The World Bank Report No: ISR11256 Implementation Status & Results Georgia Regional Development Project (P126033) Public Disclosure Copy Operation Name: Regional Development Project (P126033) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 17-Dec-2013 Country: Georgia Approval FY: 2012 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 20-Mar-2012 Original Closing Date 31-Dec-2016 Planned Mid Term Review Date 14-Oct-2013 Last Archived ISR Date 30-Mar-2013 Effectiveness Date 31-May-2012 Revised Closing Date 31-Dec-2016 Actual Mid Term Review Date 10-Mar-2014 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve infrastructure services and institutional capacity to support the development of tourism-based economy and cultural heritage circuits in the Kakheti region Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Infrastructure Investment 56.90 Institutional Development 3.10 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The Project is on track to achieve its development objective. Considerable amount of works have been completed in Telavi, Kvareli and in support of private sector development. Significant results have been achieved to date. Urban regeneration activities have been completed in Telavi and Kvareli, including (i) rehabilitation of municipal infrastructure and utilities in historic city cores; (ii) conservation and upgrading of public spaces, including three public parks in Telavi and one park in Kvareli; and (iii) restoration of 210 building facades and roofs (houses and public buildings) with vernacular architecture in Telavi and Kvareli including interior rehabilitation from damages during the August 2012 storm. Conservation of building facades in the mountainous village of Dartlo has started but is on pause due to winter. Conservation works are completed in Kvareli Castle. At Batonis Tsikhe in Telavi, works have stopped due to the need for design improvement recommended by the Cultural Heritage and Preservation Agency (CHPA), including the proposed Page 1 of 5 The World Bank Report No: ISR11256 museum and conservation plan of the old castle. Construction of tourism facilities at ten cultural heritage sites (Ujarma, Shuamta, Ikalto, Alaverdi, Bodbe, Gurjaani, Akhtala, Ninotsminda, Khirsa, and David Gareji) is underway including: (i) urban landscaping and public parking; (ii) construction of info kiosks, cafes, and public toilets; and (iii) improvement of access roads. The Project has so far leverage about US$8 million of private sector investment directly generated under this subcomponent. Several other private investments have also opened in Kakheti as an indirect result of the Project intervention, whose monetary value is still under surveying and evaluation. The institutional development activities are Public Disclosure Copy also on track. The overall implementation is assessed as moderately satisfactory as the Project Implementation Entity (MDF) needs to further improve its quality of supervision, contract management and coordination with various agencies involved. The Project Implementation Entity (MDF) has reached agreement with all contractors on specific plans to rectify existing works. Compliance with the design and quality of certain works, especially at cultural heritage sites, needs improvement. Environmental Assessment is assessed as moderately unsatisfactory. Construction waste from rehabilitation works in Telavi and beyond were disposed in a non-acceptable way, between the main road and the river, and remained for an extended period of time. Monitoring and enforcement of environmental management plans (EMP) need considerable improvement. Involuntary Resettlement is assessed as moderately unsatisfactory because progress reporting on Resettlement Action Plans (RAPs) is not available. Commitments are at 90 percent, with disbursement at $45.75 million (out of the $60 million), equal to 76 percent of the loan amount. Locations Country First Administrative Division Location Planned Actual Georgia Kakheti Kakheti ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase weighted average number of hours Number Value 8.00 12.00 24.00 per day of piped water services in project areas Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments Implementation is underway Reduce weighted average vehicle operating Percentage Value 100.00 92.00 75.00 cost due to improved urban roads Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments Implementation is underway Increase volume of private sector investments Amount(USD) Value 0.00 8.00 50.00 Public Disclosure Copy Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments Amount is in USD Million This indicator captures direct PS investment generated under component 1.2. Monitoring indirect PS investments generated as a result of complete urban generation is underway. Page 2 of 5 The World Bank Report No: ISR11256 Increase number of hotel beds in circuit route Number Value 1610.00 2511.00 1932.00 areas Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments Public Disclosure Copy Increase points of sales (tickets, souvenirs Number Value 248.00 282.00 323.00 shops, restaurants, hotels, guesthouse and Date 30-May-2012 31-Oct-2013 31-Dec-2016 family houses) in renovated culture heritage Comments sites and cities Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Piped household water connections that are Number Value 0.00 4258.00 500.00 benefiting from rehabilitation works undertaken Date 30-May-2012 31-Oct-2013 31-Dec-2016 by the project Comments Implementation is underway Number of people in urban areas provided with Number Value 0.00 40400.00 50000.00 access to all-season roads within a 500 meter Date 30-May-2012 31-Oct-2013 31-Dec-2016 range under the project Comments Implementation is underway Number of private investment proposals Number Value 0.00 8.00 10.00 approved Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments More PS investments are under MDF review Number of redeveloped culture heritage sites Number Value 0.00 3.00 11.00 along the the tourist circuit Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments 3 sites completed. Implementation is underway in others. Production/Distribution of new maps based on Number Value 0.00 0.00 10000.00 geotourism database Date 30-May-2012 31-Oct-2013 31-Dec-2016 Public Disclosure Copy Comments GNTA produced and 4000 maps paid under its own budget. More maps will be produced and printed out under the project. Number ofstablished and operating of Number Value 0.00 0.00 3.00 destinataion management offices Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments EOI is underway Page 3 of 5 The World Bank Report No: ISR11256 Number of buildings restored in Telavi, Kvareli Number Value 0.00 210.00 150.00 and Dartlo Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments Public Disclosure Copy Direct project beneficiaries Number Value 0.00 54500.00 30800.00 Date 30-May-2012 31-Oct-2013 31-Dec-2016 Comments Implementation is underway Female beneficiaries Percentage Value 0.00 28504.00 16140.00 Sub Type Supplemental Data on Financial Performance (as of 16-Aug-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P126033 IBRD-81480 Effective 20-Mar-2012 28-Mar-2012 31-May-2012 31-Dec-2016 31-Dec-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P126033 IBRD-81480 Effective USD 60.00 60.00 0.00 45.75 14.25 76.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR11256 Key Decisions Regarding Implementation An action plan has been agreed with MDF to hire a consulting firm in coordination with the Cultural Heritage and Preservation Agency (CHPA) to fine-tune some design issues at cultural heritage sites and Dartlo village. The MDF has also reached agreement with all contractors on specific plans to rectify existing works that require improvement. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5