The World Bank Board of Executive Directors approved a US $62 million loan to Georgia for the Energy Supply Reliability and Financial Recovery Project, financed by the International Bank for Reconstruction and Development (IBRD).
The project aims to help increase electricity supply reliability in the western part of Georgia, ensure the financial viability of Georgia State Electrosystem (GSE), and help GSE access long-term commercial financing.
“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,” said 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.
As a result of past reforms, 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.