MDF

1
MDF

• Main Activities
• Sustainability
• Long Term Vision

2
Main Activities

• Physical Investments
• Employment Generation and Support of Business
  Development
• Support of Decentralization Process
• Support to Selected Municipalities

3
Physical Investments

• MDF Investments Role in Supporting Decentralized
  Institutions
• Investment Projects - Real Outputs
• Investment Financing Principles

4
Investment Projects - Outputs

• Roads
• Rehabilitated 695,000 Sq. meters of road, serving
  160,000 cars daily
• Water Supply and Sanitation
• Improved water supply for 200,000 housholds,
  reduction of water losses, increase of efficiency
  of the system, improved fee collection
• Social Services
• Installation of heating systems in 51 Tbilisi
  Schools, New school in Ambrolauri rehabilitation
  of two hospitals improved learning conditions
  for 70,000 Pupils, improved working conditions
  for 3,000 teachers, improved care for 30,000
  patient days
• Transport Infrastructure
• Rehabilitation of Tbilisi Metro Project, safe
  transportation for 110 million passengers
  annually
• Lightening Systems
• Four Investment projects (GEL 2,928,000). Economy
  to Tbilisi Municipality - approximately 650,000
  GEL.

5
Diversification of investment Projects by Sectors

• Roads
• Water And Sanitation
• Social Services
• Transport Infrastructure
• Lightning service
• Others

6
Rustavi Water Supply Rehabilitation Project

• Problem
• Water shortage
• Outburst of infectious and enteric diseases and
  several cases of Hepatitis registered in
  1997-1998.
• Inputs
• Improvement of the water supply system
• Installation of water-meters
• Project Cost GEL 1,241,840.99
• Results
• Increase of water debit 1250 l/s from 300 l/s,
  
• No cases of Infection registered since the
  project implementation.
• Citizen satisfaction measured by the increased
  demand on water meter installation.
• Increased rate of collection in the metered
  city enterprises over 80.
• Reduced cost of maintenance from 0,25 GEL/m3 to
  0,2 GEL/m3

7
Employment Generation and Support to Business
Development

• Employment Generation
• 99 investment projects implemented
• 47 firms employed
• 5,000 persons employed
• Support to Business Development
• 200 firms, participated in biddings, acquired
  experience with new competitive bidding
  procedures
• Improved management and reporting skills
• Improved quality of works

8
Investment Financing Principles

• MDDP I
• IDA 80
• Municipalities 20
• MDDP II
• IDA 60
• MDF 20
• Municipalities - 20
• Grant 40 of Total Cost
• Loan 40 of Total Cost
• Interest rate 15 (One Year Grace Period)
• Loan Maturity 10 Years

9
Sustainability

• Self Sustainable Development
• MDF Finances its Own Operating Expenses
• MDDP II Includes MDF Financing of Investment
  Projects
• Positive Financial Indicators
• MDF - Sustainable Revolving Fund
• Professional Staff

10
MDF Investments
11
MDF Loan Portfolio
12
MDF Income
13
MDDP II

• Project Cost USD 30.9 Mln.
• IDA USD 19.41 Mln.
• MDF USD 5.4 Mln.
• Municipalities USD 5.4 Mln.
• Government Of Georgia USD 0.54 Mln.
• Physical Investments USD 27.3 Mln.
• Technical Assistance USD 3.6 Mln.

14
MDF Forecasts
15
Long Term Vision

• Long Term Development Strategy
• Support of Decentralization Process
• Technical Assistance to Local Self-Governments
• Promoting Community Participation in
  Decision-making