...

EIB reveals volume of investments in Georgia

Business Materials 9 July 2019 19:03 (UTC +04:00)

Baku, Azerbaijan, July 9

By Tamilla Mammadova - Trend:

The European Investment Bank (EIB) has invested in 23 projects in infrastructure, the private sector and climate action since starting its operations in 2007 in Georgia, Trend reports with reference to EIB.

Over the last five years, EIB has helped to sustain 56 000 jobs, 2 500 000 people benefited from new or upgraded urban infrastructure, 12 000 000 people benefited from improved sanitation services, and 14 400 MWh were saved via energy efficiency measures.

EIB has supported 11 projects in the areas of transport connectivity, energy security, and municipal and environmental infrastructure with loans totaling to 1.48 billion euros. This investment delivers tangible results for the Georgian population and the country’s economy, making the EIB one of the major public sector financiers in Georgia.

Since 2017, EIB has committed 1.48 billion euros, mobilizing over 3.47 billion euros for 11 public sector projects. The EIB is also supporting the upgrading of municipal infrastructure in several Georgian cities and environmental projects such as the repair and modernization of municipal wastewater facilities.

In 2016, the European Investment Bank quickly mobilized 100 million euros in financing for the repair of infrastructure damaged by the floods in Tbilisi. The EIB also provided investment grants via the Neighbourhood Investment Platform (NIP), as well as technical assistance via the Eastern Partnership Technical Assistance Trust Fund (EPTATF).

Moreover, since 2012, the East-West highway, which is a part of the extended TEN-T network in Georgia, has received nearly one billion euros of EIB long-term financing, combined with several grants from the EU Neighbourhood Investment.

From 2007 to 2018, 200 million euros EIB loans were allocated for municipal infrastructure, one billion euros for public infrastructure investments in the transport sector, 180 million euros for water and wastewater infrastructure, 105 million euros for energy security, and over 60 million euros for technical assistance and investment grants, supporting energy efficiency, municipal infrastructure and transport projects.

In addition, the EIB provides direct investment loans to Georgian businesses including 21.5 million euros long-term loan to Tbilisi’s water utility, Georgian Water and Power, to support its water and wastewater infrastructure, upgrade its network to reduce water losses and improve energy efficiency.

Over the 2007-2019 period, EIB loans to local banks translated into attractive financing for close to 1,300 sub-projects of eligible businesses. This number is growing.

An EIB-backed loan of around 2 million euros from TBC Bank enabled the purchase of equipment to expand its production a Georgian chocolate maker Barambo. A 170,000 euros EIB loan from ProCredit Bank Georgia enabled the GlobalMed Children’s Clinic to acquire new premises and modern equipment. The project also benefited from an interest rate subsidy under the EU4Business SME Finance Facility.

Since 2007, EIB has also committed 348 million euros, mobilizing over 1,620 billion euros, for more than 1,300 projects of eligible small businesses, mid-caps and corporates. Under the EU4Business program, the European Investment Bank has joined forces with the EU’s Neighbourhood Investment Facility to provide a comprehensive package of instruments to address market needs and support the objectives of the DCFTAs.

According to EIB, in 2017 and 2018, the European Investment Fund signed InnovFin guarantee agreements with ProCredit Bank JSC and TBC Bank in Georgia. The agreements will enable the two banks to provide 60 million and 50 million euros worth of loans to innovative small businesses and mid-caps respectively. By the end of 2018, 43 million euros of loans to 86 firms had already been disbursed.

As reported, the 3.5 million euros EIB loan was financially backed by a 5 million euros EU grant from the Neighbourhood Investment Platform. The European Investment Bank supports energy efficiency and renewable energy projects. It also invests in equity and debt funds. Eighty-five million euros were disbursed since 2007, contributing to climate change mitigation and adaptation.

Advised by the EIB, GEEREF is an innovative fund-of-funds attracting private sector capital to clean energy projects in developing countries and economies in transition. In Georgia, GEEREF has committed $13 million to the Caucasus Clean Energy Fund, a private equity fund investing in small and medium-scale hydropower plants across the country.

Tags:
Latest

Latest