Page 27 - bne IntelliNews George country report Sept 2017

World Bank lends Georgia €47.2mn to improve public administration
represents the second and last tranche of a €500mn framework loan aimed at rehabilitating some 253 kilometres of primary and secondary roads between 2017 and 2020. The project will improve road safety and connectivity in Georgia and the South Caucasus, given that Georgia's East West Highway is part of the Trans-European Transport Network.
Furthermore, the EIB will increase its funding to rehabilitate one of the largest hydropower plants in the world, the Vardnili-Enguri cascade, by €3.5mn to a total of €23.5mn, the lender said.
After the signing ceremony, Kumsishvili said: “The financial and technical support that we receive from Europe on a daily basis is very important for us. All these steps should ultimately be directed towards rapid completion of infrastructure development in our country that will strengthen Georgia’s transit potential and simplify transportation inside the country.”
The EIB has worked with Georgia for over a decade, during which time it has financed projects worth €1.5bn, many of them in infrastructure and urban development.
The World Bank and Georgian government signed an agreement for a €47.2mn loan on May 3 to support Georgia's economic reform programme, agenda.ge reported on May 4.
The agreement came after the bank's board of directors approved a second Inclusive Growth Programmatic Development Policy Operation package for Georgia. The package is to assist Georgia in improving its budgeting and fiscal oversight of public institutions, as well as the quality of social services for citizens.
The World Bank and its subsidiary institutions like the International Bank for Reconstruction and Development have lent Georgia over $1.5bn to date.
The public administration in Tbilisi is currently undergoing an overhaul to streamline operations and reduce inefficiencies. Georgia Today has reported that the overhaul resulted in the dismissal of 2,300 public employees between January and May. The majority were employees of the defence ministry.
The local administrations in several Georgian cities like Kutaisi, Batumi and Zugdidi, are also working on reforming their public administration.
6.2 Debt
Georgia - Gross external debt 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Gross external debt ($ mn)
14,587.74 15,084.13 14,673.48 15,154.24 15,348.51 15,457.81 15,642.87
2010 2011 2012 2013 2014 2015 2016
Gross external debt (% GDP) source: CEIC, World Bank
36.8 32.46 32.53 33.92 35.38 41.28 41.6
The gross external debt of Georgia increased to $15,642.87mn in the first quarter of 2017 from $15,496.18mn in the fourth quarter of 2016. External
27 GEORGIA Country Report September 2017 www.intellinews.com