Georgian, Germany banks sign agreement for 25 million euros

Business Materials 15 November 2012 22:42 (UTC +04:00)

Georgia, Tbilisi, Nov 15 /Trend N.Kirtzkhalia/

Bank of Georgia and the German Development Bank (KFW) have signed a loan agreement in the amount of 25 million euros.

The purpose of 10-year financing resource is investing in renewable energy, mainly financing of small HPPs and their rehabilitation, CEO Bank of Georgia Irakli Gilauri said at a press conference on Thursday.

He noted that a formal agreement will allow Bank of Georgia to increase funding for the business, which will contribute to economic growth in the country.

"The bank has a rich experience in financing the energy sector and new financial resources will further increase the competitiveness of the bank in this sector," he said.

Gilauri thanked KFW and the Austrian Development Bank for their cooperation, and expressed his gratitude to the team of Bank of Georgia for the success of the transaction.

The agreement provides technical support for Bank of Georgia and potential investors funded by the by the KFW and Austrian Development Bank.

Director of the coordination of the energy sector of KFW in the South Caucasus Enrico Stealer, they're happy that they start the program, the aim of which is to provide long-term financing of renewable energy, and more specifically - investing in small HPPs capacity of 20 megawatts.

"We believe that investing in HPPs gives an opportunity to Georgia to rely on its energy resources, rather than to import expensive non-renewable resources. Hydropower contributes to protecting the environment and climate. We want to emphasize that the program, which is co -financed by the Austrian Development Bank, and includes technical components support is aimed to add experience in the financing of small hydro power plants to Bank of Georgia," Stealer said.