The Asian Development Bank (ADB) Accountability Mechanism declared a complaint related to the modernisation project of the Zestaponi–Kharagauli–Khashuri railway section, implemented by Georgian Railways, inadmissible.
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The complaint states that the railway modernisation works in Imereti, in the Kharagauli municipality, specifically in the villages of Khemaghali, Ghverki, and Laleshi, have caused significant environmental and social problems, including landslides, soil erosion, and property damage.
The complaint alleged that the project disregarded the 2020 and 2021 environmental bulletins prepared by the Ministry of Environmental Protection, which identified Ghverki village as a landslide-prone area and a high-risk zone, and that it performed frequent blasting using large amounts of explosives to excavate tunnels. The complaint stated that the landslide remains active, posing ongoing environmental and safety risks.
Additionally, the Complaint stated that a water spring nearly 100 years old in Ghverki's neighbourhood was destroyed, and the Karneba River is being artificially diverted to prevent flooding. It also claimed that over 100 families have lost their homes, farmland, and property due to landslides and soil erosion.
The Complaint requested immediate assessment of geological risks in the affected areas, public disclosure of geotechnical and environmental studies, and the development of fair and transparent compensation. It also requested that measures be taken to prevent further ecological and social harm.
A complaint regarding Georgia was filed with the Asian Development Bank in October of this year.
“The Complainants requested confidentiality, raising concerns about potential reprisals.”
The case concerns the Georgian Railway Green Bonds, with the Asian Development Bank having invested $20 million since 2021. ADB clarifies that their funds are not meant for tunnel work or any capital expenditures, such as modernisation or repairs linked to the new railway lines.
“The CRP understands that ADB’s financing was used to refinance the required electricity, power and water supply, renovation of Moliti and Zestafoni substations, as well as other components such as bridges, culverts, laying of the railway lines, electrification works and water works.
Furthermore, the ADB’s financing had not been used for new railway lines nor any tunnels on existing and new railway lines. The Panel also notes that the project’s RRP explicitly states that the proceeds will not finance any tunnel-related works and any capital expenditures, upgrades, or repairs linked to new railway lines,” it is clarified in the Asian Development Bank Accountability Mechanism Compliance Review Panel (CRP).
“The Panel notes the allegations brought by the Complaint, include soil erosion and landslides, which are deemed to relate to alleged frequent and powerful blasting done in the course of constructing tunnels”
“The construction of the tunnels falls strictly outside the activities financed by ADB. [...] the CRP determines that the Complaint falls outside of the scope of the compliance review function, since the allegations of harms are not related to ADB-financed components of the project. It thus does not merit a Management Response.” With this decision, the case was declared closed.
The modernisation project of the Zestaponi-Kharagauli-Khashuri railway line has been ongoing since 2011. The design and construction work are being carried out by the construction company that won the tender, China Railway 23rd Bureau Group LLC.
