Page 47 - GEORptSep19

(EBRD). The production of high-quality milk in Georgia more than doubled between 2015 and 2018, the fifth dairy congress in Tbilisi announced earlier this year.
The goals of the project are to increase agricultural productivity and expand trade among more than 54,000 direct programme participants, primarily along the East-West Highway corridor.
By reducing losses and boosting productivity, the project aims to help Georgian farmers access additional markets for dairy and beef products.
9.1.7 TMT sector news
The World Bank, in collaboration with the Georgian economy ministry, will develop a National Innovation Ecosystem in the country in order to foster the digital economy and innovative start-ups. The World Bank will finance the project, which is estimated to cost $40mn. Countries in the South Caucasus, including Georgia, have been seeking to develop their value-added sectors, such as information technology, in recent years. Armenia is a leader in this sector in the region, with IT and technology accounting for 5% of GDP, and a sizable qualified workforce that has attracted the likes of Microsoft to open up innovation centres in the country. Meanwhile, Azerbaijan has been working on digitising its public services and installing fibre-optic Internet connections across the country. Following in their footsteps, Georgia is also working on Internet connectivity and promoting tech start-ups. The project will comprise four parts, namely the development of an innovation infrastructure through the creation of a network of innovation hubs in selected cities and town; the provision of innovation services; ensuring financing through technical assistance and matching grants; and project implementation support.
9.1.8 Renewable energy sector news
Over 89,000 people have signed a petition urging international development banks not to finance the Nenskra hydropower plant project in Svaneti, Georgia, said a statement from NGO Bankwatch.
Plans to build a 280 MW hydropower plant with a 125m high dam in a river valley in Svaneti have met with strong resistance from environmental groups both in Georgia and outside. Similar campaigns have been mounted elsewhere in the South Caucasus and Southeast Europe as efforts to develop hydropower resources in the two regions are stepped up.
Georgia is developing the Nenskra plant under a build-operate-transfer (BOT) arrangement with private investor Korea Water Resources Corporation, with financing from international development banks.
Representatives from the Stop Nenskra campaign delivered the petition to banks at the Asia Infrastructure Investment Bank (AIIB) annual meeting on July 12. They appealed specifically to the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), which have approved approved loans for the Nenskra project worth $150mn and $214mn, though the final loan contracts have not been signed yet.
Opponents say the project threatens the environment and livelihood of local villagers, and claim it will considerable economic risks for the country.
Tbilisi Green Alternative, part of the Bankwatch association, claimed last month that Georgia’s government has committed to buy electricity generated by the Nenskra hydropower plant during its first 36 years of operation at a price that is on average double the current tariff for domestic electricity, and three times the price of electricity that Georgia exports. If this is borne out, it would
47 GEORGIA Country Report September 2019 www.intellinews.com