Report No: PAD4959
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED LOAN
IN THE AMOUNT OF EUR 69.3 MILLION
(US$75.0 MILLION EQUIVALENT)
TO
GEORGIA
FOR THE
GEORGIA RESILIENT AGRICULTURE, IRRIGATION, AND LAND PROJECT
March 6, 2023
Water Global Practice
Europe and Central Asia Region
This document is being made publicly available prior to Board consideration. This does not imply a
presumed outcome. This document may be updated following Board consideration and the updated
document will be made publicly available in accordance with the Bank’s policy on Access to Information.
CURRENCY EQUIVALENTS
(Exchange Rate Effective January 31, 2023)
Currency Unit = Euro (EUR)
EUR 0.92 = US$1
US$1.08= EUR 1
FISCAL YEAR
January 1 – December 31
Regional Vice President: Anna M. Bjerde
Country Director: Sebastian-A Molineus
Regional Director: Sameh Naguib Wahba
Practice Manager: Winston Yu
Task Team Leader(s): Ranu Sinha, Jan Joost Nijhoff, Nadege Orlova
ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank
AFD Agence Française de Développement
B/C Benefit/Cost
CERC Contingency Emergency Response Component
CPF Country Partnership Framework
CSA Climate Smart Agriculture
DA Designated Account
DGA Digital Governance Agency
DPO Development Policy Operation
ECA Europe and Central Asia
EFA Economic and Financial Analysis
EIRR Economic Internal Rate of Return
ENPV Economic Net Present Value
ESF Environment and Social Framework
ESMF Environmental and Social Management Framework
ESMP Environment and Social Management Plan
ESCP Environment and Social Commitment Plan
ESS Environmental and Social Standards
ET Evapotranspiration
AET/ETa Actual Evapotranspiration
PET/ETp Potential Evapotranspiration
EU European Union
EX-ACT Ex-Ante Carbon-balance Tool
FAO Food and Agriculture Organization
FIG Farmer Initiative Group
FIRR Financial Internal Rate of Return
FLL Field-Level Leadership
FM Financial Management
FNPV Financial Net Present Value
FFS Farmer Field Schools
GA Georgian Amelioration Limited Liability Company
GCRF Global Crisis Response Framework
GDP Gross Domestic Product
GEL Georgian Lari
GeoStat National Statistics Office of Georgia
GHG Greenhouse Gas
GILMDP Georgia Irrigation and Land Market Development Project
GNERC Georgian National Energy and Water Supply Regulatory Commission
GoG Government of Georgia
GRAIL Georgia Resilient Agriculture Irrigation and Land Project
GRID Green, Resilient, and Inclusive Development
GRM Grievance Redress Mechanism
GWS Green Water Scarcity
HAIC Hydrological and Agricultural Informatics Center
I&D Irrigation and Drainage
IA Implementing Agency
IDCDP Irrigation & Drainage Community Development Project
IDPs Internally Displaced People
IFAD International Fund for Agricultural Development
IFC International Finance Corporation
IFR Interim Financial Report
IGIF Integrated Geospatial Information Framework
ICCs Information Consultation Centers
IPRS Immovable Property Registration System
IRR Internal Rate of Return
IT Information Technology
LMA National Agency for Sustainable Land Management and Land Use Monitoring
LMP Labor Management Procedures
LPIS Land Parcel Identification System
LIS Land Information System
M&E Monitoring and Evaluation
MEPA Ministry of Environmental Protection and Agriculture
MIS Monitoring Information System
MoF Ministry of Finance
MoJ Ministry of Justice
NAPR National Agency of Public Registry
NASP National Agency of State Property
NDC Nationally Determined Contribution
NEA National Environment Agency
NGO Non-Governmental Organization
NLC National Land Consolidation Strategy
NPV Net Present Value
NSDI National Spatial Data Infrastructure
O&M Operations and Maintenance
OECD Organization for Economic Co-operation and Development
OMM Operations, Maintenance, and Management
PAD Project Appraisal Document
PDO Project Development Objective
PIU Project Implementation Unit
POM Project Operations Manual
PPP Purchasing Power Parity
PPSD Project Procurement Strategy for Development
RDA Agricultural Rural Development Agency
RET Reference Evapotranspiration
RPF Resettlement Policy Framework
SCADA Supervisory Control and Data Acquisition
SEP Stakeholder Engagement Plan
SEIA Social and Economic Impact Analysis
SLM Sustainable Land Management Strategy
SLR Systematic Land Registration
SOE Statement of Expenditures
STEP Systematic Tracking of Exchanges in Procurement
TA Technical Assistance
TORs Terms of References
TSA Treasury Single Account
UN United Nations
US United States
WBG World Bank Group
WUO Water User Organization
The World Bank
Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
TABLE OF CONTENTS
DATASHEET ........................................................................................................................... 1
I. STRATEGIC CONTEXT ...................................................................................................... 7
A. Country Context................................................................................................................................ 7
B. Sectoral and Institutional Context .................................................................................................... 8
C. Relevance to Higher Level Objectives............................................................................................. 13
II. PROJECT DESCRIPTION.................................................................................................. 15
A. Project Development Objective ..................................................................................................... 15
B. Project Components ....................................................................................................................... 16
C. Project Beneficiaries ....................................................................................................................... 27
D. Results Chain .................................................................................................................................. 29
E. Rationale for Bank Involvement and Role of Partners ................................................................... 29
F. Lessons Learned and Reflected in the Project Design .................................................................... 31
III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 33
A. Institutional and Implementation Arrangements .......................................................................... 33
B. Results Monitoring and Evaluation Arrangements......................................................................... 34
C. Sustainability................................................................................................................................... 34
IV. PROJECT APPRAISAL SUMMARY ................................................................................... 35
A. Technical, Economic and Financial Analysis (if applicable) ............................................................ 36
B. Fiduciary.......................................................................................................................................... 40
C. Legal Operational Policies ............................................................................................................... 42
D. Environmental and Social ............................................................................................................... 42
E. Climate Change, Disaster Screening and Climate Co-Benefits ....................................................... 44
F. Gender ............................................................................................................................................ 47
V. GRIEVANCE REDRESS SERVICES ..................................................................................... 50
VI. KEY RISKS ..................................................................................................................... 50
VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 52
ANNEX 1: Implementation Arrangements and Support Plan .......................................... 63
ANNEX 2: Map .............................................................................................................. 67
The World Bank
Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
DATASHEET
BASIC INFORMATION
BASIC_INFO_TABLE
Country(ies) Project Name
Georgia Georgia Resilient Agriculture, Irrigation, and Land Project
Project ID Financing Instrument Environmental and Social Risk Classification
Investment Project
P175629 Substantial
Financing
Financing & Implementation Modalities
[ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC)
[ ] Series of Projects (SOP) [ ] Fragile State(s)
[ ] Performance-Based Conditions (PBCs) [ ] Small State(s)
[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country
[ ] Project-Based Guarantee [ ] Conflict
[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster
[ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Enhanced Implementation Support (HEIS)
Expected Approval Date Expected Closing Date
24-Mar-2023 30-Sep-2029
Bank/IFC Collaboration
No
Proposed Development Objective(s)
The Project Development Objective (PDO) is to: (a) improve irrigation, and drainage services, and agricultural
production in project areas; and (b) strengthen national irrigation and land management institutional capacity for
climate resilient planning.
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Components
Component Name Cost (US$, millions)
Resilient Irrigated Agriculture 119.81
Improved Land Management Capacity 24.00
Project Management 6.00
Contingent Emergency Response Component 0.00
Organizations
Borrower: Georgia
Implementing Agency: Ministry of Environmental Protection and Agriculture
National Agency of Public Registry
PROJECT FINANCING DATA (US$, Millions)
SUMMARY -NewFin1
Total Project Cost 150.00
Total Financing 150.00
of which IBRD/IDA 75.00
Financing Gap 0.00
DETAILS -NewFinEnh1
World Bank Group Financing
International Bank for Reconstruction and Development (IBRD) 75.00
Non-World Bank Group Financing
Counterpart Funding 75.00
Borrower/Recipient 75.00
Expected Disbursements (in US$, Millions)
WB Fiscal Year 2023 2024 2025 2026 2027 2028 2029 2030
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
Annual 0.19 6.43 11.84 17.42 18.10 13.91 6.23 0.88
Cumulative 0.19 6.62 18.47 35.88 53.98 67.89 74.12 75.00
INSTITUTIONAL DATA
Practice Area (Lead) Contributing Practice Areas
Water Agriculture and Food, Urban, Resilience and Land
Climate Change and Disaster Screening
This operation has been screened for short and long-term climate change and disaster risks
SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)
Risk Category Rating
1. Political and Governance ⚫ Moderate
2. Macroeconomic ⚫ Low
3. Sector Strategies and Policies ⚫ Moderate
4. Technical Design of Project or Program ⚫ Moderate
5. Institutional Capacity for Implementation and Sustainability ⚫ Moderate
6. Fiduciary ⚫ Moderate
7. Environment and Social ⚫ Substantial
8. Stakeholders ⚫ Substantial
9. Other ⚫ Moderate
10. Overall ⚫ Substantial
COMPLIANCE
Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes [✓] No
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Does the project require any waivers of Bank policies?
[ ] Yes [✓] No
Environmental and Social Standards Relevance Given its Context at the Time of Appraisal
E & S Standards Relevance
Assessment and Management of Environmental and Social Risks and Impacts Relevant
Stakeholder Engagement and Information Disclosure Relevant
Labor and Working Conditions Relevant
Resource Efficiency and Pollution Prevention and Management Relevant
Community Health and Safety Relevant
Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant
Biodiversity Conservation and Sustainable Management of Living Natural Relevant
Resources
Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant
Local Communities
Cultural Heritage Relevant
Financial Intermediaries Not Currently Relevant
NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential
environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review
Summary (ESRS).
Legal Covenants
Sections and Description
Loan Agreement, Schedule 2, Section B.1. Unless agreed otherwise between the Bank and the Borrower, the
Borrower shall, no later than 30 days after the Effective Date: (a) through MEPA, designate a project
implementation unit within MEPA (“MEPA PIU”) and vest the responsibility of implementation of Components 1,
2.1, and 3.1 of the Project with such MEPA PIU; and (b) cause the Project Implementing Entity to designate a
project implementation unit within the Project Implementing Entity (“NAPR PIU”) and vest the responsibility of
implementation of Components 2.2 and 3.2 of the Project with such NAPR PIU.
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Sections and Description
Loan Agreement, Schedule 2, Section B.2. The Borrower shall: (a) ensure through MEPA, that the MEPA PIU is
operated and maintained at all times throughout Project implementation with structure, functions, responsibilities,
resources sufficient to operate, and with sufficient staff with experience, qualifications, and responsibilities
necessary to carry out its functions under the Project; all in accordance with the MEPA POM and acceptable to the
Bank; and (b) cause the Project Implementing Entity to ensure that the NAPR PIU is operated and maintained at all
times throughout Project implementation with structure, functions, responsibilities, resources sufficient to operate,
and with sufficient staff with experience, qualifications, and responsibilities necessary to carry out its functions
under the Project; all in accordance with the NAPR POM and acceptable to the Bank.
Sections and Description
Loan Agreement, Schedule 2, Section E.1.Without limitation to the provisions of Section 5.03 of the General
Conditions, the Borrower through MOF, shall provide resources in the amounts agreed upon as Counterpart Funds
for the financing of the Project, which shall be made available in accordance with the Borrower’s internal
procedures related to the budget process and the Project’s financing plan and schedule set forth in the Annual
Work Plans and Budgets.
Sections and Description
Loan Agreement, Schedule 2, Section E.2. Unless agreed otherwise between the Bank and the Borrower, through
MOF shall, by not later than fifteen (15) days after the approval of the state budget in each Fiscal Year commencing
in 2023, and throughout the Project implementation period, submit to the Bank the relevant approved expenditure
documents to reflect that the amount of Counterpart Funds required for the carrying out of activities under the
Project in the subsequent Fiscal Year, have been secured within the Borrower’s budgetary system, in a manner
satisfactory to the Bank.
Conditions
Type Financing source Description
Effectiveness IBRD/IDA The Borrower through MEPA has adopted the MEPA POM; and (ii)
the Project Implementing Entity has adopted the NAPR POM.
Type Financing source Description
Effectiveness IBRD/IDA The Subsidiary Agreement has been executed between MOF
(representing the Borrower), MOJ, the Project Implementing Entity,
and DGA.
Type Financing source Description
Disbursement IBRD/IDA Notwithstanding the provisions of Part A above, no withdrawal shall
be made for Emergency Expenditures under Category (5), unless
and until all of the following conditions have been met in respect of
said expenditures:
(i) (A) the Borrower has determined that an Eligible Crisis or
Emergency has occurred, and has furnished to the Bank a request
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to withdraw Loan amounts under Category (5); and (B) the Bank has
agreed with such determination, accepted said request and notified
the Borrower thereof; and
(ii) the Borrower has adopted the CERC Manual and Emergency
Action Plan, in form and substance acceptable to the Bank.
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I. STRATEGIC CONTEXT
A. Country Context
1. Georgia is an upper-middle-income country with an annual gross domestic product (GDP) per capita of
US$5,023 in 2021 and a population of about 3.7 million.1 The country’s economy grew at an average annual rate
of nearly 5 percent between 2005 and 2021 despite numerous upheavals, including: the global financial crisis of
2007–08, conflict with the Russian Federation in 2008, the drop in commodity prices since 2014, the 2020 COVID-
19 pandemic, and the Russian invasion of Ukraine in 2022. In 2021, the economy rebounded strongly (10.5 percent
growth), driven by the recovery of consumption and exports. Like in the other economies in the South Caucasus
and Central Asia, negative impacts of the crisis were somewhat dampened by the large inflows of money transfers
and people in the aftermath of the Russian invasion of Ukraine and the subsequent sanctions on Russia. In 2022,
economic growth averaged 10.1 percent.
2. Georgia implemented important economic reforms that facilitated a decrease in the national poverty
rate from 38.8 percent in 2007 to 17.5 percent in 2021. The reforms led to improved income and living conditions
for the country’s bottom 40 percent. However, more than half of the population remains in poverty in relation to
the upper middle-income line (US$6.86 per person per day in 2017 Purchasing Power Parity). Although inequality
declined after 2010, with a Gini Index of 33.9 in 2021, Georgia has one of the highest levels of income inequality
in the Europe and Central Asia (ECA) region. The incidence of poverty and inequality is higher in rural areas than
in urban areas. However, poverty dropped by over six percent in rural areas, and by two percent in urban Georgia
in 2021.2
3. As a result of the Russian invasion of Ukraine, global food and fertilizer prices have increased with
negative impacts on agricultural exports. Domestic food price inflation in Georgia was 15.8 percent in August
2022. In 2021, agriculture contributed 27 percent of total exports, and agriculture export values increased during
the past decade. However, from January to November 2022, exports of fruits, nuts, and vegetables amounted to
approximately US$166 million, 17 percent below the same period in 2021. At the same time, domestic demand
for fruit and vegetables increased, thus providing market opportunities for local produce. Physical access to
Russian markets also has been constrained, affected by the financial sanctions. Despite these constraints, Russia
remains the largest export destination for fruits, nuts, and vegetables, followed by Italy and Germany.
Nonetheless, the Russian invasion of Ukraine highlights the importance of agriculture competitiveness to increase
export diversification.
4. Climate change is a critical risk to Georgia’s development and stability, particularly for the agriculture
sector. Current trends, such as increasing temperatures, eroding soils, intensifying droughts, floods, and an
increased occurrence of hail, are expected to reduce yields in major agricultural regions, including the eastern
regions, where irrigation is prevalent. The availability of water resources is highly seasonal in Georgia. Rivers fed
by glaciers and snow, such as the Khrami-Debed and Alazani, are projected to see reduced flows between 30
percent and 55 percent by the end of the 21st century, posing a threat to an important source of water supply.
Precipitation is also projected to decrease during the farming season (June–August) and increase in autumn,
1 National Statistics Office of Georgia (GeoStat) 2021.
2 National Statistics Office of Georgia (GeoStat) 2021.
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spring, and winter.3 Up to 30 consecutive dry days are expected by mid-century, increasing agricultural water
scarcity, and reducing crop productivity during the summer months. Droughts are expected to exert further
pressure on water availability. The annual risk exposure of the population to climate change is estimated to be
between 1.5 and 6.6 percent of Georgia’s national GDP (that is, between US$238 million and US$1.04 billion
annually).
B. Sectoral and Institutional Context
Sectoral Context
5. Constraints and opportunities in Georgia’s agriculture, water, and land sectors are interlinked. Land and
water are finite resources upon which agricultural production and productivity depend. While agriculture in
Georgia is primarily rainfed, irrigation and drainage (I&D) investments are vital to guard against hydrological
variability, and critical for high-value agriculture production. The eastern part of the country requires irrigation to
buffer climatic extremes, while the western part is confronted with drainage problems. In most parts of the
country, however, I&D infrastructure has deteriorated due to lack of maintenance and reduced financial resources
allocated to I&D management. Pressure on fragmented land resources is also growing, making improvements in
agricultural land management in Georgia critical for increasing productivity. Due to these interlinked challenges
in the agriculture, water, and land sectors, interventions to address them must be implemented in the three
sectors concurrently.
6. The agriculture sector accounted for 41 percent of all jobs in 2017 and continues to be important in the
poorer and more rural parts of the country, which are most vulnerable to climate risks. Approximately 41
percent of the total population live in rural areas, and the majority of those living in those areas rely partly on
agriculture for their livelihoods. Subsistence agriculture makes up 73 percent of employment in rural areas.4
Almost 80 percent of rural farmers operate less than 1 hectare (ha) of agricultural land. Most smallholdings
produce crops primarily for subsistence purposes and lack direct commercial potential. Productivity is low and
stagnant for most crop and livestock products, both in absolute terms and relative to comparator countries.
Present and future climate change pose further risks to production and livelihoods for these marginal groups. Past
droughts (a severe event occurred in 2000) caused wheat yields to drop by more than half.
7. According to the most recent agricultural census conducted in 2014, the share of commercial farms
producing higher-value crops for export remains low. Forward and backward links with input suppliers and the
agro-processing sector are weak, although their improvement would have a positive impact on agriculture
modernization, value chain development, and competitiveness. Despite the apparent limitations of smallholder
farms, a small but increasing number of medium-size and larger commercially oriented producers and agri-
business enterprises are driving the development of domestic market and export-oriented value chains (World
Bank 2022).5 From 2010 to 2020, the value of exports of agricultural food products, especially high-value
commodities such as wine, hazelnuts, fruits, and vegetables, more than doubled, while imports remained stable.
As new export markets are being explored, private investment in processing capacity has started to increase, and
3 https://climateknowledgeportal.worldbank.org/country/georgia/climate-data-projections.
4 Geostat. 2020. Based on International Labour Organization (ILO) methodology.
5 World Bank. 2022. Agriculture, Water, and Land Policies to Scale Up Sustainable Agri-Food Systems in Georgia: Synthesis
Report and Way Forward. Washington, DC: World Bank.
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various canned, dried, and frozen products are being exported to the EU, the United States (US), and other
markets.
8. Following independence in 1991, Georgia experienced a turbulent transition period resulting in the
deterioration of a large part of its irrigation infrastructure. This caused a sharp decline in the irrigated area.
However, from 2012 to 2020, the public irrigable area steadily increased to about 130,000 ha,6 of which about
6,500 ha is served by pumping systems.7 In addition, some of Georgia's dams are aging and in need of repair or
rehabilitation. Thus, in recent years, Government of Georgia (GoG) took steps to improve dam safety in the
country. The Ministry of Environment Protection and Agriculture (MEPA) established regulations and guidelines
for the design, construction, and maintenance of dams. GOG also produced an upcoming draft law “on the safety
of hydraulic structures and launched several projects to upgrade existing dams and build new, safer ones.
9. In 2020, there was a total of 123 irrigation schemes in use and the actual irrigated area was about
65,000 ha, according to the Georgian Amelioration Limited Liability Company (GA), the national state-owned
enterprise that builds, owns, maintains, and operates I&D infrastructure. The share of irrigable land to total
agricultural land is about 16.5 percent. Most of the high-value agricultural production in Georgia is in the central
and eastern regions and relies on irrigation.8 However, most of the infrastructure under GA management is
relatively old and has suffered decades of deferred maintenance. The underlying reasons are weak investment
planning processes, absence of investment prioritization, low irrigation service fees, and insufficient capacity
within GA. As a result, supply disruptions are common, and maintenance budgets and activities often focus on
dealing with emergencies.
10. Local GA service centers are at the forefront of operations, maintenance, and management (OMM), but
are underfunded and lack adequate asset management systems. They also lack both an inventory of
infrastructure, an understanding of the condition of the infrastructure, and adequate maintenance plans. Skills
and staffing at GA service centers are also weak. As a result, irrigation service delivery is not grounded in customer
needs, have little or no performance monitoring, and maintain limited communication with farmers. The irrigation
service also reflects a significant gender gap; only 3.7 percent of female landowners have irrigation service
contracts. Women landowners or co-owners represent 40 percent of landowners or co-owners, and their parcels
are on average 30 percent smaller than those owned by the men. This affects their ability to use land as collateral
for access to finance. These factors underscore the need for institutional service delivery reform.
