Economics & Development

Trans-Caspian Transport Corridor - Georgia Accessibility and Transport Enhancement Project for Georgia has the development objective to improve the performance and resilience of the Trans-Caspian Transport Corridor (TCTC) in Georgia. Component 1: Improving Rail Freight Performance and Sustainability will be implemented by JSC Georgian Railway (GR) and includes Sub-component 1.1, acquisition, testing, and commissioning of about 45 modern electric freight locomotives to increase availability, hauling capacity, and energy efficiency; Sub-component 1.2, construction or upgrade of railway electric substation(s) to ensure reliable traction power for the new fleet; and Sub-component 1.3, institutional strengthening and sustainability of GR through targeted training and advisory services, renewal of 65 kilometers of track, an enterprise resource planning (ERP) upgrade, preparation of business planning instruments, and project audits. This component is underpinned by performance-based conditions (PBCs) that link disbursements to verifiable results in operational efficiency, financial sustainability, and corporate governance, including track renewal, full licensing and certification of locomotive drivers, regularized public service obligation (PSO) compensation, approval of a financial restructuring plan, increases in revenue per employee, annual sustainability reporting aligned over time with European Sustainability Reporting Standards (ESRS), ERP upgrade, and adoption of a Statement of Corporate Intent. Component 2: Road Connectivity Improvements will be implemented by the Roads Department of Georgia (RD) and includes Sub-component 2.1, climate-resilient and safe civil works to construct two four-lane segments on the Kakheti highway between Badiauri–Chalaubani and Chalaubani–Bakurtsikhe, plus a 36.6 kilometer Gurjaani–Telavi road, along with necessary access roads, road safety audits, and a landscape restoration plan; and Sub-component 2.2, project management support covering incremental operating costs, training, monitoring and evaluation, embedded experts, and design review and construction supervision, while integrating hazard overlays, climate-informed maintenance protocols, and emergency response playbooks into road asset management systems (RAMS). Component 3: Roads Sector Institutional Strengthening comprises Sub-component 3.1, digitalization and intelligent transport systems (ITS) through design, construction, and equipping of a centralized National Highway Control Center (NHCC), deployment of ITS, weigh-in-motion (WIM) and axle load control on the Kakheti highway, and integration of remote monitoring data with RAMS; and Sub-component 3.2, building climate resilience by establishing climate risk screening protocols and tools, enabling access to climate and hazard datasets, adopting decision-support tools for vulnerability, loss, and cost-benefit analysis, and conducting capacity-building, supported by a specialized expert and integrated with NHCC systems. Component 4: Economic Empowerment and Analytics for Regional Integration and Road Sector Sustainability includes Sub-component 4.1, a pilot to provide technical training, equipment, and tailored business support to small, often women-led, enterprises in Kakheti; and Sub-component 4.2, advisory and analytics to develop a road tolling program and action plan, undertake regional connectivity and trade studies, and advance flexible project preparation for tunnels, road safety, contract management, and technical design to build a pipeline of bankable projects and enable private participation. Component 5: Contingent Emergency Response Component (CERC) will provide a rapid financing mechanism for an eligible crisis or emergency in accordance with an approved Emergency Action Plan and a CERC operational manual.

This World Bank report examines the urgent need to scale up climate adaptation finance in Europe and Central Asia (ECA), a region increasingly exposed to severe climate risks such as droughts, floods, heatwaves, and wildfires. It highlights that adaptation investment needs—estimated at 1–5 percent of GDP annually, far exceed current finance flows, which remain among the lowest globally. Despite strong economic and social returns on adaptation investments, including high benefit-cost ratios and resilience dividends, the region faces a significant financing gap driven by both limited demand for investment-ready projects and constrained supply of finance. The report identifies key barriers to adaptation investment, including insufficient climate risk data, weak regulatory frameworks, limited fiscal preparedness, and underdeveloped financial markets. It also highlights that adaptation finance is heavily reliant on public sources, with minimal private sector participation. To address these challenges, the report proposes a comprehensive framework that combines policy reforms, improved institutional coordination, enhanced climate information systems, and innovative financing mechanisms such as blended finance, green bonds, and results-based instruments. Ultimately, the report argues that closing the adaptation finance gap will require strengthening both public and private investment ecosystems, aligning incentives, and integrating climate resilience into fiscal and financial decision-making. By doing so, countries in Europe and Central Asia can protect development gains, reduce future losses, and build long-term economic and environmental resilience.

