PROJECT EVALUATION FORM Project title and a short summary Rehabilitation of Georgian Railway The aim of the project

is to facilitate safe operation of trains and improvement of material and technical basis of railway. Signalling systems have to be rehabilitated and modernized in order to provide secure and safe service. Rail must be rehabilitated in order to increase average technical speed and capacity of the system. As a result of having old-fashioned technologies at the points on Georgian railway, where rail crosses road, the operational speed of railway. Please find the attached map

Map (please attach)

Technical description of project If sections are to be upgraded (length, location etc.) please provide the below information for the current situation and for the situation with the project 1. Existing road crossing systems leads to decrease of speed by trains at these points. In case of project realization operational speed will increase. At the same time, it will raise security and safety on Georgian railways. 2. Modernization of signalling systems will strengthen the security of transportation and decrease the possibility of incidents. If sections are to be built (length, location, etc.) 1. It must be completed construction of second please provide the below information for the rail on Dzirula-Kharagauli bypass. As a result, project the capacity of system will increase. Main tunnels and bridges involved Lock, depth and width of navigation section for waterways in the current situation and after implementation of proposed project Capacity of the infrastructure in the current situation and after the implementation of proposed project Number of lanes, tracks, etc. in the current situation and after the implementation of proposed project Length of lanes, tracks, etc. in the current situation and after the implementation of proposed project Design and interoperability standards (EU, UN-ECE standards) Existing facilities New facilities Other

Dzirula-Kharagauli section is mainly single-line. After completion of the project the second rail will start to operate.

First stage pre-selection

PHASE I

Pan-European interest On which major axis the project is located? Coming out of the fact that Georgian railway is closely connected to the ports of the country, this project may be considered as logic extension of TEN Corridors # 4,7,8

Significance Cost of the project Type of investment Comparison of proposed technical option with alternative solutions Firm commitment Start completion date for studies and works Has a strategic environmental assessment (SEA) been made? Priority given in the national plan Planned financing of the project (national funding, loans, user charging) Please include a financial plan. 2006-2008 Taking into account that according to the present project it is considered to develop existing infrastructure, strategic environmental assessment has not been made. International Financial Institutions 110 million Euros Grant/Credit There does not exist alternative solution

Second stage evaluation

PHASE II

Improving economic efficiency Cost savings to all freight operators, to international operators Cost savings to all passengers, to international passengers Time savings to all freight operators to international operators Time savings to all passengers, to international passengers What user charging options have been considered? Impact on economic growth and employment In case of project realisation it will be possible to realize transport of goods in less time that will lead to decrease of prime cost of transportation. Time necessary for cargo transportation from Europe to the Caucasus and Central Asia and vice-versa will importantly decrease Tariffs for railway services The capacity of the system will rise by 30 % - 8 million tones per year i.e. quantity of cargo transported by Georgian railway will increase and it will lead to rise of incomes of Georgian Railway. It will have positive impact on economic growth of the country.

Enhancing environmental sustainability Reduction in air pollutants Today, transportation of goods is mainly realised by the road transport. After realization of the project it is expected to transport goods by railway that will reasonably decrease air pollution.

Reduction in green house gases Reduction of noise nuisances How does the project affect biodiversity? Are there environmentally sensitive zones to be considered? How have the results of SEA/EYE been taken into account in the detailed project plan? How much traffic will be shifted from other modes?

Additional cargo flows will be attracted from TRACECA member countries.

Improving safety and security Reduction in accidents - number of fatalities - severity How does the project contribute to reduce security incidents to international operators and passengers? Modern signalling system will give the opportunity to decrease possibility of incidents. Transportation and cargo safety will importantly increase in case of rehabilitation and development of railway infrastructure. Besides, strengthening of transportation security will decrease risks and raise level of security during crossing the roads. Modern signalling system will give the opportunity to decrease possibility of incidents. Basically, new cargo flows will be attracted. Partially, cargo will be shifted from other transport means.

How much traffic will be shifted from other modes?