European Investment Bank allocates Euro250 million to Georgia
By Tea Mariamidze
Wednesday, February 20
European Investment Bank (EIB) will allocate a Euro250 million loan to Georgia.
The agreement was signed on February 19 in Tbilisi by Georgian Prime Minister Mamuka Bakhtadze and Vice-President of EIB Vazil Hudak.
The PM noted it is a very important financial support to Georgia enabling an active development of vital infrastructure projects.
At the joint press-conference with Vazil Hudak, Bakhtadze thanked EIB and underlined that it is one of the most significant partners of Georgia.
“Investments made by the EIB in recent years are particularly important for the development of a transport corridor in Georgia. I also wish to note the financial contribution of EIB in the advancement of transport communication, road and water infrastructure,” he added.
According to the PM, 250 million Euros allocated by the EIB will be aimed at the implementation of specific projects, like construction and rehabilitation of Rustavi-Red Bridge and Rustavi-Sadakhlo fragments of the highway.
“We also welcome the decision made by EIB towards augmenting its operation and volume of engagement in the private sector to develop the small and medium enterprises (SMEs),” he noted.
Bakhtadze emphasized that at the same time, the government is considering the creation of new financing mechanisms that will help the country boost foreign direct investments (FDI) in Georgia.
“I hope that EIB will continue to support current reforms in the country that are aimed at the rapid economic development, inclusive growth, creation of jobs, improvement of living standards and what is most important for all of us - elimination of poverty,” he stressed.
The Vice-President of the European Investment Bank also made comments. According to him, EIB is a financial wing of the EU and our performance evidence that Georgia is part of a wider European space.
“Euro250 million for the construction of new roads and rehabilitation of existing ones for the extension of the European transport network implies the development of East-West Highway. It will bring Georgia closer to Europe. It will let the country benefit from its significant geographic location and potential to connect Europe and Asia,” he noted.
He said Georgia has a huge potential towards this end in terms of human capital, history, geographic location and by being an innovative leader in the region.
“We are happily engaged in this initiative and will support more innovations in Georgia. We will facilitate investment and engagement of EU companies in the economic development of Georgia, closer interaction of EU and Georgia,” Vazil Hudak said.
Carl Hertzell, EU Ambassador to Georgia underlined that EU is a partner of Georgia and financial resources allocated by the EIB will be used to advance a 100 kilometer-long section of the East-West Highway.
“It also means that new jobs will be created in the construction sector. We already noted thatEuro 6.1 million will be allocated as a grant financing for the technical assistance to stimulate new investments, build the capacity of the Roads Department in implementing more wide-scale projects in the country. Thus we will greatly contribute to the safety of passenger and cargo transportation through roads in Georgia,” he noted.
