74 million Euro to support planned energy sector reforms
Loan agreements were signed between Georgia and KfW Development Bank and between Georgia and French Development Agency (AFD) in order to support Georgia’s energy sector reforms.
In total, the financial contribution comes to 74 million EURO (KfW - 49 million EURO and AFD - 25 million EURO) and is dedicated to planned reforms by the Georgian government in the energy sector, including activities supporting energy efficiency.
The allocation of financial resources is taking place within the framework of the signed declaration of intent between Georgia, KfW development bank, and French Development Agency titled ‘German and French financial cooperation with Georgia’.
The Declaration of Intent states that the KfW and ADF are to support the reforms planned for the Energy Sector by the Georgian Government and cooperate with Georgia in the energy sector throughout the four-year-long programme.
In addition, The EU will also allocate a grant contribution of EUR 8,5 mln (approx. GEL 26 mln) through its Neighbourhood Investment Platform (NIP) to support the scope of this agreement and will provide technical support to the programme. As a reference, there are currently 52 power plant stations under construction, totaling an estimated installed capacity of 1,562 MW and with the estimated investment cost of 2,7 billion USD. Furthermore, 109 projects are in the research phase with an estimated installed capacity of 3860 MW with a total investment cost over 6 billion USD. Currently in the feasibility research phase are: 19 wind memorandums (installed capacity - 1219 MW, investment - 1,9 mln USD) and 15 solar units (installed capacity - 543 MW, investment - $ 539 mln USD).