11. During Soviet times, about 130,000 ha of the lowlands was equipped with drainage . Following
independence, however, drained, and cultivated land declined to 4,000–5,000 ha as maintenance services
collapsed. In 2012, the Government began funding selective rehabilitation activities. The rehabilitated drains now
provide primary drainage for 34,400 ha of agricultural land, 89 percent of which is in Western Georgia.9 GA
currently estimates the total design area of pre-existing drainage systems in the country at 114,000 ha, with
6 International School of Economics at TSU (ISET)-PI 2016), MEPA/GA
7 Between 2016 and 2020, approximately US$50 million was invested in infrastructure projects with World Bank funding (under the Land
Market and Irrigation Development Project).
8 The Kakheti region represents about 40 percent of the agricultural land and Kvemo Kartli 15.5 percent (Geostat 2014).
9 Agriculture in Western Georgia is dominated by two crops—maize (50 percent) and hazelnuts (33 percent)—with vegetables and citrus
also important. Following rehabilitation of drainage systems within Western Georgia, it is anticipated that both yields and areas of annual
and perennial crops will steadily increase over the next 10 years as drainage improves and abandoned land that is drained returns to
production. It is also anticipated that there will be a notable increase in the proportion of hazelnut, citrus, and other fruit crops as well as
vegetables, in response to an increasing demand from both domestic and export markets.
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34,400 ha partially rehabilitated and another 3,212 ha under rehabilitation. This leaves about 76,000 ha of service
area yet to be rehabilitated. To prevent further deterioration, there is an urgent need to (a) rapidly expand the
drained area through rehabilitation, and (b) improve the OMM of these drainage systems.
12. Land privatization reform conducted in the 1990s resulted in small, subsistence agriculture-oriented
landholdings in private property, which could not be used for development of commercial agriculture. The land
administration and management framework in Georgia today is still not conducive to commercial agriculture
development because the average agricultural plot size in private property is less than 1 ha, and only about 50
percent of agricultural plots are registered by the National Agency of Public Registry (NAPR). In addition to the
high-level of land fragmentation, there is a gender gap in land ownership. The plots owned by men are on average
twice the size of those owned by the women alone or jointly with men. The state land lease system also requires
improvement due to the absence of transparent land valuation methodologies as well as low taxation and tax
recovery rates. The low tax recovery rates do not encourage private and public owners to optimize their land use.
13. Women’s access to land and water resources, finance, modern technologies, markets, and information
is low compared to men. Consequently, women are more involved in low-income activities such as subsistence
agriculture.10 Their contribution to agricultural production, which remains invisible and under-recognized,
highlights a significant gender gap.11 On average, Georgian women receive 75 percent of men’s income (MEPA
2019). Although the Constitution guarantees equal rights for men and women (including in inheritance of
property), women in Georgia (particularly rural women) often are considered secondary heirs with fewer rights.
This has been attributed to their limited involvement in economic decision-making within the family due to
cultural reasons and a lack of awareness about their legal rights.
14. To address the productivity and climatic challenges faced by food producers in Georgia, there is a need
to take an integrated approach by focusing on a joint program supporting concurrent investments in the
agriculture, water, and land sectors. To provide adequate water for agriculture and to enhance the economic
potential of all types of farms, the priority need is to increase access to irrigation by more farmers. This can be
done by enhancing rehabilitation and modernization of main, secondary, and tertiary systems, which need to be
complemented with a detailed Operations & Maintenance (O&M) plan for ensuring the sustainability of the
infrastructure. Although irrigation investments are necessary, they are insufficient to accelerate Georgia’s
agricultural growth thus, measures are needed in the agricultural sector across agricultural value chains from farm
to market. The measures should encourage market links and product aggregation between smallholders to agri-
businesses, close knowledge gaps, increase access to finance, improve transport and agro-logistics, and foster
small and medium farmers to transition from subsistence to commercial agriculture. Simultaneously,
interventions in the land sector are critical, to develop agricultural land markets, encourage small landholders
10 MEPA. 2019. Agriculture and Rural Development Strategy of Georgia 2021–2027. p. 14 and 15, citing the United Nations Development
Programme ‘Gender Barriers in Georgia: Barriers and Recommendations’. Part II, p. 37 and FAO United Nations Food and Agriculture
Organization (FAO). Gender, Agriculture and Rural Development. Country Gender Assessment Series. Rome. 2018. Pp. 51–54.
11 A report by the UN (United Nations) Food and Agriculture Organization (FAO) on ‘Gender, Agriculture and Rural Development’ st ates
that 59 percent of self-employed women involved in small family farming remain unpaid. Even though women provide a significant share
of the labor, they do not have an equal share in the benefits produced by irrigated agriculture. And when women are involved in irrigated
production, they often lack access to markets because private means of transportation are not available to them. The overlooked
contribution of rural women to agriculture is that their work is largely associated with family responsibilities and remains unpaid, and
women employed in all sectors of agriculture receive less pay than men.
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with fragmented plots to consolidate their land, which incentivizes farmers to shift crop and production practices
towards more commercial agriculture resulting in increased income returns from irrigated agriculture.
Institutional and Policy Context
15. MEPA has started supporting the agriculture sector in a more holistic manner. The Agricultural Rural
Development Agency (RDA, an agency under MEPA) developed several initiatives that support farm
commercialization and agribusiness development, including the agriculture credit support program and the Plant
the Future program that promotes farm-level investment in perennial crop orchard development using irrigation.
However, existing RDA programs focus on perennial crops and do not support development of high-value annual
crop production in a holistic manner. In addition, the share of women beneficiaries in GoG agriculture grants
programs was only 7.6 per cent during the period 2014–2019 (UNWOMEN, 2021).
16. MEPA recently adopted the Agriculture and Rural Development Strategy of Georgia 2021 –2027. The
strategy aims to “diversify and develop economic opportunities in rural areas and improve social conditions and
quality of life.” The strategic goals are: (a) development of competitive agricultural and nonagricultural rural
sectors; (b) sustainable use of natural resources, ecosystem conservation, and climate change adaptation; and (c)
development of efficient systems in food/feed safety and veterinary and plant protection. Achieving sustainable
growth will require targeted investments in the agriculture sector, including investments in the management of
land and water.
17. The Irrigation Strategy for Georgia 2017–202512 aims to modernize irrigation infrastructure and boost
the area of irrigated land to 200,000 ha by 2025. The strategy sets out an ambitious agenda aimed at: increasing
irrigated areas, transforming GA into a professional and financially sustainable irrigation service provider,
introducing a new irrigation tariff system, and transforming local-level management entities into customers (for
example, Water User Organizations (WUOs)). The strategy’s objectives are to: (a) improve the reliability of the
water supply through rehabilitation of infrastructure, (b) ensure financial sustainability of service providers by
reducing their dependency on direct government subsidies, (c) ensure efficient allocation of water across
alternative uses, and (d) increase the competitiveness of Georgia’s agricultural sector by providing reliable I&D
services at reasonable prices.13
18. To support the reform agenda, the World Bank First Green and Resilient Georgia Development Policy
Operation includes two actions related to the irrigation tariff. They aim to expand the mandate of the Georgian
Energy and Water Supply Regulatory Commission (GNERC) to: (a) allow GNERC to set tariffs for irrigation and non-
irrigation water users that are clients of GA,14 and (b) adopt a new method for setting bulk water tariffs. These
actions will help (a) ensure efficient irrigation water consumption and other water uses; (b) facilitate investments
and expansion of the serviced area; and (c) ensure the financial sustainability of GA. GNERC has started to prepare
the financial and economic modeling that will support the design and structure of the new irrigation tariff
methodology and is expected to engage in consultations with stakeholders (including water users) during the first
quarter of 2023. The proposed project will support this effort and help the gradual rollout of the new tariff,
12 The preparation of the strategy was assisted by the World Bank-funded Georgia Irrigation and Land Market Development Project
(GILMDP) (P133828).
13 USAID (United States Agency for International Development). 2016. Regulatory Impact Assessment (RIA) of Draft Irrigation/Drainage
Tariff Methodology. USAID Governing for Growth (G4G) in Georgia.
14 By the end of 2022, MEPA had already submitted the first package of amendments proposed for the WUO law to Parliament to enable
GNERC to regulate the tariff for all water users serviced by GA.
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including consideration of opportunities to provide direct subsidies to farmers to allow them to pay the revised
tariff through e-vouchers. The revised tariff would aim to achieve increased coverage of O&M costs of GA for
irrigation service provision from 25 percent (baseline as of 2021) to 100 percent by 2025.15
19. MEPA is setting up a decentralized irrigation service delivery model. Georgia established WUOs in the
past to improve local O&M in public irrigation schemes.16 In recent years, supported by the ongoing World Bank-
funded Georgia Irrigation and Land Markets Development Project (GILMDP), GoG approved the 2019 Law on
WUOs to support the formal establishment and operation of WUOs, where GA assumes the role of bulk water
supplier to local level organizations that operate local facilities and supply individual farms. Although these issues
were assigned priority during the early years of GILMDP, there was limited momentum on establishing WUOs due
to frequent leadership changes within GA and senior MEPA management, limited political will, and delays in
interactions with farmers due to the COVID-19 pandemic. Since 2021, however, momentum has accelerated with
the formation of Water User Support Units given responsibility for the formation of WUOs. Reengagement with
farmers in the GILMDP areas in the formation of farmer initiative groups (FIGs)17 led by the staff of the WUO
Support Unit in 2021 and 2022 resulted in increased interest by farmers in providing feedback on irrigation
construction and water management topics within their communities.18
20. GoG’s vision on land sector development is reflected in the 2021–2024 Toward Building a European
State Program, which considers completing land reform a top priority for Georgia. Two state land policy goals
were outlined in the State Budget for 2021: (a) land market development and (b) support for land registration and
improving NAPR services. As of 2022, only 37 percent of registered agricultural land was privately owned. There
is also an incomplete legislative framework for land registration, gaps in land taxation and valuation systems, and
substantial state ownership of agricultural land (56 percent of registered agricultural land excluding occupied
territories). In addition, there are data gaps and discrepancies among the land management systems operated by
the NAPR, National Agency for Sustainable Land Management and Land Use Monitoring (LMA), and the National
Agency of State Property (NASP). To address these challenges, GoG planned a range of activities in the next few
15 The bulk irrigation tariff in Georgia does not cover the costs of service provision or provide any incentive to use water efficiently. The
current irrigation tariff in Georgia was set by the Georgian National Energy and Water Supply Regulatory Commission (GNERC) in 2010 at
GEL 75 (about US$25) per year per hectare in eastern Georgia and GEL 45 (US$16) per hectare for western Georgia. GA, at present, is only
able to recover 25 percent of its operational expenses from water users’ contributions, while the balance is provided by stat e subsidies.
The strategy clearly points out that the current tariff arrangements are suboptimal, not only about the level of the tariff but also that it is
structured as a per-hectare payment based on voluntary annual contracts with water users. Therefore, the development of a new I&D tariff
methodology is urgently needed.
16 After the independence of the country, around 200 amelioration service cooperatives were created on a command area of 200,000 ha.
They failed and management was transferred to village councils. With the support of the World Bank-financed Irrigation & Drainage
Community Development Project IDCDP (2001–2009), 259 amelioration associations (equivalent of WUOs) were established but the GoG
closed all amelioration association-related activities in 2006 as part of an ideologically driven push to privatize public services. All
amelioration associations were formally dissolved in 2010. Local organizations in charge of O&M of irrigation schemes were thus introduced
several times but have not sustained over a longer period. Lack of training of WUO members and financial resources to support them and
political instability were key reasons for mixed results.
17 FIGs are established on a voluntary basis, based on an informal agreement among local farmers, to come together on a regular basis to
provide feedback to MEPA and GA on contractual works related to the GILMDP modernization of irrigation schemes as well as discuss topics
related to water management, O&M, and other irrigation service delivery aspects linked to WUO formation. FIGs are a necessary
precondition for supp orting the creation of WUOs in GILMDP areas.
18 The GILMDP has also recently launched a tender to contract an external service provider to support GA and MEPA to establish the first
pilot WUO in the Kvemo Samgori irrigation command area during 2023, until the close of the project in September 2023, which has been
approved by MEPA.
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years: (a) systematic land registration in 74 settlements of five municipalities (Sagarejo, Tetri Tskaro, Gardabani,
Gori, and Kareli); (b) upgrade of NAPR property information system for systematic registration of irrigation areas;
(c) capacity building for specialists who prepare plot sketch plans and carry out systematic registration of land (1.2
million ha); (d) creation of records for property ownership, leases, and other documents; (e) development of
National Spatial Data Infrastructure (NSDI); and (f) updating of NAPR with spatial data.
21. Despite GoG’s progress in establishing national legislative frameworks and developing gender equality
policies during the past two decades, gender inequality persists in agriculture, water, and land. Women’s
contribution to agriculture is often overlooked and largely underpaid and even unpaid. In agriculture, women earn
75 percent of what a man would earn; in fisheries, a woman’s wage is 35 percent of that of a man (FAO
2018).19Thus, resolving agriculture and food system constraints will require simultaneous and complementary
interventions in irrigation and land management with a gender first approach, the timing of which is urgent given
that the impacts of climate change (increasing temperatures and variability in rainfall) are expected to intensify
inequality in rural communities.20
22. The Georgian Nationally Determined Contribution (NDC) set a target to reduce greenhouse gas
emissions by 35 percent below 1990 levels by 2030.21 The main sectors that would be affected by these emission
target levels are energy, industry, agriculture, and water resources management (including food production).
Improving the policies that govern these sectors are part of the GoG’s adaptation priorities, which are to:
introduce innovative irrigation management and water application techniques, implement coastal zone
protection technologies, and implement a list of strategic documents/policies (OECD 2020).22 With regard to the
agriculture sector, the 2030 Vision outlined in the Climate Change National Adaptation Plan calls for Climate Smart
Agriculture (CSA) practices in Georgia, ensuring food security, rural poverty elimination, and sustainability of agro-
ecosystem services through introduction of highly effective production methods and management of climate
change-associated risks (MEPA 2017).23
C. Relevance to Higher Level Objectives
A. ALIGNMENT WITH WORLD BANK STRATEGIES AND CORPORATE PRIORITIES
23. The proposed Georgia Resilient Agriculture, Irrigation, and Land (GRAIL) Project is aligned with the
current FY19–22 Country Partnership Framework (CPF).24 The Project is aligned with the World Bank Group CPF
for FY19-FY22 (Report No. 121853-GE), discussed at the Board of Executive Directors on April 25, 2018, and as
updated by the Performance and Learning Review (Report No. 166148-GE), endorsed by the Board on April 14,
2022). The PLR also extended the CPF by one year until end of FY23. This project is consistent with Focus Area 1:
Enhance Inclusive Growth and Competitiveness, specifically Objective 1.1 which relates to agricultural
modernization and access to markets. The project aims to: (a) improve access to irrigation services; (b) develop a
19 Gender Barriers in Georgia: Barriers and Recommendations’. Part II, p. 37 and FAO United Nations Food and Agricultur e Organization
(FAO). Gender, Agriculture and Rural Development. Country Gender Assessment Series. Rome. 2018. Pp. 51–54.
20 Climate Risk Country Profile: Georgia (2021): The World Bank Group and the Asian Development Bank.
21 https://unfccc.int/sites/default/files/NDC/2022-06/NDC%20Georgia_ENG%20WEB-approved.pdf
22 OECD. 2020. OECD Investment Policy Reviews: Georgia. OECD Investment Policy Reviews.
OECD: Paris. https://www.oecd-ilibrary.org/finance-and-investment/oecd-investment-policy-reviews-georgia_0d33d7b7-en
23 MEPA. 2017. Climate Change National Adaptation Plan for Georgia’s Agriculture Sector.
24 Report Number: 121853-GE.
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land management system for more secure land tenure; and (c) provide support to high‐value irrigated agriculture
and horticulture production and accelerate adoption of modernized agricultural practices. The project also
highlights the importance of citizen engagement and cross-cutting priorities (gender empowerment and climate
resilience) in water use and management. In addition, the project aligns with Focus Area 3: Build Resilience,
specifically Objective 3.3 which is to enhance management of natural resources and climate risks. The project will:
(a) improve access to surface irrigation water for food production, particularly for smallholder farmers in the
eastern part of Georgia which is exposed to drought risks; (b) improve irrigation service delivery and the capacities
of irrigation institutions to measure, monitor, and manage meteorological and climatological risks leading to
enhanced resilience to climate change in the water and agricultural sectors; and (c) provide value chain support
to farmers for increased crop yields in areas where irrigation schemes will be modernized and rehabilitated.
24. The project is aligned with the (a) World Bank COVID-19 response; (b) the Green, Resilient, and Inclusive
Development (GRID) approach; and (c) the Global Crisis Response Framework (GCRF). First, the project is aligned
with Pillar 2 (protecting the poor/vulnerable) and Pillar 4 (Strengthening policies, institutions, and investment for
rebuilding better) of the World Bank COVID-19 Crisis Approach Paper.25 Second, the project is aligned with the
GRID approach because it will enhance the resilience of agriculture in a drought-prone region of Georgia. It will
do so by supporting an integrated approach in bundling interventions in water, land, and agriculture at the
national policy scale as well as at the farm scale. These interventions are aligned with improved land use
management and promote CSA practices in target areas where irrigation schemes will be rehabilitated and
modernized. In addition, the project is aligned with the ECA Green Transition Frameworks which call for a shift
toward green, resilient, and inclusive development. This will be achieved by reducing risks associated with, and
strengthening resilience to, natural disasters and climate change (Priority 3) and through inclusive infrastructure
service delivery by ensuring equitable access to quality water services (Priority 4). Finally, the project aligns with
the GCRF because it will strengthen resilience as it supports infrastructure, institutional, and information driven
pathways to respond to food insecurity (Pillar 1), build long-term resilience in the water, agriculture, and land
sectors (Pillar 3), and focuses on modernizing irrigation infrastructure to improve development outcomes (Pillar
4).
25. Through its integrated approach to improving water, land, and agriculture service delivery, the project
aligns with the WBG Action Plan on Climate Change Adaptation and Resilience (Report No. 136368), notably
with Objective 1 (Boosting Adaptation Financing). The action plan identifies water as one of six adaptation
themes that the WBG will support. It states that the WBG is seeking to support interventions that provide at least
100 river basins with climate-informed management plans and/or improved river basin management governance,
as well as at least 15 million people with improved flood and drought risk management infrastructure.
26. To further align with corporate priorities on climate and strengthen alignment to the WBG action plan,
the project is explicitly designed to address three major risks related to climate change . First, it will address
drought risks, which are currently classified as medium26 and are expected to increase due to climate change as
droughts during the summer months are predicted to have major impacts on rural livelihoods, the agricultural
sector, and national food security. Second, it will address temperature and extreme heat risks, which are classified
as medium in Eastern Georgia. Georgia is one of the most vulnerable countries to climate change in Eurasia.
Temperatures have increased consistently during the past 120 years at an average rate of 0.1˚C per decade. The
25 World Bank. 2020. COVID-19 Crisis Response Approach Paper: Saving Lives, Scaling-up Impact and Getting Back on Track. Unpublished
paper. Washington, DC: World Bank.
26 https://www.wri.org/applications/aqueduct/water-risk-atlas/.
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water sector is the primary medium through which the negative impacts of climate change are felt and is the main
sector to ensure adaptation and build resilience. The climate events can damage crops and reduce agricultural
incomes, but their impacts can be buffered through reliable service delivery in irrigated agriculture. Third, river
flood risks are classified as high in Georgia. The project will increase resilience to flood risk because it will support
the rehabilitation of existing drainage schemes. Thus, it is critical to rapidly expand the drainage area, which is
essential for productive agriculture in Western Georgia.
27. Beyond addressing climate adaptation priorities, the project will contribute to Georgia’s mitigation
agenda. The proposed investment will promote improved energy and water efficiency in irrigation and agriculture,
thus reducing the water and agriculture sector’s Greenhouse Gas (GHG) emissions. However, all target short-listed
schemes are gravity based. Diesel pumping generally is not used in Georgia. Most pumping for irrigation already
uses the more efficient and lower carbon electric pumps. The project also will support MEPA efforts to improve
dam safety to ensure the long-term sustainability of hydropower production. In addition, the proposed
modernization investments will add pressure into the system in locations where it is generated by natural pressure
(topography). However, in areas where topography is not suitable for natural pressure and farmers are required
to pump, the project will provide financial support to farmers for investing in renewable energy pumps (for
example, solar pumps (as a booster) for supporting farmers to adopt drip irrigation systems).
