The sovereign loan to Georgia of up to EUR 3.03 million represents an increase in financing under the existing project GrCF - Tbilisi Solid Waste Project (Original Project). The incremental loan proceeds are to be used for a wider upgrade of the leachate system in the Tbilisi City's landfill, a component included in the Original Project.
The Project is part of Green Cities Framework 2 (GrCF2) and a follow-on investment from Tbilisi's Green City Action Plan (GCAP). The project addresses the GCAP-identified need for improvements in the City's solid waste system. It reduces environmental pollution from the landfill and employs best available technology in line with the EU standards.
The project aims to contribute to an improved level of solid waste services and overall improved environment in Tbilisi.
ETI score: 80
The Project will primarily help to promote the Green transition quality by improving the waste collection system, a key environmental priority identified in the GCAP. The Project will result in improved solid waste management and reduce the negative impacts of waste collection on the environment through purchasing low-emission vehicles and increasing the efficiency of waste collection route planning.
The Project will also support the Well-governed objective through the implementation of the Stakeholder Engagement and Stakeholder Participation Programme (SPP) and Municipal Solid Waste Strategy (MSWS), included in the Original Project and identified in Tbilisi's GCAP.
- Borrower: Georgia, represented by the Ministry of Finance.
- Beneficiary: Tbilisi City
- Implementing Agency: Tbilservice Group Ltd. (fully owned by Tbilisi City).
EBRD Finance Summary
Total Project Cost
The Bank is additional because of its
- Financing Structure: There is very limited market for long-term municipal borrowing for municipalities/utilities in Georgia. Local banks cannot offer loans matching the economic life of the infrastructure assets. Furthermore, municipalities are restricted to borrow above a certain limit and without the consent of Ministry of Finance of Georgia.
- Knowledge, innovation, and capacity building: EBRD extensive solid waste sector knowledge and long-standing relationship (including policy dialogue) with the City and ability to pursue the green agenda, ostensibly through the Green Cities Framework 2. The Bank supports the City with the development and implementation of an integrated municipal waste management strategy.
- Standard-setting: EBRD credit, transition impact, and environmental related conditionalities go far beyond what commercial funding sources would require, including procurement procedures, accounting transparency, sector reform and clear link to the green economy.
Environmental and Social Summary
Categorised B (ESP 2019). Extension of the Original Project to widen the scope of the envisaged leachate collection and treatment system coverage from two to four cells at Tbilisi landfill is expected to have mostly beneficial effects. The identified environmental and social issues will be managed through the implementation of an Environmental and Social Action Plan (ESAP), which was agreed for the Original Project. As a condition precedent to the first disbursement for the Project, the Company will have to complete the Technical Study and approve a national Environmental Impact Assessment for the revised leachate system reconstruction.
The Environmental and Social Due Diligence (ESDD) of the Original Project was undertaken in 2018 by an independent consultant as part of the feasibility study. It included a review of the applicable environmental, safety and social requirements, current waste management practices, as well as an analysis of environmental and social impacts and benefits associated with the Original Project.
The assessment included a review of the impacts associated with leachate collection and treatment. EBRD has supported the implementation of the Original Project though a donor financed Project Implementation Unit (PIU).
The ESDD of the Project, a leachate system component, comprised the review of the Company's Annual Environmental and Social Report (AESR), ESAP implementation status, and PIU consultant reports. The ESAP implementation progress has been found satisfactory. The Bank will monitor the Project implementation through the review of AESRs.
Technical Cooperation and Grant Financing
Technical Study. The technical and environmental assessment of the leachate management system. The estimated cost of the assignment is up to EUR 75,000, expected to be financed by an international donor or the EBRD Shareholder Special Fund (SSF).
Company Contact Information
995 577 262020
Tbilservice Group Ltd. 67 Kakheti Highway, 0182, Tbilisi, Georgia
PSD last updated
15 Jun 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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).
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