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More Than 150,000 People in Georgia Will Directly Benefit From Road Improvement

Published: March 23, 2012 | 3:04 pm
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The Second Secondary and Local Roads Project will help improve local connectivity and reduce travel time.

The COMMERCIAL TIMES

TBILlSI, March 22, 2012. The Government of Georgia and the World Bank signed the Financing Agreement for US$ 70 million to Georgia for the Second Secondary and Local Roads Project (SLRP II). The agreement was signed by Dimitri Gvindadze, the Minister of Finance of Georgia and Asad Alam, World Bank Regional Director for the South Caucasus. The Operation was approved by the World Bank Board of Executive Directors on March 15, 2012. The project builds on the ongoing Secondary and Local Roads Project (SLRP) and complements other projects funded by the Bank in the road sector.

The Project has two components: i) rehabilitation and improvement of selected secondary and local roads; and ii) institutional strengthening.

Under the first component, various secondary and local roads throughout the country will be rehabilitated. The Government has identified 19 road sections with a total length of about 225 km for the first two years of project implementation. The first year program will include at least six road sections, with a total length of about 61 km. The second component will help provide advisory services for strengthening the capacity of the Roads Department in identifying, developing, and implementing road safety measures on secondary and local roads, and carrying out project impact evaluation.

“The secondary and local roads infrastructure which we are developing in the context of the agreement which is being signed with the World Bank today is very important for a variety of reasons. First, it will provide for employment of Georgian citizens in the course of the construction process, thus contributing to the jobs creation. The roads infrastructure will foster in-country road interconnectivity, which is important for development of Georgia’s regions, for promotion of value added chains in agriculture. This will reduce transportation time, bring environmental and urban planning benefits, foster development of tourism. The impact of the project is thus not limited to the development of the roads only – this project is part of the comprehensive effort of the Government of Georgia to lay down conditions for the long-term sustained economic growth in Georgia, for the facilitation of employment, and, very importantly, for development of Georgia’s regions. World Bank has been at the forefront of the ongoing effort to improve road, urban and municipal infrastructure in the country. The current World Bank portfolio in these sectors is significant by its size, and it also fits really well into the developmental priorities that we in Georgia pursue,” said Dimitri Gvindadze at the signing ceremony.

“This project will improve local road connections and reduce transport costs for citizens using the rehabilitated roads. This will help spur economic growth and rural development. It will also help create much needed temporary employment in rural areas. The direct beneficiaries of this project are the residents of the villages along the road sections to be rehabilitated and improved. The number of residents is estimated to be 150,300. Additional beneficiaries would be all road users from different parts of the country. Temporary employment to be created is calculated at 12,000 person months. The ongoing Secondary and Local Roads Project with total financing of $90 million has rehabilitated about 650 km of secondary and local roads throughout Georgia. Total 40 road sections have been rehabilitated and travel time on those roads have been reduced by 20 %. The direct project beneficiaries are the residents of the villages along the road sections to be rehabilitated and improved. The number of residents is estimated to be 150,300. Additional beneficiaries would be all road users from different parts of the country. Temporary employment to be created is calculated at 12,000 person months,” said Asad Alam.

Since 1992, World Bank commitments to Georgia total approximately US$ 1.62 billion for 52 projects.

For more information on the World Bank activities in Georgia, please visit: www.worldbank.org.ge

 

 

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