II. PROJECT DESCRIPTION
A. Project Development Objective
PDO Statement
28. The Project Development Objective (PDO) is to: (a) improve irrigation, and drainage services, and
agricultural production in project areas, and (b) strengthen national irrigation and land management institutional
capacity for climate resilient planning.
29. The primary project beneficiaries comprise farmers and agricultural enterprises across the project
targeted regions. Overall, the rural population will benefit from enhanced services provided by land management,
irrigation services, and agricultural support. In the public sector, the project will support institutional
strengthening of MEPA, including GA, the National Environment Agency (NEA), RDA, and LMA. The State Property
Agency under the Ministry of Economy and Sustainable Development (MoESD) will participate in the capacity
building and training activities as a beneficiary.
30. The project will improve the coverage and quality of irrigation and drainage services and agricultural
production in selected irrigation command areas. Regarding the first part of the PDO, improved I&D services will
be measured by the number of landowners that have access to the services affected by the project interventions.
Improvements in agricultural production in project areas will be defined as the increase in the gross value of
agricultural production. Regarding the second part of the PDO, at the national level, the project will strengthen
irrigation management institutional capacity for climate resilient planning by establishing both (a) an irrigation
service delivery performance monitoring system within GA, and (b) a Hydro-Agro Informatics Center for
monitoring and dissemination of water, land, agriculture, and climate information within MEPA. The project will
strengthen capacities for land management through support to the LMA in building the multipurpose Land
Information System (LIS) and operationalizing its different applications.
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PDO Level Indicators
31. Key results will be measured with the following indicators:
(a) Increase in gross value of agricultural production in project areas.
(b) Landowners with access to improved irrigation and drainage services (disaggregated by gender).
(c) Irrigation service delivery performance monitoring and decision support system established and
operational in central office and selected service centers of Georgian Amelioration in project areas.
(d) Hydro-Agro Informatics Center established and operational for real-time monitoring and
dissemination of water, land, agriculture, and climate information for water efficient and climate
resilient planning.
(e) Multi-purpose agricultural LIS operationalized.
B. Project Components
32. The proposed project will finance three components for the total cost of US$150 million. Due to the
GoG’s prudent external fiscal borrowing, the project will be financed by an IBRD loan of US$75 million27 with the
GoG providing counterpart financing of US$75 million (equivalent) from budgetary resources. Table 1 summarizes
the proposed financing plan for each component/subcomponent. The GoG will allocate state resources for the
project as part of its annual budget programming. If there is a need to redeploy resources during project
implementation, the GoG will explore alternative financing mechanisms with the World Bank.
Table 1. Summary of Project Costs, Financing Allocations, and Responsible Entity
GoG Responsible
IBRD Loan GoG
Counterpart Implementing
Cost (US$, Financing IBRD Loan Counterpart
Project Component Financing Agency
million) (US$, % of Total Financing %
(US$
million) of Total
million)
Component 1: Resilient Irrigated MEPA
119.8 59.8 50 60 50
Agriculture
Subcomponent 1.1: I&D MEPA
infrastructure rehabilitation and 84.8 42.3 50 42.5 50
modernization
Subcomponent 1.2: Irrigated MEPA
agriculture and value chain 20 10 50 10 50
development
Subcomponent 1.3: Improved MEPA
performance of irrigation service 15 7.5 50 7.5 50
delivery
Component 2: Improved Land MEPA and NAPR
24 12 50 12 50
Management Capacity
27The amount of US$75 million is inclusive of the Front End Fee for the IBRD loan. Table 1 reflects the cost of individual components net
of the Front End Fee.
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GoG Responsible
IBRD Loan GoG
Counterpart Implementing
Cost (US$, Financing IBRD Loan Counterpart
Project Component Financing Agency
million) (US$, % of Total Financing %
(US$
million) of Total
million)
Subcomponent 2.1: Strengthening MEPA
agricultural land management 14 7 50 7 50
and monitoring
Subcomponent 2.2: Enhancement NAPR
of land administration service
10 5 50 5 50
delivery and building digital
governance infrastructure
Component 3: Project MEPA and NAPR
6 3 50 3 50
Management
Component 4: Contingent Ministry of
0 0 0 0 0
Emergency Response Finance
Total 149.8 74.8 50 75 50
33. Component 1: Resilient Irrigated Agriculture (US$119.8 million). This component encompasses
implementation of high priority investments in I&D infrastructure, agriculture support, and institutional
strengthening for national irrigation and rural development agencies aligned with the country’s agriculture
strategy, irrigation strategy, and climate change adaptation and mitigation agendas. It finances civil works, goods,
equipment, and related services as well as technical training for agency staff and farmers to boost productivity of
irrigated agriculture. The infrastructure investments will enhance the reliability of water supply for irrigation to
reduce risks from climate-induced precipitation variability. The agriculture investments will promote CSA
technologies (for example, crop varieties adapted to crop water stress, on-farm water saving techniques and
technologies, anti-hail, and frost protection equipment) that enhance farm-level productivity and promote
agronomic practices that generate adaptation and mitigation benefits for smallholder farmers in water stressed
areas. The digital decision support services to farmers, with improved access to water saving irrigation
technologies, and training for rural water users will improve on-farm water use efficiency. The investments also
will be designed to minimize GHG emissions through reductions in energy consumption by promoting water
conservation through water metering and on-farm interventions (see table 3). The component includes the
following sub-components.
34. Subcomponent 1.1: Irrigation & Drainage Infrastructure Rehabilitation and Modernization (US$84.8
million). This subcomponent will finance rehabilitation and modernization of selected I&D schemes using a
framework approach. The five short-listed schemes are: (a) Tashiskari and (b) Tiriponi schemes in Shida Kartli
region, (c) Zeda Arkhi scheme in Kvemo Kartli region, (d) Zemo Alazani scheme in Kakheti region, and (e) Narekvavi
scheme in Mtskheta-Mtianeti region located in Eastern Georgia (see table 2). The short list also includes a drainage
scheme (Shavgele Massif in Samegrelo-Zemo Svaneti region) in Western Georgia. The total command area of the
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I&D systems under consideration is 26,88728 ha selected based on hydrological, technical, economic, and
agricultural parameters. This subcomponent is aligned with Pillar 4 of the GCRF – Strengthening Policies,
Institutions, and Investments for Rebuilding Better.
35. Scope of Activities. The activities financed under this subcomponent will include the
rehabilitation/modernization of main, secondary, and tertiary canals and drains with all the ancillary structures
(for example, headworks, flow regulating and measurement structures, outlets, bypass, flood protection, water
meters). Studies, surveys, preliminary and detailed engineering designs, and bidding documents will be prepared
after project effectiveness. Finally, a dam safety assessment will be conducted for all dams upon which correspond
to the rehabilitated irrigation schemes but no major physical works on dams will be carried out under the project.
However, additional procurement may be considered such as purchase of instruments for monitoring reservoir
behavior or capacity building activities to upgrade the existing dams to an acceptable standard of safety. In the
case of the Narekvavi dam, for example, the project may finance equipment to remove sedimentation and
enhance reservoir capacity if the Narekvavi scheme and reservoir are selected for financing.
36. Scheme selection. The final selection of the schemes will take place after the preliminary design phase.
The design process will consist of two phases within the framework of the same consultancy. During the
preliminary design phase (Phase 1), the consultant will conduct hydrological, topographical, and agricultural
surveys and suggest options for rehabilitation and upgrading together with cost estimation for each option, which
will be discussed with GA and the water users before final decisions are made. In Phase 2, the consultant will
develop a detailed design for the agreed options. Given the nature of the civil works (upgrading and rehabilitation
of existing infrastructure), it is envisaged that this will not require multiyear complex technical assessments. While
a large part of the rehabilitation will involve reconstruction of original systems, the technical studies undertaken
during project implementation will examine opportunities to modernize water control and delivery structures.
Where the adjacent topography will allow conversion of secondary and tertiary networks to pressurized systems,
the modernization option will be considered to ease adoption of modern irrigation technologies (for example, drip
and sprinkler) (see Subcomponent 1.3) by water users in the project areas. The final areas/schemes applicable for
pressurization can only be derived after the topographic surveys are completed.
Table 2. Summary of GRAIL Short-listed I&D Schemes
Irrigation/ Average 3 Area Main Head- Main Main Estimated Unit Cost Network
Drainage Years Considered Canal/ works Canal Canal Cost (US$ (US$/ha) Rehabilita
Scheme Irrigated/ under the Drain Rehab. Capacity Rehab. million) tion
Drained Project (ha) Length (Yes/No) (m3/s) (Yes/No)
Area (ha) (km)
Tashiskari 1,530 12,615 63.8 Yes 12.0 YES 27.59 2,187 Full
rehabilitati
on &
modernizat
ion
Tiriponi 5,560 5,210 50.0 No 12.0 NO 9.03 1,733 Full
28This is an indicative number based on the assumption that all short-listed schemes will qualify for project investment upon completion
of the preliminary and detailed design studies. This number is considered as a ‘high scenario’ and the final project areas may be reduced
after selection of I&D schemes for the project rehabilitation program, which also has implications for the total beneficiaries under the
project.
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Irrigation/ Average 3 Area Main Head- Main Main Estimated Unit Cost Network
Drainage Years Considered Canal/ works Canal Canal Cost (US$ (US$/ha) Rehabilita
Scheme Irrigated/ under the Drain Rehab. Capacity Rehab. million) tion
Drained Project (ha) Length (Yes/No) (m3/s) (Yes/No)
Area (ha) (km)
rehabilitati
on &
modernizat
ion
Zeda Arkhi 1,250 1,490 33.9 Yes 2.0 YES 2.98 2,000 Full
rehabilitati
on &
modernizat
ion
Zemo 1,230 6,110 78.0 Yes 20.0 Only 30 km 23.43 3,835 Full
Alazani, in Phase I rehabilitati
Phase I on &
modernizat
ion
Narekvavi 320 655 8.5 Yes 1.0 YES 2.10 3,206 Full
rehabilitati
on &
modernizat
ion
Shavgele 0 807 69.68 No 6.0 YES 1.25 1,549 Full
Massif rehabilitati
on &
modernizat
ion
Total 26,887 66.38 2,469
37. Final design. The final designs for the I&D infrastructure will be informed by the World Bank’s Resilient
Water Infrastructure Design Brief to ensure that each structure is rehabilitated and modernized to minimize
service disruptions in the face of climate and other disasters. Flow measurement devices will be installed on the
main, secondary, and tertiary canal systems across the full 26,000+ ha of the five short-listed irrigation schemes
(see table 2). The use of flow measurement data will be integrated into institutional development activities and
will strengthen water management, promote conservation, and underpin cost-recovery efforts. The project will
pressurize the irrigation network where topography allows, enabling the use of efficient drip or sprinkler systems
from field hydrants rather than pumps. Where topography is flat with transmission in open canals, water efficient
irrigation technology will require booster pumps. Although solar pumps have significant comparative life-cycle
cost savings and climate mitigation benefits and strengthen resilience, they are not widely used or well known in
Georgia today. Thus, the project will set up demonstration plots targeting up to 500 farmers, covering a total of
200 ha, supported through the matching grant program for farmers to co-finance the equipment (see details under
Subcomponents 1.2 and 1.3).
38. Preparation of a National Irrigation Master Plan. This subcomponent will include the preparation of a
National Irrigation Master Plan to be guided by: (a) the provision of reliable water supply to existing or potential
irrigation schemes, including under water scarcity scenarios; (b) technical feasibility of the investments; (c)
economic and financial justification; (d) environmental sustainability, including at a wider basin scale; (e) social
inclusivity; and (f) adaptation to climate change in water stressed areas, including drought-prone and flood-risk
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areas. The exercise will require a sound analysis of the agricultural dynamics and potential (for example, crops
and marketing), a key driver of successful investments. The terms of reference (TOR) for this plan will include an
examination of any potential riparian issues as per paragraph 7(b) of OP 7.5 (Projects on International Waterways).
39. Climate Adaptation and Mitigation Co-benefits for Subcomponent 1.1. The rehabilitation and
modernization of I&D infrastructure will improve food security and increase rural livelihoods and economic
development. The climate adaptation co-benefits for this subcomponent are linked to the modernization of I&D
infrastructure which will improve conveyance efficiency, reduce water losses, and increase the uptake of
renewable energy. The irrigation investments also will support adaptation to drought risks through improved
conveyance efficiency and control of water use with modern structures in selected irrigation schemes. The water
supply will be gravity-based, thus producing zero emissions. The drainage investments will support adaptation to
floods, flash floods, and mud-flow risks through improved bypasses and protection structures.
40. Subcomponent 1.2: Irrigated agriculture and value chain development (US$20 million) . This sub-
component will: (i) provide primary producers (farmers), in areas where irrigation schemes will be modernized,
with access to matching grants, training, and knowledge on market aspects, including compliance with
international food safety and other market standards, and other factors that will enhance the viability of the farm
enterprise; (ii) provide agribusinesses (including agro-processors, cold chain operators, farm input suppliers, and
commercial plant nurseries), in areas where irrigation schemes will be modernized, with financial support through
matching grants to enhance their capacity and competitiveness; and (iii) implement a capacity building program
at RDA and its agriculture extension service operated by a network of Information Consultation Centers (ICCs) at
the municipal level. RDA will administer the matching grants program. This subcomponent is aligned with GCRF
Pillar 1 – Responding to Food Insecurity.
41. Matching grants for primary producers. The matching grants are intended to be used to finance farm-
level capital investments in equipment, inputs, and CSA technologies29 such as on-farm irrigation equipment,
certified planting material for perennial crops, on-farm storage and packing facilities, greenhouses, anti-hail and
frost protection equipment, and technologies such as drones and field sensors for digital soil-water management.
The average grant amount is estimated at US$6,000, which is approximately 40 percent of the total investment.30
The project will aim to target an estimated 1,500 grant recipients, of which 20 percent are female farmers (300
grants).31 A maximum grant amount (approximately US$20,000) will be established and confirmed in the Matching
Grant Manual. Eligibility criteria include: (a) maximum farm size of 15 ha; (b) registered customer of GA; and (c)
registered landowner or tenant. 32 Most grant recipients will be expected to obtain loans from commercial banks,
and the matching grants will thus leverage commercial finance. Calls for proposals will be coordinated by type of
29 The concept of Climate Smart Agriculture seeks to identify technologies and practices that allow increasing production, strengthening
resilience to climate change impacts and reducing emissions when possible. CSA technologies include water saving technologies (e.g., drip
irrigation), solar powered water pumps, drought tolerant crop varieties, mulching to retain soil moisture, and minimum tillage to preserve
soil structure and fertility.
30 For the introduction of certain equipment such as soil-water sensors or other innovations with clear public good benefits, the grant
amount may be adjusted to a maximum of 75 percent of the value.
31 The target number is derived from: (a) total resources available for the grant activity for farmers, (b) capacity of RDA and the MEPA to
administer the grant, (c) past experiences of adoption of matching grants schemes under the recently completed IFAD funded AMMAR
project in Georgia, and (d) number of farmers who are registered as GA clients in GRAIL Project schemes, out of which around 20 percent
are more commercially oriented and will likely meet the eligibility criteria. The remaining beneficiaries of the project will benefit from
improved access to irrigation and drainage services under Component 1.1.
32 Farmers will be requested to indicate how they are applying CSA technologies, as well as provide a business plan that confirms commercial
orientation and market linkages with agribusinesses, and co-financing capacity.
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value chain to ensure that linkages between farmers and processors/buyers are explored and included in
proposals. Technical support for grant applicants will be contracted out to a third-party service provider. A grant
manual will outline the full implementation details. Women will be specifically supported in applying for matching
grants. Training and outreach programs, including demonstration plots on selected beneficiary farms, will
introduce and demonstrate new technologies and practices to farmers. The number of commercially oriented33
Training and demonstration plot development will be contracted out to a third-party service provider.
42. Matching grants for agribusinesses. Three areas for agribusiness investment include: (a) processing and
packing equipment that would enable firms to increase their production capacity, reduce losses, reduce energy
consumption, and develop new products for new markets; (b) cold storage facilities and packhouses, of which
there is currently a shortage, that would allow agribusiness companies to expand and become more efficient; and
(c) commercial nurseries that produce disease-free and certified saplings, seedlings, and other planting materials
for commercial varieties. The number of beneficiaries under this grant scheme is estimated at 25 to 35 firms. A
maximum grant amount (approximately US$150,000 per company) will be established and will cover
approximately 40 percent of the total investment cost. The maximum grant amount and required own
contribution will be established and confirmed in the Matching Grant Manual.34 Selection criteria will be defined
in the Matching Grant Manual and will relate to the proposals’ commercial viability and the scope to engage
farmers in the supply chain, among others.
43. Collaboration with the International Finance Corporation (IFC) and sustainability. The project may
benefit from a planned initiative by IFC to develop innovative financing instruments such as crop and warehouse
receipts, including regulatory support and capacity building among government and banks. IFC is preparing a
program that will support the adoption of CSA technologies, including capacity building among farmers and
agribusinesses in meeting international market standards (for example, GLOBAL G.A.P., EU food safety standards,
and organic production standards), and the development of financing products by commercial banks. Farmers and
agribusinesses supported under the GRAIL Project could be part of these initiatives and benefit directly. Regarding
agriculture finance, crop, and warehouse receipts, to be supported by IFC in collaboration with the project, would
reduce commercial lending risk and thus reduce the need for subsidized credit. To ensure sustainability, the
support provided under this sub-component includes development of the technical and entrepreneurial capacity
of farmers to provide them with the needed skills to continue operating their farm enterprise beyond the life of
the project.
44. Climate Adaptation and Mitigation Co-benefits For Subcomponent 1.2. The agriculture investments will
promote CSA technologies that enhance farm-level productivity and promote agronomic practices that generate
adaptation and mitigation benefits. For adaptation benefits, the project will promote (a) soil conservation
technologies to improve soil structure, soil fertility, and soil water retention, and (b) selection of water-efficient
crops and drought-resistant varieties of high-value fruit and vegetable crops. Regarding mitigation, the project
will promote CSA technologies that (a) minimize the use and waste of mineral fertilizers, (b) increase soil organic
carbon through soil conservation, and (c) promote energy-saving storage and processing technologies. To ensure
33 The remaining landowners are mostly subsistence farmers for whom farming is not their main source of income. Based on previous
experience, 50 percent of farmers reached are expected to adopt new technologies and farm management practices. The adoption rate
following training of beneficiaries experienced under the AMMAR project was around 40 percent.
34 For the introduction of certain equipment such as energy-saving technology or other innovations with clear public good benefits, the
grant amount may be adjusted to a maximum of 75 percent of the value.
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women farmer’s benefit equally from these innovations, technology demonstrations will be held in female
farmers’ fields.
45. Subcomponent 1.3: Improved Performance of Irrigation Service Delivery (US$15 million). This
subcomponent aims to achieve operational and financial sustainability through reform of the institutional
environment for OMM of irrigation. The main activities under this subcomponent focus on comprehensive reform
of GA with a focus on the redefinition and decentralization of functions to the lowest practical level. This
subcomponent is aligned with GCRF Pillar 3 – Strengthening Resilience and Pillar 4 – Strengthening Policies,
Institutions, and Investments for Rebuilding Better. Through this subcomponent, the project will support the
reform process by financing the following activities (additional details about this activity are described in annex 2
in the special project files):
(a) Comprehensive institutional reform program to improve functions of Georgian Amelioration (at the
central and service center levels). The activity will finance (a) TA for an in-depth organizational audit of
the GA internal structure at the national, regional, and local levels. The audit process would assess and
redefine structural organizational arrangements with a focus on the optimization of functions centered
around a service-oriented and performance-based work culture; (b) a separate follow-on TA for internal
capability development of GA and service-center personnel will be supported, to ensure staff competency
for the re-defined roles identified in the organizational audit. Related purchases will include essential
instruments and equipment for effective organizational functioning at all levels (including computers, field
instruments, transport, water measurement instruments) as well as an Asset Management System
comprising a GIS based MIS system (which will be linked to tariff calculations, administration and payment
notifications, monitoring of operations, management, and maintenance in selected service centers); and,
(c) TA to aid GA to establish an internal public relations and marketing team, including the development
of a communications strategy. The transformation approaches will include elements of field level
leadership35 and performance-oriented planning, leading to explicit performance-based service contracts
between GA and its irrigation clients, including efforts to increase formal access to irrigation services for
female landowners;
(b) Implementation of a revised irrigation tariff, with a strategically planned and phased rollout that
supports an increase in fee collection rates simultaneously with modernization of roll-out. Phasing in of
the increased tariffs and cost-recovery initiatives will follow agreed and measurable service-delivery
metrics monitoring to justify the increase in tariffs for farmers as well as a comprehensive awareness and
communications campaign targeted for farmers;
(c) Goods provided to male and female farmers in water saving and management technologies, in
alignment with the matching grants program under Subcomponent 1.2, for the purpose of mitigating
heat stress, reducing climate risks from rainfall variability for farming in the drought-prone areas of
Eastern Georgia, and promoting water efficient management practices. The activity will finance the
purchase of goods and equipment such as solar pumps (targeted to selected demonstration plots),
irrigation application technologies, and use of Decision Support Systems via mobile applications to provide
farmers with data from the HAIP on climate and weather-related aspects. Training will be coupled with
35 Field-Level Leadership (FLL) aims to develop broad-based decentralized leadership that engages the entire institution. It makes the
process of culture change more organic and self-driven, and less vulnerable to changes in the top leadership or external funding. FLL taps
into the knowledge and creativity of the field-level staff, and thus encourages ingenious solutions that are appropriate for the specific local
contexts. GA staff will be trained in Field Level Leadership approach, which is supporting organizational culture change in public agencies.
