Regional and Municipal Infrastructure Development in Georgia

Project completed

The project will increase human and institutional capacities of all municipalities in Georgia (except the capital city Tbilisi). lt will enable them to perform independently the core three functions for decentralised delivery of basic infrastructure services, i. e. Project Cycle Management, Financial Management and Asset Management. Such a decentralized System will enable the Government to better respond to population needs at local level.

Country/region Topic Period Budget
Rule of Law - Democracy - Human rights
Sector not specified
Anti-corruption organisations
Public finance management
10.04.2014 - 31.08.2023
CHF  5’505’000

Local governance reform is a strategic priority for the Government of Georgia. Number of initiatives and strategic documents has been developed in an attempt to advance with the reform. Namely, in 2011 an Action Plan was developed for the 2010-2017 State Strategy for Regional Development of Georgia, which promotes expansion of municipal services and infrastructure to secondary towns and villages; the Decentralization Strategy was adopted in 2013, the Law of Local Self-Governments was endorsed in February 2014. Moreover, the Socio-Economic Development Strategy 2020 of the Government of Georgia views decentralization as a paramount factor for achieving inclusive growth and stimulating local economic development. The Government of Georgia is now challenged to convert plans into reality by introducing an effective local self-government system that is capable of carrying out the decentralized functions.

The World Bank has been supporting the improvement of municipal service delivery and infrastructure since 1997, and most recently under the ongoing Regional and Municipal Infrastructure Projects (RMIDP I). The Government of Georgia invited and the SDC agreed to join the second Regional and Municipal Infrastructure Development Project (RMIDP II).


The project contributes to the decentralization agenda of the Government of Georgia by strengthening municipal capa-cities for the public service delivery. It is expected that strengthened capacities of municipalities to deliver basic services more effectively will create preconditions for inclusive and sustainable local economic development.

Target groups

150'000 inhabitants (50% females) in all municipalities will benefit directly from improved basic infrastructure. 

800 public servants (30 % female) in all municipalities will be trained.

Medium-term outcomes

Component 1. (financed by World Bank and G0G): lnhabitants of all towns and villages1 benefit from improved efficiency of targeted municipal services and infrastructure

Component 2. (financed by SDC, World Bank and GoG): Local municipalities enhance institutional and human capacities to pertorm three core functions independently (Project Cycle Management, Financial and Asset Management).


The project consists of two components. The first component aims at improving efficiency and reliability of selected municipal services and infrastructure. The second component focuses on the establishment of effective local self-government system.

The SDC’s grant is used to finance technical assistance within the 2nd component of the project. Basic trainings and consultancy are provided to all municipalities outside the capital city to establish the skills for: 1) Project Cycle Management, b) Financial Management and c) Asset Management.

The target groups consist of the Local Self-Governments (municipalities) of Georgia as well as Municipal Development Fund (MDF) and the Center for Effective Governance System and Territorial Arrangement Reform (CEGSTAR). The MDF is the designated administrator of the capital investment fund and the CEGSTAR (Legal Entity of Public Law within the Ministry of Regional Development and Infrastructure) is the authorized agency for capacity development of sub-national officials. The project targets LSGs’ administrative units of Infrastructure, Procurement, Spatial Planning, Finances. They are supported for the capacity development and system building.


Results from previous phases:  

SDC did not participate in the infrastructure development projects previously financed by the World Bank in Georgia since 1997. They were implemented by a central entity, the Municipal Development Fund (MDF) and have significantly contributed to addressing backiog of municipal capital investment requirements outside the capital city:

  • Over 155 infrastructure projects were implemented in 10 regions of Georgia with the overall budget of $25.5 mln.
  • 245 km of roads were rehabilitated.
  • 400 000 people improved access to water.
  • National wastewater management strategy prepared.
  • Road Design Guidelines Manual developed.

However, implementation of these projects has also highlighted the need for further developing capacities in municipalities to ensure municipal service delivery in a sustainable manner.

Directorate/federal office responsible SDC
Credit area Swiss cooperation with Eastern Europe
Project partners Contract partner
International Financial Institution (IFI)
Private sector
  • Swiss Private Sector
  • World Bank - International Bank for Reconstruction and Development

Budget Current phase Swiss budget CHF    5’505’000 Swiss disbursement to date CHF    5’469’179
Project phases

Phase 1 10.04.2014 - 31.08.2023   (Completed)