Georgia, KFW formalize financial agreement

Photo: Georgia, KFW formalize financial agreement / Georgia

Tbilisi, Georgia, Dec. 14

By Nana Kirtzkhalia - Trend:

Georgia and German Credit Bank for Reconstruction formalized a financial agreement. The document was signed by Georgian Finance Minister Nodar Khaduri and KFW Vice-President Eva Witt.

The Georgian Finance Ministry told Trend on Friday that the agreement envisages funding of the following projects, namely, the integration of solid waste management in Kutaisi and an open program on electricity transmitting network expansion in Georgia.

It is planned to construct the new sanitary landfill, to purchase special vehicles for transporting solid waste for landfill and to close the old landfill in Kutaisi as part of the first project. The bank allocates the preferential financial resources worth 20 million euros to Georgia for this project. The EU will allocate a grant worth two million euros to finance the project related operations as part of the Neighbourhood Investment Facility (NIF).

Around 35 million euros of the concessional financial resources, divided into two parts, will be allocated to finance the program. The first part hits 22.15 million euros, while the second one - 12.85 million euros. The first part envisages the construction of the 500/220 kW Jvari substation.

The European Bank for Reconstruction and Development will finance the construction of transmission lines to the substation through the preferential financial resources worth 25.2 million euros.

The substation construction will allow supply electricity to western Georgia, the Poti free economic zone and transport it to Turkey.

The second part of the financial resources will be used to finance a priority project in the energy sector.

Translated by NH

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Tags: KFW, Georgia