Page 20 - GEOGRptJun19

4.3 Fixed investment
Georgia -Fixed capital investment 2012 2013 2014 2015 2016 2017 1Q18 2Q18
Gross fixed investment capital formation (GEL mn)
3,936.1 3,540.5 4,260.5 3,951.7 4,358.8 4,481.7 989.6 1,304.6
Gross fixed capital formation (% of GDP)
28.8% 24.6% 29.5% 31.3% 32.4% 31.6% 31.1% 35.8%
Source: CEIC
EU extends almost €100mn to Georgia for economic development
Georgia is to receive almost €50mn from the EU within the Support for Skill Development financial agreement and around €48mn within the Economic Development and Business Support agreement, Georgian Prime Minister Mamuka Bakhtadze has announced, as quoted by Agenda.ge following a meeting with EU Commissioner for Trade Cecilia Malmstrom.
Both agreements were signed last year in Brussels.
Bakhtadze said that securing employment opportunities for the Georgian population was the main concern of his government. He added that vocational education was one highly effective way to meet this challenge.
“Accordingly, this project is directly related to the reform that we have announced in education... we will direct all our resources to make education the dominant sector of our economy”, said Bakhtadze.
As for the Economic Development and Business Support in Georgia agreement, its goal is to improve social and economic development in the regions of Georgia.
“The emphasis will be made in three directions—to faster solve commercial disputes, modernise financial infrastructure and support the process of the establishment of market-oriented and innovative business models”, said Bakhtadze.
The European Investment Bank (EIB) and the Georgian government signed a deal on a €250mn loan to finance infrastructure projects in Georgia on 19 February, Georgia Today reported . Georgian Prime Minister Mamuka Bakhtadze and vice-president of the EIB, Vazil Hudak, signed the deal in Tbilisi.
The money will be used for “vitally important” infrastructure projects, said the government of Georgia, such as the construction and renovation of the Rustavi-Red Bridge-Sadakhlo highway.
“Such highways significantly increase Georgia’s transit role,” stated Bakhtadze. “EIB is the financial instrument of the EU and our activities for Georgia confirm that you are part of Europe. The loan will provide opportunities for Georgia to come closer to the EU and use its geopolitical location to connect Europe with Asia,” said Hudak.
Bakhtadze said he considers the EIB an important partner in Georgia’s development. The new infrastructure projects should also create new jobs in Georgia.
EIB lends Georgia €250mn to improve infrastructure
20 GEORGIA Country Report June 2019 www.intellinews.com