Georgia possesses large untapped hydropower resources. At project appraisal, its hydropower potential was estimated at as much as 80 terawatt-hours (TWh) per annum, of which up to 60 TWh was considered economically feasible and less than 20% was being utilized.
Owing to economic and institutional reforms and sound macroeconomic policies, Georgia’s economy grew at an annual average of nearly 6% between 2004 and 2013. Reforms that strengthened public finances, improved business climate, fought corruption, liberalized trade, and upgraded infrastructure led to an impressive annual average growth of more than 9% between 2004 and 2008.
In June 1997, a presidential decree in Georgia created the Municipal Development Fund (MDF) to enable municipal governments to take out soft loans and grants for municipal infrastructure investments. Since then, the MDF has enjoyed the support of many international development agencies, including the Asian Development Bank (ADB) that provided its first loan for Georgia’s Municipal Services Dev