π Tender Overview
Description:
Georgia is strategically located at the crossroads of Europe and Asia, rich in natural resources and cultural heritage. Despite these comparative advantages, substantial infrastructure urban services, and capacity gaps remain to unlock its economic growth potential especially for secondary cities and towns in the regions. Tbilisi, the capital city of Georgia, contributes 70% of the national gross domestic product (GDP), with about half of the country's urban population concentration. Between 2007 and 2017, the city's urban population steadily increased from 47% to 51% of the country's total, while cities in Kakheti and Samegrelo-Zemo Svaneti (SZS) regions experienced decline in their urban population during the same period. SZS registered the largest decline with -28% change in urban and a -15% change in rural population. This reverse trend in regional city centers highlights issues such as out-migration, unbalanced economic growth, limited employment opportunities and poor livability in these regions, while resulting in additional stress on Tbilisi. The Asian Development Bank (ADB) undertook a National Urban Assessment in 2015 which provided recommendations for balanced regional development to unlock the potential for inclusive economic growth through urban development by adopting multiple strategies, new initiatives, and innovative funding mechanisms at the national and regional level through integrated urban investment planning. Economic growth has been unevenly distributed between the capital city and other cities. Increased goods and services exports including wine, mineral water and beverages have been important drivers of recent increases in economic growth, and tourism receipts. The growth in the tourism sector has also benefited growth in transportation, communications and hospitality sectors. However, integrated multi-sector investments are required to unlock the economic opportunities that have been created by the expansion of the transport network across the country.