Georgia : Climate Smart Irrigation Sector Development Program

Sovereign Project | 54014-001

The program will support the Government of Georgia's pursuit of enhancing the policy and institutional framework for sustainable water resources management and an efficient state-owned enterprise (SOE) for delivering irrigation services. The policy actions under the policy-based loan focus on (i) enhancing governance and management controls to increase the Georgian Amelioration accountability, transparency, and efficiency of its service delivery; (ii) pricing and contracting change to ensure improved efficiency of water use and financial sustainability of irrigation systems in face of current and expected impact of climate change on water resources; and (iii) improving legal and institutional framework to achieve irrigation policy outcomes and ensure a sustainable management of water resources. The project loan will increase resilience to future climate change impacts by modernizing existing infrastructure from open canal to pressurized pipe networks.

Project Details

  • Project Officer
    Zhou, Yaozhou
    Sectors Group
    Request for information
  • Country/Economy
    Georgia
  • Sector
    • Agriculture, natural resources and rural development
Project Name Climate Smart Irrigation Sector Development Program
Project Number 54014-001
Country / Economy Georgia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant: Climate Smart Irrigation Sector Development Program
Agence Francaise de Developpement US$ 8.05 million
Loan 4378-GEO: Climate Smart Irrigation Sector Development Program
Ordinary capital resources US$ 15.00 million
Loan 4379-GEO: Water Resources Sector Development Program
Ordinary capital resources US$ 33.00 million
Loan: Climate Smart Irrigation Sector Development Program
Agence Francaise de Developpement US$ 37.56 million
TA 10182-GEO: Improving Georgian Ameliorations Capacity for Sustainable Management of Water Resources and Irrigation System
Technical Assistance Special Fund US$ 500,000.00
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Irrigation - Rural water policy, institutional and capacity development

Gender Effective gender mainstreaming
Description The program will support the Government of Georgia's pursuit of enhancing the policy and institutional framework for sustainable water resources management and an efficient state-owned enterprise (SOE) for delivering irrigation services. The policy actions under the policy-based loan focus on (i) enhancing governance and management controls to increase the Georgian Amelioration accountability, transparency, and efficiency of its service delivery; (ii) pricing and contracting change to ensure improved efficiency of water use and financial sustainability of irrigation systems in face of current and expected impact of climate change on water resources; and (iii) improving legal and institutional framework to achieve irrigation policy outcomes and ensure a sustainable management of water resources. The project loan will increase resilience to future climate change impacts by modernizing existing infrastructure from open canal to pressurized pipe networks. It will also support water-efficient irrigation technologies and promote innovative and climate smart agricultural production.
Project Rationale and Linkage to Country/Regional Strategy

Georgia is a small economy, with a population of 3.7 million in 2021. It has experienced varying annual rates of growth in gross domestic product (GDP) in recent years. Georgia's strong growth performance has not been matched by commensurate reductions in unemployment and poverty. Unemployment rates have remained high rand poverty levels showed a declining trend from 2013 to 2021.

The contribution of the agriculture sector to GDP decreased in 2021. Employment in the sector had also declined but remained well above its share in GDP in 2022. Food security is a serious concern for the government given the high food price inflation. Although Georgia has achieved a significant degree of self-sufficiency in many food categories, it remains heavily dependent on imports for staple cereals. Georgian agricultural exports comprise a limited number of products which are largely sold in a few international markets. The agriculture sector contributes around a quarter of total exports.

Following Georgia's independence in 1991, the disruption to irrigation management and the lack of funding led to the deterioration of irrigation infrastructure. It resulted in a significant reduction in irrigated area. By 2010, about 24,000 ha was irrigated as compared with 386,000 ha in the 1980s.

Agriculture, water resources, forestry, energy, waste, mineral resources, and health have been identified as highly vulnerable sectors to projected climate changes. The average temperatures in Georgia have increased steadily since the 1960s. Water resources availability in Georgia varies greatly by season and geographical area. Western Georgia has sufficient water resources while the eastern region is relatively dry, and water scarce. Projected decreases in river flows by the end of the 21st century during summer months may affect irrigated agriculture. The negative impact of this reduction in river flows could be exacerbated by increases in average temperatures and heat wave probability, leading to higher agricultural demand for irrigation. The overall effects of climate change on agricultural output could threaten an important source of income and employment for rural communities. It will increase inequality and food insecurity. Increasing climate resilience is critical for establishing sustainable agricultural production systems.

Impact

Food security in Georgia improved

Project Outcome
Description of Outcome

Sustainable, productive, and resilient agriculture system in eastern Georgia strengthened

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Institutional, governance, management, and financial management enhanced (policy component)

Kvemo Samgori Left Main Canal Irrigation Scheme modernized (investment component)

Innovative agriculture production systems demonstrated (investment component)

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Kakheti
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services All advance contracting will be undertaken in conformity with ADB Procurement Policy: Goods, Works, Non-consulting and Consulting Services (2017, as amended from time to time). The executing agency has been advised that approval of advance contracting does not commit ADB to finance the program. The issuance of invitations to bid under advance contracting will be subject to ADB approval.
Procurement The recommended project procurement classification is category A. Although project procurement is deemed 'low risk because no special or particularly large contract packages are expected, the EA and IA are new to ADB procedures.
Responsible ADB Officer Zhou, Yaozhou
Responsible ADB Department Sectors Group
Responsible ADB Division Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Ministry of Environmental Protection and Agriculture (MEPA)
Ministry of Finance
Timetable
Concept Clearance 03 Dec 2020
Fact Finding 19 Sep 2022 to 30 Sep 2022
MRM 27 Jul 2023
Approval 16 Nov 2023
Last Review Mission -
Last PDS Update 16 Nov 2023

Loan 4378-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Nov 2023 17 Nov 2023 15 Dec 2023 30 Jun 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 46.15 Cumulative Contract Awards
ADB 15.00 26 Jan 2024 0.00 0.00 0%
Counterpart 31.15 Cumulative Disbursements
Cofinancing 0.00 26 Jan 2024 15.27 0.00 100%

Loan 4379-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Nov 2023 17 Nov 2023 15 Dec 2023 30 Apr 2030 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 33.00 Cumulative Contract Awards
ADB 33.00 26 Jan 2024 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Jan 2024 0.00 0.00 0%

TA 10182-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Nov 2023 12 Dec 2023 12 Dec 2023 31 Oct 2028 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 26 Jan 2024 0.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Project Implementation Consultant Services for CSISDP Firm - Consulting Closed
5401-001: Climate Smart Irrigation Sector Development Program Advance Notice Active

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Climate Smart Irrigation Sector Development Program: Procurement Plan Procurement Plans Sep 2023