In 2005, MCC partnered with Georgia to implement a compact that invested in improved access to jobs and markets, more reliable access to basic services, and access to capital for enterprise development.
After the collapse of the Soviet Union and Georgia’s civil war in the 1990s, Georgia faced regional instability, civil conflict, infrastructure deterioration, enterprise and investment decline, and a decrease in human capital productivity.
Regional Infrastructure Rehabilitation Project
The project aimed to rehabilitate key regional infrastructure by improving transportation for regional trade, increasing the reliability of the energy supply, and improving municipal services in the regions outside of the capital of Tbilisi.
Enterprise Development Project
The project was designed to address two key constraints faced by small and medium enterprises: the need for additional long-term risk capital and the need for improved skills and capacity to take advantage of market opportunities.
Changes were made to focus RID Activity investment in the water supply and irrigation sectors. And after the Russia-Georgia conflict in 2008, and as part of a larger USG assistance package to Georgia, MCC increased the compact amount to $395.3 million.
Coordination and Partnerships
Learn about MCC’s efforts to coordinate resources and expertise with other donors and international institutions as part of the Georgia Compact.
Key Conditions Precedent
Learn the conditions that Georgia needed to meet under the terms of the compact prior to disbursing project funds.
The lessons summarized are observations from the MCC team that was responsible for overseeing compact implementation.