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access to technologies, equipment, and digital advisory services (for example, via mobile phones) for
enhanced access to the data and information needed to reduce the risks from hydrological and climate
variability;
(d) Establishing and strengthening the operations of water management organizations at the local level
(either WUOs and/or GA service centers), which will include training that specifically targets women to
increase their active involvement in the work of WUOs. The implementation approach will follow the
model developed by the GILMDP by creating voluntary FIGs to allow beneficiaries to provide feedback
directly to the scheme-level rehabilitation and modernization works; and
(e) Establishing the Hydrological and Agricultural Informatics Center (HAIC) within MEPA specifically to
address climate risks to agriculture. HAIC will provide data and information on water, land, agriculture,
and climate and will upgrade the capacity of GA, the LMA, and NEA in climate resilient planning.
46. Climate Adaptation and Mitigation Co-benefits For Subcomponent 1.3. Subcomponent 1.3 addresses
growing climate risks such as floods, drought, and heat stress through the establishment and operationalization
of HAIC. HAIC will provide essential information, tools, and applications that are required for climate adaptive
water management (for example, water accounting, crop monitoring, weather and climate information and
weather forecasting services for farmers, flood and drought monitoring, and irrigation management planning).
These tools and services will improve water and land productivity and thus reduce energy needs for producing
crops. HAIC will also collect and provide information on water variables such as groundwater level, water quality,
environmental flows by supporting investments in hardware and equipment to improve MEPA’s monitoring
capacity. In addition, HAIC will promote environmentally sustainable water allocation decisions by investing in a
water allocation model and plan that will help reduce and, if applied at scale, reverse some of the negative
implications of poor water and irrigation management that have resulted in groundwater depletion, water and
land degradation, and loss of biodiversity.
47. Component 2: Improved Land Management Capacity (US$24 million). This component will finance
activities aimed at improving national land administration and management systems and facilitating access to and
use of geospatial data through development and implementation of an NSDI. It is expected that implementation
of the activities would contribute to the activation of agricultural land markets, facilitate investments into the agri-
businesses, and contribute in a meaningful way to climate change mitigation and adaptation measures. The
component would also provide regulatory and operational support to the LMA to optimize monitoring and
management of agricultural land including female land ownership and gender inclusiveness of the land
consolidation process. These activities and the rationale for their inclusion in this operation and the details of
implementation are provided in annex 2 in the special project files.
48. Subcomponent 2.1: Strengthening of agricultural land management and monitoring (US$14 million).
This subcomponent would support the creation of a solid foundation for improved land management and
agricultural land market development, and land use efficiency. The subcomponent has a particular focus on
agricultural land through investments in the development of policy and institutional reforms, institutional capacity
building of LMA, upgrading of LMA’s information technology (IT) and other infrastructure, and acquisition and
processing of targeted spatial data for their operations. For that purpose, regulatory, institutional, and operational
support will be provided to the LMA and NASP. This subcomponent is aligned with Pillar 4 of the GCRF –
Strengthening Policies, Institutions, and Investments for Rebuilding Better. The subcomponent would finance the
following:
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(a) Operationalization of the LIS including update of the land balance database and report; the LIS should
be connected and interoperable with the HAIC, the NAPR Immovable Property Registration System
(IPRS), the NSDI, and its implementation would be piloted in selected project areas. The LIS will also
incorporate the results of the assessments of needs, design and piloting of the agricultural mass land
valuation methodology and system.
(b) Enhancement of the Farm Registry for Georgia;
(c) Support to the preparation of the Sustainable Land Management (SLM) strategy and National Land
Consolidation (NLC) strategies and piloting of the NLC strategy in the GRAIL Project areas;
(d) Redesign of methodologies of land balance and inventory and state agricultural land management
activities, leveraging good international practices and their implementation in selected areas, such as use
of remote sensing technologies for creating and monitoring land use, land cover data and the creation
and monitoring of the soil quality database; and
(e) Preparation and implementation of training and capacity building for the staff of the LMA, NASP, and
other relevant stakeholders’ potential partners and users of the LIS.
49. It is expected that the above activities, will contribute to the activation of agricultural land markets.
They also will facilitate investments in agri-businesses and create opportunities for additional income generation
for small landholders.
50. Subcomponent 2.2: Enhancement of the land administration service delivery and building digital
governance infrastructure (US$10 million). This subcomponent will finance enhancement of the NAPR IPRS and
operationalization of the NSDI. The IPRS, initiated under the GILMDP, will be further enhanced to finalize the
redevelopment of the core cadastral and registration modules, connect additional stakeholders, and subsequently
redevelop and operationalize new e-services to further improve NAPR customers’ experience. The additional
cadastral and registration data collected through the National Systematic Land Registration Program implemented
by the NAPR between 2022 and 2025 and built on the successful piloting and scale-up of the Systematic Land
Registration (SLR) under the GILMDP, will also require review and update in the National Address Registry, which
is currently outdated by 70 percent. This subcomponent will also finance inter-institutional capacity building and
deployment of Georgia’s NSDI. This would be the next step in the implementation of the Integrated Geospatial
Information Framework (IGIF).36 The NAPR already completed a baseline assessment, alignment with
governmental policy drivers, and social and economic impact analysis (SEIA) with support from the Norwegian
State Mapping Agency. The activity will focus on implementing the recommendations of the above-mentioned
reports, design, and development of the IT infrastructure, and will identify use cases for potential implementation
by the SEIA report. This subcomponent is aligned with Pillar 4 of the GCRF – Strengthening Policies, Institutions,
and Investments for Rebuilding Better
51. Climate Adaptation and Mitigation Co-Benefits for Component 2. Improvements in land management
and land administration will play a critical role in mitigating and adapting to the effects of climate change by
ensuring that land allocation and use is more resilient, equitable and sustainable. Mitigation activities will include:
36
IGIF was endorsed in August 2018, by the United Nations Committee of Experts on Global Geospatial Information Management (UN
GGIM).
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(a) promoting sustainable land use, management, and allocation practices through the preparation and
implementation of the SLM strategy; (b) encouraging comprehensive agricultural land use planning as a part of
the LIS operationalization; (c) strengthening land tenure security through enhancement of the IPRS; (d) improving
land-use data management and dissemination; and (e) enhancing stakeholder engagement through establishment
of the NSDI. Adaptation activities include: (a) providing secure access to the land needed to adapt to changing
environmental conditions, (b) supplying the means for compensating those who lose land or other resources due
to climate change impacts, and (c) delivering the information necessary for land use planning and decision-making
that considers the impacts of climate change.
52. Table 3 summarizes the climate co-benefits of the project.
Table 3. Project Activities Are Explicitly Designed to Address Climate Vulnerabilities
Climate Project Intent to Address Link to Project Activities Subcomponent
Vulnerability Vulnerability
Rehabilitation and modernization of I&D
infrastructure to improve conveyance
efficiency, reduce water losses, increase
Increase economic development and rural
ability to control water deliveries, and
livelihoods and promote food security.
reduce water logging and flood risk in
Help farmers cope with water stress,
drainage areas. 1.1
reduce vulnerability of crop yields, and
enhance the resilience of irrigation water
Finance equipment and services to
services to severe climate events.
advance dam management and improve
dam operations to manage floods and
droughts and dam safety.
Promote on-farm adoption of CSA
Reduce climate vulnerability of crop
practices such as the introduction of 1.2
production
Increasing risk of climate adapted crop varieties.
droughts and river Integrate remote sensing and in situ
floods, warming surface water and groundwater
temperatures, and accounting mechanisms in water
extreme heat allocation planning and irrigation
intensify crop water performance management, together with
stress and increase expansion of hydrological and
demand for agrometeorological data collection and
irrigation, leading to visualization functionalities to enable GA,
water deficits and the NEA, and LMA to (a) manage and
potential yield monitor water use during drought, floods,
Strengthen institutional capacity to
declines. and other extreme hydrological and
predict, monitor, plan, and respond to
climatological events that pose direct and
drought and flood risks to irrigation and 1.3 and 2
indirect risks to agriculture; (b) expand the
drainage services as well as land
evidence base as a main pillar of CSA that
management
allows for understanding the current and
projected effects of climate change in
Georgia; and (c) identify key vulnerabilities
of irrigated agriculture and subsequently
determine adaptation intervention and
solutions.
Train selected farmers and WUOs in
climate-smart irrigation, improve access to
water saving irrigation technologies, and
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
Climate Project Intent to Address Link to Project Activities Subcomponent
Vulnerability Vulnerability
provide decision support tools on critical
water and climate data to enable farmers
to adapt to water stress.
Build capacity of irrigation and
environmental management actors to
respond to climate risks.
Adaptation activities include: (a) providing
secure access to the land needed to adapt
to changing environmental conditions, (b)
supplying the means for compensating
those who lose land or other resources
due to climate change impacts, (c)
delivering the information necessary for
land use planning and decision-making
that considers the impacts of climate
change, (d) promoting sustainable land
use management and practices through
the preparation and implementation of
the SLM strategy, (e) encouraging
comprehensive agricultural land use
planning as a part of the LIS
operationalization, (f) strengthening land
tenure security through enhancement of
the IPRS, and (g) improving land-use data
management and dissemination.
Risk of river floods Reduce the vulnerability of drainage
Rehabilitate and upgrade structures in
and mudflows in services to disruptions caused by floods 1.1
target drainage scheme
rural areas and mudflows
Rehabilitate gravity-based schemes and
support farms to adopt on-farm water
efficient irrigation technologies, and
where applicable, install solar pumps and
flow measurement devices to reduce
emissions in project areas.
The short-listed schemes are all gravity
based, reducing the need to introduce
Prevent carbon lock-in and committed
pumps, thus producing zero emissions.
emissions from energy-intensive diesel
Where pumping is prevalent, most
Increasing carbon pumping systems. Project will advance
farmers in Georgia use electric pumps.
footprint of mitigation by preventing carbon lock-in, as
1.1 and 1.3
irrigation from well as reducing future demand for energy
Train selected farmers and WUOs trained
intensive pumping intensive diesel systems. All irrigation
in climate-smart irrigation, improve access
schemes would be accessed and
to water saving irrigation technologies
upgraded/rehabilitated to use solar and/or
coupled with access to solar pumps for
gravity pressurized systems which have
drip irrigation, where applicable.
zero emissions. Solar based irrigation
systems will avoid use of diesel in the
future and the emissions from installation
of new diesel-powered irrigation. Flow
measurement devices will be installed to
reduce water use.
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53. Component 3: Project Management (US$6 million). This component, divided into two subcomponents,
will finance two Project Implementation Units that will be responsible for project management, including
coordination and technical supervision of project implementation, financial management (FM), procurement,
monitoring, and evaluation (M&E), social and environmental standards management and oversight including
gender-focused activities, communications and outreach, and progress reporting. The first Project Implementing
Unit (PIU) will be established within MEPA, which is responsible for management of Component 1 and
Subcomponent 2.1. The second PIU will be established within the NAPR, which is the Project Implementing Entity
and will be responsible for implementation of Subcomponents 2.2 and 3.2. It will benefit from a successful
experience of the current NAPR PIU gained during the implementation of the Component 2 of the GILMDP. This
component will also finance oversight of detailed engineering designs and civil works with the support of a
Technical Assistance (TA) firm for quality assistance on studies and works37 and compliance with environmental
and social management measures for the PIU. This will mostly include staff and operational costs as well as
consultancies for the TA. MEPA would rely on the experienced PIU that currently manages Component 1 of the
GILMDP and was until recently responsible for an IFAD38 funded agricultural project with additional staff (for
example, in land management and gender) to be recruited to support the PIUs in project implementation.
54. Component 4: Contingent Emergency Response Component (US$0 million). This component establishes
a disaster response contingency funding mechanism that can be triggered in the event of an eligible crisis or
emergency, such as a natural disaster involving a formal declaration of a national or regional state of emergency,
or a formal request from the GoG in the wake of a disaster, health pandemic, or other types of disasters such as
armed conflict.
C. Project Beneficiaries
55. Direct beneficiaries. Direct project beneficiaries, defined as landowners across all short-listed schemes,
number approximately 36,377 (see table 4), with 95 percent of beneficiaries across schemes designated as
smallholders (farm plots of less than 1 ha).39 These comprise farmers, low-income households, women, and youth.
Out of these, 16,711 are registered female landowners; thus, around 45 percent of beneficiaries are expected to
be women. All project activities were designed to encourage proactive engagement of women and women’s
groups, thus ensuring equal benefits. The range of expected benefits to these groups include increased livelihood
opportunities and jobs in irrigated agriculture, and reduced vulnerability to droughts and floods.
Table 4. Beneficiaries by Short-listed Project Scheme and Gender
Short-listed Scheme Region Municipality Total Number Number of Landowners with
of Landowners Female Less Than 1 ha (% out
Landowners of total)
Tashiskari Shida Kartli Borjomi and 9,501 4,614 95
Khashuri
37 The experience of the GILMDP (poor quality of some studies and of some cost estimates) and that of many donor-funded projects
proves how critical this TA can be. The benefit of using such TA in the PK Sindh Water Sector Improvement Project Phase I (P084302,
Pakistan) is one of the successful lessons learned mentioned in the draft Implementation Completion and Results Report (September
2021).
38 IFAD (International Fund for Agricultural Development).
39 Indicative number. Due to a framework approach, the scope of works, that is, the irrigation schemes and the area to be rehabilitated
by the project, will be finalized during the first year of implementation once the design studies are completed on the short-listed
schemes. This will affect the final number of beneficiaries.
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Short-listed Scheme Region Municipality Total Number Number of Landowners with
of Landowners Female Less Than 1 ha (% out
Landowners of total)
Tiriponi Shida Kartli Gori 20,124 9,488 96
Zeda Arkhi Kvemo Kartli Bolnisi 1,326 371 87
Zemo Alazani (sum Kakheti Telavi and 4,345 1,751 92
of all secondaries) Akhmeta
Narekavi irrigation Mtskheta- Dusheti and 464 222 98
scheme Mtianeti Mtskheta
Shavgele Drainage Samegrelo Lanchkhuti and 617 265 97
Zugdidi
Total 36,377 16,711 Total Average 95
56. The project will support beneficiaries in rural areas having a high incidence of poverty. The short-listed
I&D schemes are in Shida Kartli, Kvemo Kartli, Mtsheta-Mtianeti, and Kakheti regions of Eastern Georgia and
Samegrelo-Zemo Svaneti region of Western Georgia (figure 1). These areas have some of the highest poverty
rates in Georgia, ranging from
37 percent of the population
living on less than US$2.5 a day
(Samegrelo) to more than 50
percent (Shida Kartli) (figure 1).
A large share of Georgia’s
population, and most of its rural
population, work in low-
productivity agricultural
activities. This contributes to
continued high levels of poverty
in the rural areas (World Bank
2022).40 As of 2013, the average
annual salary of a farmworker
was only 64 percent of the
national average (Geostat
2021).41 Figure 1. Percentage of the population living under less than US$2.5/day PPP poverty line in 2014
(Source: World Bank, 2016)
57. Institutional beneficiaries. Activities supported under Components 1 and 2 target central and
decentralized state agencies managing water resources, delivering irrigation services, and implementing
agricultural programs, as well as land management services. Staff in these public agencies are expected to benefit
from increased technical and operational capacity to carry out their mandates, improved equipment, and more
accessible data to support user-centered and timely decision-making related to water resources and hydro-
climatic risks.
40 World Bank. 2022. Agriculture, Water, and Land Policies to Scale Up Sustainable Agri-Food Systems in Georgia: Synthesis
Report and Way Forward. Washington, DC: World Bank.
41 National Statistics Office of Georgia (GeoStat) 2021.
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D. Results Chain
58. The critical assumptions underlying the results chain are that: (a) farmers respond positively to the
matching grant packages and the training/outreach programs provided by the project, (b) climate-smart
technologies are attractive to farmers, (c) project infrastructure investments and value chain support packages
would result in higher productivity enabling farmers to diversify their crops and change their water and cropping
practices towards more climate resilient food production; and (d) the reform agenda in the irrigation sector will
be implemented as planned and result in improved irrigation services. The results chain for GRAIL is presented in
Figure 2.
Figure 2. GRAIL Results Chain
E. Rationale for Bank Involvement and Role of Partners
59. The World Bank has a long history supporting the water sector in Georgia. The Bank has been the primary
donor for I&D development in the country since the early 2000s. The ongoing GILMDP has been the catalyst for
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the development of water legislation (for example, WUO Law of 2019), the Irrigation Strategy 2017–2025, and the
upgrading of irrigation infrastructure and establishment of WUOs. In the land sector, the GILMDP has been
instrumental in enhancing and digitalizing the procedures for systematic registration and kick-starting an agile
process for IT system upgrade across the NAPR and its partner organizations. In addition, past World Bank
engagements in Georgia, such as the Irrigation and Drainage Community Development Project (IDCDP), which
were implemented between 2001 and 2009, introduced innovative irrigation schemes design options that have
been internalized by GA and remain in use today. Building on this rich history of engagement in Georgia, the GRAIL
Project will capitalize on lessons learned from previous engagements and exploit the World Bank’s comparative
advantage in providing long-term support to enhance irrigation service provision and land tenure benefits for
Georgia’s rural communities. The project also is well aligned with and contributes to relevant World Bank
strategies for the sector and sustainable development more broadly. The project supports activities that touch all
three of the Water Global Practice pillars (sustain water resources, deliver water services, and build resilience to
hydro-climatic shocks) and thus contributes to the Bank’s vision of constructing A Water-Secure World for All.
60. Many lessons from World Bank investments in irrigation development and modernization worldwide
in the past decades are relevant to Georgia today. Based on these lessons, the World Bank’s support will help
(a) enable integrated project planning, design, implementation, and operational management; (b) strengthen
inclusive and sustainable development focus; (d) ensure quality of project studies and designs (adoption of the
most appropriate and cost-effective technologies) as well as infrastructure rehabilitation and modernization; and
(d) implement the project efficiently, including the management of environmental and social impacts. There is a
high expectation from GoG that the synergistic investments in agriculture, water, and land from the World Bank
can lead to increased production and productivity by transitioning away from the low returns from agriculture to
high-value crop production.
61. The World Bank brings long-term global and local experience and knowledge on climate change
adaptation, mitigation, and sustainable agriculture. In 2020, 52 percent of World Bank financing in agriculture
also targeted climate adaptation and mitigation. In its first Climate Change Action Plan (2016–2020) and the
forthcoming update covering 2021–2025, the World Bank remains committed to working with countries to deliver
CSA that achieves the triple win of increased productivity, enhanced resilience, and reduced emissions. At a
technical level, the World Bank has a wealth of experience in assisting clients in the selection of CSA measures
adapted to the context and in designing effective delivery mechanisms.
62. The project advances GRID. The proposed investments are designed to sustain and restore natural capital
(land and water resources) by conserving water resources (modernization of infrastructure assets and
encouraging rural water users to change practices toward more water efficient irrigation methods using
renewable energy pumps). The proposed investments also address resilience by (a) enhancing reliability of water
infrastructure and related services in the face of climatic extremes (Subcomponent 1.1); (b) integrating CSA
practices (Subcomponent 1.2); and (c) mainstreaming climate resilience know-how and planning in the water
sector, including strengthening the information systems and technical capacity required to prepare for the impacts
of climate shocks (Subcomponent 1.3). Finally, the project addresses inclusion because it finances gender
awareness training that empowers women and men to enhance their access to irrigation, agricultural, and land
services for marginalized and underserved rural and peri-urban communities in Eastern Georgia, the poorest
region of Georgia. Gender inclusive actions related to female water user registration for irrigation services, access
to finance and technologies through grants, and land consolidation and registration will make the investments
more viable.
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63. The IFC provides support to increase private sector participation in agriculture in Georgia. IFC brings
extensive international experience in value chain development using different models to suit the local context. An
ongoing advisory services engagement in the honey subsector in Georgia assisted in developing private sector
capacity in compliance with food safety regulations. An upcoming IFC advisory services program on promoting
and financing CSA technologies and developing innovative sustainable agriculture financing mechanisms is under
preparation and would complement project activities on promoting and financing CSA technologies, and value
chain development. The project may also leverage IFC’s global and Georgia-specific experience in helping
agribusinesses and farmers meet food safety and other product standards, with an emphasis on competitiveness
in export markets.
64. The World Bank is coordinating with other development partners involved in irrigation in Georgia. These
partners include the Asian Development Bank (ADB), the Agence Française de Développement (AFD), the European
Investment Bank (EIB), and FAO. Component 1 builds on the joint World Bank and FAO CSA profile of Georgia and
supports complementary reforms in the institutional restructuring of GA and on the improvements in the
irrigation tariff, which are also supported by complementary projects by EIB/AFD and ADB/AFD. The project and
analytical studies underpinning the design of Components 1 and 2 were presented to and endorsed by the
community of development partners working in the water, land, and agriculture sectors in Georgia.
F. Lessons Learned and Reflected in the Project Design
65. The project design reflects important lessons from World Bank-financed water projects in Georgia and
worldwide. These are discussed in the following paragraphs.
66. Integrated irrigation and agricultural investments need to be implemented in parallel to ensure the
success of the project. International experiences in irrigation projects indicate that irrigation investments
sometimes do not yield the intended increases in production and productivity, and thus the expected economic
and financial return on investment, due to the lack of synergy between infrastructure investments and support to
farms to help them transition from rainfed to irrigated agriculture. This entails providing support to smallholders
to adopt productive inputs (improved seeds, fertilizers, mechanization) as well as support to value addition and
access to markets, which will allow for higher returns from rehabilitated irrigation infrastructure and enable
farmers to obtain higher incomes. In the GRAIL Project, subcomponents 1.1, 1.2, and 1.3 will be implemented
concurrently but will be staggered to ensure that certain activities (for example, adoption of irrigation
technologies or changes in irrigation tariff) are introduced only after systems are upgraded.
67. Split contracting of design and construction activities for the main canals, secondary, and tertiary
network was one of the factors that delayed works under the GILMDP. The original design of the main canals
was developed by GA. Due to technical omissions, the works had to be suspended several times to correct design
solutions after the project started construction works, leading to multiple delays. Further, works on main canals
were completed when the design of secondary and tertiary network was initiated. The Terms of References (TORs)
for developing the irrigation network required development of modernization plans that required additional
investments in the main canals for regulating and other structures, which were not considered in the original
design. Based on these lessons, within the framework approach, all GRAIL short-listed I&D schemes will be
contracted to one consultant for design, final selection, and supervision during construction works. The consultant
will examine each system from the headworks, intake, down to the farm-gate in close cooperation with GA and
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MEPA.
68. Strengthening the institutions that maintain the canals and drains is critical to good irrigation
performance. The important lessons from the ongoing GILMDP are that irrigation projects in Georgia need to not
only support the development of infrastructure and related investments but also help promote good irrigation
performance management and enhance service delivery capacity of the national irrigation agency. Supporting
institutional development is critical to ensure that infrastructure investments are planned, implemented,
operated, and managed for long-term climate resilience and inclusion. As a result, the GRAIL Project invests
resources in reforming GA functions related to investment planning, OMM, capacity to use remote sensing to
address climate threats to irrigation management, training, and focus on shifting to a customer orientation
mindset in the delivery of water and agriculture services.
69. To achieve institutional reforms in public sector agencies in the irrigation and agriculture sectors, invest
in champions within those agencies. FLL is an operational approach that seeks to build on the intrinsic motivation
of public sector staff. The approach is currently being applied by the World Bank to support organizational culture
change in public agencies (Pahuja 2021).42 Instead of focusing mainly on senior leadership, FLL aims to develop
broad-based, decentralized leadership that engages the entire institution. FLL is implemented through a peer-to-
peer learning model, in which a public agency that has successfully implemented an FLL program provides the
initial training and implementation support for an agency that is seeking to do the same. By identifying the
internally motivated individuals and relying on peer-to-peer dynamics of behavior change, FLL offers a cost-
effective and sustainable model for motivating staff that effectively complements technical and organizational
training to catalyze growth in organizational capability. For example, there may be initial resistance among some
GA staff to the changes proposed by the GRAIL Project. Thus, Subcomponent 1.3 will focus on integrating technical
and operational reforms within GA by using a series of FLL-style workshops, specifically within selected GA service
centers, to create a positive enabling environment that inspires staff to design and implement reforms based on
their needs and motivations.
70. Farmers’ financial contribution is key to ensure ownership and sustainability of irrigation development
and to gradually improve cost recovery irrigation services. To ensure the financial and infrastructure
sustainability of irrigation systems and the financial health of GA, the current area-wise tariff of GEL 75 per ha
needs to be revised. This area of intervention was not given enough attention in past World Bank engagements in
the irrigation sector in Georgia. The GRAIL Project will work to significantly upgrade irrigation systems while
investing in farmers to upgrade their access to technologies and information, and in this context, the project will
seek to encourage greater ownership and trust among water users. Within this nexus of interventions, the project
will encourage an increase in the irrigation fees paid by GA’s clients and invest in the implementation of water
metering to measure volumetric water use in irrigation schemes. Farmers will be required to contribute to the
purchase of on-farm irrigation equipment but at a lower cost because of the project matching grant mechanism.
Similarly, farmers will be asked to contribute a small fee to access the mobile-based decision support services on
climate data and the training package.
71. Establishment of WUOs needs to start early and requires a long-term effort. Strengthening WUOs
requires substantial long-term effort. It requires considerable nurturing that cannot start only at the end of the
project after systems are constructed. The ongoing project, GILMDP, provides excellent lessons on how to initiate
WUO development by engaging with farmers grounded in a strong central and regional unit focused on leading
42 Pahuja, S., (2021). FLL Interim Information Paper. Working draft. World Bank Water Global Practice.
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and supporting WUO establishment in Georgia. However, the GILMDP accelerated implementation of these
activities only in the last 18 months of the project, which is too late to effectively establish WUOs. The GRAIL
Project will build on these lessons by continuing to support the already established central WUO Support Unit,
regional units with sufficient operational budget, and ongoing training and study tours. In addition, the project
will focus on (a) providing early stage training and technical support to farmers in the irrigation command areas
of intervention at the design stage and encouraging water users to contribute to infrastructure design, work
monitoring, and feedback on supervision of works by focusing on the formation of FIGs; (b) investing in knowledge,
awareness, and information campaigns to ensure farmers understand the WUO law and its benefits, costs, and
their roles and responsibilities, with a specific focus on female farmers; and (c) providing farmers with support in
the early years of WUO formation to ensure they feel confident to take control of O&M activities for their field
channels and tertiary networks.
III. IMPLEMENTATION ARRANGEMENTS
A. Institutional and Implementation Arrangements
72. MEPA and the NAPR will share overall responsibility for project implementation. Each implementing
agency will take the lead on project elements under their respective institutional mandate and capacity. Under
MEPA, GA, RDA, and the LMA will support implementation of the project. In terms of their legal status, GA is a
state-owned limited company, with 100 percent of the shares of the company owned by the Ministry of Economy.
GA’s transfer to MEPA give MEPA full management control over GA. RDA is a non-commercial legal entity
considered subordinate to MEPA. The Agency has a supervisory board chaired by the Minister of MEPA and deputy
ministers are its members. The LMA is a Legal Entity of Public Law (LEPL) under MEPA. The NAPR and the Digital
Governance Agency (DGA) are LEPLs under the overall supervision of the Ministry of Justice (MoJ). The NAPR is
designated as a Project Implementing Entity, DGA will provide technical support as required under Component
2.2, especially for IT development and maintenance, as required. In addition, it was proposed that the staff of the
two PIUs of the GILMDP will also serve as the staff for the GRAIL Project. Each PIU will develop a separate
procurement plan and manage the flow of funds on behalf of MEPA and the NAPR.
73. Both PIUs have adequate capacity to manage the GRAIL Project. Currently, they are implementing the
GILMDP, and based on the FM assessment, it was concluded that there is adequate capacity within both PIUs to
manage the GRAIL project. The implementation arrangements of both PIUs in the GILMDP have been generally
satisfactory. In addition, coordination between the PIUs specifically across MEPA and NAPR, under the ongoing
GILMDP, has been excellent in producing regular progress reports as well as regular and timely M&E reporting.
The proposed project aims to build on the existing close working relationship across both PIUs grounded on their
history of coordination.
74. Project implementation will be guided by two Project Operations Manuals (POMs), developed by each
of the two PIUs acceptable to the World Bank. The development of the POMs will be a condition for effectiveness
of the legal agreement. The POM will include details on institutional and implementation responsibilities, technical
aspects of all components and activities, guidance on M&E of project results and outcomes, environmental and
social risk mitigation measures, disbursements, FM aspects, arrangements for training and operating costs,
supervision, and reporting provisions. The MEPA POM will include a detailed matching grants manual for
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supporting implementation of relevant activities in subcomponent 1.2.43 Both POMs will provide detailed
guidelines for project coordination, especially detailing how formal coordination mechanisms will be established
between MEPA and NAPR and will include an annex for a Contingent Emergency Response Component (CERC)
manual.
75. The two PIUs will have environmental and social development specialists responsible for all
environmental and social requirements. The requirements will include environmental and social assessment,
preparation, and supervision of site-specific Environmental and Social Management Plans (ESMPs), and reporting
on the environmental and social performance and project outcomes, as relevant. The PIU under MEPA will hire at
least one environmental specialist, one occupational health and safety specialist, one social specialist, and one
gender and community liaison specialist. The latter will also be responsible for mitigating potential risks against
gender-based violence.
B. Results Monitoring and Evaluation Arrangements
76. The PIUs in MEPA (Component 1) and the NAPR (Component 2.2) will be responsible for M&E of the
Irrigated Agriculture and Land Management components, respectively. The objectives of the M&E system are to
measure input, output, and outcome indicators to provide project staff and stakeholders with regular information
on project implementation and outputs, identify potential problems, and determine to what extent the project is
achieving its development objective. As an integral part of project management, the M&E system is designed to
provide timely and reliable results for management decision-making.
77. The PIUs will use the M&E system that is well-established in the GLMDP, adjusting the M&E procedures
to serve the needs of the GRAIL Project. M&E will be based on the collection and reporting of the quantitative
and qualitative outcome and intermediate results indicators specific to the activities under each
component/subcomponent in accordance with the project Results Framework (section VII). The project’s M&E
specialist will be responsible for coordinating the M&E tasks for all components, organizing, and updating the
database, and liaising with the implementing agencies of each activity, hosted within MEPA. The MEPA PIU will
work closely with the GA, RDA, LMA, and WUO Support Units in collecting and reporting required data, while the
NAPR will provide M&E inputs directly to MEPA.
78. The PIUs will report on the M&E results and project implementation status through regular quarterly
reports. A baseline survey will be carried out during the first five months of the project followed by surveys at
mid-term and at the end of the project. A mid-term review will be undertaken to evaluate whether the project
design remains valid, identify any key issues affecting implementation, and if necessary, adjust the project design.
A final assessment at the end of the project will be undertaken to provide inputs for the Implementation
Completion and Results Report. The surveys will be carried out by an independent firm. The M&E specialist will
oversee the process and ensure that the data are collected, processed, and analyzed to meet the project’s M&E
needs.
C. Sustainability
43 The matching grants manual will outline detailed implementation modalities, including definitions of eligible technologies, eligibility
criteria, selection criteria, maximum grant amounts, and modalities of the review process of applications for both farmers and
agribusinesses.
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79. The project addresses sustainability in three distinct areas: infrastructure, institutions, and information.
80. Infrastructure scheme selection and design. The final short list of infrastructure schemes was informed
by multiple considerations such as (a) current and future levels of water demand and water stress under climate
change, (b) current cropping patterns as well as future diversification opportunities, (c) gender considerations in
terms of the number of female landowners, (d) engineering needs of the systems, and (e) economic and financial
returns expected by the investments. This was informed by and decided in close consultation with MEPA and GA.
Choice of exact designs for the I&D infrastructure will be informed by the World Bank’s Resilient Water
Infrastructure Design Brief to ensure that each structure is rehabilitated and modernized to minimize service
disruptions in the face of climate and other disasters. In this context, the capital investment provided under the
project will help to improve conveyance efficiency and water delivery to farmers. At the farm level, the project
will promote climate-smart irrigation utilization through improved on-farm water management and introduction
of modern irrigation techniques. To ensure that water infrastructure can adapt to changing circumstances and
long-term shifts in external conditions, the project also directly builds additional institutional capacity to monitor
hydrological and climatological disasters and unforeseen events within the respective agencies of MEPA.
81. Infrastructure operations and maintenance. The project will target interventions to strengthen GA’s
capacity to perform O&M functions. In this context, Subcomponent 1.3 will focus on (a) improving the asset
management functions of GA in terms of staffing, budget, planning, developing a monitoring information system
(MIS) to track O&M of schemes, billing, fee collection, and contracting at the service center and central levels, (b)
supporting GA to develop performance management contracts and carry out customer satisfaction surveys to
ensure water delivery to farms takes into account user water and cropping needs, and (c) strengthening
management arrangements in all project intervention irrigation schemes, either by supporting GA and MEPA to
establish WUOs where farmers are willing to cooperate and take over management of the schemes at the tertiary
and field levels, and/or by upgrading the capacities of the GA service center. These actions will be complemented
by the efforts of the operation to improve recovery of O&M costs by reforming the irrigation tariffs.
82. Institutional capacity of water, agriculture, and land agencies. At the institutional level, project activities
will explicitly aim to (a) build capacity of GA in key areas of irrigation service delivery and organizational
performance (contract management, data collection and dissemination, and cost recovery mechanisms), (b) build
capacity of RDA to become an EU paying agency and improve the reach of its matching grant schemes, and (c)
enhance capacity of the state agricultural land management system.
83. Information sustainability through digital innovations to improve irrigation monitoring. The agricultural
sector in Georgia is adversely affected by the deterioration of I&D infrastructure, low efficiencies, and low crop
productivity. Advancements in the methods and applications that provide timely, accurate, and continuous high-
resolution data and information on land use variables and water balance components using open-source, open-
access, satellite-based remote sensing have revolutionized irrigation management in several countries around the
world. Under Subcomponent 1.3, HAIC will use remote sensing and local data to provide services on irrigation
scheme performance monitoring for MEPA and GA to ensure the sustainability and climate resilience of the
irrigation and water management infrastructure investments, and to provide a basis for quantitative impact
evaluation.
IV. PROJECT APPRAISAL SUMMARY
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A. Technical, Economic and Financial Analysis (if applicable)
Technical Analysis
84. Overview. The project builds on the following analytical studies: (a) Agriculture, Water, and Land Policies
to Scale up Sustainable Agri-Food Systems in Georgia: Synthesis Report and Way Forward,44 (b) Constraints to
Sustainable, Efficient, and Resilient Irrigation Systems in Georgia - What is a Possible Way Forward?,45 (c) Climate
Smart Agriculture in Georgia,46 (d) Supporting Climate Smart Agriculture and Value Chain Development in Georgia
(forthcoming), (e) Policy note on agricultural land market development in Georgia, (f) Earth Observation
Application for Irrigation Performance Benchmarking in Georgia, (g) Assessment of Irrigation Investment Project
Cycle and Service Delivery Performance of Georgian Amelioration, and (h) infrastructure investment and capacity-
building activities undertaken as part of the GILMDP. In addition, the project design is based on the principles of
the national Irrigation Strategy, the WUO Law, and the World Bank’s Water Global Practice approach to water
service delivery. The project will be implemented in a participatory and inclusive manner to consider inputs from
a diverse range of stakeholders and experts. The project’s technical analysis shows high project readiness and
emphasizes the project’s approach to resilience, as detailed below.
85. Integrated design. To address the complexities facing the agriculture sector in Georgia, the project invests
in water, agriculture, and land simultaneously; operates at multiple, nested scales; and ensures that interventions
are guided by the vision to advance climate change adaptation and mitigation in Georgia’s irrigated agriculture
sector. This vision is informed by (a) relevant higher-level national strategies and action plans of the GoG of
Georgia in rural development, irrigation, agriculture, and land management; (b) remote sensing and global climate
change analysis conducted by the project team; and (c) global principles relating to climate resilient and low-
carbon water sector interventions adopted and championed by the World Bank. These include the productive use
of water in agriculture and measures to increase adaptive capacity for rural populations exposed to climate shocks
through improved water, agriculture, and land management services. These principles are integrated in the
infrastructure investments supported by the project, but also in the institutional strengthening activities aimed at
equipping water and agriculture sector institutions with the knowledge and tools required to confront and
manage the impacts of climate change on agricultural development in Georgia.
86. Farm survey results. The design of the project has been informed by the results of a September 2022
survey of 193 farmers in six different irrigation systems (Kvemo Alazani, Naurdali, Khrami-Vakhushti, Tsknari,
Tashiskari, and Tiriponi). The survey provides information on the level and nature of water service delivery, aspects
of crop cultivation, and crop marketing. The survey covered farms in areas where irrigation services are being
successfully provided, and in areas where irrigation services are poor or nonexistent. The findings help to
anticipate how farmers currently without irrigation will adjust and benefit from irrigation services following
rehabilitation. The survey data also informed the economic and financial analysis (EFA) as well as the design of
44 World Bank. 2022. Agriculture, Water, and Land Policies to Scale Up Sustainable Agri-Food Systems in Georgia: Synthesis
Report and Way Forward. Washington, DC: World Bank.
45 Vidal, Romain, Norberto Pignatti, Ranu Sinha, Mariam Chachava, Levan Pavlenishvili, and Pierrick Fraval. 2022. Constraints to
Sustainable, Efficient, and Resilient Irrigation Systems in Georgia - What is a Possible Way Forward?: Irrigation Sector Policy Note.
Washington, DC: World Bank.
46 World Bank, and Food and Agriculture Organization of the United Nations. 2022. Climate-Smart Agriculture in Georgia (English).
Washington, DC: World Bank Group.
http://documents.worldbank.org/curated/en/099515003142224173/P1757050ef513000f08c7e06db4bf027f59.
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gender-inclusive actions because they shed light on the role of women in irrigation agriculture.
87. Land management. The project will invest in strengthening capacity of the LMA under MEPA. The project
will also develop a LIS47 that would provide support to address the risks associated with unsustainable land use,
abandonment of arable agricultural land, misallocation of land resources, and related climate change challenges.
The sale, lease, or consolidation of the currently idle or subsistence agriculture-oriented private land plots and the
more efficiently managed state-owned land should generate more available land plots suitable for commercial
agriculture and thus foster their development.
88. NSDI implementation. NAPR was designated as a leading state agency for the implementation of the NSDI
since 2013, although full-scale implementation is yet to be undertaken. The SEIA prepared by the NAPR, with
support from the Norwegian State Mapping Agency, established that investment in the NSDI would generate a
net present value (NPV) of US$30 million based on the benefits derived from the implementation of 15 percent
of the identified 32 use cases. The expected benefits include better land tenure security, effective decision-
making, and public services’ delivery. Nationwide security of land tenure and accessibility of spatial reference data
are among the prerequisites for a country’s accession to the EU (alignment with requirements of the EU directive
INSPIRE) and should provide a solid foundation to attract private investments into commercial agriculture. As a
result, this project aims to invest in the operationalization of NSDI.
89. Agricultural production. To support improvement in agricultural production in irrigated areas, the project
will aim to scale up and improve farm-level support programs implemented by RDA and further develop
institutional capacity within RDA. The support will include a combination of agriculture technologies and market
facilitation as well as access to skills and finance for food producers. In addition, these investments can be
complemented by support to the agriculture extension service of the regional centers of RDA to provide
demonstration plots and training to beneficiaries.
90. Readiness for implementation. For infrastructure works under Component 1, schemes were short-listed
based on an initial survey and analysis of their technical, hydrological, and economic viability. Preliminary and
detailed engineering design studies, surveys, and bidding documents will be prepared after project effectiveness.
A preliminary TOR for the design consultancy contract is already prepared and under finalization by MEPA. For
institutional strengthening activities in the irrigation sector under Component 1, readiness is high given that a GA
reform road map is being prepared and expected to be approved by MEPA before project effectiveness. A TOR is
being prepared now for consultancy services to be launched over the first year of project implementation, which
will be cleared in the first few months after the effective date. In addition, the ongoing GILMDP is in advanced
stages of establishing a pilot WUO in the ongoing project area. This approach will be ready to be scaled up under
the GRAIL Project schemes. Under Component 2, TORs are under preparation for the formulation of a National
Land Consolidation Strategy and a National Strategy on Sustainable Land Management. The Environment and
Social Commitment Plan (ESCP), Stakeholder Engagement Plan (SEP), Environmental and Social Management
Framework (ESMF), Resettlement Policy Framework (RPF), and Labor Management Procedures (LMP) have been
prepared by MEPA and NAPR and were disclosed in English on the Bank website on January 12, 2023 (ESCP and
47The creation of the LIS for multiple users (state agencies, private sector, individual citizens, and so on) would contribute to the activation
of agricultural and nonagricultural land markets, provide new land-related services, facilitate new investments, and contribute to reliable
information-based policy making in a climate resilient manner. The LIS can support such core activities of the LMA as enhancement of the
Farm Registry, completion of the land balance database, and implementation of the voluntary land consolidation activities ensuring
standardized and interoperable data management and dissemination.
