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EBRD finances the modernisation of energy infrastructure in Georgia

2013-10-29 00:00:00

EBRD provides €25.2 million for the Jvari Khorga transmission line

The EBRD is helping to strengthen the stability and reliability of the Georgia’s transmission network, with a €25.2 million sovereign loan, which will facilitate increased trade in regional electricity and the development of renewable sources of energy in Georgia.

The loan, which is on-lent to the Georgian State Electrosystem (GSE) – the state-owned electricity transmission company – is part of a larger project that will finance the construction of a new substation in Jvari, as well as 68 km of transmission lines from the existing Kavkasioni line to Jvari and Khorga. The project will provide a vital transmission link between Enghuri, which is the main generating asset located in the northwest of Georgia, and the main regions of consumption in the central and eastern parts of the country. The loan was signed on 25 October 2013, in the presence of various government officials, including the Minister of Finance and the Minister of Energy.

This new project builds upon the successful implementation of the Black Sea transmission line, which was jointly financed by the EBRD, European Investment Bank and KfW in 2010. This 315 km high voltage electricity line links Zestaponi in western Georgia and Gardabani in the eastern part of the country.

Said Philip Lam, Senior Banker for the EBRD’s Power and Energy team: “The EBRD is pleased to support another important project in the Georgian energy sector. Georgia is quite fortunate with its natural resources, characterised by substantial hydropower reserves, with significant potential for further development, as well as a strategic location in the South Caucasus that allows it to link with Turkey and Russia. Promoting these objectives requires a robust and reliable transmission network, which this project aims to address.”

To date, the EBRD has invested a total of €1.8 billion for 158 projects in various sectors of the Georgian economy, and has mobilised a further €3 billion for these ventures from other sources of financing. In the Georgian power sector alone, the EBRD has committed over €250 million.

Author(s):Loretta Martikian
Source:www.ebrd.com

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