ADB's Work in Georgia   Download Fact Sheet

Georgia is an important node for regional trade flows and has a unique geographic advantage for market integration with the rest of the world, including the European Union.

The Government of Georgia has taken steps to deregulate the economy, streamline bureaucracy, and combat corruption. Committed to an inclusive growth process, it has considerably increased social sector spending and made public expenditure transparent.

To date, ADB has committed 76 public sector loans, grants, and technical assistance totaling $3.8 billion to Georgia. Cumulative loan disbursements to Georgia amount to $2.6 billion. These were financed by regular and concessional ordinary capital resources, and other special funds. ADB’s ongoing sovereign portfolio in Georgia includes 18 loans and 1 grant worth $1.94 billion.

ADB began its partnership with Georgia in 2007 and is one of the country’s largest multilateral development partners. ADB has committed $3.92 billion loans and $28.9 million technical assistance to Georgia. ADB’s active lending portfolio comprises 15 projects financed by 16 loans and 1 grant totalling $2.03 billion. Cumulative loan disbursements to Georgia amounting to $2 billion, financed by regular and concessional ordinary capital resources.

ADB also approved a €101 million ($129 million) livable cities loan to build and upgrade new and existing infrastructure and enhance services in urban centers as part of the government’s efforts to develop livable cities. The electricity transmission sector transformation into an efficient and financially sustainable operation is aided with a $100 million policy-based loan. ADB supported Georgia’s water supply and sanitation sector with a $150 million loan and another $70 million was provided to increase the competitiveness of the economy by improving access to quality vocational education and training.

ADB has committed more than $1.3 billion for Georgia’s strategic transport corridor and secondary road projects and helps facilitate the development of a regional cooperation approach for the South Caucasus to leverage the region’s investments, trade, and tourism. ADB also invested $40 million in green bonds for railway and water utility and provided a $10 million loan for affordable and sustainable residential housing developments. A $100 million loan was provided to a commercial bank to support female-owned micro, small, and medium-sized enterprises, with additional $100 million contribution from the Japan International Cooperation Agency.

Old Town (Altstadt) is the historic city center of Tbilisi – Georgia's capital – boasting of old architecture, cobblestoned streets, and great finds. Photo: ADB

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Georgia as of 31 December 2021 was $311.99 million representing 2.22% of ADB’s total private sector portfolio.

Operational challenges. Inclusive growth and parity between rural and urban areas remain key development goals for Georgia, particularly in view of the severe economic impacts of the COVID-19 pandemic. This calls for inclusive allocation of resources to the country’s regions. Raising local revenue and ensuring more effective and responsible management of subnational finances can be beneficial for macroeconomic stability, improved service delivery, and increased social welfare in rural areas. On a broader scale, pandemic-related assistance will support Georgia’s inclusive growth and lay a foundation for post-pandemic economic diversification.

COVID-19 Response

The coronavirus disease (COVID-19) pandemic has had a significant impact on the Georgian economy, resulting in increased poverty and unemployment. Though the labor market is still slow to recover, a solid economic recovery is underway, helped by fiscal stimulus, growth in exports, and gains in tourism and wholesale and retail trade.

To ease the country of the challenges brought on by the pandemic, ADB fast tracked a $300 million countercyclical support and supported vaccine procurement and logistics and capacity-strengthening activities through a $14.4 million loan as part of the Asia Pacific Vaccine Access Facility, Georgia’s National Vaccine Deployment Plan, and other grant support.

Knowledge Work

ADB knowledge work in Georgia focuses on supporting green corridors and encouraging trade and regional cooperation. It also covers agriculture and climate resilient irrigation, water supply and sanitation, and energy. In the education sector, the focus is on increasing quality, access, and affordability of gender-inclusive education services for improved teaching and learning outcomes.

The knowledge agenda supports greater private sector participation and competitiveness through innovative approaches and use of green technologies. Knowledge work on investible cities and subnational fiscal frameworks focuses on decentralization with greater efficiency of public resource allocation and enhanced quality of public services. ADB’s policy-led knowledge engagement is centered around public sector reforms focusing on governance, institutional capacity building and public–private partnerships for ensuring fiscal prudence and strong public sector management.

  ADB Projects in Georgia Project data sheets for loans, grants, TAs

Future Directions

ADB will continue to help Georgia respond to the pandemic and build a foundation for more resilient and inclusive post-crisis growth. A greater focus on policies and institutional strengthening will help make public services more efficient and set the stage for private sector participation. ADB will help unlock Georgia’s potential for agribusiness, tourism, and regional trade, and address unemployment and growing skills gaps. The bank will seek to finance climate-resilient solutions in water resource management, irrigation, urban transport, and infrastructure to boost green energy exports to neighboring countries. ADB will also support the development of capital markets, improvements in state-owned enterprises, and active involvement of the private sector—including small and medium-sized enterprises. ADB investments will incorporate gender equality, green development, and innovation as key elements of business sector development.