| Project Detail |
The program will support the Government of Georgias pursuit of enhancing the policy and institutional framework for sustainable water resources management and an efficient state-owned enterprise (SOE) for delivering irrigation services. The policy actions under the policy-based loan focus on (i) enhancing governance and management controls to increase the Georgian Amelioration accountability, transparency, and efficiency of its service delivery; (ii) pricing and contracting change to ensure improved efficiency of water use and financial sustainability of irrigation systems in face of current and expected impact of climate change on water resources; and (iii) improving legal and institutional framework to achieve irrigation policy outcomes and ensure a sustainable management of water resources. The project loan will increase resilience to future climate change impacts by modernizing existing infrastructure from open canal to pressurized pipe networks.
Project Name Climate Smart Irrigation Sector Development Program
Project Number 54014-001
Country / Economy Georgia
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
The program will support the Government of Georgias pursuit of enhancing the policy and institutional framework for sustainable water resources management and an efficient state-owned enterprise (SOE) for delivering irrigation services. The policy actions under the policy-based loan focus on (i) enhancing governance and management controls to increase the Georgian Amelioration accountability, transparency, and efficiency of its service delivery; (ii) pricing and contracting change to ensure improved efficiency of water use and financial sustainability of irrigation systems in face of current and expected impact of climate change on water resources; and (iii) improving legal and institutional framework to achieve irrigation policy outcomes and ensure a sustainable management of water resources. The project loan will increase resilience to future climate change impacts by modernizing existing infrastructure from open canal to pressurized pipe networks. It will also support water-efficient irrigation technologies and promote innovative and climate smart agricultural production.
Georgia is a small economy, with a population of 3.7 million in 2021. It has experienced varying annual rates of growth in gross domestic product (GDP) in recent years. Georgias strong growth performance has not been matched by commensurate reductions in unemployment and poverty. Unemployment rates have remained high rand poverty levels showed a declining trend from 2013 to 2021.
The contribution of the agriculture sector to GDP decreased in 2021. Employment in the sector had also declined but remained well above its share in GDP in 2022. Food security is a serious concern for the government given the high food price inflation. Although Georgia has achieved a significant degree of self-sufficiency in many food categories, it remains heavily dependent on imports for staple cereals. Georgian agricultural exports comprise a limited number of products which are largely sold in a few international markets. The agriculture sector contributes around a quarter of total exports.
Following Georgias independence in 1991, the disruption to irrigation management and the lack of funding led to the deterioration of irrigation infrastructure. It resulted in a significant reduction in irrigated area. By 2010, about 24,000 ha was irrigated as compared with 386,000 ha in the 1980s.
Agriculture, water resources, forestry, energy, waste, mineral resources, and health have been identified as highly vulnerable sectors to projected climate changes. The average temperatures in Georgia have increased steadily since the 1960s. Water resources availability in Georgia varies greatly by season and geographical area. Western Georgia has sufficient water resources while the eastern region is relatively dry, and water scarce. Projected decreases in river flows by the end of the 21st century during summer months may affect irrigated agriculture. The negative impact of this reduction in river flows could be exacerbated by increases in average temperatures and heat wave probability, leading to higher agricultural demand for irrigation. The overall effects of climate change on agricultural output could threaten an important source of income and employment for rural communities. It will increase inequality and food insecurity. Increasing climate resilience is critical for establishing sustainable agricultural production systems. |
