International Bank for Reconstruction and Development to support Georgia's energy industry
Baku, Azerbaijan, May 25
By Nargiz Sadikhova - Trend:
Loan of $62 million to Georgia for the Energy Supply Reliability and Financial Recovery Project was approved by the Board of Executive Directors of The World Bank, Trend reports siting the Bank’s press office.
The loan is to be financed by the International Bank for Reconstruction and Development (IBRD).
“The project is aimed to increase electricity supply reliability in the western part of Georgia, ensure the financial viability of Georgian State Electrosystem (GSE), and help GSE access long-term commercial financing,” the statement says.
“The project consists of three components: strengthening of the power transmission network, support to financial recovery of GSE and preparatory work to access capital markets, and support to GSE to raise long-term commercial financing,” reads the statement.
“The project will increase electricity supply and prevent outages across Georgia’s regions, furthermore, it will assist GSE to tap into even greater domestic and international financing resources,” noted Mercy Tembon, World Bank Regional Director for the South Caucasus.
The Georgian power sector has undergone significant reforms over the last two decades with positive outcomes. The power sector has gone from near complete operational and financial collapse to reliable electricity supply with sector companies in adequate financial standing. The regulatory framework is robust overall, but some challenges remain. As such, the project will help the Government address these challenges in line with its energy strategy.
This project is consistent with the World Bank’s latest Country Partnership Framework 2019-2022 for Georgia.
“The project will help the country achieve the targets under its Nationally Determined Contribution, as well as offer innovative solutions that can help GSE change its traditional model of financing and set the stage for long-term financial viability and access to capital markets,” the statement says.
(1USD = 379 tenge on May 25)
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