Page 61 - GEORptJun22

ADB approves $100mn electricity transmission loan for Georgia
energy security.”
Lasha Khutsishvili, Minister of Finance for Georgia, explained how the project was supporting the country’s transition to a green economy. “Our agenda to transition to a green economy remains a priority and is fully aligned with the ‘Green Investment in Buildings (GRIB) Georgia’ project, helping to build more resilient and efficient infrastructure while improving the learning environment for students in Georgia.
“In addition, it will support the government’s capacity to incorporate energy efficiency aspects into building construction and operations and increased private sector participation. The EU, EBRD and KfW are important partners of Georgia, in terms of both financial cooperation and deepening relations with Europe. We appreciate their role in helping Georgia overcome recent challenges and for ensuring that they are responsive to our priority needs.” Mzia Giorgobiani, Deputy Minister of Regional Development and Infrastructure (MRDI), echoed these comments. “Energy efficiency is an important component in the construction and rehabilitation of public buildings. This approach is beneficial for the environment, and so the MRDI, with the support of the EU and the financial institutions, aims to implement numerous environmentally friendly projects.”
The Asian Development Bank (ADB) announced on September 21 the approval of a $100mn policy-based loan to support Georgia’s electricity transmission sector.
The financial backing is intended for “improving the operational structure, corporate governance, and financial management of the country’s electricity transmission company and its subsidiary.”
The loan, part of the Electricity Transmission Sector Reforms Program, aims to support the Joint-Stock Company Georgian State Electrosystem (GSE) and its subsidiary EnergoTrans to reduce their dependency on government funding and external borrowing.
The disbursement comes some three weeks after the government of Georgia preemptively refused a EUR 75mn loan on “highly favorable” terms from the EU, citing its wish to reduce foreign debt and avoid “political insinuations.” The 27-member bloc tied the disbursement of the loan, supposed to help Georgia cover its immediate financing needs that have increased due to the coronavirus outbreak, to judiciary reform. The EU said after the government’s refusal that Georgia failed to meet the condition and would not be eligible for the loan anyway.
9.1.13 Defence sector news
Georgia and US move towards defence cooperation agreement
Georgia and the US have signed an agreement on the shape of the countries’ future security co-operation agreement.
The bilateral concept document on the Georgia Defence and Deterrence Enhancement Initiative (GDDEI) was signed on May 20 during the annual US-Georgia bilateral defence consultations in Tbilisi by First Deputy Georgian Defence Minister Lela Chikovani and Laura Cooper, the US Deputy Assistant Secretary of Defense for Russia, Ukraine, and Eurasia, reported civil.ge.
“By signing this document today, what we are doing is making a concrete plan to be able to deepen our bilateral relationship and really, greatly enhance the capabilities of the Georgian defence forces to bring them to a new level of excellence,” Cooper said.
She also dubbed the GDDEI itself a “watershed moment for the US and Georgia”.
61 GEORGIA Country Report June 2022 www.intellinews.com