German state-owned bank reveals financial Cooperation Portfolio in Georgia

Finance Materials 28 June 2021 22:40
Baku, Azerbaijan Trend News Agency Tamilla Mammadova
German state-owned bank reveals financial Cooperation Portfolio in Georgia

The KfW, formerly KfW Bankengruppe ("banking group"), is a German state-owned investment and development bank reveals financial Cooperation Portfolio in Georgia as of 06/2021, the KWF told Trend.

Rehabilitation of municipal infra-structure facilities in and around Batumi

Under the project, the water supply and waste-water disposal systems in the Georgian coastal town of Batumi and the Adjara region will be gradually expanded, while at the same time creating the conditions for efficient operation: On the supply side, the water catchments and main water pipes, as well as the network including house connections and water meters, were rehabilitated. This resulted in a quantitatively and qualitatively better supply of households as well as lower water losses along with the pipe networks. Disposal was successfully tackled with the construction of a modern biological sewage treatment plant

82 million euros (Loan), 25 million euros (Grant) under implementation, 7 million euros (EU-NIF Grant under implementation)

Climate-friendly waste management program

The EU Association Agreement contains many agreements on environmentally and climate-friendly economic development. These include, for example, an orderly waste management system based on modern standards. FC is therefore financing modern waste landfills, waste reloading stations, collection vehicles and initial waste recycling facilities in the Imereti, Kakheti and Samegrelo-Zemo/Svaneti regions.

50 million euros (Loan), 2 million euros (Grant),1.6 million euros (EU-NIF Grant) under implementation

Municipal infrastructure for environment and tourism

Tourism is an important economic sector in Georgia. The sustainable development of tourism requires that the prerequisites for a modern tourism infrastructure be created and that environmental protection be taken into account. The "Municipal Infrastructure for Environment and Tourism" project finances the modernization of municipal infrastructure in selected municipalities in the Imereti (Samtredia, Vani, and Bagdati) and Kazbegi regions (Stepantsminda).

130 million euros (Loan), 5 million euros (Grant) under implementation

Sustainable Urban Mobility in Georgia - TUMI

The project supports two of Georgia’s most populous cities, Tbilisi and Batumi, in the improvement of the sustainability of its transport infrastructure in order to reduce traffic-induced air pollution and greenhouse gas emissions. The focus will be on the establishment of an intelligent traffic control system (ITS) and the expansion of attractive, safe, comfortable and accessible public transport services to be complemented by improved infrastructure for pedestrians and cyclists.

100 million euros (Loan), 2 million euros (Grant) under preparation

Open Program Energy Efficiency

The Project targets the energy efficiency upgrade and rehabilitation of public buildings (mainly schools) covering entire Georgia. It is part of the EU’s wider effort to improve the energy sector in Georgia, and specifically the activities under the Georgian Energy Sector Reform and plays an important part in introducing the new EE standards, performance benchmarks and developing the market for EE in buildings. It consists of an investment component co-financed by EBRD and KfW and an accompanied technical assistance (TA) package to support implementation.

40 million euros (Loan), 2 million euros (Grant), 12.15 million euros (EU-NIP Grant) under preparation

Energy efficiency measures and approximation to EU energy efficiency standards in buildings

Energy efficiency measures represent a high potential for saving CO2 emissions in Georgia. At present, however, there is still a lack of concrete demand and experience for energy-efficient construction. In Batumi, FC will finance the energy-efficient rehabilitation of public buildings (mostly kindergartens). Modern energy efficiency standards in accordance with EU specifications are to be applied to the investments and the introduction of a nationwide energy efficiency program for public buildings is to be prepared.

7.5 million euros (Grant) under implementation

Policy-based Loan (PBL) in the energy sector

The project, which is being implemented together with the French development bank AFD and the EU, involves financial support from the Georgian government for a far-reaching energy re-form. It is based on Georgia's contractual commitments to become a full member of the EU Energy Community (EUEC) in 2017. The aim is to create a transparent and regionally integrated energy market and to promote the development of renewable energy and demand-side energy efficiency, particularly in the buildings sector.

