R -- Issues in the Georgian Water Supply and Sanitation Sector

The water utilities sector in Georgia is in crisis, stemming from inadequate water utility management, a weak policy environment, and insufficient investments. Service is intermittent, and in many cases water supplies are unsafe for human consumption. Contamination and water-borne disease rates are disturbing and could be rapidly reaching a tipping point. The country's wastewater treatment plants are not operational, save for partial treatment in Tbilisi. The condition of water and sewerage networks is deteriorating from lack of funds for maintenance and replacement. Cost recovery is below 30 percent, foretelling serious financial problems in the sector. Local governments are not implementing adequate tariff policies and are forced to make up a large portion of the huge operating losses of their water utilities. Despite subsidies, practically all water utilities in the country continue to decline.Failure to address the water utilities sectors serious degeneration in Georgia is likely to: Undermine public confidence in both national and local governments; Accelerate declining public health and water quality; Exhaust local government fiscal resources; Burden families with the additional cost of obtaining water and sanitation from alternative sources; and Disrupt reforms in the electricity sector, due to the inability of water utilities to pay their electricity bills. USAID, in partnership with the Government of Georgia and various donors and lenders, is contemplating how best to address these problems. A contract or an assistance agreement awarded through full and open competition is being considered for implementing USAIDs activity, once the final design is completed. Potential offerors and implementers are therefore being given the opportunity to provide their perspective and suggest specific interventions that would provide the greatest beneficial impact and be the most cost-effective. Voluntary submissions are requested by January 15 and should be no more than ten pages. USAID may initiate a competitive procurement that could incorporate information and recommendations submitted in response to this request. However, there is no commitment that this will occur or that USAID will use any material submitted. All submissions will become the property of the US Government and no compensation will be provided. Information and recommendations provided in response to this request will not be considered as design work and will not create a conflict of interest regarding subsequent implementation. Any organization or individual that responds will not gain advantage or be disadvantaged by the quantity or quality of the submission or decision not to respond to this request.