The European Investment Bank (EIB) has directly financed a company in Georgia for the first time. The EU bank will provide a €21.47 million long-term loan to Tbilisi’s water utility – Georgian Water and Power (GWP) – to support its water and wastewater infrastructure development programme.
The loan will enable GWP to rehabilitate the Gardabani wastewater treatment plant and to modernise and develop the water supply infrastructure. This will help GWP to meet its environmental objectives in line with the Georgia-EU Association Agreement, and the investment into the wastewater treatment plant will improve ecological conditions in the river basin. The modernisation of the water supply network in Tbilisi will help to reduce water losses as well as energy use in the pumping stations.
“The contract signed today is unique as it is the first EIB loan provided directly to a private corporate in Georgia. This project will increase the quality of services in the water sector with a positive impact on the everyday life of citizens of Georgia’s capital Tbilisi,” said EIB Vice-President Vazil Hudák.
The EIB – the European Union’s bank – finances projects in Georgia on the basis of an EU mandate for the countries of the Eastern Neighbourhood, which provides for a total amount of Bank financing in the Eastern Neighbourhood of €4.8 billion over the period 2014-2020, to support projects of significant interest to both the EU and Eastern Partnership countries in the areas of local private sector development, social and economic infrastructure and climate change.
Since the start of EIB activities in Georgia in 2007, the value of EIB lending commitments in the country has reached €1.546bn.
Find out more