GrCF2 W1 - Tbilisi Metro Modernisation



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

11 Jan 2023



PSD disclosed:

28 Oct 2022

Project Description

A sovereign loan of up to EUR 50.6 million to Georgia (tranched) to be on-lent to the city of Tbilisi (the "City") for the benefit of Tbilisi Transport Company Ltd (the "Company"), a municipal company operating buses, the metro system and cable cars in Tbilisi.

Project Objectives

The investment will improve the reliability, safety and efficiency of public transport through the upgrade and rehabilitation of 12 metro stations (the "Project").


The Project is part of a broader programme aiming to assist the City in reforming its management of public transport by financing the renewal of bus and metro systems, and network restructuring.

Transition Impact

ETI score: 70

The Project is part of Green Cities 2 ("GrCF2") and a follow-on investment to the Tbilisi Green City Action Plan ("GCAP").

The GrCF2's primary goal is to achieve significant environmental improvements and promote the Green transition quality in the targeted cities. The GrCF2 also aims to build necessary capacity and facilitate better coordination between and buy-in from various stakeholders in the relevant cities in order to improve the governance, operational efficiency and financial sustainability of the targeted investments and initiatives. Under the GrCF2, the Bank will put further emphasis on implementation of GCAPs, with at least half of all sub-investments expected to be follow-on transactions addressing critical environmental challenges identified by the GCAPs. Notably, Tbilisi was one of the first three cities to join EBRD Green Cities and one of the first to complete a GCAP. As of today, the City is actively implementing more than 89 per cent of measures from its GCAP with both EBRD support and its own funds.  

The overall transition impact of the Project will come from the Green and Well-Governed transition impact qualities. The Project will help to promote the Green transition quality by encouraging a shift to public transport systems and thus, mitigating the impacts of the City's transport sector on the environment. It will also be another step the City is taking to implement its GCAP and to meet commitments made to other sustainability initiatives and programmes. In addition, the Project will promote the Well-Governed transition quality through improved asset management practices.

Client Information


Georgia represented by the Ministry of Finance.

The Project will be implemented by the City and the Company.

EBRD Finance Summary

EUR 50,600,000.00

€50.6 million sovereign loan to Georgia, in two tranches:

-        Tranche 1 of up to EUR 30.305 million for the rehabilitation of the first batch of metro stations (to be committed at signing); and  

-        Tranche 2 of up to EUR 20.295 million for the rehabilitation of the second batch of metro stations (to be committed at a later stage).

Total Project Cost

EUR 55,600,000.00

The EBRD loan will be co-financed by an investment grant of up to EUR 5 million from the Green Climate Fund.

The Project will also benefit from the technical cooperation assignments to support project preparation and implementation.


The Project will be another step for the City to implement the GCAP and to meet commitments made to other sustainability initiatives and programmes.


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 under the Environmental and Social Policy (2019).  Risks and impacts associated with the Project have been confirmed to be site specific, readily identifiable and can be addressed by adoption of appropriate mitigation measures. Environmental and Social Due Diligence has been undertaken as part of the Feasibility Study ("FS") and has identified risks and impacts that may be associated with the programme of modernisation and rehabilitation works. However, as the FS presents a preliminary design of works only at this stage, further refinement of the Environmental and Social ("E&S") assessment and associated mitigation measures will be required to be developed in line with the Project cycle.


Construction is related to the risks and impacts associated with the work of construction contractor such as noise, dust, vibration, hazardous materials (including asbestos) and worker occupational safety and the interface with the public. This will require careful management through the development of an Environmental and Social Management System and associated E&S Management Plans, particularly the Contractor Management Plan and a comprehensive Stakeholder Engagement Plan. There is also the potential for temporary business disruption to small scale metro station vendors located in areas that will be subject to rehabilitation works. It is expected that these impacts can be managed through appropriate consultation and mitigation measures that are included in the Environmental and Social Action Plan ("ESAP"). At the same time, the ESAP also requires these impacts to be further assessed during detailed design and, if deemed necessary, a Livelihood Restoration Plan to be developed in line with the EBRD's requirements during the subsequent phases of the Project, prior to implementation. For three stations, further assessment of vibration will be required to verify that there will be no damage to the integrity of the nearby buildings.


The ESAP has been developed and includes the requirements to fully quantify any residual risks, develop and implement all required management plans as mitigation measures. A Project Implementation Unit ("PIU") will be established for the programme of works and the ESAP requires the PIU to develop a comprehensive set of plans and adequately supervise the construction works and contractor(s) prior to any impacts occurring. Such safeguards have been included in the design phase documents and the Bank will closely monitor the adoption of the ESAP by the PIU and the subsequent phases of the Project throughout.

Technical Cooperation and Grant Financing

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

  • Feasibility Study. The cost of the assignment is EUR 460,060, financed by the EBRD Shareholder Special Fund (the "SSF").
  • Procurement Support. The estimated cost of the assignment is up to EUR 74,900 proposed to be financed by an international donor and/or the SSF.
  • Project Implementation Support. The estimated cost of the assignment is up to EUR 2,300,000, expected to be financed partly from the loan proceeds and partly by an international donor and/or the SSF.
  • Development of the Asset Management Plan. The estimated cost of the assignment is up to EUR 450,000, proposed to be financed by an international donor and/or the SSF.

Company Contact Information

Tamar Machavariani
Tbilisi Transport Company 2, Station Square, Tbilisi 0112, Georgia

PSD last updated

23 Dec 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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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