Second and Third Stage Works under Urban Upgrade Program Ongoing in Dusheti

November 21, 2022

 The Municipal Development Fund of the Ministry of Regional Development and Infrastructure of Georgia is implementing the Urban Upgrade Program in Dusheti.  

Dusheti urban upgrade project backed by the World Bank was launched in 2017. First stage of the project, which involved full rehabilitation of the central park of the town was completed in 2018. 

Currently, there are second and third stage works in progress under the urban upgrade program, which were inspected by Giorgi Tsibadze – First Deputy Executive Director of the Municipal Development Fund and local authorities.  

Second stage works under the project, which provided for rehabilitation-restoration of the central park adjoining 40 buildings and paving-improvement of the streets, were initiated by the end of November, 2018. According to the regulations of the project funding international financial institutionworks were undertaken by the winner company selected through bidding.     Since the company failed to its liabilities under the contract, in February, 2020, their contract was unilaterally terminated and the company was penalized. In order to complete 5 buildings under rehabilitation, a new construction company was selected through bidding announced pursuant to procurement procedures of the donor organization. The new company initiated works in April of 2021 and the contract timeframe of work completion is December of current year.   Currently,  75% of works are completed.  


With the view of restoration-rehabilitation of 35 buildings under the third stage of the project, in December, 2021 contract was executed with the new winner company revealed through bidding.   The company managed to start works gradually, not before July 17, 2022, since reaching agreement with the population regarding provision of temporary housing and wrapping up such other requisite procedural issues was rather time-consuming.    Thus far, the contractor is performing works for 22 buildings and is proceeding within the project area.     


Ilia Court Buiilding rehabilitation is also stipulated under the current contract, with completion date in 2023.   The building is in private co-ownership and work commencement requires joint consent of private owners, obtaining of which has been delayed due to disagreement between its owners.  As a result of active negotiations conducted by the Municipal Development Fund of Georgia, at this point, a written consent is already obtained from the owners. Design documentation is approved by the NACHP of Georgia.