ADB's Work in Georgia   Download Fact Sheet

Georgia is an important nodal point for regional trade flows and connectivity. At a crossroad between Europe and Asia, the country offers improved transport and transit routes, bringing closer alignment with global markets and deeper integration into global value chains.

The Government of Georgia has taken steps toward creating an open and resilient economy, facilitating institutional reforms, and promoting structural transformation. Committed to an inclusive growth process, it has considerably increased social sector spending, enhanced private sector competitiveness, and made public expenditure more transparent and predictable.

ADB began its partnership with Georgia in 2007 and is one of the country’s largest multilateral development partners. To date, ADB has committed 82 public sector loans, grants, and technical assistance totaling $3.9 billion to Georgia. Cumulative loan disbursements to Georgia amount to $3.08 billion. These were financed by regular and concessional ordinary capital resources, and other special funds. ADB’s ongoing sovereign portfolio in Georgia includes 17 loans worth $1.75 billion.

Georgia’s economy has remained remarkably resilient to the Russian invasion of Ukraine and the aftermath of the coronavirus disease (COVID-19) pandemic. Though the labor market is still slow to recover, solid economic growth is registered, helped by a robust expansion in money transfers, growth in exports, and gains in tourism and wholesale and retail trade.

ADB provided $100 million in programmatic assistance to support Georgia’s sustainable and inclusive growth. This forms part of a $300-million program that has helped increase Georgia’s fiscal resilience to shocks following the COVID-19 crisis and amid the heightened economic uncertainty following the Russian invasion of Ukraine. ADB is also improving livability and quality of life for at least 1.5 million Georgian citizens with a $120-million loan in integrated investment solutions for tourism and municipal infrastructure and services.

ADB invested $4 million from ordinary capital resources and another $4 million from the ADB-administered Leading Asia’s Private Sector Infrastructure Fund in the largest and first-ever locally listed green bond issued by Georgian Renewable Power Operations JSC, which operates hydro and wind power plants in Georgia.

ADB acted as the anchor investor with a subscription of GEL18.75 million to Georgia’s first certified gender bond issued by JSC Microfinance Organization Crystal to support access to financial services for women-owned micro, small, and medium-sized enterprises, especially those in remote rural areas.

ADB has also provided a wide range of technical assistance aimed at (i) supporting Georgia’s secondary education to better equip the country’s youth with the core competencies to succeed in post-secondary education and higher-productivity jobs; (ii) supporting green hydrogen and energy storage while strengthening the security of Georgia’s electricity grid; (iii) enhancing the effectiveness and efficiency of health care financing and improving access to people-centered quality primary healthcare and specialty outpatient and diagnostics services; (iv) supporting Georgia’s railway sector reforms and improving the sector’s operational efficiency, service delivery, and financial sustainability; and (v) supporting climate-smart agriculture and irrigation development in support of a more resilient, green, and diversified economy.

An antique carpet dealer in downtown Tbilisi is hopeful for tourism to revive. Photo: Khatia Jijeishvili/ADB

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Georgia as of 31 December 2022 was $431.45 million representing 3.4% of ADB’s total private sector portfolio.

Operational challenges. Expanding transit capacity, adapting to evolving global supply chains, and addressing climate change adaptation and mitigation are key operational challenges. Inclusive growth, skills development, and balanced regional development remain key development goals. Raising local revenue and ensuring more effective and responsible management of subnational finances can be beneficial for macroeconomic stability, improved service delivery, and increased social welfare in rural areas.

Knowledge Work

ADB knowledge work in Georgia focuses on supporting green corridors and encouraging trade digitalization, development of export value chains and economic complexity, and regional cooperation. Given the country’s climate risks, knowledge work also covers climate-smart irrigation and remote sensing for agriculture and for climate adaptation in coastal areas as well as georeferenced data in migration and tourism, livable cities encompassing green and sustainable urban development and services, water supply and sanitation, and energy. In the education sector, the focus is on modern jobs and skills and increasing the quality, access, and affordability of gender-inclusive education services for improved teaching and learning outcomes.

The knowledge agenda supports greater private sector participation and competitiveness; fiscal decentralization with greater efficiency of public resource allocation and enhanced quality of public services; and public sector reforms focusing on governance, institutional capacity building, and public–private partnerships.

  ADB Projects in Georgia Project data sheets for loans, grants, TAs

Future Directions

ADB will continue to help Georgia respond to growth uncertainties arising from geopolitical developments and climate-related risks while helping facilitate the private sector’s more active role in the economy. The bank will seek to finance climate-resilient solutions in water resource management, irrigation, urban transport, and infrastructure to boost green energy exports to neighboring countries. A greater focus on policies and institutional strengthening will help make public services more efficient and set the stage for private sector participation. ADB will help unlock Georgia’s potential for agribusiness, tourism, and regional trade, and address unemployment and growing skills gaps. ADB investments will incorporate gender equality, green development, and innovation as key elements of business sector development including a clearer rationale for the full commercial viability of state-owned enterprises.