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.