EIB approves €21.4 million loan to GWP
According to The Financial, a Tbilisi-based publication that focuses on economics, the European Investment Bank (EIB) announced that it will directly finance Georgian Water and Power (GWP), Georgia’s sole water utility company. GWP is the first Georgian company to be directly financed by the EIB.
The bank will provide a €21.4 million long-term loan to the company with the aim of supporting its water and wastewater infrastructure development program. EIB Vice-President Vazil Hudák announced the loan along with GWP CEO Giorgi Tskhadadze at a press conference yesterday.
According to the EIB, the loan will provide GWP the financial wherewithal to renovate the Gardabani wastewater treatment plant and to modernize and develop the district’s water supply infrastructure. Thus enabling GWP to better meet its environmental obligations in accordance with the EU Association Agreement criteria that Georgia must carry out as a signatory member to the agreement. In addition, the renovations made to the waste water plant will help improve the ecological conditions in the nearby river basin, help reduce water losses, as well as energy-use in the pumping stations.
“The contract signed today is unique as it is the first EIB loan provided directly to a private company in Georgia. This project will increase the quality of services in the water sector and will have a positive impact on the everyday life of citizens of Georgia’s capital Tbilisi,” noted Hudák.
“The long-term loan agreement signed with EIB affirms the trust of this institution in GWP. The debt financing enables the company to make investments in the development of its infrastructure, which on the one hand support Georgia’s long-term objectives with regard to the EU Association Agreement and on the other hand, contribute to the improvements in the living standards of Tbilisi’s population,” said GWP CEO Giorgi Tskhadadze.