Green Investments in Buildings (GRIB) - Georgia

Location:

Georgia

Project number:

51145

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

09 Mar 2022

Status:

Disbursing

PSD disclosed:

02 Apr 2020

Project Description

The proceeds of the loan to Georgia will be used to finance the Energy Efficiency ("EE") upgrade and rehabilitation of up to 200 public buildings (primarily schools) located across the entire country. The Project is co-financed by an investment grant of up to EUR 10 million provided by the EU Neighbourhood Investment Platform (EU NIP).

Project Objectives

The goal of the Project is to contribute to Georgia's green economy transition by introducing comprehensive EE renovations of public buildings, building the capacity of local construction companies in this sector and supporting the creation of a value chain of green technologies.

Transition Impact

ETI score: 68

The Project will have the following Transition Impact:

Green - The Project is expected to be 100 per cent GET, as EBRD proceeds will be allocated to the energy efficiency or renewable energy investments.

Well-governed - The Project will develop policy recommendations to relevant government authorities and/or contribute to existing policy dialogue activities. The Project will support capacity of the Government to better incorporate EE aspects in building construction and operation.

Client Information

GEORGIA SOVEREIGN

The Borrower is Georgia represented by the Ministry of Finance. The Project is to be implemented by the Municipal Development Fund ("MDF") of Georgia.

EBRD Finance Summary

EUR 40,000,000.00

EUR 40 million sovereign loan to Georgia.

Total Project Cost

EUR 50,000,000.00

Additionality

EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions. Moreover, EBRD expertise in the sector will support application of enhanced standards.

Environmental and Social Summary

The Project is categorised B (2014 ESP). The Environmental and Social Due Diligence ("ESDD") comprised of an audit carried out by independent consultants. The findings of the ESDD were that the MDF had some elements of environmental and social management in place and complies with national legislation. The Project consists of implementing EE measures in public buildings (mainly existing schools). The Project's building renovation will include various EE and renewable energy measures and can, to a limited extent, include auxiliary works to enhance the buildings' structural integrity and extend their lifetime (partial demolition and reconstruction). All boilers to be purchased within the Project will be in line with EU Directives in relation to air emissions. The Project is expected to result in CO2 reductions of 13,333 tonnes per year and energy savings of 253,631 GJ per year. 

The MDF has good organisational capacity relating to environmental and social management. The MDF does not have an Environmental and Social ("E&S") Policy, nor does it operate an Environmental, Health, Safety and Social Management System; however, the MDF does develop the necessary E&S processes on a project-by-project basis. Overall, there is currently a good level of occupational health and safety systems and processes at MDF. For each building or a batch of buildings, a site specific Environmental and Social Management Plan will be prepared by the Design Consultant, for approval by the MDF. It will be included in the tender documentation and obligatory for civil works contractors to implement. Employees of the MDF are free to establish and join trade unions. Formal employment contracts follow the Labour Code of Georgia. No grievance mechanism is currently in existence for MDF employees. The ESAP requires that (i) a Project-specific HR Policy is developed (including grievance mechanism) as no formal corporate policy is available; (ii) a Gender Action Plan is developed, which will focus on promoting women's employment in EE and addressing gender issues with regards to EE improvements in public buildings; (iii) an asbestos survey is conducted at the proposed building sites prior to the commencement of works; and that (iv) the Design Consultant submits a fire safety report to the MDF on the thermal insulation material to be used on the Project, confirming its fire performance classification as prescribed to national standards.

Schools may need to be temporarily relocated whilst construction is ongoing. In the case of schools requiring significant reconstruction work including expansion, land may need to be acquired.  In that case, the MDF will prepare a Land Acquisition and Resettlement Action Plan. Some of the buildings may be listed as protected under national law; therefore, the Design Consultant will cross-reference the selected public buildings with the list of protected buildings of Georgia and will gain the necessary permits from the National Agency for Cultural Heritage Preservation of Georgia if needed. A Stakeholder Engagement Plan ("SEP") is being developed and includes engagement with the buildings' representatives. The MDF operates a previously established Grievance Redress Mechanism in-line with international best practice.

The ESAP has been agreed with the MDF. The Bank will monitor the Project through annual environmental and social reports provided by the MDF, and site visits if necessary.

Technical Cooperation and Grant Financing

The following technical co-operation ("TC") assignments are envisaged as part of this project:

  • Scoping Study - EUR 79,985, financed by the ERBD Shareholder Special Fund ("SSF") (completed).
  • ESDD - 58,975, financed by the SSF (completed).
  • Project Implementation Support up to EUR 1,000,000, expected to be financed by an international donor or the SSF.
  • Design & Supervision Services - up to EUR 4,800,000, proposed to be financed by the EU NIP and EBRD loan proceeds.

Company Contact Information

Davit Tabidze
mdf@mdf.org.ge
995 32 2437001
995 32 2437077
mdf.ge
3rd Floor, #150 Davit Aghmashenebeli Ave., 0112, Tbilisi, Georgia

PSD last updated

14 Mar 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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