Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

# of Projects: 1
100% of the Results

Background informationProject Created: December 16, 2010

Project Name: Tbilisi Railway Bypass Project
Year in Operation:
Sector: Transportation
Subsector: Rail
Status: Design / Construction
Type: New Facility
Description: The Project involves the reconstruction of 10 km of the existing Kakhetian single rail line (and adding a second track along this 10 km line), and the construction of a 30km new rail line. The scope of work also involves the reconstruction and new construction of 14 small bridges, 5 tunnels, 5 overhead crossings, 7 pipe-overhead crossing, 30 culverts, and 3 retaining walls.
Delivery Method as described in the country where it's located: FIDIC Yellow Book Design-Build
Is the project still active: Yes
Comments: The project will free up more than 10 hectares of land currently occupying the center of Tbilisi, the Capital City of Georgia.

Project Locations

City: Tbilisi
Country: Georgia

Souces of Project Support (Non-monetary)

Checkbox Checked Land: The Georgian Railway owns the project Right of Way. The new route passes on land that has been partly owned by the Municipality or the Government. Such parts of land are transferred to Georgian Railway equity (charter capital) without any payment.
Checkbox Checked Revenue Stream (Cash Flow) Created Through Initial Commitment of Public Sponsor(s): There is no direct revenue, but the municipality committed to construct initial preliminary infrastructure (i.e. access roads, etc...) on the freed up land in order for Georgian Railway, the state-owned railway company acting as the owner/developer, to be able to sell the land at a higher value. Such obligation is due after construction is complete in 2013.
Checkbox Checked Environmental Clearance: An Environmental Social Impact Assessment (ESIA) was conducted by and based on Georgian Legislation, the European Bank of Reconstruction and Development (EBRD) environmental and social policy of 2008, and the social and environmental requirements of the European Investment Bank among a few others. The major issues that were found and required to be mitigated included issues related to nearby protected areas (such as the Tbilisi National Park and Tbilisi Lake), endangered flora and fauna included on the Georgia “Red List”, and pollution and emergency situations related to the ingress of project chemicals and/or oils into nearby water sources.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers

Arrow Right
Checkbox Checked

Credit Enhancements: European Bank for Reconstruction and Development (EBRD) March 2010.

Arrow Right
Checkbox Checked

From Other Public Entities: Additionally, the project received 100 million Euro from the European Bank for Reconstruction and Development (EBRD) in March 2010.

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: In June 2010, Georgian Railway issued five-year Euro bonds worth 250 million Euro to finance the project. These bonds are managed by the Bank of America, Merrill and Lynch, and JP Morgan. Additionally, the project received 100 million Euro form the European Bank for Reconstruction and Development (EBRD) in March 2010.

Project Delivery & Finance Method

Project Delivery:
All Public Finance. Public Sponsor contracts for both initial design and construction with a single entity. Public Owner operates and maintains the resulting facility.
Is there an independant checking engineer? Yes

Procurement Approach

Project Component
Based Selection
Request for
Request for
for Bids

Term for Key Components & Forms of Contract

Project Component
Initial Design and Construction
European Bank of Reconstruction and Development Contract Document 

Project Value (If and As Known)

Date of Estimated Project Value: December 16, 2010
Project Value
Hard Cost
Hard & Soft Costs
$200-500 Million US


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