Page 46 - GEORptMay20
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9.1.2 Transport sector news
EBRD considers loan of up to €60mn to help upgrade Tbilisi subway
Georgia’s economy minister Natia Turnava, attending the Belarus-Georgia Intergovernmental Commission on Economic Cooperation in Minsk, announced that Tbilisi has offered the Belarusian government the opportunity to implement joint projects in Georgian ports and free economic zones.
Officials of Belarus, a landlocked country with no access to either the Baltic Sea or Black Sea, confirmed their interest in fostering trade cooperation with Georgia as a regional hub.
Belarus, squeezed between limited sanctions imposed by the European Union given its lack of political freedom and Russia, with which it is struggling to negotiate a new oil and gas deal, has an authoritarian regime that may be seeking alternatives for trade and, possibly, also energy imports. For their part, Georgian authorities have just terminated the contract for the development of their country's flagship economic project, Anaklia deep sea port, for which a new partner is sought, while the ruling Georgian Dream party of Bidzina Ivanishvili is increasingly under fire f rom Western development partners for the lack of political freedom in Georgia.
“We propose to the Belarusian side discussing the construction of joint warehouses, terminals and logistics hubs in our ports, which are of great interest. This will further intensify our trade and transport relations," Turnava said.
Earlier this year, the government of Georgia dropped the contract for Anaklia port sealed in 2016 with a consortium headed by one of Ivanishvili’s main political rivals.
"It is important that Belarus is able to diversify its transport routes and use the Black Sea route, to use the Georgian ports, which are developing very intensively, and to use the improved transport infrastructure that Georgia offers to the countries of the region,” Turnava said.
Prime Minister of Belarus Sergey Rumas confirmed his country’s interest in economic cooperation with Georgia.
"Belarus is interested in delivering Belarusian goods to third countries through Georgia or vice-versa, importing merchandise via the Black Sea, in particular with use of the port infrastructure," -said Rumas after the meeting.
The board of the European Bank for Reconstruction and Development (EBRD) is to consider a financing contribution of up to €60mn that would be invested in upgrading the Tbilisi subway.
Loan proceeds for the benefit of the Tbilisi Transport Company would be used to finance objectives including a renewal of rolling stock. The investment would improve the reliability, safety and efficiency of public transport in the Georgian capital through the acquisition of approximately 40 modern metro cars (10 train sets), the EBRD said in a project review. “The project is part of a broader programme aiming to assist the city in reforming its management of public transport by financing the renewal of bus and metro systems and network restructuring,” the bank added.
The EBRD board will consider whether to go ahead with the loan in April.
The project is part of Green Cities 2 (GrCF2) and a follow-on investment to the Tbilisi Green City Action Plan (GCAP).
GrCF2's primary goal is to achieve significant environmental improvements and promote the green transition quality within relevant cities.
46 GEORGIA Country Report May 2020 www.intellinews.com
