EU offers almost €10m for Georgia’s electric transmission development
The European Union (EU) is providing €9.9 million grant to provide grid infrastructure for promotion of net integration of hydropower plants, increase transmission capacities, including cross-border trade and improve security of energy supply of Georgia.
The EU is offering this grant through its Neighbourhood Investment Facility (NIF) to support the program on “Extension of the Georgian Transmission Network”, co-financed by German government-owned development bank KfW.
The program consists of the following components: Tskaltubo-Akhaltsikhe-Tortum Connection, reinforcement of transmission infrastructure in Guria, construction of North Ring, reinforcement of Kakheti transmission infrastructure.
EU NIF contribution €9.9 million consists of €5.9 million investment component and €4 million technical assistance component.
This contribution is in conjunction with the €125 million loan already provided by KfW Development Bank. In addition, the programme is also co-financed by the European Bank for Reconstruction and Development (EBRD).
The total cost of the project is €225.36 million.
A Financing and Project Implementing Agreement on the “Extension of the Georgian Transmission Network” was signed today by the officials from Georgia’s Ministry of Economy, Georgian State Electrosystem (GSE) and KfW.
We are confident that the extended electricity grid will ensure more reliable supply, creating better business and investment opportunities, thus strengthening Georgia’s role as a regional energy hub. This clearly has the potential of generating more and better job opportunities for many people. We wish success to the parties in making this project a reality,” said Ambassador of the European Union, Janos Herman.
The program’s implementation period will last until 2021.