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SEP), January 25, 2023 (RPF and LMP) and January 26, 2023 (ESMF). The Georgian versions of ESCP, SEP, RPF, LMP,
and ESMF were disclosed on February 6, 2023. Stakeholder consultations on these documents have been held in
January and February 2023.
91. Technical readiness (resilience of project). The following natural hazards have been identified as
potentially harmful to the project: (a) mudflows and flash floods, and (b) drought and extreme heat. Drainage
investments will support adaptation to floods, flash floods, and mudflow risks through improved bypasses and
protection structures. To mitigate drought and extreme heat risk on water supply security and on the performance
of the planned infrastructure investments, the project will improve the overall quality of water infrastructure. For
irrigation infrastructure, the project reduces conveyance losses and supports the uptake of improved agricultural
practices (promoting drought-tolerant seeds, and on-farm water-efficient irrigation technologies with the option
to install solar pumps, where applicable), which are known to reduce drought vulnerability and improve water
resource utilization and energy efficiency, leading to reductions in GHG emissions.
92. Technical analysis (resilience through project). The introduction of international best practice for resilient
design based on the Water Global Practice standards; improvements to the MEPA’s water, land, and agriculture
management systems (via the HAIC); and the introduction of risk management approaches for dam safety will
build system-wide resilience and strengthen disaster risk governance. It is expected that this information and
institution-related outputs will improve the resilience of future projects and investments to the inevitable shocks
arising from climate change and other uncertain drivers of change.
Economic and Financial Analysis
93. Ex ante cost-benefit analysis was conducted to determine the project’s feasibility. It included both
financial analyses carried out using actual market prices inclusive of taxes, subsidies, and other distortions as well
as economic analysis using economic prices adjusted in some instances to correct for taxes, subsidies, and other
distortions known to be present in the Georgian economy. The results of the financial analysis show the returns
to project-supported activities from the perspective of the private sector. The results of the economic analysis
show the social returns.
94. Summary of the economic and financial analysis. Economic and financial indicators such as NPV, internal
rate of return (IRR), benefit/cost (B/C) ratio, and payback period were estimated to evaluate the level of return
on investment for the entire project, components, subcomponents, and activities. The analysis was conducted by
considering the following general investment parameters, as a base scenario: (a) evaluation period: 30 years, (b)
cost of capital: 9.4 percent, and (c) social discount rate: 6 percent. Sensitivity analysis was conducted to determine
the robustness of the results under a range of possible changes in key variables: prices, production costs, and
yields. The EFA indicators were estimated for different scenarios: evaluation periods, costs of capital, and social
discount rates.
95. The results of the EFA show positive returns on the overall investment, components, subcomponents,
and activities considering the project’s environmental benefits (reflected in the valuation of the GHG emissions
reduction with a scenario of low shadow price of carbon48). The main indicators are presented in Table 5.
48 The GHG emissions from the project are presented in external project files - Annex 4.
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Table 5. Summary of the EFA for the Project
Financial Indicators (9.4% cost of capital)
Financial Net Financial Incremental
Incremental NPV
Present Value Internal Rate of B/C Payback Period
per beneficiary NPV per ha
(FNPV) Return (FIRR) Ratio (years)
(US$) (US$)
(US$, millions) (percent)
52.8 11.95 1.31 11.66 1,452 1,965
Economic Indicators (6% social discount rate)
Economic Net Economic
Incremental NPV Incremental
Present Value Internal Rate of B/C Payback period
per beneficiary NPV per ha
(ENPV) Return (EIRR) Ratio (years)
(US$) (US$)
(US$, millions) (percent)
158.5 12.33 1.63 10.81 4,357 5,895
96. The sensitivity analysis revealed that EIRRs are somewhat sensitive to changes in prices and yields.
However, they are relatively insensitive to changes in production costs. Moreover, the ENPV and the EIRR would
be higher considering the high shadow price of carbon (US$160.7 million and 12.41 percent, respectively).
97. The implementation of Component 1 and Component 2 would generate positive and attractive returns
both economically and financially (see table 6).
Table 6. Summary of Economic Analysis for Components 1 and 2
Financial Indicators (9.4% cost of capital)
FNPV (US$, millions) FIRR (%) B/C Ratio Payback Period (years)
Component 1 50.1 13.01 1.37 10.54
Component 2 2.7 9.81 1.08 12.04
Economic Indicators (6% social discount rate)
ENPV (US$, millions) EIRR (%) B/C Ratio Payback Period (years)
Component 1 125.5 13.41 1.57 10.12
Component 2 32.9 10.08 1.88 11.82
98. To determine the relative profitability of different types of subcomponents under Component 1, the
measures of project worth were calculated separately. Positive financial and economic returns to different
subcomponents under Component 1 are shown in table 7.
Table 7. Detailed Summary of Economic Analysis for Component 1
Financial Indicators (9.4% cost of capital)
NPV (US$, millions) FIRR(%) B/C Ratio Payback Period (years)
Subcomponent 1.1 41.7 16.08 1.51 9.97
Subcomponent 1.2 1.9 9.81 1.04 11.56
Subcomponent 1.3 2.6 10.60 1.33 11.10
Economic Indicators (6% social discount rate)
NPV (US$, millions) EIRR (%) B/C Ratio Payback Period (years)
Subcomponent 1.1 116.4 17.19 2.07 9.81
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Subcomponent 1.2 39.5 11.77 1.53 10.47
Subcomponent 1.3 12.7 10.62 1.66 11.08
99. Positive financial and economic returns to different subcomponents under Component 2 are shown in
Table 8.
Table 8. Detailed Summary of Economic Analysis for Component 2
Financial Indicators (9.4% cost of capital)
NPV (US$, millions) FIRR (%) B/C Ratio Payback Period (years)
Subcomponent 2.1 1.3 9.60 1.04 12.06
Subcomponent 2.2 1.2 10.57 1.15 12.35
Economic Indicators (6% social discount rate)
NPV (US$, millions) EIRR (%) B/C Ratio Payback Period (years)
Subcomponent 2.1 24.8 9.61 1.80 12.06
Subcomponent 2.2 7.8 12.64 2.19 11.14
100. The project is expected to generate direct and indirect benefits for farmers. The project is expected to
generate benefits for farmers cultivating a plot in the selected irrigation schemes in the form of incremental
annual income derived from mostly commercial agriculture arising from improved irrigation services and support
to agriculture production and value chains. These benefits will be attributable to (a) irrigated land rehabilitation
(better irrigation services), (b) agricultural support measures at the farmer level (increased margin per hectare,
diversification into higher-value crops, and improved conditions for access to market), (c) improved land tenure
security and availability of fairly priced agricultural land, which should contribute to the enhancement of the
agricultural land market, increase of the agriculture-related portion supported by foreign direct investment, and
creation of value for current landowners and the state. The establishment of and TA to WUOs will improve
irrigation water delivery to farmers while generating economies of scale in the process as well as increasing the
potential for the adoption of water-efficient irrigation technologies and uptake of improved crop water
management practices by farmers. The project also will generate benefits from the titling of agricultural plots
(that is, clarity over landholding, enhanced land tenure rights and their transferability, stimulating of land market
development). The adoption of CSA practices by farmers will maintain the soil fertility and structure. The irrigation
master plan will help the Government select the most cost-efficient investments.
B. Fiduciary
(a) Financial Management
101. The overall Financial Management (FM) arrangements meet the minimum requirements of the World
Bank’s Policy and Directive on Investment Project Financing (IPF).49 Disbursements under the proposed project
will be carried out in line with the World Bank Disbursement Guidelines for IPF (February 2017). The PIUs within
MEPA and the NAPR will oversee the project’s fiduciary responsibilities including FM with quarterly reporting and
annual audit of project’s financial statements.
49
An FM assessment was conducted in accordance with the Financial Management Manual for World Bank Investment Project Financing
Operations (2010, revised 2017).
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102. The PIUs will be responsible for the preparation of unaudited interim financial reports (IFRs) and annual
project financial statements. Accounting software, acceptable to the World Bank, will be used for project
accounting and reporting, including principal financial reports being quarterly IFRs and annual project financial
statements. Throughout the life of the project, the borrower will send unaudited IFRs covering all components
using a format agreed between the GoG and the World Bank. IFRs will be due 45 days after the end of each
calendar quarter. The borrower will provide annual audited project financial statements to the World Bank within
six months of the end of each fiscal year and at the closing of the project. The audit will be conducted by an
independent auditor acceptable to the World Bank and in line with the agreed TOR.
103. Internal controls and procedures to be used by the project will be described in the FM Manual, an
integral part of the POM. The POM will include FM aspects, detailed procedures, and processes for the project’s
planning and budgeting, accounting, financial reporting, internal controls, flow of funds, and external audit. It will
also describe the roles and responsibilities of the Ministry of Finance (MoF) and PIU and communication channels
and modes between them. This will minimize risk of errors, safeguard project assets, and ensure use of funds for
intended purposes. Application of the controls and procedures will be verified through World Bank supervision.
104. Separate Designated Accounts (DAs) in foreign currency for administering the project funds (separate
for each PIU) will be opened in the treasury within the MoF, found to have an acceptable control environment
by the World Bank. The accounts will be managed by the MoF, with the PIUs processing the payments according
to their fiduciary role. Statement of Expenditures (SOE) based disbursement will be applied, with advances being
the primary disbursement method. Direct payments and reimbursement will also be allowed. In addition, the
GoG’s co-financing share of the expenditures will be allocated to the project on an annual basis through the
Treasury Single Account (TSA) in the MoF.
105. Overall FM risk is assessed to be moderate.
(b) Procurement
106. Procurement will be conducted following the World Bank Procurement Regulations for IPF Borrowers
(July 2016, revised in November 2020). All the procurement-related data will be processed through Systematic
Tracking of Exchanges in Procurement (STEP). The ‘Guidelines on Preventing and Combating Fraud and Corruption
in Projects Financed by IBRD Loans and IDA Credits and Grants’, dated October 15, 2006, and revised in January
2011 and as of July 1, 2016, will be also applied. The NAPR and MEPA have developed an acceptable version of
the Project Procurement Strategy for Development (PPSD) defining the procurement methods and arrangements
to be applied under the project to enable the delivery of value for money in achieving the PDO. The World Bank
will arrange its oversight (prior or past) on the risk-based approach. The project procurement risk rating is
moderate considering the residual risk after planned mitigation measures highlighted in the PPSD, are
implemented.
107. Both agencies have the required knowledge and experience to ensure the compliance of the followed
procedures to the Bank’s rules and regulations. The market analyses and needs assessment to be done on timely
manner will help the agencies prepare procurement packages, mitigate further risks of applying noncompetitive
arrangements, and reduce the frequency of PPSD revision. The country e-procurement system will be used for all
the procurement of goods, works, and non-consulting services. Details on decision-making internal processes will
be reflected in the POM. The streamlined procurement arrangements will be defined in the CERC manual.
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.C. Legal Operational Policies
.
Triggered?
Projects on International Waterways OP 7.50 Yes
Projects in Disputed Areas OP 7.60 No
.
108. The project triggers OP 7.50 - Projects on International Waterways. The project will support the
rehabilitation and modernization of irrigation schemes in Eastern Georgia and drainage schemes in Western
Georgia. These activities involve the potential use and pollution of the waters from the Mtkvari (Kura) River system
and the Black Sea which are considered international waterways as per the policy. The exception to the riparian
notification requirement according to paragraph 7(a) of the policy applies because the project will only focus on
the rehabilitation and modernization of existing irrigation (small-scale) infrastructure and will not support
construction of any new infrastructure. Further, project implementation is not expected to cause any measurable
qualitative/quantitative changes in the water flow of the international waterways concerned. The exception
according to paragraph 7(b) of the policy also applies and accordingly, the TOR for the National Irrigation Master
Plan will consider an examination of any potential riparian issues as required by the policy. The exception to the
notification requirement was approved by the RVP on January 6, 2023.
109. OP 7.60 is not triggered. The project will be implemented countrywide, excluding the Autonomous
Republic of Abkhazeti (Abkhazia) and several municipalities of Tskhinvali region currently not under de facto
jurisdiction of the national GoG of Georgia. Thus, no activities will be undertaken in disputed areas.
D. Environmental and Social
110. The project environmental and social risk rating is substantial due to the nature of project activities,
contextual risks, and the capacity of the IAs that do not have experience with the World Bank Environmental
and Social Framework (ESF). The Environmental and Social Standards (ESS) relevant to this project are: ESS 1:
Assessment and Management of Environmental and Social Risks and Impacts; ESS 2: Labor and Working
Conditions; ESS 3: Resource Efficiency and Pollution Prevention and Management, ESS 4: Community Health and
Safety, ESS 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement; ESS 6: Biodiversity
Conservation and Sustainable Management of Living Natural Resources, ESS 8: Cultural Heritage, and ESS 10:
Stakeholder Engagement and Information Disclosure.
111. Direct environmental risks are associated with physical works and include the typical impacts of
construction activities. The direct environmental impacts include generation of noise and dust, vibration,
emissions from construction machinery and equipment, water pollution, sourcing of natural construction
materials, generation of construction waste, transportation of construction materials and waste, hazard to
workers’ health and safety, and nuisance to local communities. In addition, risks typical for this type of project
include disturbance of water balance in watersheds, negative impact on aquatic life in the affected surface water
bodies, threat of inundation and associated impacts on livelihoods or assets downstream from dam operations
causing uncontrolled spills or failure, and soil salinization and water erosion resulting from the use of
inappropriate irrigation techniques. Indirect environmental impacts from the TA will be related to the
recommendations derived from project-supported preliminary and detailed design studies and technical
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assessments aimed at the development of a national irrigation master plan for investing in I&D and infrastructure.
112. Project implementing agencies have had no prior exposure to the World Bank’s ESF . This shortfall
manifested itself during GRAIL Project preparation and is likely to affect project implementation, especially in the
early phase. While these inherent risks are substantial, the application of well-planned and executed mitigation
measures would reduce the residual risk level to moderate. Risk management will be undertaken by: (a) screening
individual investment designs to filter out any high-risk activities following the guidance of the project’s ESMF, (b)
undertaking site-specific environmental and social impact assessment and/or environmental and social
management planning, (c) incorporating environmental risk reducing elements into the designs of individual
irrigation/drainage schemes, (d) implementing and monitoring effectiveness of impact mitigation measures
prescribed in ESMPs, and (e) obligating construction contractors to produce and adhere to the Environmental and
Social Code of Conduct and the contractor’s ESMP. The existing capacity of MEPA to apply ESF requirements to
investment projects will be enhanced by recruiting additional specialists and providing tailored training for skills
enhancement, including intensive on-the-job mentoring and assistance from the World Bank team. The approach
to environmental risk mitigation of emergency response actions in case of activating CERC will be detailed in the
CERC Manual to be prepared by the borrower before operationalizing CERC.
113. Dam safety. The project will finance rehabilitation and modernization of irrigation systems that draw
water from five existing upstream reservoirs: Lakublo, Pantiani, Mtisdziri, Khorkhori, and Narekvavi (see annex 5
in the special project files). Each of the rehabilitated and modernized irrigation systems will depend on the storage
and operation of the corresponding upstream embankment dam for supply of water and would not function if the
dam failed. To ensure the safety of upstream dams, the borrower will hire at least one dam safety specialist with
expertise in the various technical fields relevant to the safety aspects of the dams. The dam safety specialist will:
(a) inspect and evaluate the safety status of the existing dams, their appurtenances, and performance history,
including the risk downstream in case of dam maloperation or failure; (b) review and evaluate the owners’
operation, maintenance, and emergency procedures; and (c) provide a report of findings and recommendations
for any remedial work or safety-related measures necessary to upgrade the existing dams to an acceptable
standard of safety (dam safety assessment). Depending on the findings of the dam safety assessment, and in case
of high hazard and complex remedial work, a dam safety panel of experts could be required. A preliminary study
on dam safety, financed by the GILMDP, covers three of the five dams.50 Based on available information, all the
dams are currently in operation and no structural deficiency affecting their normal condition has been observed.
The World Bank task team will work with the borrower and independent dam safety specialist(s) in applying the
Good Practice Note on Dam Safety and a series of Technical Notes on Dam Safety to ensure that the recommended
actions are properly addressed, and that project preparation and implementation are compliant with the
requirements of ESS 4/Annex A on Safety of Dams. The project team also will coordinate with the borrower to
support the dam safety assessment, dam safety plans, training, and capacity-building activities, all of which will
be based on the existing reports and lessons learned from the GILMDP.
114. Social risks. The social risks of the project relate to, among others: (a) the physical footprint of civil works
which may require land acquisition and land use restrictions, and occupational and community health and safety
risks, including those related to dam safety; (b) poverty, social, and economic impacts associated with project-
financed TA (for example, management of agricultural land and taxation); (c) social tension or conflict related to
the sharing of water resources across communities or among members of a community or WUO; and (d) the risks
50 “PreliminaryAssessment Study of the East Georgia Irrigation Reservoirs Rehabilitation and Construction Program” D6 - Final Report.
Tractebel-Engie, October 2022.
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of exclusion and inadequate participation and consultation related to shortcomings in information disclosure,
participatory consultations, stakeholder engagement, and the engagement of vulnerable groups. If during project
implementation significant risks related to project suppliers are identified, the supervision company will be
responsible for conducting due diligence on the primary supply workers to ensure there is no forced and/or child
labor. This includes suppliers responsible for supplying the solar irrigation pumping equipment under Component
1. Mitigation measures will include having an RPF in place, developing site-specific Resettlement Action Plans as
required, implementing a SEP and LMP, and operating project-level and contractors’ grievance redress
mechanisms (GRMs).
115. The borrower carried out environmental and social assessments during the project preparation stage to
assess environmental and social risks. To manage these risks during project implementation, the borrower
prepared, disclosed, and consulted with stakeholders on the ESMF, RPF, SEP, and LMP. The main environmental
and social requirements are described in the borrower’s ESCP, including those on enhancing the institutional
capacity of the PIU through recruitment of qualified environmental, social, gender and community liaison, and
operational health and safety (OHS) specialists.
E. Climate Change, Disaster Screening and Climate Co-Benefits
116. Average temperatures in Georgia have increased steadily since the 1960s and are projected to rise by
more than the global average by the end of the 21st century. Figure 351 shows the projected future monthly
average air temperature for the periods 2045–2060 and 2085–2100 under SSP585, which represents the upper
boundary of the range of scenarios described in the literature, against the 2015–2020 baseline. In addition to
increased average temperatures, the frequency of heat waves is
also expected to increase substantially by the end of the century
under higher emissions pathways which pose major risks to
human health, livelihoods, and agricultural productivity. The
rapid retreat of glaciers is also expected, and likely to shift the
regional hydrological flow regime, thus increasing the risk of
flooding and ultimately driving transitions in local ecosystems.
The effects of rising temperatures on agricultural output could
threaten an important source of income and employment in the
poorer rural areas and may consequently increase inequality. In
addition, the projected long-term reductions in the flow rates of
rivers in Georgia, rising average temperatures, and existing
issues with energy distribution networks are expected to
increase the risk of water shortages in the spring and summer.
River flow reductions during the summer months, coinciding Figure 3. Comparison of current monthly
average air temperature and future
with peak demand, have important implications for Georgia’s
projection under SSP585 in Georgia
energy and food supply. Warmer temperatures will increase
evapotranspiration rates and crop water demand,52 requiring additional water to reduce water-stressed crop
growth. Crop water use efficiency needs to be increased by adapting efficient irrigation techniques that produce
more crops per drop, while expanding irrigation to adapt rainfed croplands to future water scarcity.
51Source: Rosa, L. World Bank, 2023.
52 Hatfield,
J. L., and C. Dold. 2019. “Water-Use Efficiency: Advances and Challenges in a Changing Climate.” Frontiers in Plant Science 10:
103.
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117. Rainfed agricultural systems, which depend solely on green water (soil moisture from rainfall), sustain
89 percent of the cropland area,53 and are particularly vulnerable to vagaries in temperature and precipitation
patterns, which are intensifying due to climate
change.54 Using projections of crop water
demand and green water availability under
warming scenarios,55 agricultural green water
scarcity (GWS) was assessed in order to
determine when the rainfall regime is unable to
meet crop water requirements.56 Under 1.5°C
and 3°C warming, the global warming projected
from current climate targets and business-as-
usual policies, GWS will affect most of the
irrigated areas in Eastern Georgia (figure 4). With
respect to the specific short-listed irrigation
schemes under present day climate conditions,
few of those schemes are facing GWS (red
shaded area of figure 4) and only half of the
irrigation scheme in Zeda Arkhi are affected by
GWS (figure 5). Thus, investing in sustainable Figure 4. Share of each irrigation scheme facing GWS under
irrigation development in water-stressed rainfed the current climate and 1.5 degrees and 3 degrees warmer
croplands is a prominent adaptation and climate. The figure shows that under global warming there will
be a substantial exacerbation of GWS and water-stressed crop
mitigation measure that can provide a reliable growth will be widespread unless adaptation solutions, such as
water supply to water-stressed crops, alleviate irrigation expansion are adopted.
heat stress, and contribute to more reliable and
resilient crop production.57 These are some of the main objectives of Component 1.
