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ADB Signed USD 48 Million Loan Agreement to Boost Regional Power Transmission in Georgia

Published: March 21, 2013 | 3:02 pm
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(CNA)-Xiaoyu Zhao, Vice-President of Asian development Bank (ADB) visits Georgia. On March 21 Zhao met with Nodar Khaduri, Minister of Finance of Georgia/Vice Chair of ADB and Kakha Kaladze, Minister of Energy and Natural Resources of Georgia. During the meeting held at the Ministry of Finance of Georgia, the sides discussed the successful progress of cooperation with ADB.

In the frame of the visit was signed an agreement between Khaduri and Zhao regarding USD 48 million allocation for Regional Power Transmission in Georgia. The project will be completed by 2016.

The aim of the project is to build and upgrade power substations to boost Georgia’s ability to export electricity and support growing regional trade in power in the Caucasus.

The loan, from ADB’s Asian Development Fund, will rehabilitate several substations by installing modern digital control and relay protection systems designed to improve energy management and power dispatch. This is ADB’s first loan to Georgia in the power sector. In addition, a new 220/110 kilo-volt substation at Khorga will be constructed.

“Georgia has been cooperating with ADB successfully. We participate in a number of infrastructure, road and water supply projects and have a big interest in energy sector as well, which is one of the top priorities for us. The financial resources allocated due this new agreement is meant for the rehabilitation and construction of important energy projects,” declared the Minister of Finance of Georgia/Vice Chair of ADB.

“The project that we signed today will help Georgia’s development. I believe in the power of Georgian government. I’m confident this will be another successful project confirming again Georgian government’s good-performance and usage of the funding allocated by international financial institutions,” stated Vice-President of ADB.

“The project is very important for our country’s energy-development and energy-safety. With the funding allocated we’ll build Khorga-Jvari substation, the money will also be spent in various energy projects that are important for the region,” noted the Minister of Energy and Natural Resources of Georgia.

Georgia has been cooperating with ADB since 2007. Till now ADB has allocated USD 865 million financial resources for different projects in Georgia, out of which USD 250 million is budget supported. Total value of the ongoing projects is around USD 578.5 million.

 

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