German KfW and French AFD have signed €74 million in loan agreements to support energy sector reform in Georgia, announces the Delegation of the European Union to Georgia.
Georgia’s Finance Minister Ivane Matchavariani and KfW’s Director for Eastern Europe, the Caucasus and Central Asia Olaf Zymelka signed a loan agreement worth €49 million on 2 October for the “Support of Georgia’s Energy Sector Reform”.
On the same day Matchavariani signed a second loan agreement worth €25 million with the French Ambassador in Georgia Pascal Meunier and AFD’s Head of the regional office for the South Caucasus, Gaelle Assayag, with the same purpose.
The EU will allocate a grant contribution of €8.5 million through its Neighbourhood Investment Platform (NIP) to support the scope of this agreement, announced the Delegation of the European Union to Georgia.
The grant will support the establishment of a strategic, institutional and financial vision and framework for energy efficiency in Georgia, especially in the construction sector. It will also promote energy efficiency through a reform programme that moves Georgia from a centralised electricity market to an organised market as envisaged by the EU’s Third Energy Package.
The programme’s implementation period will last until 2021.