53 FAO, Georgia Country Profile: https://www.fao.org/aquastat/en/countries-and-basins/country-profiles/country/GEO.
54 Rosa, L., D. D. Chiarelli, M. Sangiorgio, A. A. Beltran-Peña, M. C. Rulli, P. D’Odorico, and I. Fung. 2020. “Potential for Sustainable Irrigation
Expansion in a 3 C Warmer Climate.” Proceedings of the National Academy of Sciences 117 (47): 29526–29534.
55 We used CMIP5 RCP8.5 and downloaded monthly precipitation, evaporation, and runoff (surface and subsurface) from the outputs of
three global climate models (GFDL-ESM2M, HadGEM2-ES, MIROC-ESM-CHEM) and three global hydrological models (LPJmL, H8,
WATERGAP2) as provided by the Inter-Sectoral Impact Model Intercomparison Project (https://www.isimip.org/).
56 Rosa, L., D. D. Chiarelli, M. C. Rulli, J. Dell’Angelo, and P. D’Odorico. 2020. “Global Agricultural Economic Water Scarcity.” Science Advances
6 (18): eaaz6031.
57 Rosa, L. 2022. “Adapting Agriculture to Climate Change Via Sustainable Irrigation: Biophysical Potentials and Feedbacks.” Environmental
Research Letters 17: 063008.
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118. Climate adaptation co-benefits. A summary of the
project’s adaptation co-benefits is provided in table 3.
Subcomponent 1.1 supports the adaptation of irrigation water
services and the broader irrigated agricultural sector to drought,
warming temperatures, and long-term reduction in precipitation. It
does so through improvements in water conveyance efficiency and
upgrading of existing irrigation structures, improved control of
water delivery to farms, and introduction of water metering. These
measures are expected to reduce water use, crop water stress, and
soil erosion. Under Component 1, the project finances
modernization and focuses on enhancing dam safety measures
using resilient design principles based on World Bank guidelines.
These measures will ensure that each infrastructure asset maintains
the desired performance across a range of climate conditions and
minimizes service disruptions in the face of floods and droughts.
Under Subcomponent 1.2, the project invests in and promotes CSA
practices on-farm (for example, use of biofertilizers and appropriate
soil health management practices, integrated pest management,
use of drought-tolerant and heat stress adapted crop varieties).
Institutional strengthening activities under Subcomponent 1.3 are
also explicitly designed to reduce vulnerability to climate risks
through activities that support farmers in adopting on-farm
irrigation technologies (drip and sprinkler irrigation) and provide
them with just-in-time decision support tools (for example, mobile-
based applications that provide satellite-based temperature, heat,
and precipitation data) tailored to Eastern Georgia along with
Figure 5. Extent of Agricultural Green Water training on how to use the applications and technologies to reduce
Scarcity (GWS) under global warming in
Georgia. Figure shows GWS under current
the environmental footprint of their water management practices.
climate conditions and 1.5 degrees and 3 Subcomponent 1.3 is also investing in the establishment of a HAIC
degrees warming. *Note: Figures shows and a multi-agency center for tracking agrometeorological
GWS under current climate conditions and parameters for improved irrigation and land management
1.5°C and 3°C warming.
monitoring, which will significantly enhance the ability and capacity
of institutions within MEPA (for example, NEA, LMA, and GA) to plan
for and respond to these risks (see annex 2 in the special project
files).
119. Climate mitigation co-benefits. The project will modernize irrigation infrastructure over approximately
26,887 ha, assuming that all short-listed schemes will be included in the project. Within this area, irrigation
schemes will be rehabilitated. In areas where there is the possibility of modernization, farmers will be given
opportunities to adopt drip and sprinkler on-farm irrigation technologies. In areas where the topography allows,
the project will convert some gravity-fed irrigation schemes to pressurized irrigation, allowing farmers to easily
install sprinkler or drip irrigation using the natural topography to create the required pressure. This will increase
water savings, reduce the volume of water pumped, and thus reduce energy and CO2 emissions. In addition,
increased agricultural productivity will be achieved through increased vegetation/land cover, recovery (for
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irrigated agriculture) of drought/flood degraded soils, and prevention of erosion through soil and plant cover, all
of which potentially reduce GHG emissions.
120. Using the FAO Ex-Ante Carbon-Balance Tool (EX-ACT) Model, it is estimated that the project will
mitigate 307,584 tCO2 over 30 years or 10,253 tCO2-eq per year. For the irrigation investments (Subcomponent
1.1), the GHG analysis estimates that the net carbon balance over a 30-year period is 1688 tCO2-eq (approximately
56 tCO2-eq/year). Some of the improved irrigation and new irrigation systems will be highly efficient using
pressurization from topography, which does not require energy for pumping, and allow farmers to adopt sprinkler
and drip irrigation for annual and orchards cultivation, respectively. The project, therefore, will prevent carbon
lock-in energy intensive diesel systems to lower emissions. The gravity-based irrigation systems will be designed
to remain and thus maintain zero emissions from irrigation. The Results Framework includes four climate
indicators to monitor progress.
F. Gender
121. The project will integrate lessons and good practices from the ongoing GILMDP as well as other projects
in Georgia and throughout the ECA region to ensure that the design and implementation of project
interventions and awareness raising campaigns include a central role for women’s groups. These interventions
will be designed to guarantee that both male and female farmers and landowners will benefit equally from project
outcomes. The project is expected to: (a) target the provision of irrigation water supply to activities that
particularly benefit and generate jobs/income for women (for example, horticulture and home gardens), (b)
facilitate female farmers’ access to matching grants to pay for irrigation technologies, (c) provide irrigation
technologies preferred by women (for example, small-scale, labor-saving, cost-effective, and socially acceptable),
and target outreach to women to inform them about available irrigation technologies, including demonstrations
on their farms. The project will also build on the importance and benefit of women’s voice and decision-making
in local irrigation management organizations such as WUOs. Training will be specifically targeted to women to
build their confidence and encourage active involvement in the work of WUOs. Thus, the project will increase the
visibility of women farmers by promoting the consolidation of women’s land to make their farm sizes more viable
for irrigation and high-value agricultural production (see annex 2 in special project files). A summary of the gender
gaps, activities, and indicators to measure gender gaps in the project are presented in table 9.
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Table 9. Gender gaps, actions, and indicators
Identified gender gap Gender action to close the gap Indicator to measure
progress toward closing
the gender gap
• The percentage of female landowners with • The irrigation service reform • Increase in the
irrigation service contracts with GA is only process will be accompanied by irrigated area under
3.7 percent of all contract holders, targeted training support to GA formal contracts with
indicating a gender gap in access to water service centers (at scheme the water users by GA
resources and irrigation services. This is level) to enhance customer (disaggregated by
because irrigation service contracts are orientation and customer gender).
traditionally signed by men, even where satisfaction in irrigation services,
women are engaged in irrigation, meaning and to improved gender focus
their contribution to agricultural and awareness.
production remains invisible and under- • The transformation approaches
recognized. will include efforts to increase
formal access to irrigation
services for female landowners
(Sub-component 1.3.)
• The participation of women in agricultural • Under sub-component 1.2, the • Beneficiaries reached
activities is less visible, their access to project will carry out with the project
water and land resources, finance to invest demonstration activities targeted financial support
in modern technologies, is low compared to the land plots of female (gender-
to men; as a result, women are more farmers on a priority basis and disaggregated).
involved in subsistence agriculture. promote matching grant • Grants awarded to
• Women female landowners or co-owners mechanisms that target the female water users for
represent 40 percent of landowners or co- needs of female landowners in adopting water
owners, and their parcels are on average terms of agricultural inputs, efficient on-farm
30 percent smaller than those owned by trainings, machinery, and irrigation technologies
the men, affecting women’s ability to use equipment. and practices.
land as collateral for access to finance for • The proposed matching grants
water saving irrigation technologies. programs will conduct outreach
to make sure these funds are
used (Subcomponent 1.2 and
1.3).
• The land privatization reform conducted in • Providing regulatory and • Average size of the
the 1990s in Georgia resulted in small, operational support to LMA and plots owned by
subsistence agriculture-oriented land NAPR to optimize land and real women alone or
holdings not conducive for the estate markets monitoring jointly with men in
development of commercial agriculture. including female land ownership selected irrigation
• There is a gender gap in land ownership. and gender-inclusiveness of the scheme(s) where pilot
Plots owned by men are on average twice land consolidation process voluntary land
the size of those owned by women alone or (Component 2). consolidation
jointly with men. Consolidation and activities have been
registration of plots by female owners will implemented.
allow them to invest and engage in
commercial high value agricultural
production because these measures will
allow them to access: (a) adequately sized
agricultural land suitable for sustainable
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and successful production, and (b)
finance/credit needed for seasonal
operations and longer-term investments.
122. A detailed gender needs assessment will be carried out during the first year of project implementation.
The assessment will help fine-tune the proposed training and recommend additional capacity-building activities
tailored to women’s needs and other interventions and prerequisites to improve gender diversity in the WUOs,
value chain activities, and the water and climate training. The Results Framework includes the following indicators
that address gender: (a) women landowners with access to improved I&D services, (b) women farmers adopting
improved agricultural technologies, (c) women farmers trained in the application of CSA technologies and
practices, and (d) number of grants awarded to women farmers to adopt irrigation technologies and improve
water management practices.
G. Citizen Engagement and Social Inclusion
123. Citizen engagement is central to the participatory change-oriented processes with local stakeholders.
Citizen engagement mechanisms are an integral part of the project to enable effective and inclusive two-way
interactions at all stages of the project. Project design and implementation will follow a participatory approach in
decision-making and project monitoring to empower citizens to provide feedback and suggestions on project
design and implementation. Under Component 1, as revealed in international experience, one of the conditions
for farmers to willingly engage in irrigated agriculture and to actively participate in the O&M of rehabilitated
irrigation schemes is to formally involve them at all stages of the project cycle (that is, design of rehabilitation
works, choice of irrigation modality at plot level, works and O&M requirements, engagement of tariff reform and
tariff setting design, and communication during irrigation service delivery performance improvement of GA). The
participatory multi-stakeholder methods designed to stimulate change (key project activities in several
subcomponents) are considered citizen engagement. Under Component 2, a pilot land consolidation will be
prepared and driven with citizen participation targeting farmers. Considering that the project focuses on building
resilience in rural communities around irrigation schemes and reducing inequalities, engagement with all citizens
will be carried out throughout the project to measure awareness, satisfaction, and impacts as well as to verify if
feedback and grievance mechanisms are known, used, and satisfactory. Implementation arrangements will also
include GRMs at appropriate geographic scales. In the Results Framework, a beneficiary feedback indicator that
will correspond to at least one citizen engagement activity is included to measure feedback from beneficiaries on
their role in decision-making related to irrigation works and services and will be measured early in the project.
124. Social inclusion. Approximately 95 percent of beneficiaries across the selected irrigation schemes will
include smallholders. These comprise farmers, low-income households, women, and youth. All Component 1
activities have been designed in a way to ensure proactive engagement of women and women’s groups, ensuring
equal benefit. Improved irrigation service delivery is expected to provide a range of benefits to these social groups.
These include livelihood opportunities and jobs in irrigated agriculture and reduced vulnerability to droughts and
floods. Two of the short-listed irrigation schemes are expected to have particularly large populations of vulnerable
groups. The Tiriponi scheme in Shida Kartli region is the largest among the short-listed schemes and is located
near the conflict zone. Shida Kartli region also has one of the largest numbers of internally displaced people (IDPs)
who fled Tsklhinvali region due to the 2008 war.58 In total, there are 75 IDP settlements with almost 17,000 IDPs
58Institute for Development of Freedom of Information. 2015. “Statistics of IDP Settlements and the Number of IDP Families Provided with
Accommodation (2009–2015).” https://idfi.ge/ge/number-of-provided-living-areas-for-idps.
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in Shida Kartli. The settlements located close to the Tiriponi irrigation scheme include Karaleti, Shavshvebi,
Berbuki, and Khurvaleti. The living conditions in these settlements are poor. Residents have little access to social
and health infrastructure (kindergartens and ambulatories) and agricultural land. Some of the settlements also
face drinking water and sanitation issues.59 The largest post-2008 war settlement is Tserovani, in Mtsketa-Mtianeti
region, where the Narekvavi irrigation scheme is located. Lastly, the Zeda Arkhi irrigation scheme will benefit
farmers in Bolnisi. According to the latest census, of around 56,000 inhabitants of this municipality, about 60
percent are ethnic Azerbaijani.60 Generally, the youth in the ethnic minority regions generally communicate well
in Georgian, but the older generations have limited knowledge of Georgian. The SEP will take this into account.
V. GRIEVANCE REDRESS SERVICES
125. Communities and individuals who believe that they are adversely affected by a World Bank supported
project may submit complaints to existing project-level grievance redress mechanisms or the Bank’s Grievance
Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address project-
related concerns. Project affected communities and individuals may submit their complaint to the Bank’s
independent Inspection Panel which determines whether harm occurred, or could occur, because of the Bank’s
non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have
been brought directly to the World Bank’s attention, and Bank Management has been given an opportunity to
respond. Information on how to submit complaints to the World Bank’s corporate GRS is available at
http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service.
Information on how to submit complaints to the World Bank Inspection Panel is available at
www.inspectionpanel.org.
VI. KEY RISKS
126. The overall residual risk rating of the project is Substantial . Although almost all project risks are rated
Low or Moderate, the environmental and social risks, as well as stakeholder risks are rated Substantial. Thus, the
overall risk rating for the project is Substantial.
127. Environmental and social risks are Substantial. Environmental and social risks are inherent prior to
mitigation. The main social and environmental risks and mitigation measures will revolve around the activities of
Subcomponent 1.1 (rehabilitation and modernization of selected irrigation schemes). Environmental risks would
be contained through the conceptual designs of the individual irrigation schemes selected for project intervention.
The main social risks and impacts of the project would relate to the physical footprint of civil works (upgrading
existing irrigation schemes), which may require land acquisition and land use restrictions. Nonetheless, the PIU in
MEPA, which has overseen irrigation works under the GILMDP, has experience applying World Bank safeguard
policies to the investment operations. To date, there have been no significant environmental or social issues
encountered during the irrigation scheme rehabilitation works in that project.
128. The residual stakeholder risk is Substantial. The project financing arrangements depend on 50 percent
59GeoWel Research. 2009. “Baseline Survey of the IDP Settlements and their Neighboring Communities in Kvemo Kartli and Shida Kartli.”
https://geowel.org/wp-content/uploads/2021/04/idp_research_geowel_2010_full_eng.pdf.
60 National Statistics Office of Georgia. 2014. “2014 General Population Census, Demographic and Social Characteristics .”
http://census.ge/en/results/census1/demo.
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
counterpart financing. Consequently, risks can emerge related to availability of state funds to finance project
activities, across all components. These risks are mitigated through provisions in the legal agreement that ensure
annual funding by the borrower based on the workplan and budget presented by the PIUs. Another risk is related
to achieving full participation of farmers, especially smallholders, in project activities that contribute to the
financial and operational sustainability of the project. In addition, there is a substantial stakeholder risk relating
to the implementation of the NSDI. Effective stakeholders’ engagement and ultimate active participation in the
data sharing activities can take a long time, especially in the case of institutional stakeholders. Thus, creating and
implementing a stakeholder engagement plan early in the project will be an important mitigating factor.
Moreover, the project will focus on strategic messaging and effective communications, which are also important
for managing stakeholder risk and for exploring feasible financing modalities with the borrower in case of a
funding shortfall by the counterpart.
129. Institutional capacity for implementation and sustainability residual risk is Moderate. Overall,
institutional capacity within MEPA for reforming GA, RDA, and LMA is weak. In addition, there are institutional
risks associated with certain aspects of project management, such as handling environmental and social issues.
However, based on focused efforts to establish the foundation for reform through a gap analysis for GA, RDA, and
LMA, with targeted trainings, the project aims to mitigate these risks. Thus, the residual risk is Moderate.
130. Technical design of project/program residual risk is Moderate. Although the project is complex and
consists of linked interventions in the water, land, and agriculture sectors, the World Bank will support its
implementation closely, drawing on lessons from the ongoing GILMDP’s expertise, documentation, and
experiences. The residual technical risk related to the enhancement of the IPRS and operationalization of the LIS
and NSDI is assessed as moderate because capacity for implementation is already built within NAPR and LMA.
These institutions should have sufficient time to do the same during the GRAIL Project implementation period.
Resources to inform the new project include: (a) design reviews from GILMDP, (b) detailed technical specifications
for the design of infrastructure and procurement of consulting services, (d) experience in reforming irrigation
management from ongoing WUO pilots and regional successes, and (e) experience in delivering training in
agriculture and managing matching grant programs. .
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
VII. RESULTS FRAMEWORK AND MONITORING
Results Framework
COUNTRY: Georgia
Georgia Resilient Agriculture, Irrigation, and Land Project
Project Development Objectives(s)
The Project Development Objective (PDO) is to: (a) improve irrigation, and drainage services, and agricultural production in project areas; and (b)
strengthen national irrigation and land management institutional capacity for climate resilient planning.
Project Development Objective Indicators
RESULT_FRAME_TBL_ PD O
Indicator Name PBC Baseline End Target
Improved irrigation and drainage services and agricultural production in project areas
Increase in gross value of agricultural production in project areas
0.00 20.00
(Percentage)
Landowners with access to improved irrigation and drainage
0.00 36,377.00
services (Number)
Landowners with access to improved irrigation and drainage
0.00 13,800.00
services - female (Number)
Strengthened national irrigation and land management institutional capacity
Irrigation service delivery performance monitoring & decision
Performance monitoring and decision support system
support system established & operational in central office & No performance monitoring system exists in Georgian
established and operational in GA central and selected
selected service centers of Georgian Amelioration in project Amelioration.
service centers in project areas.
areas (Text)
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
RESULT_FRAME_TBL_ PD O
Indicator Name PBC Baseline End Target
Hydro-Agro Informatics Center established & operational for
real-time monitoring & dissemination of water, land, agriculture
No Hydro-Agro informatics center exists Center established and operational
& climate information for water efficient & climate-resilient
planning (Text)
Multi-purpose land information system (LIS) operationalized
0.00 100.00
(Percentage)
PDO Table SPACE
Intermediate Results Indicators by Components
RESULT_FRAME_TBL_ IO
Indicator Name PBC Baseline End Target
Component 1.1 Irrigation infrastructure rehabilitation and modenization
Area provided with new/improved irrigation or drainage services
(CRI, Hectare(Ha)) 0.00 26,887.00
Area provided with improved irrigation or drainage services
0.00 26,887.00
(CRI, Hectare(Ha))
Cropped area exposed to water shortage in project areas
25.00 15.00
(Percentage)
Component 1.2 Support to irrigated agriculture and value chain development
Increase in the value of marketed output of farmers and
agribusinesses benefited from the project grant facility, 0.00 20.00
extension services and improved irrigation services (Percentage)
Increase in yields of key crops in farms benefited from project
0.00 30.00
grant facility and improved irrigation services (Percentage)
Farmers adopting improved agricultural technology (CRI,
0.00 3,000.00
Number)
Farmers adopting improved agricultural technology - Female 0.00 750.00
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
RESULT_FRAME_TBL_ IO
Indicator Name PBC Baseline End Target
(CRI, Number)
Farmers adopting improved agricultural technology - male
(CRI, Number) 0.00 2,250.00
Beneficiaries reached with the project financial support
0.00 1,500.00
(Number)
Female beneficiaries reached with the project financial
0.00 300.00
support (Number)
Farmers trained and adopting CSA technologies and practices
(Number) 0.00 3,000.00
Female farmers trained and adopting CSA technologies and
0.00 750.00
practices (Number)
Component 1.3: Improved performance of irrigation service delivery
Design and adoption of revised irrigation tariff system (Text) Area-wise tariff at 75 GEL/Ha Differentiated tariff agreed and adopted
Grants awarded to water users for adopting water efficient on-
0.00 250.00
farm irrigation technologies and practices (Number)
Grants awarded to female water users for adopting water
efficient on-farm irrigation technologies and practices 0.00 50.00
(Number)
Increase in the irrigated area under formal contract with water
7,800.00 8,100.00
users by Georgian Amelioration (Hectare(Ha))
Increase in the irrigated area under formal contract with
female water users by Georgian Amelioration (Hectare(Ha)) 800.00 1,000.00
Members of the Farmer Initiative Groups (FIG) reporting FIG
meetings are effective in incorporating their feedback in the 0.00 70.00
decisions about irrigation works and services (Percentage)
Component 2: Improvement of Land Management Practices
Number of requests for spatial information fulfilled by NSDI
0.00 10,000.00
(Number)
Enhancement of Immovable property registration system (IPRS) 0.00 100.00
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
RESULT_FRAME_TBL_ IO
Indicator Name PBC Baseline End Target
(Percentage)
Average size of the plots for all landowners in selected irrigation
scheme(s) where pilot voluntary land consolidation activities 0.50 1.00
have been implemented (Hectare(Ha))
Average size of the plots owned by women alone or jointly
with men in selected irrigation scheme(s) where pilot
0.30 1.00
voluntary land consolidation activities have been
implemented (Hectare(Ha))
IO Table SPACE
UL Table SPACE
Monitoring & Evaluation Plan: PDO Indicators
Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
Measures changes in the Survey of farmers-
total value of produce based beneficiaries of the
on the farm gate prices. Geostat, project and Geostat (for
Gross Value Production surveys, commodity prices). The
Annually,
(GVP) aggregates the value remote first survey will be
Increase in gross value of agricultural starting Year MEPA PIU M&E system
of different annual crops sensing, conducted a year after
production in project areas 3
produced in the project area project M&E the first irrigation
by registered landowners database season in the schemes
with or without contracts rehabilitated by the
with GA. project.
