ECONOMY

Finance Ministry signs for 180 million euros in loans with KfW, AFD to develop water, energy sectors

08.10.19 13:30


Georgian Finance Minister Ivane Matchavariani has signed a €60 million loan with German Development Bank (KfW) to develop water infrastructure in Batumi and a €120 million loan in total from KfW and French Development Bank (AFD) to develop the country’s energy sector. 

 

The €60 million loan will be used to improve the water supply system in Georgia’s coastal city of Batumi and promote tourism development.

 

The German side has allocated an additional €1.8 million grant for the energy sector to a grant of €5.7 million which was given by the KfW on June 14, 2019.

 

The project will provide for the reconstruction of 25 kindergartens per energy efficiency standards in Batumi and the reconstruction of one historic building which will be selected on the basis of negotiations of KfW and Batumi City Hall.

 

Loans of €60 million from KfW and €60 million from the AFD will be used to develop the energy sector of Georgia.

 

With this project, KfW and AFD are ready to support the Government of Georgia to carry out reforms in the energy sector, which will strengthen the country's energy independence and develop its energy capacities.

 

In 2018, loans for energy sector was received from KfW (€49 million) and AFD (25 million), while Georgia received €8.33 million grant from the European Union.

 

 

source: AGENDA

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