The institutions offer a monetary package of US$ 14.3 million (akin to approximately 13.5 million) to Rustavi Group LLC with the construction of a medium-size hydropower plant (HPP) in northern Georgia. The EBRD is supporting the work by using a US$ 5.6 million loan and TBC Bank is contributing US$ 8.7 million. Meanwhile, the EU is backing this transaction by using a risk-sharing facility based on a guarantee mechanism rendering it actually possible to boost the degree of financing past the amounts that might be available with out a guarantee of the kind.
The Lukhuni 2 HPP are going to have an installed capacity of 17.2 MW as well as an expected annual generation of 86.3 GWh. Throughout the summer period the power plant, operating to the Lukhuni River, might be qualified for export electricity to Turkey. During winter it’ll play a vital role in providing electricity to northern Georgia. The strength plant construction will benefit the citizens of Georgia ?by reinforcing energy peace of mind in the continent and increasing competitiveness while in the energy market.
In accessory generating energy, the investment is required to enhance the introduction of the Racha region from the production of new jobs. The project is line together with the strategic priorities of the EBRD along with the government of Georgia to formulate electrical power generation and infrastructure.
The EBRD financing as well as EU’s support to the investment will allow Rustavi Group to try EU standards in the construction of the HPP and to introduce better and quality-oriented management practices, having a benchmark with the industry.
Georgia signed an Association Agreement with the EU in 2014, which formed the basis of an reform agenda and also the development of an in-depth and Comprehensive Free Trade Area (DCFTA). The establishment of your DCFTA can provide new trade opportunities and bring economic good things about Georgia offering businesses accessibility to the EU single market C the largest on the planet.
The EBRD and EU are cooperating on DCFTA-related activities in Georgia, Moldova and Ukraine. Including, they are providing small and medium-sized enterprises with admission to finance, including direct lending and also loans through local partner banks, but in addition with know-how to cultivate businesses. The financing is complemented by policy dialogue aimed at increasing the business and investment climate from the three countries.
The EU is definitely the largest donor providing grant resources to EBRD projects that directly benefit people round the three countries. The EU’s support to the hydropower project belongs to these DCFTA activities and advantages of funding below the EU4Business initiative.
The EBRD is really a leading institutional investor in Georgia. Considering that the addition of the its operations in the united states, the financial institution has invested over 2.73 billion in 195 projects within the financial, corporate, infrastructure and sectors, with 91 % of these investments during the private sector.