Page 54 - GEORptDec20

the existing thermal power plants Gardabani 1 and Gardabani 2. It is scheduled to be commissioned in 2023. Gardabani 1 was built by Chalik Energy for $230mn.
The construction of Gardabani Thermal Power Plant 2 began in 2018, with the corporation investing $180mn. The station was completed in 2019 and in March this year market regulator GNERC issued its licence. The general contractor for the oil and gas corporation in the project was Chinese company China Tianchen Engineering Corporation (TCC).
9.1.12 ​Utilities sector news
Georgia obtains ADB water supply, sanitation loans
The Asian Development Bank (ADB) has approved $150mn in euro-equivalent loans to improve water supply and sanitation services in Georgia and help the government craft an integrated approach to the development of the sector.
Under the Sustainable Water Supply and Sanitation Sector Development Program, ADB will provide a $130mn policy-based loan and a $20mn project loan.
The loan will strengthen the capacity of local governments and the United Water Supply Company of Georgia (UWSCG), a state-owned enterprise, to enable them to adequately meet demand in urban and rural areas.
Water supply consistency in Georgia ranges from four hours to 24 hours per day, posing a significant health risk during the ongoing coronavirus disease (COVID-19) pandemic. About 92% of urban and 64% of rural residents receive piped water, while 84% of urban and 20% of rural residents have access to sewerage systems. Only 36% of the total population benefit from wastewater treatment.
9.2 ​Major corporate news 9.2.1 ​Transport corporate news
Fitch affirms rating of Georgian Railway with negative outlook
Fitch Ratings has affirmed JSC Georgian Railway's (GR) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at BB- with negative outlooks.
Among the factors that could, individually or collectively, lead to a negative rating action/downgrade for GR, were, according to Fitch, a downgrade of Georgia's sovereign rating; dilution of linkage with the sovereign, resulting in the ratings being further notched down from the sovereign's, and a downward reassessment of the company's Standalone Credit Profile (SCP), resulting from a deterioration of the financial profile with net debt/EBITDA sustainably above 9x as per the rating case.
Georgian Railway issued, in May 2012, $500mn worth of 10-year bonds denominated in US dollars and carrying a 7.75% coupon. The bonds mature in November 2022.
According to Fitch, key assumptions for the ratings case were operating revenue growth on average at 3.9% in 2020-2024 and operating expenditures growth on average at 4.9% in 2020-2024.
According to Fitch, GR receives mostly non-cash and indirect state support. “Historically, support of GR's long-term development has been via state policy incentives and asset allocations. GR enjoys greater pricing power than its Fitch-rated regional peers. GR's tariffs are fully deregulated, allowing tariffs in both freight and passenger segments to be adjusted to market conditions.
54​ GEORGIA Country Report ​December 2020 ​ ​www.intellinews.com