Disclosable Restructuring Paper - Third Secondary and Local Roads Project - P148048

The development objective of the Third Secondary and Local Roads Project for Georgia are to reduce transport costs on project roads and improve the sustainability of road asset management in the secondary and local project road network. This Restructuring Paper proposes to extend the closing date of the Project, scale up the rehabilitation of secondary road sections and make changes to some sub-component activities. The proposed second level restructuring of this Project is prepared in response to the Government of Georgia’s (GOG) request of May 11, 2018 to extend the closing date for the Project by 21 months till June 30, 2020, end of FY20. The reasons for the extension are to (i) use the Project’s uncommitted funds and savings for an increased impact of the Project through financing of additional rehabilitation of about 80 km of secondary roads, and (ii) provide continued support to the design-build contract for Bakurtsikhe-Gurjaani bypass section through the completion date of which is July 18, 2019, beyond the Project’s original closing date.