Landowners with access to improved This gender-disaggregated Semi- NAPR All registered MEPA PIU M&E system
irrigation and drainage services indicator measures the annually landowners will have
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
cumulative number of starting in access to improved
current and potential water Year 4 irrigation and/or
users (includes enterprises drainage services upon
and government-owned completion of
land) with access to rehabilitation works.
improved irrigation and/or The gender-
drainage services resulting disaggregated number
from the project is calculated based on
interventions. Targeted the cadastral and
number will be adjusted registration information
upon final selection of the provided by NAPR.
schemes for the project
rehabilitation program.
Landowners with access to improved
irrigation and drainage services -
female
Measures progress with Monitoring of progress
Irrigation service delivery performance
establishing and with establishing the
monitoring & decision support system Georgian MEPA PIU working
operationalizing Quarterly system at central office
established & operational in central office Amelioration closely with GA
performance monitoring and selected service
& selected service centers of Georgian
and benchmarking system in centers of GA .
Amelioration in project areas
GA for service delivery.
This climate indicator
Hydro-Agro Informatics Center reports on the status of
Qualitative assessment
established & operational for real-time establishing and Annually,
of progress with
monitoring & dissemination of water, operationalizing the center starting Year MEPA PIU MEPA PIU
establishing and
land, agriculture & climate information for to provide data services for 4
services of the center.
water efficient & climate-resilient boosting climate resilience
planning to droughts and
(agricultural) water scarcity.
Multi-purpose land information system This climate indicator Annually MEPA LMA Monitored through MEPA PIU
(LIS) operationalized monitors progress of LIS statistics and LMA submissions for
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
operationalization to progress progress reports and
provide eServices and data reports once LIS is operational
for climate resilient planning through LIS dashboard
and management of land and standard statistical
resources. It monitors all report.
components of LIS, such as
IT infrastructure, software
modules and functionalities,
data and staff capacities.
ME PDO Table SPACE
Monitoring & Evaluation Plan: Intermediate Results Indicators
Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
This indicator measures the
total area of land provided
with irrigation and drainage Data will be collected
Semi- GA unit in charge of
services under the project, from the progress
annually, Remote collecting and analyzing
including in (i) the area reports of contractors
Area provided with new/improved starting sensing data, remote sensing data in
provided with new irrigation for civil works. This will
irrigation or drainage services from Year survey data partnership with MEPA
and drainage services, and be supplemented by
4 PIU M&E unit
(ii) the area provided with remote sensing data.
improved irrigation and
drainage services, expressed
in hectare (ha).
Measures in hectares the Semi- Remote Data will be collected GA unit in charge of
total area of land provided annually, sensing data, from the progress collecting and analyzing
Area provided with improved with new or improved starting ground data reports of contractors remote sensing data in
irrigation or drainage services irrigation or drainage from Year from GA and for civil works. This will partnership with MEPA
services in operations 4 PIU M&E be supplemented by PIU M&E unit
supported by the World database remote sensing data.
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
Bank.
This climate indicator Semi- Remote sensing will be
Remote
measures the percentage of annually, used to measure actual
Cropped area exposed to water shortage sensing & MEPA PIU M&E unit
the cropped area facing a starting in and potential ET. RET
in project areas ground data
Relative Evapotranspiration Year 4 will be AET/PET.
(RET) less than 0.75.
Survey of beneficiaries
Increase in the value of marketed output Measures changes in value Annually, RDA grant
and sales data declared
of farmers and agribusinesses benefited of marketed output of starting in program MEPA PIU M&E unit
at grant program
from the project grant facility, extension farmers and agribusinesses Year 3 database
application.
services and improved irrigation services benefiting from the project.
Survey, RDA
Survey of beneficiaries
Annually, grant
Increase in yields of key crops in farms and yield data declared
Measures increase in yields starting in program MEPA PIU M&E unit
benefited from project grant facility and at grant program
of beneficiaries. Year 3 database
improved irrigation services application stage.
Adoption will be
recorded when (i)
This indicator measures the direct or indirect
number of farmers (of beneficiaries use
agricultural products) who Annually, technology promoted
Survey, RDA
Farmers adopting improved agricultural have adopted an improved starting in by the project (ii) the MEPA PIU M&E system
database
technology agricultural technology Year 3 technology has positive
promoted by operations impact and (iii)
supported by the World adoption for a
Bank. minimum of two
consecutive cycles.
Farmers adopting improved
agricultural technology - Female
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
Farmers adopting improved
agricultural technology - male
RDA grant Data on number of
This gender indicator Semi-
Beneficiaries reached with the project program grant recipients will be MEPA PIU M&E system
measures the progress of annually
financial support database reported by RDA,
grant support program.
Female beneficiaries reached with the
project financial support
Number of training
This climate indicator is participants will be
RDA Reports,
measured by counting (i) provided by the RDA.
Semi- RDA MEPA PIU working closely
Farmers trained and adopting CSA beneficiaries of the CSA The data on farmers
Annually database, with RDA
technologies and practices training; and (ii) number of adopting CSA will be
Surveys
farmers adopting the CSA obtained from the
technologies. RDA and field survey.
End Target: 3,000 female
farmers trained and 1,500 of
them adopting CSA
technologies and practices. Data on training
participants will be
This climate and gender provided by the RDA.
RDA reports
indicator measures the The data on farmers
Semi- and MEPA PIU working closely
Female farmers trained and adopting number of female adopting CSA
annually database, with the RDA
CSA technologies and practices beneficiaries of the GRAIL technologies will be
Surveys
training program trained obtained from the RDA
and adopting CSA database and also
technologies and practices through the surveys
also digital technologies and
integrated pest
management (IPM); and (ii)
number of female farmers
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
adopting the CSA
technologies
MEPA PIU together
with MEPA, GNERC,
Annually,
Measures the progress in and GA to monitor the MEPA PIU working closely
Design and adoption of revised irrigation starting GA
design and adoption of progress with irrigation with the RDA
tariff system Year 5
revised tariff. tariff reform design and
adoption.
This climate indicator counts
Annually,
Grants awarded to water users for the number of grants RDA grant Numerical count from
starting MEPA PIU
adopting water efficient on-farm awarded for adopting on- database the grant database
year 2
irrigation technologies and practices farm irrigation technologies
and practices.
This gender-taggable
indicator will count the Annually, Numerical count from
Grants awarded to female water users RDA grant
number of grants awarded starting the grant program MEPA PIU M&E system
for adopting water efficient on-farm database
to female water users for year 2 database.
irrigation technologies and practices
adopting water efficient and
water saving technologies.
Captures the changes
(increase) in the area GA Billing Using data availbale
Increase in the irrigated area under MEPA PIU working closely
covered by formal contract Annually and Contract with the GA billing and
formal contract with water users by with GA
between GA and water Unit contract unit.
Georgian Amelioration
users in GRAIL supported
irrigation systems.
This gender-taggable The data on the
indicator is to capture the GA Billing number of contracts
Increase in the irrigated area under MEPA PIU working closely
changes (increase) in the Annually and Contract and area covered by
formal contract with female water with GA
area covered by formal Unit the contracts is
users by Georgian Amelioration
contract between GA and accumulated in the
female water users in GRAIL database of the GA
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supported schemes. billing and contract
unit.
Baseline survey of FIGs
in the GRAIL areas
This Citizen Engagement
would determine how
(CE) indicator measures the
the feedback of FIG
Members of the Farmer Initiative Groups percentage of members of Semi-
members are
(FIG) reporting FIG meetings are effective the Farmers Initiative Group annually, WUO
considered in the MEPA PIU M&E system
in incorporating their feedback in the reporting that FIG meetings starting Support Unit
decisions about
decisions about irrigation works and are effective in Year 2
irrigation services.
services incorporating their feedback
Semi-annual
in the decision about
questionnaires among
irrigation services.
FIG members.
Quarterly statistics on
Monitors number of NAPR/NSDI the number of received
Number of requests for spatial requests/connections Quarterly portal requests will be NAPR PIU
information fulfilled by NSDI fulfilled by the NSDI database generated from the
Geoportal. NSDI statistical module
Monitor the progress of the Semi- Through quarterly
Enhancement of Immovable property NAPR NAPR PIU
IPRS and eServices annually reports
registration system (IPRS)
enhancement .
Average size of the plots for all Monitors the evolution of
landowners in selected irrigation the average scheme-level Semi- LMA Count and trend
MEPA PIU/LMA
scheme(s) where pilot voluntary land size of the agricultural plots annually database analysis of land records
consolidation activities have been as a result of pilot voluntary
implemented land consolidation activities.
Average size of the plots owned by Monitors the evolution of Semi- LMA Count and trend
MEPA PIU/LMA
women alone or jointly with men in the average size of the plots annually database analysis of land records
selected irrigation scheme(s) where of agricultural land owned
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pilot voluntary land consolidation by women alone or jointly
activities have been implemented with men in result of pilot
voluntary land consolidation
activities in selected GRAIL
irrigation scheme(s)
ME IO Table SPACE
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Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
ANNEX 1: Implementation Arrangements and Support Plan
COUNTRY: Georgia
Georgia Resilient Agriculture, Irrigation, and Land Project
A. Project Institutional and Implementation Arrangements
1. The Ministry of Environmental Protection and Agriculture (MEPA) and the National Agency of Public
Registry (NAPR) will share overall responsibility for project implementation. Each implementing agency will take
the lead on project elements under their respective institutional mandate and capacity. It has been proposed that
the same staff of the two IAs of GILMDP will compose the staffing for the GRAIL Project. Each PIU will develop a
separate procurement plan and manage the flow of funds on behalf of MEPA and the NAPR.
2. MEPA oversees regulation of economic activity in the agriculture sector and environment protection to
increase the sector’s production capacity, while NAPR is responsible for land registration and is highly efficient
by international standards. Both PIUs have adequate capacity because they are currently implementing the
GILMDP. The implementation arrangements of both PIUs in GILMDP have been generally satisfactory. Based on
the FM assessment, it was concluded that the capacities within the IAs are sufficient to manage the GRAIL Project.
3. Project implementation will be guided by two Project Operations Manuals (POMs), developed by each
of the two PIUs acceptable to the World Bank. The development of the POMs will be a condition for effectiveness
of the legal agreement. The POM will include details on institutional and implementation responsibilities, technical
aspects of all components and activities, guidance on M&E of project results and outcomes, environmental and
social risk mitigation measures, disbursements, FM aspects, arrangements for training and Operating Costs,
project supervision and reporting provisions. The MEPA POM will include a specific matching grants manual. Both
POMs will also provide detailed guidelines for project coordination, especially the formal coordination
mechanisms between MEPA and NAPR and will include an annex for a Contingent Emergency Response
Component (CERC) manual.
4. Component 1: Resilient Irrigated Agriculture will be implemented by MEPA. Component 1 has three
subcomponents:
(a) Subcomponent 1.1: Irrigation & Drainage Infrastructure Rehabilitation and Modernization. While
MEPA will implement Component 1 overall, Georgia Amelioration will lead implementation of
Subcomponent 1.1 as GA is the sole provider of irrigation and drainage services in Georgia.
(b) Subcomponent 1.2: Irrigated Agriculture and Value Chain Development. Likewise, within MEPA,
RDA is the key implementing agency that oversees administering matching grants for agricultural
services to farms across Georgia. Therefore, for Subcomponent 1.2, will serve as the key
implementing agency.
(c) Subcomponent 1.3: Improved Performance of Irrigation Service Delivery. Under the supervision of
MEPA, this subcomponent aims to improve GA’s capacity on investment planning and irrigation
service delivery from national to local levels. The activities under this component will also be
implemented by GA at the central offices in Tbilisi and the respective service centers. In addition,
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the Water User Organization Support Unit at the central and regional offices of GA, will also be
leading many of the local irrigation service delivery and on-farm training activities.
5. Component 2: Improved Land Management Capacity. Component 2 has two subcomponents:
(a) Subcomponent 2.1: Strengthening of agricultural land management and monitoring. This
subcomponent will be implemented by MEPA through the LMA. LMA will be responsible for
implementing the activities covered in this subcomponent. The main activity would be the LIS,
initiating the design and methodology for agricultural mass valuation, and piloting the
implementation of the national land consolidation strategy.
(b) Subcomponent 2.2: Enhancement of land administration service delivery and building digital
governance infrastructure. This subcomponent will be implemented by the NAPR with technical
support by the DGA, as required. The core staff of the NAPR PIU currently managing implementation
of the Component 2 under GILMDP, will be designated for implementation of the activities under this
Subcomponent.
6. Component 3: Project Management. Each PIU will be responsible for overall project management,
including coordination and technical (specifically engineering, construction supervision and quality control)
supervision, and shall carry out the fiduciary function (disbursement, FM, procurement, environmental/social
standards, and M&E).
7. Environmental and social functions. MEPA PIU will have an environmental specialist, an OHS specialist, a
social specialist, and a gender and community liaison specialist responsible for all environmental, and social,
health and safety aspects of the project, such as environmental and social assessment, supervision, preparation
of site-specific ESIAs/ESMPs, stakeholder engagement, grievance redress (including gender-based violence
related), monitoring, and reporting.
8. Procurement. MEPA and NAPR will perform procurement functions under the project. Currently, both
have employed procurement experts with adequate experience, capacity, and knowledge of the World Bank’s
Procurement Regulations. The PPSD61 has been developed jointly by MEPA and NAPR and presents all
arrangements to be followed for each of the expected procurement activities. The project procurement plan,
procurement processes, and contract management will be reported/recorded via STEP. Detailed procurement
risks have been identified in the PPSD, as well as clear mitigation actions on how to address each risk, these will
be monitored closely during project implementation and procurement risks adjusted accordingly.
B. Financial Management and Disbursements
9. Risk analysis. The overall FM risk for the project is substantial before mitigation measures. With adequate
mitigation measures agreed, the FM residual risk is rated moderate.
61The PPSD is a methodology that is used to determine the optimum procurement approach to deliver the right procurement result. The
PPSD, which is required for each project, includes an analysis of the project procurement needs, a strategic assessment of the operating
context and the Borrowers capacity for procurement, a procurement risk analysis and recommends a procurement approach for the
project. The Borrower is responsible for preparing the PPSD
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10. FM performance of the active project. As mentioned in the Appraisal Summary section of the PAD, the
FM arrangements of the ongoing project implemented by the PIUs is satisfactory. There are no outstanding IFRs
or audit reports under the current project.
11. Planning and budgeting. The project budget will be prepared by the respective PIUs for the components
under their implementation. There is sufficient capacity for planning and budgeting within both PIUs to manage
project funds, including funds allocation, liquidity planning, and overall performance. Variances of actual versus
budgeted figures should be checked on a regular basis, appropriately analyzed, and corrective actions taken. The
PIUs will prepare in-year financial plans and cash forecast based on the project’s budget, thus ensuring adequate
liquidity management and withdrawal of funds.
12. Accounting system. The PIUs will use and administer acceptable accounting software. The accounting
records should include proper analytics of expenditures per contract and each specific payment.
13. Cash basis will be applied for the project accounting, and IPSAS “Financial Reporting Under the Cash Basis
of Accounting” issued by the International Public Sector Accounting Standards Board (the IPSASB) of the
International Federation of Accountants (IFAC) will be used for the project financial reporting. There should be
proper backup of accounting records on external drives, as well as proper security regulation on access and editing
rights of the financial information.
14. Internal control. The POM will detail the procedures and controls to be applied for the project. Some of
the key internal controls to be applied should include:
(a) Appropriate authorizations and approvals of all purchases, relevant documentation, and transactions of
payments;
(b) Segregation of duties because different people handle different phases of a transaction;
(c) Reconciliations between project accounting records and other relevant sources of information (for
example, Client Connection and bank account statements) performed at least monthly by the Senior
Finance Management Officer; and
(d) Original documentation supporting all project transactions properly filed.
15. Contract Management. Contract implementation will be checked in the software and checks and controls
of the total contract amount and payments due will be checked before each payment. Respective technical staff
and financial department will review and approve invoices and accompanying documentation against contract
provisions for ceilings, dynamics of payments, and quality of deliverables.
16. Financial reporting. Unaudited IFRs, which will include financial information relating to the whole project,
will be prepared for each quarter and due 45 days after the end of each quarter by each PIU, respectively. IFRs
will be prepared in line with cash basis accounting. The format of the IFRs will be agreed between the GoG and
World Bank. The PIUs will handle preparation of the IFRs and the annual project financial statements. The
reporting currency will be the US dollar. IFRs will include the following reports (subject to any modifications agreed
with the IA between the date of the report and negotiations): (a) Receipts and Payments, including comparison of
budgeted versus actual amounts, (b) Uses of Funds by Activity, (c) DA statement, and (d) Accounting policies and
explanatory notes.
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17. External audit. The annual audit of the project financial statements will be conducted by an independent
audit firm acceptable to the World Bank and in line with agreed TOR acceptable to the World Bank. The audit
report will be submitted to the World Bank no later than six months after the end of the audited period. The TOR
will be agreed between the GoG and the World Bank during the selection of the auditor. In addition, the audit will
review compliance with procedures laid out in the financial manual. The project will fund the audit of project
financial statements. The audited project financial statements will be posted by the client on the agencies’ website
within one month of their receipt from the auditors and World Bank acceptance.
18. FM covenants. The FM covenants require: (a) PIUs to support an adequate financial management system;
(b) PIUs to prepare IFRs for each calendar quarter and deliver them to the World Bank no later than 45 days after
the end of the reporting quarter; and (c) annual project financial statements audited by a private audit firm
acceptable to the World Bank, and such audit should be delivered to the World Bank not later than six months
after the end of the audit period.
19. Funds flow and disbursement arrangements. Two DAs (one for each PIU) will be opened for the project
to be managed by PIUs for activities to be implemented under the project. The DAs will be opened in US dollars,
in a TSA within the MoF. The SOE-based disbursement method will be applied for the project. Project funds will
flow from the World Bank, either (a) via the DA, which will be replenished based on SOEs or full documentation,
or (b) based on direct payment withdrawal applications and/or special commitments, received from PIUs.
Withdrawal applications documenting funds utilized from the DAs will be sent to the World Bank at least every
three months. The following disbursement methods may be used: Reimbursement, Advance, Direct payment, and
Special Commitment. The DAs’ ceilings for each DA as well as the detailed instructions on withdrawal of project
proceeds will be provided in the Disbursement and Financial Information Letter. In addition, the separate treasury
account will be used for receiving on an annual basis the GoG’s co-financing share of the project.
20. FM supervision. The World Bank will supervise the project’s FM arrangements in two main ways: (a)
reviewing the project’s unaudited IFRs for each calendar quarter, as well as the project’s and implementation
entity’s annual audited financial statements and auditor’s management letter, and (b) performing on-site
supervision and reviewing the project’s financial management and disbursement arrangements to ensure
compliance with the World Bank’s minimum fiduciary requirements. The on-site supervision will include
monitoring of agreed actions, review of randomly selected transactions, review of internal controls, and other
supervision activities
C. Implementation Support Plan
21. The World Bank will provide implementation support and oversee the implementation of the project in
line with World Bank procedures, standards, and requirements. The World Bank has put in place a task team
having diverse skills covering the Water, Agriculture, and Urban Resilience and Land Global Practices. The skills
required for continuous implementation support include irrigation management, water resources management,
water supply and wastewater, dam safety, agriculture, land, procurement, FM, and environmental and social risk
management. It is expected that implementation support by the World Bank team will be more intense during
the first two years of project implementation. The World Bank also will review project reports periodically as part
of the project implementation support missions to be carried out at least twice a year.
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The World Bank
Georgia Resilient Agriculture, Irrigation, and Land Project (P175629)
ANNEX 2: Map
COUNTRY: Georgia
Georgia Resilient Agriculture, Irrigation, and Land Project
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