Country context (P3 lens)

Georgia is an upper-middle-income country in the South Caucasus with a developing and structured P3 market. P3s are used to mobilize private capital, accelerate infrastructure delivery, and transfer operational risk, particularly in transport, energy, and municipal services. The government has implemented national P3 legislation and institutional frameworks to attract both domestic and international investors.

Verified sources: World Bank PPP Knowledge Lab, Ministry of Finance of Georgia, IMF, OECD.

Economic and infrastructure conditions

• Economy: Diversified with services, transport, energy, and tourism as key sectors; fiscal capacity supports structured P3 delivery.

• Infrastructure priorities:

  • Roads, bridges, and urban transit

  • Airports, ports, and logistics corridors

  • Electricity generation and distribution, including renewables

  • Water supply, sanitation, and municipal services

  • Hospitals, schools, and social infrastructure

• Private sector: Experienced domestic and international investors, particularly in transport and energy.

Georgia favors projects with bankable revenue streams or government-supported availability payments.

Public Private Partnerships framework

Legal and institutional setup

• P3s are governed by national P3 legislation, with oversight from the Ministry of Finance and line ministries.

• Project approval requires feasibility studies, value-for-money assessments, and fiscal risk evaluation.

• Typical P3 structures:

  • Concessions for roads, bridges, airports, and ports

  • Build-Operate-Transfer (BOT) for energy, water, and transport

  • Availability-payment contracts for hospitals, schools, and municipal services

Market characteristics

• Georgia has a growing and competitive P3 market, often supported by multilateral advisory institutions for project preparation.

• Financing structures include revenue-sharing agreements, availability payments, and government guarantees.

• Investor participation includes domestic, regional, and international players, particularly in transport and energy.

Sector experience and opportunities

Transport

• Toll roads, highways, bridges, and urban transit are active P3 sectors.

• Airports and ports structured as concessions or BOT projects.

Energy and utilities

• Renewable energy projects (hydro, wind, solar) delivered under BOT or concession arrangements.

• Electricity transmission and distribution increasingly allow private participation.

Water and municipal services

• Urban water supply, wastewater, and sanitation projects structured as service contracts or concessions.

Social infrastructure

• Hospitals, schools, and public buildings delivered through availability-payment P3s, often supported by multilateral financing.

Key P3 considerations

• Fiscal risk management: Government guarantees often required for bankable projects.

• Institutional capacity: Developing; project preparation relies on line ministries and multilateral support.

• Market depth: Moderate domestic investor base; regional and international participation is important.

• Project selection: Focus on revenue-generating or donor-supported projects to ensure bankability.

Outlook

Georgia is a growing and structured P3 market:

• Focus sectors: transport, energy, water, and social infrastructure

• Projects are generally medium- to large-scale, bankable, and government-backed

• Multilateral advisory support strengthens project preparation, financing, and risk management

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