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History

The Juridical Entity of Public Law - the Municipal Development Fund of Georgia (MDF) was established in 1997 by Decree of the President of Georgia within the State Program for municipal development sector of Georgia.

The objective of the Fund is rendering assistance to strengthening of institutional and financial capacities of local self-governmental bodies, making investments in local infrastructure and service, main economic and social service improvement on sustainable basis for the local population (communities), as well as development of irrigation and drainage consumers’ organizations of Georgia.

The Fund cooperates with the local self-governmental (governmental) bodies and population, conducts mobilization of funds from international organizations, donor agencies and foreign countries, as well as central and local governmental organizations   and other ones in order the aim of the Fund to be achieved.

In accordance with the Decree of the Government of Georgia the coordination and management for the activity of the Municipal Development Fund of Georgia is implemented by the Supervisory Board led by the Prime-Minister of Georgia.  

Within the Municipal Development and Decentralization First Project (MDDP1 - 1997-2002) the Municipal Development Fund of Georgia implemented 89 investment projects in infrastructure at the amount of GEL 38 million in total.

From 2003 to 2007 the Municipal Development Fund has been implementing   investments and rendering technical assistance to more than twenty local self-governmental bodies within the Municipal Development ad Decentralization Second Project (MDDP2).

By Decree #1027 of the President of Georgia dated December 6, 2005 the Juridical Entity of Public Law - the Georgian Social Investment Fund was merged with the Municipal Development Fund of Georgia for united coordination and management of the social investment projects of Georgia and implementation of municipal sector rehabilitation programs.  Nowadays the Georgian Social Investment Fund represents the Social Investment Department of the Municipal Development Fund of Georgia.

The Georgian Social Investment Fund (GSIF) was established in 1996 by joint initiative of the Government of Georgia, the World Bank and the US International Development Agency and aimed provision of support to the social infrastructure rehabilitation of Georgia through restoration of small-scale facilities that were to be selected directly by population. In 1996-2006 the GSIF I and GSIF II projects implemented the rehabilitation works at the amount of USD 29.3 million. The GSIF I project prolongation is the rehabilitation project of the education facilities (Schools), damaged by Tbilisi Earthquake of April 25, 2002 what for the World Bank allocated USD 5 million;

The Municipal Development Fund of Georgia represents as well the partner organization for implementation of Regional Infrastructure Development (RID) Project. This is a 5-year project at the cost of USD 60 million and is financed by the “Fund” – Millennium Challenge Georgia” (MCG).

Within the RID project there are being conducted rehabilitation projects for:  Poti, Kutaisi, Rustavi, Kobuleti, Borjom-Bakuriani water supply systems, Sioni and Algeti reservoir dams and Upper and Lower Samgori irrigation systems.

Together with the Education and Science Ministry of Georgia the Municipal Development Fund of Georgia works on the “Education System Realignment and Strenghening Program #2”. The project is financed within the World Bank credit. The credit amount is  USD 15 million. The presumable list for the schools that are to be rehabilitated in total:

Village Chkhara School, Terjola District;
Village Gavazi School, Kvareli District;
Village Jugaani School, Sighnaghi District;
Village Dighomi School, Mtskheta District;
Village Vaziani School, Gardabani District;
Town Borjomi #3 School, Borjomi District;
Village Tadzrisi School, Borjomi District;
#84 School of Tbilisi City.

In accordance with the project implementation schedule the construction works will be started from the third quarter of 2007 and will not be completed till the third quarter of 2009.

In compliance with #246 Decree of the Government of Georgia dated June 8, 2006  the Japanese Non-Project Grant (JNG) has allocated to the Municipal Development Fund the funds at the amount of 240 million Japanese YEN (approximately USD 2 million). To the mentioned funds the Fund will add USD 500,000 out of returned funds of the loan, allocated within the Municipal Development and Decentralization Project (MDDP); correspondingly the project portfolio will be composed out of the mentioned and will make up USD 2,500,000. The project portfolio should be assimilated till March 2007.

The main objective of the JNG is to establish for the project participant local governmental bodies the possibility for acquiring of prioritized devices and equipment that is aimed for the civil infrastructure service. For submission of prioritized proposals within the JNG the letters have been sent to the following towns: Batumi, Gori, Khashuri, Telavi, Sagarejo, Rustavi, Bolnisi, Marneuli, Gardabani, Poti, Kutaisi, Samtredia, Zestafoni, Mtskheta, Borjomi. The selection was conducted taking into consideration the following criteria: 1) Loan taking possibility; 2) Implementation of the obligations, taken within the MDDP; 3) Further  provision of already implemented investment projects. .

By Decree #128 of the Government of Georgia dated June 30, 2006 the Irrigation and Drainage Consumers Organizations Development Project was delivered for implementation to the Municipal Development Fund of Georgia.

The project comprises 110 thousand hectares and envisages implementation of such arrangement as follows:

  • Establishment of water consumer associations and total rehabilitation of irrigation  systems (main and domestic farming network) on 16 thousand hectares in Gurjaani, Khashuri, Kareli and Akhaltsikhe Districts;
  • Establishment of drainage consumers associations and total rehabilitation  of drainage systems (main and domestic farming network) on 4 thousand hectares in Khobi and Lanckhuti Districts;
  • Establishment of amelioration association and rehabilitation of the domestic farming only on 40 thousand hectares  in various districts of Georgia;
  • Establishment of amelioration associations only on 50 thousand hectares.

 

 

 

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