Baku, Azerbaijan, July 13
By Elena Kosolapova – Trend:
The European Investment Bank (EIB) will provide Georgia with 250 million euro loan to upgrade priority road infrastructure, the bank said in a message July 13.
The loan agreement was signed by EIB Vice-President Vazil Hudák in the presence of Georgian Prime Minister Girogi Kvirikashvili and European Commission Vice-President Maroš Šefčovič in Tbilisi.
In addition, the EU bank increased its support by 3.5 million euro to finance the completion of rehabilitation works at Georgia’s biggest hydropower complex, the Vardnili-Enguri HPP cascade.
The 250 million euro loan is the second and last tranche of a 500 million euro framework loan for the construction and rehabilitation of approximately 253 kilometers priority primary and secondary roads identified by Georgia’s Government for the 2017-2020 period.
The project, which will include road safety elements, will enhance both international connectivity – notably on the East West Highway, part of the extended Trans-European Transport Network – and domestic mobility. This will strengthen vital links between Georgia, Ukraine and Europe through the Black Sea ports, and also to Azerbaijan, Turkey and Armenia.
The extension of the EIB’s support for the Vardnili-Enguri HPP cascade follows the 20 million euro loan provided by the bank in 2010 in line with EU policy guidelines for EIB activities in the Eastern Partnership and supported by a 5 million euro grant from the European Commission.
The additional 3.5 million euro in funding from the EIB will help to finalize a rehabilitation program concerning civil works as well as electrical and hydro mechanical work. This additional loan will provide assistance to secure the completion of a project that is expected to have a significant impact on Georgia’s hydroelectricity supply.
The EIB has so far supported 21 projects with a total loan volume of over 1.5 billion euro in Georgia. A regional EIB office was opened in Tbilisi in 2015.
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