GEORGIA: Support to Georgia CPSD

Georgia's strategic location presents excellent opportunities for trade, but modern logistics facilities and services need to improve to support the country's integration into the global economy. PPIAF is helping Georgia address constraints to private sector participation (PSP) in transport and logistics to attract private sector investment. Poor electricity infrastructure, for example, negatively impacts businesses with frequent interruptions, leading to inefficiencies and higher generation costs. Since 2000, growing electricity demand and deteriorating energy efficiency have strained supply. In response, the government aims to double renewable energy generation capacity by 2030. PPIAF support has enabled the government to define policy reform priorities, address constraints to PSP, and develop action plans and appropriate government programs. Recommendations included reforms to improve security and governance, address macroeconomic risks, address labor, capital, and land limitations, and tackle sector-specific constraints.