Georgia suspends underground Gas Storage Project
BAKU, Azerbaijan, Sep.4
By Tamilla Mammadova – Trend:
Georgian Government suspends the underground Gas Storage Project by diverting 120 million euros for the COVID-19 crisis, Trend reports via Georgian media.
The former Prime Minister of Georgia, Mamuka Bakhtadze signed an agreement on 150 million euros loans in 2018, as part of the visit of the German Chancellor, Angela Merkel to Georgia.
As a result of negotiations for several years, the Development Bank of Germany (KfW) agreed to allocate the mentioned financial resource for the implementation of the underground gas storage project in Georgia.
According to the document that the Government has sent to the Parliament, amid the COVID-19 outbreak, the Georgian Government and KfW held negotiations and the purpose of this loan has been changed. Some 120 million euros of 150 million euros will be spent on COVID-19 crisis elimination campaigns.
On the whole, the Government has reclassified loans of 180 million euros and these resources will be directed to the State Treasury. Georgia and KfW signed a new agreement on August 7.
The maturity of the 180-million euros loan is 3 years, including the 2-year grace period.
The underground gas storage project is to ensure Georgia’s energy independence and to use the natural gas crossing Shah Deniz pipeline. The total investment value of the project is 220-250 million euros. The total storage capacity of the facility is 400 million cubic meters, which is 10-15 percent of Georgia’s annual consumption.
Follow the author on twitter: @Mila61979356