SUMMARY

This note sets out a comprehensive methodology for evaluating the socio-economic and fiscal impacts of road maintenance in Georgia. Moving beyond a purely technical cost perspective, it frames maintenance as a strategic investment that drives regional development, productivity, and fiscal sustainability.

The proposed framework links four core components: transport modelling, accessibility analysis, productivity estimation, and fiscal impact simulation. Improved road quality reduces travel times, widens access to jobs and services, and strengthens urban agglomeration effects – delivering measurable gains in GDP and tax revenues.

The methodology follows eight sequential steps: assessing current road conditions, forecasting traffic, modelling infrastructure deterioration, quantifying accessibility improvements, estimating productivity impacts, and projecting additional tax revenues using a Socio-Economic and Fiscal Assessment Model. Dynamic programming techniques can then be applied to optimize the timing and spatial allocation of maintenance activities.

Designed as a modular, scalable tool, the framework can be implemented with existing data in the short term and progressively refined through dedicated surveys, model calibration, and Georgian-specific parameters. It supports evidence-based infrastructure planning, provides a transparent basis for prioritizing investments, and underpins the case for dedicated funding mechanisms.

By demonstrating the economic and fiscal returns of well-planned maintenance, this approach repositions road upkeep from a budgetary burden to a catalyst for sustainable territorial and economic growth.

Key Words: Georgia, road maintenance, wider economic benefits, fiscal, accessibility.

JEL: R42, H54, R11, R41, H71, 018

For the complete paper, please refer to the attached research note (above).