MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Minister of Economy and Sustainable Development of Georgia, George Kobulia and the EU Ambassador to Georgia, Carl Hartzell attended the Gerogia-KfW Agreement and the Georgia-AFD Agreement signing ceremonies.

The Agreements were signed by the Minister of Finance of Georgia, Ivane Machavariani, the KfW Head of Division for Eastern Europe, Caucasus and Central Asia, Olaf Zymelka, Ambassador of the republic of France to Georgia, H.E. Pascal Meunier and the ADF Head of the South Caucasus Regional Office Gayle Asayage.

According to the signed agreements, Georgia will receive a total of 74 million euros financial support for the implementation of the reforms scheduled by the Georgian Government in the energy sector and will be fully transferred into the state budget.

 “These Agreements prove that the EU and the countries like France and Germany are paying great attention to our energy development and reforms. We are ready to continue this pass and implement reforms in this direction,” – the Minister of Economy and Sustainable Development of Georgia, George Kobulia stated.

“By signing the Agreements we will further enhance the fruitful cooperation in the energy sector that has already been established with the Georgian authorities. Energy sector is a very important area, because it covers the energy security and the effective use of the resources that country has,” – the EU Ambassador to Georgia, Carl Hartzell noted.

The loan agreements imply the allocation of the sum within the frames of the Declaration on Financial Cooperation between Germany and France Republics and Republic of Georgia signed on 14 May 2018.

This declaration provides ground for providing support by the KfD and the ADF to the Georgian Government in terms implementation of the reforms in the energy sector as well as facilitates cooperation with Georgia within the 4-year (2018-2021) program in energy sector.

In 2018 Georgia will receive a budget-supporting loan from the KfW and the AFD of total € 74 million in support of the energy sector projects, including the energy efficiency measures.

In addition, the EU Neighborhood Investment Platform (NIP) is expected to allocate another 8.5 million euros in a from of grant to support the energy sector reform. This sum will be to provide the technical assistance of the program.