Infrastructure Development

Infrastructure Development

Goals of Infrastructure Development • Ensuring sustainable urban/rural development

• Increasing social and regional integration

• Promoting countries’ international competitiveness through transit facilitation

• Reducing poverty and increasing socio-economic opportunities for regions and individuals;

• Promoting private sector development, increased investments and tourism;

• Ensuring sustainability of investments in regions;

Policy Directions • Adopt legal-regulatory framework for sustainable

urban development;

• Implement institutional reforms to ensure:– Effective management and administration;– Transparency; – Internal and external accountability, – Responsiveness to community needs;– Cost-effectiveness.

• Adopt new policies (urban and regional development, housing, road administration, transit facilitation, water-sever services, etc)

Policy Directions

• Promote public sector role and participation schemes;

• Provide emphasis on regional development;

• Support decentralization and local self-government development and determine roles and responsibilities for state and local governments.

Main policy and Institutional Reform

• Eliminate procedural obstacles to transit: – reduce costs of actual transportation though improved

infrastructure and transparent /fairly enforced regulations.

• Restructure water/sewage enterprises:– develop a new institutional framework for regulations and

financing arrangements at local government level, – attract private interest.

• Strengthen roads administration and financing through:– introduction of greater transparency in tender procedures and

decision-making by introducing public-private board;– Improved accounting and financial reporting system;– Improved revenue collection.

Main policy and Institutional Reform (continued)• Restructure railways and ports to achieve greater

efficiency;

• Create conditions for public/private partnerships for housing development and mortgage financing schemes;

• Universal communications package (telephone, post, internet access)

• Develop an urban development strategy, introduce a new building code, modernize system of building permits, reform public oversight in building and construction, and adopt administrative procedures and penalties.

How Are Key Priorities Selected?

• Investing in infrastructure where it will play a key role and have immediate impact on:

– promoting investments and economic activity,– facilitating social and regional (re)integration;– Increasing international competitiveness.

Urgent priorities to support strategic objectives

– Local and secondary roads – Mskheta-Kazbegi-Larsi – Tbilisi-Tsalka-Ninotsminda-Akhaltikhe-

Kartsakhi

Why Do We Look for Donor Support? ROADS:• Georgia has about 20,500

international, secondary and local roads and over 3500 bridges.

• According to WB estimate 500-600 million USD is needed for road rehabilitation in Georgia and 90-100 million USD for maintenance annually

• For 2004 Georgia has secured JUST 7% of the overall need……

Urgent Priorities to Support Strategic Objectives

Improve provision and economic efficiency of

water and sever services for households

and enterprises in key urban areas

– Tbilisi urban area – Kutaisi – Rustavi– Poti

Why Do We Look for Donor Support?

Water/Sever infrastructure• No major rehabilitation works were carried out since

1987 in water and wastewater system;• 69% of pipes operate without decontamination

installations;• Water treatment 23% without raw water treatment

facilities;• Quality control labs are not operational;• Breakdowns lead to 25-30% of drinking water supply;• Need for improved payment collection;• Institutional reform and legal framework to engage

private operators.

Ajara Reintegration Through Infrastructure

• Sarpi-Batumi-Poti (main road) to support transit, investments, and tourism;

• Rehabilitate water/sewer systems of Batumi and Kobuleti in order to improve– life of population (poverty and health aspects); – tourism capacity; and – sustainable development of costal area.