The European Union, through its Neighborhood Investment Facility (NIF), provided a €9.9 million (GEL 28 million) grant to support the program on “Extension of the Georgian Transmission Network”, co-financed by the German government-owned development bank KfW.
Deputy Minister of Economy of Georgia, Giorgi Chikovani; General Director of Georgian State Electro system (GSE), Sulkhan Zumburidze; and KfW representative, Hans Rieck, signed a Financing and Project Implementing Agreement on the ‘Extension of the Georgian Transmission Network.’
The aim of the program is to: provide grid infrastructure for promotion of net integration of hydropower plants (HPPs), increase transmission capacities, including cross-border trade, and improve the security of energy supply of Georgia.
The program consists of the following components: the Tskaltubo-Akhaltsikhe-Tortum Connection, reinforcement of transmission infrastructure in Guria, construction of the North Ring, and reinforcement of Kakheti transmission infrastructure.
The EU NIF contribution of €9.9 million consists of a €5.9 million investment component and €4 million technical assistance component.
This contribution comes in conjunction with the €125 million loan already provided by KfW Development Bank. The program is also co-financed by the European Bank for Reconstruction and Development (EBRD).
The total cost of the project is €225.36 million.
KfW´s activities in Georgia started in 1993. Since then, more than €750 million has been invested in different sectors, among them the energy, financial, municipal infrastructure, environment and health sectors.
The Economy Ministry reports that more than 50% of the whole investment (€400 million) has been attributed to the energy sector of Georgia.