Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) Regional Development Project (P126033) EUROPE AND CENTRAL ASIA | Georgia | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Specific Investment Loan | FY 2012 | Seq No: 9 | ARCHIVED on 19-Jun-2017 | ISR28504 | Implementing Agencies: Georgia Municipal Development Fund, Ministry of Finance Key Dates Key Project Dates Bank Approval Date:20-Mar-2012 Effectiveness Date:31-May-2012 Planned Mid Term Review Date:14-Oct-2013 Actual Mid-Term Review Date:26-May-2014 Original Closing Date:31-Dec-2016 Revised Closing Date:31-Dec-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve infrastructure services and institutional capacity to support the development of tourism-based economy and cultural heritage circuits in the Kakheti region Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Infrastructure Investment:(Cost $56.90 M) Institutional Development:(Cost $3.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 6/19/2017 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) Progress toward achievement of the project objectives has been satisfactory. However it is critical that at this stage the efforts of the PIU and the involved government agencies is mobilized to ensure the completion of remaining works and activities (works in Dartlo and Batonis Tsikhe, capacity building activities), remediation of defects on completed sites (Shwamta Gateway, Quevery School, Ujarma Visitor Center, Ikalto access road), and putting in place arrangements for operation of the assets developed under the project (Shwamta Gateway and visitor center, Quevery School, Ujarma Visitor Center, Ninotsminda visitor center and Davit Gareji visitor center). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Increase weighted average number of hours per day of piped water services in project areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 24.00 24.00 24.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 Comments A letter from the United Water Company dated 19 January 2016 confirms that the rehabilitated water supply works in Erekle II Street, Nadikvari Street, Freedom Square, Cholokashvili Street in Telavi and Chavchavadze Street and Kudigori Street in Kvareli have the capacity to provide 24 hour supply (whenever water resources are in abundance). Given that that the project investments didn't include any improvements to the water collection systems, increased capacity for delivery is interpreted as sufficient for declaring the achievement of the target value of the indicator. 6/19/2017 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) PHINDPDOTBL  Reduce weighted average vehicle operating cost due to improved urban roads (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 80.00 71.00 75.00 Date 30-May-2012 02-May-2016 13-Jun-2017 31-Dec-2017 Comments The Roads Economic Decision Model (RED) version 3.2 was used to evaluate Vehicle Operating Costs (VOC) savings using 3.37km of rehabilitated road sections in Kvareli. The resources used in the context of vehicle operating costs include Fuel, Tires, Maintenance parts and labor, Lubricants, Crew, Depreciation, Interest, and Overheads. The RED model takes these vehicle characteristics and applies the relationships included in the HDM model to calculate vehicle operating costs (VOC) as a function of roughness (IRI). More methodological details will be available in the final M&E report of the project. PHINDPDOTBL  Increase volume of private sector investments (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 74,000,000.00 70,000,000.00 50,000,000.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 Comments A more precise re-evaluation of the value of the indicator has been conducted by the M&E consultant in March-April 2017. The new estimate is based on the results of the survey of big tourism and agricultural private investors in the project areas that were not direct beneficiaries of the PPI components of the project. The final value of the indicator includes - $19 million of investment by the PPI beneficiaries, - $ 42 million, which represents 69% of total private investment by on-direct beneficiaries (the total is equal to $ 70 million). The 69% represent the share of surveyed non-direct beneficiary investors that reported that the role of RDP in their decision to invest was "very important" or "quite important". - $9 million, which represent 10% of a $ 85 million Iranian-backed investment project in Sagarejo. While there is no direct evidence of attributability of this investment, the consultant has deemed it reasonable that this extremely large investment was partially enabled by the broad impact of RDP on development of tourism in Kakheti. 6/19/2017 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) PHINDPDOTBL  Increase number of hotel beds in circuit route areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,610.00 3,016.00 3,016.00 1,932.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 PHINDPDOTBL  Increase points of sales (tickets, souvenirs shops, restaurants, hotels, guesthouse and family houses) in renovated culture heritage sites and cities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 248.00 260.00 337.00 323.00 Date 30-May-2012 02-May-2016 13-Jun-2017 31-Dec-2017 Comments The value of the indicator was updated based on the points of sales audit conducted by the M&E consultant from 16th to 27th of January 2017. Overall Comments Intermediate Results Indicators 6/19/2017 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) PHINDIRITBL  Piped household water connections that are benefiting from rehabilitation works undertaken by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5,525.00 5,525.00 5,000.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 PHINDIRITBL  Number of people in urban areas provided with access to all-season roads within a 500 meter range under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 84,100.00 84,100.00 50,000.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 PHINDIRITBL  Number of private investment proposals approved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 10.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 PHINDIRITBL  Number of redeveloped culture heritage sites along the the tourist circuit (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 11.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 6/19/2017 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) PHINDIRITBL  Production/Distribution of new maps based on geotourism database (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19,449.00 19,449.00 10,000.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 PHINDIRITBL  Number of established and operating of destination management offices (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 0.00 3.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 Comments The recent mission has established that the DMOs are not operational yet, thus the previously reported indicator counted tourist information centers, rather than DMO, which is an incorrect interpretation of the indicator. In the course of discussion with GNTA it has been agreed that three independent destination management organizations for the relatively small region of Kaheti are unnecessary. For this reason, it has been confirmed that there will be one Destination Management Organization for the region, but alongside its headquarters in Shuamta, it will have branches in Telavi and Kvareli. Thus the target of establishing three Destination Management Offices will be met by the project completion. The facilities that will host the DMOs are already built, the organizational arrangements are currently being put in place by the GNTA. PHINDIRITBL  Number of buildings restored in Telavi, Kvareli and Dartlo (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 217.00 217.00 150.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 6/19/2017 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) PHINDIRITBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 87,800.00 87,800.00 30,800.00 Date 30-May-2012 13-Dec-2016 13-Jun-2017 31-Dec-2017 PHINDIRITBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 45,770.00 45,770.00 16,140.00 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P126033 IBRD-81480 Effective USD 60.00 60.00 0.00 59.40 0.60 99% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P126033 IBRD-81480 Effective 20-Mar-2012 28-Mar-2012 31-May-2012 31-Dec-2016 31-Dec-2017 Cumulative Disbursements 6/19/2017 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Regional Development Project (P126033) Restructuring History Level 2 Approved on 06-Jun-2016 Related Project(s) There are no related projects. 6/19/2017 Page 8 of 8 Public Disclosure Copy