reason for the cancellation, and was caused by inadequacies in the investment program appraisal with respect to safeguards, engineering design and the cost estimate.

Project Number: 41122-033
Project Name: Road Corridor Investment Program - Project 2
Report Date:
Lesson
Need for the government's continuous capacity enhancement in project preparation. The government should have conducted its own robust due diligence prior to processing new projects, particularly in terms of engineering and safeguards. Further, international financial institutions, including ADB, should continue providing technical support, including institutional and capacity development programs, to enable the executing and implementing agencies to independently prepare projects with sound technical inputs.

Project Number: 41122-033
Project Name: Road Corridor Investment Program - Project 2
Report Date:
Lesson
Need for comprehensive due diligence in safeguards and technical aspects. The cost overrun had two major causes: (i) an insufficient safeguard assessment during appraisal, and (ii) an inaccurate cost estimate. A comprehensive safeguards impact assessment during appraisal could have avoided the later realignment. Detailed analysis of alternative alignments and their associated potential safeguards impacts, both of environmental and social, should have been conducted as well.

Project Number: 41122-033
Project Name: Road Corridor Investment Program - Project 2
Report Date:
Lesson
The management information system proved to be an efficient means to provide all project information and data and helped Municipal Development Fund monitor implementation of the project in a timely manner. The same system should be used other projects.

Project Number: 43171-013
Project Name: Municipal Services Development Project - Phase 2
Report Date:
Lesson
Issues regarding legal and/or technical aspects of operation and maintenance (O&M) planning and funding, measures for cost recovery, tariff collection, and the metering system should be properly studied by consultants to mitigate the risk associated with inadequate O&M of project water supply system facilities.

Project Number: 43171-013
Project Name: Municipal Services Development Project - Phase 2
Report Date: