European Investment Bank to Allocate EUR 100 Million to Georgia

The European Investment Bank (EIB) is to allocate EUR 100 million for a 25-year term, which will be used for Georgia’s current and future infrastructure projects. The public was informed of the decision by Deputy Minister of Finance, Giorgi Kakauridze, following a meeting of the Environment and Natural Resources Committee.

EUR 50 million, within the agreement between Georgia and European Investment Bank, will be spent on the rehabilitation works of the damage in Tbilisi caused by the 2015 flood, EUR 25 million will be spent on development of tourism infrastructure, while the remaining EUR 25 million will be spent on various small projects of different municipalities, including roads and water system rehabilitation.

According to the Deputy Minister of Finance, each tranche of funds will be carried out gradually and currency units of the allocated amount and loan terms will be determined individually. The European Bank loan is being managed by the Municipal Development Fund.

The members of the Committee voted in favor of the agreement being presented at the plenary session.

The European Union’s leading financial institution, the European Investment Bank (EIB), finances projects in Georgia on the basis of an EU mandate for the countries of the Eastern Neighborhood, the so-called External Lending Mandate.

Ana Akhalaia