The Government of Georgia has requested the World Bank’s support in addressing Local Self-government (LSG) reforms and investments needs as well as regional development is selected regions. The Regional and Municipal Infrastructure Development Project II will support the decentralization agenda in line with overall Government reform strategy through financing investment priorities identified under the regional development strategies. The Project will finance infrastructure investments for the rehabilitation and expansion of priority municipal services, and provision of public infrastructure in support of Public-Private Investment (PPI), i.e., to attract private sector investments throughout Georgia. The PPI aims to foster private investment through provision of public infrastructure. The priority sectors for potential investment are tourism and agri business.
In support of regional development, the Regional Development Project III aims to improve infrastructure services and institutional capacity triggering increased contribution of tourism in the local economy of the Samtskhe-Javakheti and Mtskheta-Mtianeti regions. The project will support urban regeneration and circuit development activities, including restoration of building facades and roofs, public spaces, museums, roads and water, and enhancement of cultural and natural heritage sites, including access and presentation.
To encourage private sector investments in the two regions, this project includes a similar PPI activities to support a selected number of private sector entities in project areas that demonstrate interest and capacity to invest in tourism or agribusiness through investing in complementary public infrastructure that is necessary to ensure the viability of their investments (e.g., public facilities within vicinity of the investments, road/sidewalk, water/sanitation, communications, etc.). The investment proposals would be subject to screening by a MDF selection committee and there will be appropriate conditions tied to that.