World Bank to Allocate $80 mln in Support of Georgia's Fight against COVID-19

The World Bank will provide $80 million to strengthen Georgia's response to COVID-19. A package of financial support has been allocated to help the government to mitigate the health and social impacts of the coronavirus. This funding is part of the World Bank's COVID-19 Rapid Response Package (FTCF). The World Bank is also cooperating with the Asian Infrastructure Investment Bank to provide an additional $100 million under a joint co-finance arrangement.

The project aims to fund events that will help prevent, identify and respond to the threat posed by the COVID-19 pandemic, and provide immediate social assistance to the most vulnerable groups. It is expected that the project will benefit a wide range of the population, in particular those infected and at risk of the contagion, such as the elderly, people with chronic diseases, emergency workers and medical staff. Emergency measures to respond to COVID-19 in healthcare include identifying and confirming cases of the disease, increasing testing, and strengthening the healthcare system to manage cases.

In addition, the project will provide some financial assistance to poor and vulnerable households by expanding the targeted social assistance program and providing temporary cash transfers to those who have lost their jobs due to the pandemic.

“Through our rapid support we are helping save lives and protect the livelihoods of those impacted by the pandemic during this challenging time," said Sebastian Molineus, World Bank Regional Director for the South Caucasus. “We estimate that the total WBG financing package for Georgia COVID-19 response will be approximately $200 milion in new financing, in addition to the approximately $300 million funds in our pipeline for 2020-2021 for projects in support of broader development needs, such as digital connectivity and infrastructure”.  

“I would especially like to note that our partners have been actively involved in the negotiations with the Government of Georgia since the very first days of the pandemic. Once again, I would like to thank them for that tremendous support,”- said Ivane Matchavariani, Minister of Finance of Georgia. “Furthermore, I would like to emphasize the role of the World Bank in the preparation of this program, as well as in the development of our country in general”.

This project is a part of World Bank’s broader support for the people of Georgia, and it is the first in the series of three lending operations to be rolled-out over the coming three months. The second upcoming operation will come in the form of additional financing to the existing Economic Management and Competitiveness Development Policy Operation (approved by  World Bank's Board of Executive Directors on March 26, 2020), aiming to help the government cover the unanticipated financing gap and ensure Georgia’s progress in implementing reforms in areas critical for inclusive economic growth. The third is the upcoming Relief and Recovery for MSMEs and Jobs project, which intends to support the jobs agenda as well as micro, small and medium-sized enterprises that have been affected by the pandemic.

In addition to the direct support for Georgia’s response to COVID-19, the World Bank also intends to support the country’s broader development needs, such as digital connectivity and infrastructure through the upcoming “Log-In Georgia” project, which will support the Government’s plan to connect more than 700 villages to the internet via fiber optic cable networks, that will boost remote learning and overall connectivity essential for livelihoods hampered by pandemic-required social distancing.

Finally, the World Bank has been active in providing just in time advisory support to the Government of Georgia, through sharing best global practices in fighting the health, social protection and economic crises, as well as playing the role of a procurement agent on behalf of client countries to resolve the strains on global supply chains though directly engagement with key global suppliers for medical supplies and equipment.

The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help countries strengthen their pandemic response. We are increasing disease surveillance, improving public health interventions, and helping the private sector continue to operate and sustain jobs. Over the next 15 months, the World Bank Group will be deploying up to $160 billion in financial support to help countries protect the poor and vulnerable, support businesses, and bolster economic recovery, including $50 billion of new IDA resources in grants or highly concessional terms.

By Ana Dumbadze