Yemen Improved Water Management and Irrigation for Sustainability and Efficiency Project for Yemen has the development objectives of strengthening the climate and water information management system and enhancing climate-resilient irrigation services and access to water supply and sanitation services in selected basins. Component 1: Climate and Water Information Management Systems will support climate-resilient decision-making by developing and operationalizing a scalable national Climate and Water Information Management System (CWIMS), including data inventory and digitization, monitoring network assessment and design, interoperable platforms, and establishment of a System Management Unit, with basin-level tools and coordination. Sub-component 1.1: Developing a Climate and Water Information Management System (CWIMS) will reactivate and upgrade the former national system, integrate hydro-meteorological and groundwater data, and ensure secure, accessible analytics. Sub-component 1.2: Developing Climate-Resilient Decision-Making and Monitoring Networks in Prioritized Basins will create basin decision support tools, strengthen stakeholder coordination, update Integrated Water Resources Management (IWRM) and investment plans for Aden-Tuban and Wadi Hajir, and build local capacity. Component 2: Improved Integrated Watershed Management and Irrigation will deliver climate adaptation investments to enhance water and food security through water harvesting and storage, flood protection, irrigation modernization, and soil conservation, alongside farmer and institutional capacity building. Sub-component 2.1: Integrated Management of Water and Agriculture in the Aden-Tuban Basin will rehabilitate check and diversion dams, ponds, cisterns, and canals; reinforce wadi banks with nature-based solutions; restore terraces and on-farm infrastructure including drip, sprinkler, and solar-powered systems; use cash-for-work and community contracting; and rehabilitate the historic Aden Water Cisterns for flood protection and rainwater harvesting. Sub-component 2.2: Integrated Management of Water and Agriculture in the Wadi Hajir Basin will upgrade canals, recharge and storage structures, flood protection works, and promote water-saving and solar-powered irrigation technologies with erosion control and terrace restoration. Sub-component 2.3: Institutional Support and Capacity Building will strengthen Water User Associations (WUAs), Water Basin Committees (WBCs), and local offices, and prepare studies for the next program phase. Component 3: Resilient Water Supply and Sanitation Systems and Water, Sanitation, and Hygiene (WASH) Services in selected areas will restore, expand, and climate-proof Water Supply and Sanitation (WSS) systems with priority for non-revenue water reduction, solar power, and decentralized desalination pilots. Sub-component 3.1: Restoring Access to and Improving Quality of WSS Services will rehabilitate and expand pipelines, wells, pumping and booster stations, water and wastewater treatment plants, rainwater harvesting, and small-scale desalination, and improve community water points. Sub-component 3.2: Improving WASH Services for Internally Displaced Persons, refugee, and marginalized communities will rehabilitate facilities in camps, health centers, and schools, provide water quality improvements, water trucking where necessary, and support disease prevention. Sub-component 3.3: Capacity-Building for Water Utilities and Community Organizations will train Local Water and Sanitation Corporations (LWSCs), General Authority for Rural Water Supply Projects (GARWSP) branches, and community groups in operation and maintenance, metering and billing, financial management, non-revenue water reduction, and wellfield sustainability, and will advance preparatory studies for desalination in Aden. Component 4: Project Support, Management, Evaluation and Administration will finance management, monitoring and evaluation, independent audits, third-party monitoring, and technical assistance. Implemented by the United Nations Development Program (UNDP) and the United Nations Office for Project Services (UNOPS), Phase 1 applies an area-based approach in the Aden-Tuban and Wadi Hajir basins and emphasizes inclusive participation, community ownership, and institutional strengthening.