Up to 90 million euros per year (Loan); total financing as of 2020: 199 million euros, 8.4 million euros (EU-NIF Grant) under implementation

Expansion of electricity transmission in Georgia

A reliable electricity supply is a basic prerequisite for economic development. In Georgia, the project will eliminate existing bottlenecks in the electricity transmission grid and thus enable the further expansion of renewable energies (in particular hydropower). At the same time, state-of-the-art technologies enable and enhance electricity trading with neighboring countries.

260 million euros (Loan), 18 million euros (EU-NIF-Grant), 1 million euros (Grant) under implementation

Technical vocational and educational training (TVET)

The Georgian government wants to strengthen training occupations and thus create an alternative to university education in the medium term. The project will finance a Centre of Excellence which, in addition to classical vocational school functions, will take on tasks similar to an inter-company center as well as the training of vocational school teachers and offer adult education courses.

20 million euros (Loan), 3 million euros (Grant) under implementation

Policy-Based Loan (PBL) for "Strengthening of Competitive-ness and Crisis Resilience of the Georgian Economy"

The principal objective of the Policy-Based Loan is to support Georgia’s ongoing reforms in areas critical for inclusive economic growth while also helping the country’s efforts to mitigate the economic impact of the COVID-19 pandemic. It builds on and complements the World Bank "Economic Management and Competitiveness Development Policy Operation". In the short term, the agreed-up reforms help shield the Georgian economy from the impact of the COVID-19 crisis. In the medium term, they strengthen the resilience of the economy to future shocks, e.g., through the enactment of new insolvency legislation, and help to unlock Georgia’s investment and job-creation opportunities.

180 million euros (Loan) under implementation

Social protection during the COVID-19 Pandemic

The objective of the project is the strengthening of the Georgian social protection system with the goal of cushioning the economic impact of the Covid-19 crisis on the most vulnerable parts of the population.

15 million euros (Loan), 5.81 million euros (Grant) under implementation

Eco regional Nature Conservation Program South Caucasus

Promotion of protected areas in the Southern Caucasus (Georgia)

The declared long-term objective of FC engagement in biodiversity in the South Caucasus is the implementation of a cross-border, "Ecoregional Conservation Plan". As part of the program "Promotion of protected areas in the Southern Caucasus - Georgia", equipment and management will be improved in four national parks: Kazbegi, Algeti, Kintrishi, and Psav-Khevsureti. In addition, cooperation is being established with local communities in order to increase acceptance of the protected areas and at the same time create alternative income opportunities.

8.25 million euros (Grant) under implementation

Biodiversity and sustainable local development - Georgia

This project continues the FC engagement in Georgia with the improvement of biodiversity and landscape protection through the expansion of protected areas, the improvement of the management of protected areas, and the promotion of ecotourism as a source of revenue for the local population. In addition, the project contributes to the establishment of a system of sustainable forest management and the strengthening of its climate resilience with a special focus on the Adjara region of Georgia.

26.23 million euros (Grant) under implementation

Economic integration, housing and social infrastructure for IDPs

A significant proportion of refugees from the two conflict regions of Abkhazia and South Ossetia still live in refugee shelters and are disproportionately affected by unemployment. This project will improve economic and social integration (livelihood) as well as access to social infrastructure and housing for Georgian internally displaced persons (IDPs). The international NGO Danish Refugee Council (DRC) is implementing the project together with the Georgian authorities.

10 million euros (Grant) under implementation

Underground gas storage facility

The project will finance the construction of the Samgori South Dome gas storage facility, 20 km southeast of the Georgian capital Tbilisi. This is the first gas storage facility in Georgia. Its purpose is to secure the supply of Georgian households and electricity producers, even in the event of interrupted gas supplies from neighboring countries, and thus to meet EU requirements for the security of supply. In addition, the gas storage facility is to compensate for seasonal fluctuations in the supply and demand of natural gas - with positive price effects for consumers.

30 million euros (Loan) under implementation