The Economic Policy Committee of the Parliament of Georgia has approved a request to extend the disbursement period for a €13.55 million loan provided by the Asian Development Bank under the Liveable Cities Investment Program.
The new deadline for utilizing the funds will be May 31, 2028, replacing the previous deadline of August 2025. This marks the second extension granted for the program.
Nino Enukidze stated that several factors contributed to the delay in fully utilizing the loan funds.
Among the main challenges were cancelled tenders caused by low competition or unsuccessful bidding outcomes, as well as changes in technical specifications that required revisions to project documentation. In addition, procurement procedures using the Quality- and Cost-Based Selection (QCBS) method took longer than expected due to administrative processes.
As a result, a number of projects financed under the program exceeded their original implementation timelines.
The loan agreement, signed in 2019, supports preparatory work for urban development projects. This includes feasibility studies, social and environmental impact assessments and the preparation of project and tender documentation.
The 15-year loan carries a variable interest rate linked to the six-month EURIBOR which stood at approximately 2.65% in February 2026.
Several institutions are responsible for implementing the program, including the Ministry of Infrastructure of Georgiathrough the Municipal Development Fund of Georgia and the United Water Supply Company of Georgia.
Additional participating entities include Tbilisi City Hall via the Tbilisi Development Fund, as well as the Spatial and Urban Development Agency operating under the Ministry of Economy and Sustainable Development of Georgia.
