Page 22 - GEORptOct21

4.3 Fixed investment
World Bank lends
€85mn to help Georgia SMEs with post crisis recovery
About 6,000 micro, small and medium sized enterprises (MSMEs) in Georgia impacted by the coronavirus crisis are to benefit from €85mn in financing support approved on May 12 by the World Bank’s board of executive directors.
The new Relief and Recovery for Micro, Small and Medium Sized Enterprises project aims to assist crisis-impacted businesses, create jobs by expanding and strengthening programmes that support MSMEs and promote the digitalisation of Georgia’s economy.
The project is designed to alleviate the financial constraints of firms and help them in adjusting their business to a post-COVID-19 scenario. One project component will strengthen and expand MSME support programmes implemented by Enterprise Georgia (EG). The direct support for micro and small firms will come in the form of grants offered by EG’s micro and small entrepreneurship support programme.
Small and medium sized enterprises, on the other hand, will be eligible for support through the co-financing of interest payments under EG’s Produce in Georgia programme, which will reduce their borrowing costs and address immediate liquidity constraints.
The European Investment Bank (EIB) is to support three infrastructure projects in Georgia as part of its $3.7bn COVID-19 Worldwide Support programme.
The first project is the construction of the Algeti-Sadakhlo road, of around 30 kilometres). It will connect a transit corridor of the E-60 Highway to the Armenian border.
The second project is Rustavi Red Bridge, connecting Georgia to Azerbaijan. It forms part of the E-60 highway and the extended Trans-European Transport Network (TEN-T) core network in Georgia.
Finally, EIB will finance the development of a new fibre optic network providing broadband internet access to more than 1,000 remote rural villages across the country.
Business investment, renewable energy and upgrading hospitals, schools, internet services and urban infrastructure will be accelerated by the new financing approved on March 11 by the EIB.
EIB backs three major infrastructure projects in Georgia
22 GEORGIA Country Report October 2021 www.intellinews.com