Page 57 - GEORptFeb21

Georgia obtains ADB water supply, sanitation loans
The electricity price hike was also inevitable, Mariam Chakhvashvili, senior analyst at Galt & Taggart, told Business Media. According to Chakhvashvili, the companies wanted the tariffs to be increased by a higher amount, but the GNERC did not agree to their requests.
The electricity price charged to companies rises by between 55% and 90% depending on the electricity supplier and technical details (delivery from high, medium or low voltage networks). The lowest prices are paid by those companies receiving deliveries from high voltage networks, namely GEL0.27-0.28 per kWh. Those supplied from the low voltage networks pay GEL0.3209 per kWh.
Companies operating in food manufacturing are subsidised from the state budget at 50% of the price hike.
Households will be charged electricity prices that are 15-24% higher than before the end of 2020, but the government will subsidise the price hike for those who consume up to 300kWh per month. In their case, the price charged by the two major electricity distributors, Telasi and Energo Pro, increases by 24% to GEL18 and GEL 17.7 per kWh for up to 100kWh per month and GEL21.7-22 per kWh up to 300kWh per month. Households that consume more electricity also pay a higher price: GEL26.2-26.5 per kWh for those consuming above 300kWh per month.
There are a total of 1.7mn electricity customers in Georgia, of which 1.6mn customers consume less than 300 kWh of electricity per month. This means that for 95% of Georgian households, the increased price of electricity will be fully subsidised, said Prime Minister Giorgi Gakharia
The new electricity prices are valid for a period of six months and the market regulator will make a long-term calculation by July 2021.
The Asian Development Bank (ADB) has approved $150mn in euro-equivalent loans to improve water supply and sanitation services in Georgia and help the government craft an integrated approach to the development of the sector.
Under the Sustainable Water Supply and Sanitation Sector Development Program, ADB will provide a $130mn policy-based loan and a $20mn project loan.
The loan will strengthen the capacity of local governments and the United Water Supply Company of Georgia (UWSCG), a state-owned enterprise, to enable them to adequately meet demand in urban and rural areas.
Water supply consistency in Georgia ranges from four hours to 24 hours per day, posing a significant health risk during the ongoing coronavirus disease (COVID-19) pandemic. About 92% of urban and 64% of rural residents receive piped water, while 84% of urban and 20% of rural residents have access to sewerage systems. Only 36% of the total population benefit from wastewater treatment.
9.2 ​Major corporate news 9.2.1 ​Transport corporate news
Fitch affirms rating of Georgian Railway with negative outlook
Fitch Ratings has affirmed JSC Georgian Railway's (GR) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at BB- with negative outlooks.
Among the factors that could, individually or collectively, lead to a negative rating action/downgrade for GR, were, according to Fitch, a downgrade of Georgia's sovereign rating; dilution of linkage with the sovereign, resulting in
57​ GEORGIA Country Report​ February 2021 ​ ​www.intellinews.com