Page 24 - bne IntelliNews Georgia country report November 2017

6.1.1 Budget dynamics - funding, privatization
EIB lends Georgia €250mn for road rehabilitation
World Bank lends Georgia €47.2mn to improve public administration
The European Investment Bank (EIB) will lend €250mn to Georgia to restore road infrastructure, the multilateral lender said in a press release on July 13.
The EIB has signed a loan agreement with the Georgian government, represented by Finance Minister Dmitri Kumsishvili, to that effect. The loan represents the second and last tranche of a €500mn framework loan aimed at rehabilitating some 253 kilometres of primary and secondary roads between 2017 and 2020. The project will improve road safety and connectivity in Georgia and the South Caucasus, given that Georgia's East West Highway is part of the Trans-European Transport Network.
Furthermore, the EIB will increase its funding to rehabilitate one of the largest hydropower plants in the world, the Vardnili-Enguri cascade, by €3.5mn to a total of €23.5mn, the lender said.
After the signing ceremony, Kumsishvili said: “The financial and technical support that we receive from Europe on a daily basis is very important for us. All these steps should ultimately be directed towards rapid completion of infrastructure development in our country that will strengthen Georgia’s transit potential and simplify transportation inside the country.”
The EIB has worked with Georgia for over a decade, during which time it has financed projects worth €1.5bn, many of them in infrastructure and urban development.
The World Bank and Georgian government signed an agreement for a €47.2mn loan on May 3 to support Georgia's economic reform programme, agenda.ge reported on May 4.
The agreement came after the bank's board of directors approved a second Inclusive Growth Programmatic Development Policy Operation package for Georgia. The package is to assist Georgia in improving its budgeting and fiscal oversight of public institutions, as well as the quality of social services for citizens.
The World Bank and its subsidiary institutions like the International Bank for Reconstruction and Development have lent Georgia over $1.5bn to date.
The public administration in Tbilisi is currently undergoing an overhaul to streamline operations and reduce inefficiencies. Georgia Today has reported that the overhaul resulted in the dismissal of 2,300 public employees between January and May. The majority were employees of the defence ministry.
The local administrations in several Georgian cities like Kutaisi, Batumi and Zugdidi, are also working on reforming their public administration.
24 GEORGIA Country Report November 2017 www.intellinews.com