The Economic Policy Committee of Parliament has approved a request to extend the disbursement period for the €13.55 million loan provided by the Asian Development Bank (ADB) under the “Liveable Cities Investment Program”. The deadline for utilizing the funds will be extended from August 2025 to May 31, 2028, marking the second extension for the program.
First Deputy Minister of Economy Nino Enukidze explained that the extension was necessary due to several factors:
- Cancelled tenders caused by low competition or negative outcomes;
- Changes in technical specifications that required adjustments to terms of reference;
- Longer-than-expected bureaucratic procedures, particularly procurement using the QCBS method.
These issues prevented the full utilization of the loan funds, and many projects exceeded their original deadlines.
The loan agreement, signed in 2019, supports feasibility studies, social and environmental assessments, and preparation of project and tender documentation. The 15-year loan carries a variable interest rate tied to the 6-month EURIBOR, which was approximately 2.65% as of February 2026.
Multiple agencies are involved in implementing the program, including the Ministry of Infrastructure (via the Municipal Development Fund and Water Supply Company), Tbilisi City Hall (via the Tbilisi Development Fund), and the Ministry of Economy (via the Spatial and Urban Development Agency).
The amendment also reflects a technical update in agency names, replacing “Ministry of Regional Development and Infrastructure” with “Ministry of Infrastructure” following institutional restructuring.
